Tracking Trade: Creative Industries EU/SA Trade Dialogue Baseline Research

1. Tracking Trade: Creative Industries EU/SA Trade Dialogue Baseline Research CCDI 28 August 2013

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. What does the data tell us?

10. Creative Goods Data

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

12. Creative Goods vs All Goods Exports Imports

13. SA Exports of Creative and Cultural Goods to World Regions

14. Imports: World Regions

15. Top Export Partners 2002 2010

16. Top Import Partners 2002 2010

17. Visual Arts Trade, 2002 - 2010

28. Creative Services Data

29. Creative Services Trade: EU

30. Royalties and License Fees

31. Policy Context

32. 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

33. 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

34. Funding Context (2011)

35. 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

36. 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.

37. 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….

38. Recommendations

39. 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

40. 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

41. 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

42. 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?

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