Tracking Trade: Creative Industries EU/SA Trade Dialogue Baseline Research CCDI 28 August 2013
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 networks Underpinned 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
Creative Goods vs All Goods Exports Imports
Top Export Partners 2002 2010
Top Import Partners 2002 2010
dti • Demand side focus • DtiCreative 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
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….
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