Based upon prior year statistics published in the 2001 U.S.
Dept. of Commerce report on Runaway Film & TV Production

Billions of U.S. dollars are being spent each year on Motion Picture and Television production in the 19 foreign countries that offer WTO inconsistent subsidy programs. This is Outsourcing on a massive level and has become known to the film industry as “Runaway Production.” Outsourcing or Runaway Production means that work previously done in this country is now being done by other countries who offer generous bribes to the 6 major American studios. The impact of this on the U.S. economy is far-reaching. The direct costs are obvious, such as salaries for crew, rental of production equipment, purchase of props and sets, etc.  However, the impact widens greatly when it includes money spent on caterers and dry cleaners and super-markets and hardware stores and car rentals and hotels and location and permit fees paid to cities and communities all around the country.  It is estimated that the overall impact to the U.S. economy in the year 2005 will be

...drained out of the U.S. economy.

It is no small matter when $10 billion leaves the economy. Less money is spent at the stores in our communities, jobs are lost, fewer new cars are purchased, more companies go bankrupt, and more homes go into foreclosure... and on and on.

FTAC believes that American producers who make films and television programs intended for distribution here in the U.S. should be encouraged to spend their production dollars here in the US.

At this moment, 19 foreign countries are offering large monetary incentives to the Studio ... essentially offering a “kick-back” if they leave the U.S. to go shoot in their countries.

Each year, this tactic is eliminating over 15,000 jobs and costing the U.S. economy approximately 10 billion dollars... enough is enough.

The section 301a petition that we propose seeks to neutralize the effect of these unfair trade practices and would encourage film and television Studios and producers to return jobs and money back to the U.S. economy.

In addition, the 301a petition relies on the trade remedy known as the Section 301. This is the same trade remedy that the Motion Picture Association of America (MPAA) has endorsed and is currently using to fight the battle over piracy. Implementing this trade remedy will terminate the 19 subsidy programs, and finally put an end to a trend that threatens the job security of film workers and small businesses throughout the world.