CCA Bulletin 11/09

April 7, 2009

Canadian Cultural Exports: A Growing Success Worth Investing In

Just the Facts

According to the latest data available, Canada has gone from a small cultural trade deficit in 1997 to a modest surplus ten years later. Statistics Canada has recently released data on Canadian cultural imports and exports for the period of 1997 – 2006. The data examine imports and exports for Canada’s top twenty trading partners.

The numbers reveal a relative success story for the arts and culture sector with exports doubling from $1.5 billion in 1997 to $3 billion in 2006. Interestingly enough, growth in imports of cultural goods and services for the same period went from $1.5 billion in 1997 to $2.8 billion in 2006. This more modest rate of growth could however be largely due to the re-evaluation of the Canadian dollar over the period, which makes imports cheaper. That being said, taken together these figures represent a small cultural trade surplus for Canada in 2006.

By using this data as evidence, it is clear that the promotion of Canadian cultural goods and services internationally is a winner for the economy and represents an important source of revenue for arts and cultural enterprises. This data also reflects Canada’s position as an ideal location for shooting audiovisual productions. Perhaps these data will help convince the federal government to design a new strategy to promote the development of audiences and markets abroad for Canadian cultural goods and services.

Exports to the United States and United Kingdom lead the growth in Canadian exports within Canada’s top twenty trading partners. Unfortunately, the data reveal that France, Germany, Italy, China and Switzerland reduced their imports of Canadian cultural goods and services over the same period. The “rest of the world” contributed a growth of our cultural exports from $141.8 million to $625.7 million.

The sectors that contributed to the growth of Canadian exports include film production and distribution, provision of services to cultural enterprises, and copyright and royalty revenues. In the first category, the notion of “exports” covers American movie productions done in Canada.

The sore spot concerns the broadcast industry where, in contrast, the export of broadcasting materials remained quite dismal during this period. At the same time, the import of broadcasting materials grew from $227 million in 1997 to $614 million in 2006.

More alarmingly, we now know from the CRTC that Canada’s private broadcasters spent a record $775.2 million in 2007-2008 (up 7.4% from $721.9 million in 2006-2007) on foreign programming, principally on U.S drama., and only $88.3 million on the production of Canadian TV.

Tell Me More

The Statistics Canada data neither reflect the changes in federal support for the promotion of Canadian artists, creators and cultural enterprises nor do the data include the purchase of more American content by Canadian broadcasters (including the CBC).  Interestingly enough, Canadian television productions have been selling well around the world in recent years with Flashpoint, The Border, The Listener, Howie Do It,  Little Mosque on the Prairie, Corner Gas and Degrassi as just a few examples.

In addition, the continuing success of Canadian authors is not adequately reflected in the break-down of the type of services included in the data. This is due to the use of the international data classification system which is intended to facilitate international comparisons.

Nonetheless, the significant growth in exports to the United States and the United Kingdom is impressive indication that foreign markets are responsive to the quality and range of Canadian cultural products and services.

The data provide a compelling argument for the development of a new strategy for the promotion of Canadian cultural goods and services on the world stage. Will Canada be the only member of the G-20 to sit out the burgeoning worldwide market for content in all of its formats? This is a question only our leaders will be able to answer. Let us be sure that they are asked the question at every turn until a new strategy emerges.

The data discussed here will be available on Statistics Canada website in May 2009. Until then, please go here to request a copy of the data.

What Can I Do?

Write or email your Member of Parliament, the Minister of Canadian Heritage, the Hon. James Moore and members of the Standing Committee on Canadian Heritage and ask them when we can expect a revamped strategy for the international promotion of Canadian artists, creators and cultural goods and services.

The President of the CCA has sent to the Minister of Canadian Heritage a letter on this topic. Please send a copy of your letter to the CCA c/o Jessica.Litwin@ccarts.ca.