The audiovisual sector is a significant component of the economy in terms of wealth creation and employment and audiovisual industries also play an important cultural role. This study reviews the main forces driving patterns of trade in audiovisual (mainly television and film) and identifies key issues that may potentially impact on trade liberalization and open markets. It analyzes economic aspects of the audiovisual sector and how these influence patterns of international trade. The report also examines the regulatory environment, including frameworks for transnational coordination of copyright. Cultural issues that may affect trade in audiovisual goods and services are considered. The study concludes with reflections on how open markets can be reconciled with cultural objectives which are an intrinsic aspect of the audiovisual sector.