Arts Research Monitor - Vol. 8 No. 8 January 2010 ISSN 1708-170X

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Culture and International Trade
In this issue: a focus on culture and international trade, including Hill Strategies’ analysis of data from Statistics Canada on international trade in culture goods and services as well as a guide aimed at assisting Canadians export their cultural products and services.

Culture Goods Trade (2008)

Statistics Canada, October 13, 2009
http://www.statcan.gc.ca/pub/87-007-x/87-007-x2009001-eng.htm

Statistics Canada provides raw data annually on trade in culture goods and services. There are separate data tables for culture goods and culture services. The most recent culture goods trade tables, providing data from 2008, were released in October 2009. Hill Strategies Research has analyzed this raw data for this issue of the Arts Research Monitor.

Statistics Canada’s definition of culture goods includes “books, magazines, newspapers, postcards, calendars, films, videos, digital videodiscs (DVDs), sheet music, compact discs (CDs), cassettes, vinyl long-playing phonograph records (LPs), paintings (original and reproductions), photographs, sculptures, ornaments and figurines, architectural plans, designs and drawings, advertising materials, museum exhibits, coin and stamp collections, and antiques. Unrecorded media, such as blank CDs, are not included.”

In 2008, total exports of culture goods amounted to $1.7 billion, a deficit of $2.4 billion when compared with the $4.1 billion in imports in that year. While there has been a large trade deficit in culture goods since 2000, this is the largest deficit during the period. In fact, the culture goods deficit is 45% higher than in 2000.

Most of the increase in the culture goods deficit has come since 2005, when it stood at $1.7 billion. Most of this increase was due to lower exports: exports decreased by $664 million (or 28%) between 2005 and 2008. During the same period, culture goods imports increased by 1%. (These figures have not been adjusted for inflation.)

Since 2005, there has been a sharp decrease in the trade surplus for advertising, which has contributed to the overall increase in the culture goods deficit. There has also been a sharp increase in the trade deficit for newspapers and periodicals, other printed materials, and video.

Among culture goods sectors, the largest exports in 2008 were in publishing ($628 million, including books, newspapers and periodicals, and other printed materials). Despite the relatively high level of exports, imports of published goods ($2.9 billion in 2008) were much higher than exports. The second-largest export area was film and video ($506 million). Film and video imports ($327 million) were lower than the level of exports. (Film production and distribution services are excluded from this data but are captured in separate culture services data.) Exports of original Canadian works of visual art totalled $74 million, while imports of original foreign works equalled $177 million in 2008.

Culture goods trade with the United States represents 80% of total culture goods trade, including 89% of exports and 75% of imports. In 2008, Canada had a culture goods trade deficit with the United States of $1.5 billion.

Although far behind the U.S., China is Canada’s second-largest culture goods trading partner. China represents 6% of total culture goods trade. Trade with China accounts for 8% of imports but only 1% of exports, resulting in a large culture goods trade deficit with China ($330 million). France and the United Kingdom each account for 3% of total culture goods trade, while Germany represents 1% culture goods trade. Canada has a culture goods trade deficit with all of these countries.


Culture Services Trade (2006)

Statistics Canada, May 7, 2009
http://www.statcan.gc.ca/pub/87-213-x/87-213-x2009000-eng.htm

Statistics Canada provides raw data annually on trade in culture goods and services. There are separate data tables for culture goods and culture services. The most recent culture services trade tables, providing data from 2006, have been analyzed by Hill Strategies Research for this issue of the Arts Research Monitor.

In 2006, total exports of culture services amounted to $3.0 billion, slightly higher than the $2.8 billion in imports in that year. This was the second year in a row where Canada had a trade surplus in culture services.

Culture services with a substantial trade surplus include film and video services ($756 million surplus) and advertising services ($235 million). Two other sectors had very small surpluses: design ($42 million) and architecture services ($29 million). There are substantial trade deficits in broadcasting ($460 million) and sound recording and music publishing services ($136 million).

Between 1997 and 2006, culture services exports doubled, with film and video services accounting for a large portion of the growth. During the same timeframe, culture services imports increased by 76%. (These figures have not been adjusted for inflation.)

Trade with the United States represents three-quarters of total culture services trade, including 67% of exports and 88% of imports. In 2006, Canada had a culture services trade deficit with the United States of $429 million. Trade with the European Union represents 10% of total culture services trade. In 2006, Canada had a culture services trade surplus of $133 million with the European Union. Trade with the rest of the world represents 13% of total culture services trade. In 2006, Canada had a culture services trade surplus of $536 million with the rest of the world.

In 2006, the most recent year for which data is available for both goods and services, total trade in culture goods and services was $11.8 billion. This includes $5.1 billion in exports and $6.7 billion in imports. The trade deficit was $1.6 billion in 2006. Canada exported more culture services than goods in 2006 but imported more culture goods than services.

The Art of Export Marketing of Cultural Products and Services

Cultural Human Resources Council, 2009
http://www.culturalhrc.ca/em/index-e.asp

Intended as a guide for artists and cultural workers in developing and managing international marketing of cultural goods and services, this site gathers resources, tips and pitfalls in reaching international buyers and audiences. The guide was initially developed in 2002 and updated in 2009.

The guide outlines steps required to become export-ready, including selecting a target market, researching export markets and issues, developing an export plan and a marketing strategy, ensuring appropriate financing, negotiating contracts and agreements, managing projects, and cultivating relationships.

The guide provides tips and pitfalls for the cultural sector as a whole and for specific disciplines. Among the tips:
- Know about and consult with experts who are there to help.
- “Plan on spending 10 to 15% of your budget on marketing and promotion. Apply the same aesthetic to your marketing as you do to your art.”
- Do not charge the GST to international clients.
- “Know about the ATA Carnet – an international, unified customs document....”
- Be aware of regulatory and logistical issues.
- Analyze risk factors for your export activities.
The guide also provides a list of festivals and tradeshows by discipline in Canada and abroad.

A companion document (available in the “Workshops” section) provides an annotated list of key Canadian export resources, including:
- CanadExport, a newsletter that offers “news and advice on trade, export and investment opportunities”;
- Business Women in International Trade, which provides “support networks and multiple resources geared to help Canadian business women prepare and succeed in the competitive export marketplace”;
- Export financing, such as BDC (Business Development Bank of Canada) and Export Development Canada;
- Market entry assistance;
- Regional development agencies; and
- Provincial business and export organizations.

Also provided is information about resources more specifically related to the cultural sector, such as:
- Canadian Cultural Representatives abroad;
- The CHRC’s own skills development guide (Competency Chart and Profile for Export Marketing of Cultural Products and Services); and
- Intellectual property and copyright protection.