Film product recorded the biggest gain among all Canadian cultural export categories in 2002, an increase of 29% to $241.1 million, according to a Statistics Canada report released July 9. But, the report says exports in several specific categories of cultural goods experienced double-digit declines in ’02, most notably in prerecorded records and cassettes (-50%), videotapes (-41.%) and DVDs (-38.5%).

Among imports, the biggest increases occurred in DVDs, which rose almost 39% to $73.3 million. This was just short of the $74.3 million worth of imported videotapes.

Canada’s trade deficit in cultural products – everything from books and periodicals to films, videotapes, CDs and original art – widened for the first time in five years in 2002, as the growth in imports far exceeded gains in exports.

Canada sold a record $2.3 billion worth of cultural goods to the world, mostly the U.S., up 3.8% from 2001, the slowest rate of growth in four years. However, Canada also imported a record $3.6 billion, up 6.5%, and the first increase since 1998.

As a result, the report says the country’s overall deficit in cultural trade widened from $1.2 billion in ’01 to $1.3 billion last year, still well below the most recent high of $1.9 billion in 1997.

Most of the deficit in the cultural sector originates in the publishing and printed products categories.

However, the StatsCan report says Canada had a trade surplus in sound and film products in ’02, ‘but this surplus narrowed by $18.1 million to about $140.5 million.’ Sound and film products had been in a deficit position until 1998.

Mostly with the U.S.

The U.S. dominated Canada’s international market, accounting for 96% of exports and 80% of imports, adds the report.

In 2002, Canada exported just over $2.2 billion in culture goods to the U.S., a 4.7% increase from ’01. Cultural imports from south of the border reached more than $2.8 billion, a marginal 1.5% increase. This gain in imports halted three consecutive years of declines.

As a result, the deficit in cultural trade with the U.S. narrowed slightly, from $706 million to just over $647.8 million. The trade balance in cultural products with the U.S. has improved steadily since ’97, says Statistics Canada.

In export terms, Canada continued to lose business in EU markets, notably in the U.K. (-16%) and France (-22%), as well as in Japan. In contrast, ‘Canada’s imports of culture goods from China are growing at a tremendous pace.’

The report’s estimates deal with culture goods or products such as books, compact discs, films and paintings. Culture services – intangibles such as performances and broadcasts – are not included.

Trade in cultural products is on the agenda at a number of bilateral and multilateral forums, including the WTO and talks related to the Free Trade Zone of the Americas.

Canadian government programs (through DCH and DFAIT) aimed at promoting cultural exports include Trade Routes, the Cultural Industries Development Fund of the Business Development Bank of Canada and Telefilm Canada’s International Markets Program.

Statistics Canada says data from its report will also be used by UNESCO and the OECD in international studies of the culture sector.

-www.statcan.ca