CCDI28 August 2013

Tracking Trade: Creative Industries

EU/SA Trade Dialogue Baseline Research

What are we trying to do?

To grow the export potential of South Africa’s creative industries through promoting:• Better data now and in the future• Better policy, legislation and regulation• Better practice• Better networksUnderpinned by consideration of the ways in which these efforts might inform and be informed by a wider continental context and agenda

Overview of project

• Research component– Commissioned research on data and policy (Kaiser

and Associates/KEA European Cultural Affairs)– Case studies

• Dialogue component– Industry Seminars– Conference (ACT/UJ partnership)– Industry/Government Workshops

• Cultural Trade Working Group

Purpose of the Presentation

• To get industry perspectives on research data and general findings

• To get a richer picture of what is happening at a sub-sectoral level ref trade, regulation, policy and support measures

• To get input on recommendations for change/development in this area

Research objectives

• Understanding approaches to data collection in SA and EU

• Gathering available data on CCI trade between SA and EU/rest of the world

• Understanding policy, legislation and programming supporting and regulating South African CCI trade, and SA/EU trade relationship

• International benchmarking and recommendations across all of the above

Data collection

• Quality of data a perennial issue for SA CCI and government policy

• Project involved analysis of data from SARS (Creative Goods) and Eurostat data (Creative Services)

• And comparison with industry level surveys and anecdotal evidence from engagement with individual companies

• Produces indicative ‘big picture’ that requires refinement• dti has introduced web-based portal for tracking data in

particular sectors, including CCI

Data Issues/Qualifiers

• Creative Goods: – Payments related to movement of physical goods– Derived from Customs and Excise/SARS via

UNCTADSTAT and COMTRADE– dti has introduced web-based portal for tracking

data in particular sectors, including CCI

Data Issues/Qualifiers

• Creative Services: – Payments related to (intangible) services– Internationally, derived from balance of payments,

through central reserve banks– SA Reserve Bank does not presently release this

data (dti in process of engaging bank)– Therefore reliant on data from trade partners– Hence data in report only reflects EU-SA data– Excl IP, for which global figures are available

What does the data tell us?

Creative Goods Data

SA Creative and Cultural Goods Exports and Imports from World (US$m)

Creative Goods vs All Goods

Imports

Exports

SA Exports of Creative and Cultural Goods to World Regions

Imports: World Regions

Top Export Partners2002 2010

Top Import Partners2002 2010

China

United Kingd

om

United St

ates

France Ita

ly

German

y

China, Hong K

ong SAR

China, Ta

iwan

Provin

ce of

Japan

India0

20

40

60

80

100

120

Import Partners - 2002

US$

mill

ions

Visual Arts Trade, 2002 - 2010

2002 2003 2004 2005 2006 2007 2008 2009 20100

20

40

60

80

100

120

140

160

Value of SA CCI Goods exports to Rest of the World (excl. EU) 2002-2010

Art CraftsAudio VisualsDesignNew MediaPerforming ArtsPublishingVisual Arts

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100

100

200

300

400

500

600

700

800

900

Value of CCI imports from the Rest of the World (excl EU), 2002-2010

Art CraftsAudio VisualsDesignNew MediaPerforming ArtsPublishingVisual Arts

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100

10

20

30

40

50

60

70

80

90

Value of SA CCI Goods Exports to EU 2002-2010

Art CraftsAudio VisualsDesignNew MediaPerforming ArtsPublishingVisual ArtsU

S$ m

illio

n

2002 2003 2004 2005 2006 2007 2008 2009 20100

50

100

150

200

250

300

Value of CCI Goods Imports from EU 2002-2010

Art CraftsAudio VisualsDesignNew MediaPerforming ArtsPublishingVisual ArtsU

S$m

illio

ns

2002 2003 2004 2005 2006 2007 2008 2009 20100.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

Exports to world by VA sub-category

Antiques Paintings Photography Sculpture

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

Imports from world by VA sub-category

Antiques Paintings Photography Sculpture

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100.00

5.00

10.00

15.00

20.00

25.00

Exports to World by Craft Sub-category

Carpets Celebration Other Paperware Wickerware Yarn

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Imports from World by Craft sub category

Carpets Celebration Other Paperware Wickerware Yarn

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

Exports to World by Design Sub Category

Architecture Fashion Glassware Interior Jewellery Toys

US$

mill

ions

2002 2003 2004 2005 2006 2007 2008 2009 20100.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

Imports from World by Design Sub Category

Architecture Fashion Glassware Interior Jewellery Toys

US$

mill

ions

Creative Services Data

Creative Services Trade: EU

Royalties and License Fees

Policy Context

dti • Demand side focus• Dti Creative Industries Sector desk in Industrial Development

Division• Customised sector programmes for craft, film and music• Export Marketing and Investment Assistance (EMIA) –

exhibition/trade event participation, market research, inward missions (R8 million to CCI in 2008/9 – 7% of total EMIA investments)

• Sector Specific Investment Scheme (SSIS) – generic and project funding for export councils, joint action groups, industry associations

• Significant targeted investment in film through Film and Television Production and Co-production Incentives

• R1,4 billion to SA and foreign companies between 2008 and 2012

DAC

• Supply-side focus• Policy• Funding• Research• Advocacy• + variety of statutory bodies and funding agencies

which provide support to the development of the sector

• For the visual arts, principally, the National Arts Council

Funding Context (2011)

Lottery - Arts, Culture, Heritage

65%

National Arts Council

4%

National Film and

Video Foundation

2%

National Heritage Council

0%

Provincial Arts

Councils3%

DAC discretionary25%

R1,2 billion Rand

Trade Protocols

• Southern African Customs Union (internal to SACU members)

• SADC FTA (internal to SADC)• Trade and Development Cooperation Agreement (EU

and SA, currently under review)• Africa Growth and Opportunity Act (39 SSA countries

and US)• Variety of other fora with US; and new intra-African

and India agreements presently being negotiated

EU policy

• Culture in external relations increasingly NB issue within multi-facetted agenda– New markets for EU products and services– Diplomacy and image building

• Over 230 bodies involved in internationalisation of EU CCI

• Culture increasingly more prominent in EU trade-related agreements with other countries (eg South Korea, Colombia, Peru, Carribean, etc)

• Joint Declarations on Cultural Cooperation with China, Brazil, Mexico and India.

TDCA

• Framework for:– political dialogue, – the establishment of a Free Trade Area (FTA), – development co-operation and technical assistance– economic cooperation, incl cooperation in a series of sectoral areas

• Fivefold increase in FDI and 128% increase in trade• Impact not registered in CCI, though Agreement contains a

variety of provisions that could be used to achieve greater focus in this area

• CCI not immediately a priority area – but could be made one….

Recommendations

Definitions and data

• Formalise adoption of UNCTAD definitions for CCI to establish basis for comparability

• Improve data collection methods through: :– Cost-effective surveys using market research

methods, through partnerships between government, donors, industry associations and research institutions

– Longer term strategy: StatSA Enterprise survey, Reserve Bank, Cultural Satellite account

CCI Support Measures

• Institutional strengthening: both existing structures and new structures in areas where these do not exist

• Investigate possibility of developing CCI Export Council through dti Sector Desk and Trade and Investment South Africa

• Review of Funding and Incentives:– Impact/RoI– Coverage– Articulation

EU-SA CCI Relations

• Use of TDCA as basis for new CCI strategy, informed by EU experience with other countries

• Policy and Industry Dialogue• Programme to increase trade through trade

missions, representation at trade events, technical assistance, knowledge transfer, etc

• Template for wider bilateral and multilateral engagement re CCI: China, US, etc

Questions

• How closely does the data seem to reflect reality/experience?

• Relative priority of building international markets vs domestic consumption?

• Your experience of accessing international markets?– Regulation– Support

• How should the recommendations be nuanced for this sub-sector?

• Practical proposals and big ideas for promoting export?

• www.vansa.co.za• www.britishcouncil.org.za