Moroccan and other Third World cinemas operate in turbulent conditions and these cinemas, suffering from a scarcity of private and public capital, require supportive financial measures from the state or third-party public sources. UNESCO’s Convention on the Protection and Promotion of the Diversity of Cultural Expressions offers the possibility of encouraging support for cultural expression, yet free-trade initiatives, such as those put forward by the World Trade Organization, discourage such support. In this context, what is the likelihood that Moroccan and Third World filmmakers will be able to continue to produce films that will reach their own national and perhaps even international audiences? To explore these and related questions I first describe the critical situation in the Moroccan and Egyptian film sectors, with Egyptian cinema having lost much of its economic viability and international reach, while Moroccan cinema has displayed revitalized production but remains fragile in the areas of distribution and screening. This chapter then discusses the role of the state and international organizations, such as UNESCO and the World Trade Organization, with regard to promoting “the cultural exception,” and “cultural diversity,” addressing their strong points and weaknesses, and examines the prospects for Moroccan cinema in this context.