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GOVERNMENT TO APPEAL MAGAZINE RULING

Last week, the federal government announced it will appeal the World Trade Organization's ruling that called for Canada to stop blocking the publication of U.S. split-run magazines. Split-run magazines use editorial content already developed for U.S. editions and then bring the magazine to Canada where they sell advertising space. Because the content of the magazine has already been paid for by U.S. advertisers, the magazines can sell the advertising space in Canadian split-run editions at cut-rate prices. Ottawa had attempted to block the split-runs by imposing an 80% tax on the advertising in U.S. magazines' Canadian editions. The WTO ruled that the tax violated international trade agreements.

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