AFTE Spotlight on Enforcement # 7

AFTE Spotlight on Enforcement # 7

Did you know that Mexican legislators may soon fast-track a protectionist audiovisual bill that would violate Mexico’s USMCA commitments?

Mexico is a significant and growing market for U.S. film and television creators, who are on track in 2021 to launch new digital platforms and ramp up theatrical releases.

However, Senator Monreal’s new cinematographic and audiovisual bill contains protectionist proposals that would violate USMCA provisions for services, investment, and digital products by:

  • Imposing a local content quota of 15% in movie theaters;
  • Installing a range of theatrical restrictions intended to limit U.S. film exports and grant market-distorting preferences to local films;
  • Forcing a 15% local content quota for OTT/online platforms.

This bill, if implemented, would unfairly restrict U.S. exports that support hundreds of thousands of U.S. jobs, in flagrant violation of USMCA. Instead, Mexican policymakers should encourage open markets, investments, and collaborations as U.S. and Mexican industries work together to overcome the COVID-19 pandemic.

Well, now you know.