International trade in culture goods

2005

Canada's trade deficit in culture goods grew by 8.4% in 2005, the largest increase in six years, as exports fell for the second year, and imports rebounded to 2003 levels.

Imports of culture goods rose 2.7% to just over $4.0 billion, recovering from a 3.2% decline the year before. At the same time, exports decreased 1.0% to $2.4 billion on the heels of a 2.7% decline in 2004.

As a result, the nation's trade deficit in culture goods rose from $1.5 billion to nearly $1.7 billion, the largest deficit since 1999.

Trade in writing and published works were the largest contributors to the deficit. Last year, Canada imported $2.8 billion in writing and published works, and exported just under $900 million worth. Books and periodicals represented the largest proportion of trade in this category.

Visuals arts, the second largest contributor, accounted for about $247 million of the trade deficit in culture goods, despite the sector's strong export performance. The deficit in visual arts nearly doubled as a 35.3% surge in imports outpaced a 22.6% gain in exports.

The United States was still Canada's biggest trading partner by far, accounting for three-quarters of our imports as well as the vast majority (90%) of exports.

China solidified its hold on second place in terms of imports, accounting for 7% of the total. Most of Canada's imports from China were in the form of books and other visual art products, such as plastic statuettes.

China's share of Canada's exports was a marginal 0.5%, putting it at a distant fifth behind the United States, the United Kingdom, France and Germany.

Imports: A strong dollar boosts imports

Canada's imports of culture goods increased by $105 million in 2005, spurred on by a relatively strong Canadian dollar. Imports of culture goods have shown an overall increase since 1996, peaking at $4.07 billion in 2003.

An increased domestic demand for visual arts materials, particularly for original paintings, contributed the most to the overall increase in culture imports.

Imports of visual arts rose a significant $89.9 million last year, pushing up the category's total imports to $344.4 million. As a result, it accounted for 8.5% of imports last year, up from 6.5% in 2004.

Canadian companies imported $2.8 billion in writing and published works last year, the highest value of any sector. This category has historically dominated the import market in Canada, although in recent years its growth has slowed compared to other culture categories.

In 2005, imports of writing and published works represented about 70% of total culture goods imports, down from about 77% in 1997.

Exports: Strong dollar, high gas prices dampen demand overseas

Canada's export market for culture goods fell for the second consecutive year in 2005. Factors weakening demand included soaring gas prices and the strong loonie.

Gains in the export of film, visual art, and architecture were not strong enough to offset declines in writing and published works, sound recording and music publishing, as well as advertising.

Film and video producers reported a record high $675.2 million in export sales last year, up 4.7% from 2004. In 2005, exports of film and video products represented 28% of total exports.

Meanwhile, the writing and published works sector has been gradually losing ground to other culture categories, as the value of exports declined for three consecutive years. Exports peaked in 2002, at $969.6 million, representing about 39% of the total.

Trading partners: US still dominates import trade, but the share is shrinking

Canada's four top trading partners in culture goods, last year, were the United States, China, France and the United Kingdom.

The United States dominated Canada's import trade in culture goods. Imports from south of the border represented 76% of all culture goods imported into the country last year. However, this was a noticeable drop from 1996 when the United States accounted for 85% of total culture goods imports.

Last year, Canada imported $3.1 billion in culture goods from the United States, up 0.2%, while it exported $2.1 billion south of the border, a 3.8% decline. As a result, Canada's trade deficit with the United States widened slightly to $941.6 million.

Imports of books, newspapers and periodicals represented 75% of Canada's total culture imports from the United States, whereas film, advertising and books accounted for just over one-half (52%) of exports.

Exports of film and video to the United States have posted strong gains in the recent years compared to other culture products. The share of total exports of film and video increased to 28% in 2005, more than twice the share of 12% posted in 1998. This was offset, however, by a fall of 9 percentage points in the share of writing and published works exports over the same period.

China has made inroads into the Canadian market in recent years. Canadian companies imported nearly $278.0 million in culture goods from China in 2005, predominantly books and postcards.

Imports from France and the United Kingdom outpaced China in 2005, at annual growth rates of 21.9% and 6.2% respectively. Canadian imports from France surged to $231.3 million, while imports from the United Kingdom rose to $150.3 million.

In contrast, exports of culture goods to China fell for the first time in five years. In 2005, Canadian companies exported only $13.0 million worth of culture goods to China, down 15.7% from the record high of $15.5 million exported in 2004.

Definitions, data sources and methods: survey number 5088.

Detailed and summary data tables for culture goods trade, by culture category and sub-categories, along with cross-tabulations of trade between Canada and selected countries in table format (87-007-XIE, free) are now available on our website from the Our products and services page. Researchers can also request custom tabulations on a cost-recovery basis.

For more information or to enquire about the concepts, methods and data quality of this release, contact Client Services (1-800-307-3382; fax: 613-951-9040; cult.tourstats@statcan.gc.ca), Culture, Tourism and the Centre for Education Statistics.