What is l'exception culturelle?

Examining the idea of French exceptionalism is important when studying arts administration, especially in regards to what is known as l'exception culturelle. Some historians, such as William Kidd and Sian Reynolds, editors of the book Contemporary French Cultural Studies, point out that France views its culture as an inheritance to be protected, nourished and promoted both within the country and around the world. There are two components of this view: on one hand, aspects of French cultural heritage - philosophy, literature, painting, sculpture, music, cuisine, fashion - are highly developed expressions of French identity. The refined, universally respected French cultural products within each field are emblematic of authenticity and influence. They are part of the French cultural legacy and should be studied, discussed and replicated within France and offered to all of humanity.
On the other hand, there is a defensive reaction to foreign cultural products: they are seen as invading, influencing or contaminating the French cultural landscape. Examples include domination of U.S. films, television and music in the international commercial sector. Add to this the ongoing discussions concerning what constitutes French cultural identity. There is an increasing openness to influence from other francophone countries, especially in African music and cinema, along with a willingness to reconsider what it means to be French. We can observe a confluence of these driving forces - promoting French culture at home and abroad, defending French culture from invaders like the U.S. commercial products, and evolving notions of French identity - in the formulation of l'exception culturelle.
The international negotiations in 1993 involving the World Trade Association (WTO) and the General Agreement on Trade and Tariffs (GATT) included European Union countries and the United States. France argued that cultural products and services were not the same as other commodities such as wheat or oil, and that there should be an exception for culture (initially cinema and television products) concerning tariffs and trade restrictions. Within the context of a number of powerful, economically engaged countries laying out agreements for free trade, France was arguing for an exception: they wanted trade restrictions for cultural products. The goal initially was to protect France's film and television industries from being overwhelmed by foreign (e.g. American) products. The French cinema industry was - and is - highly subsidized by the government, and the amount of French programming in theatres and television has been highly regulated via quotas to provide production opportunities for French media workers and adequate distribution of French products.
Ultimately France was successful in persuading other EU countries and the cultural exception was adopted-- it was left out of the GATT agreement, but EU countries were allowed to impose tariffs on foreign cultural products. Over time, the interpretation of l'exception culturelle has been transformed into one that stresses cultural diversity. By protecting any country's cultural production via quotas and trade restrictions, a greater variety of cultures will be protected and allowed to thrive in their home environment. By resisting the domination of one country's cultural products (for example the U.S. film industry) over all others, more and different forms of culture will be able to flourish.
Yet another interpretation of l'exception culturelle says that, unlike other products, cultural products should not be taxed and should be publicly supported via subsidies. The justification is that cultural products are part of a public exchange that contributes to the collective wealth, benefiting all citizens.
There are a number of criticisms directed at the idea of the l'exception culturelle: that French culture doesn't live (and won't survive) in a vacuum; that exposure to foreign cultural products can't damage or reduce French culture; or that globalization poses no threat to countries whose culture is not in decline.