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Trade Update: Canada Implements Fair Pay For Radio Play & U.K. Negotiations Begin
Good News for Creators… on April 24, U.S. officials announced that the new United States-Mexico-Canada Agreement (USMCA) would enter into force on July 1. Following that announcement, in accordance with the USMCA, Canada agreed to implement national treatment obligations for performance royalties, scoring a huge win for American music creators.
The U.S. still lacks a domestic performance right for sound recordings on terrestrial radio, leaving the hard-working musicians and performers unpaid for the use of their work on the radio, a problem the Ask Musicians for Music AM-FM Act hopes to correct. However, nearly every other industrialized nation in the world does recognize a performance right, and American artists should be able to collect their royalties from our international trading partners.
By including national treatment provisions in the USMCA, music creators will now be fairly compensated for their work across borders, although Mexico’s implementation process has been delayed given that its Congress is not currently in session due to the COVID-19 pandemic.
The U.S. has also begun trade discussions with the United Kingdom.On May 5, UK International Trade Secretary Liz Truss and US Trade Representative (USTR) Robert Lighthizer announced the formal launch of trade agreement negotiations between the two nations.
The long-anticipated trade negotiation, which will impact the economic prosperity of American creators overseas, began its first round of virtual discussions last Wednesday, May 6. Along with other members of the copyright community, the Recording Academy signed a letter earlier this year stating our priorities for the eventually US-UK free trade agreement, including national treatment for radio royalties paid to artists.
The letter represents creators from many walks of life and outlines the great value their work brings to culture and commerce, urging negotiators to give copyright holders due consideration in the talks ahead. We will keep you closely posted here and in our GRAMMY Advocacy Twitter feed.