The Daily, Wednesday, June 20, 2001. International trade in cultural goods and services

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International trade in cultural goods and services

Canada's trade deficit in cultural goods and services declined for the first time in five years in 2000, as the growth rate in exports far exceeded the growth in imports.

The nation sold almost $4.5 billion worth of cultural products to the world last year, up 8.1% from 1999. However, imports rose only 1.7% to $7.5 billion.

This resulted in a trade deficit of just over $3.0 billion, down substantially from the peak of nearly $3.3 billion in 1999. Prior to this decline, the deficit had been growing steadily during the decade.

Between 1996 and 2000, imports of cultural commodities and services increased 22.7%, while exports went up 38.4%. As a point of comparison, total merchandise trade prices, for both exports and imports, rose only 11% over the same period.

Canada's bookstores, newstands, record shops, cinemas and television programming testify to the nation's position as one of the biggest importers and consumers of cultural products in the world. However, during the past decade, the Canadian cultural sector, in particular the film and video production sector, has made substantial inroads into foreign markets.

The United States is Canada's foremost trading partner, both for imports and exports. In 2000, the United States received a substantial 94% of Canada's culture commodity exports, worth $2.2 billion. At the same time, it accounted for 83% of Canada's cultural commodity imports, worth $3.9 billion.

Export activities play a crucial role in cultural employment, sustaining an estimated 5% to 10% of culture jobs in Canada. The sectors most influenced by export-based employment in 1997/98 were the film and video production sector, which accounted for 38% of all jobs, and post-production and laboratory services, accounting for 41% of all jobs.

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