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On July 14, GMF Transatlantic Fellow Áurea María Roldán Martín convened a roundtable discussion on “Cultural Diversity and Trade” in Washington, DC, to mark the culmination of her research on the global exchange of cultural goods and services.  The event featured two leading thinkers on the subject — James C. Early of the Smithsonian Institution and George Mason University Professor Tyler Cowen — and addressed an audience of academics and policymakers from the Office of the United States Trade Representative, the State Department, and the European Commission. Ms. Roldán Martín opened the discussion by noting that on cultural trade the global North and South are not pitted against one another as with other trade matters.  Instead, she said, the debate lies between the United States in one corner and in the other developed and developing countries that fear American cultural influence abroad. Mr. Cowen began his remarks with praise for the World Trade Organization for promoting cultural diversity rather than eroding it, as protectionist countries like France and Canada often claim.  The WTO framework, he said, supports not only the exchange of money but also the free flow of ideas and technology — and not just from the United States.  As an example, he proposed that Hollywood would eventually become the next Detroit as the entertainment industry spreads across the globe and encompasses multiple point of origin. On the topic of cultural preservation, Mr. Cowen suggested that the bilateral treaties and cultural exception rules allowed under the WTO remain the best mechanisms for safeguarding local culture from outside influence.  While recognizing limits to the WTO’s effectiveness, he maintained that the free trading organization fares far better than UNESCO’s politically embroiled Convention on Cultural Diversity.  The UNESCO solution, which would allow states to bring suits against one another for cultural infringement, lacks teeth in resolving disputes and promoting the free flow of ideas and cultural products. Speaking in support of the UNESCO-based model, Mr. Early criticized the WTO for its tendency to commodify culture.  He urged the audience to abandon this market framework and said trade agreements should incorporate compromises and other deliberate mechanisms to help countries preserve their local culture.  Mr. Early also called on the United States to work with other nations under the auspices of international organizations like UNESCO to address common concerns in this debate. Áurea María Roldán Martín was a Transatlantic Fellow with the German Marshall Fund from April to July of 2005.