The culture and trade quandary, that characterized most of the 20th century and even previous centuries, was set to continue into the 21st century. As in former times, the quandary was manifested in a debate addressing the uncertainty about the nature and regulation of various cultural goods and services, such as cinematograph films, television programmes, video and sound recordings and publications. These categories of products, which are continuously being expanded by innovations and advances in digital and other technologies, generally fall under the rubric of cultural industries. It is the dual, i.e. cultural and economic, nature intrinsic to these cultural products that raises diffi cult questions about the mutual relationship between cultural and trade policies. Their special dual nature also evinced problems related to the institutional competence and the general fragmentation of international law in dealing with these products. In the run-up to the Convention on the Diversity of Cultural Expressions, it was discussed whether the WTO or UNESCO should be in charge of dealing with the issue of cultural diversity in the context of global trade liberalization.