IMAX, CIRQUE TO ADVISE OTTAWA ON CHINA EXPORT STRATEGY

Ottawa has convened an advisory group with representatives from media companies that have a significant presence in China as it seeks to develop a creative export strategy it will unveil some time in the coming year.

Minister of Heritage Mélanie Joly says companies such as IMAX Corporation, Cirque du Soleil Inc., Minority Media Inc. and Toronto’s Sheridan College will meet with her department regularly to discuss how to support cultural businesses that want a piece of the growing market in China.

“It’s indicative of our vision about the sector, which is linked to innovation and growth,” Joly said i n an interview from Shanghai, where she is on a foreign visit. She said the federal government has invested $ 1.4 billion in arts and culture, but expects to see a return on that investment as Canadian companies produce content for foreign markets.

China is particularly important to that endeavour. Consultancy McKinsey & Co. last year forecasted that Chinese consumers will increase spending by an average of 10 per cent per year to 2020, in line with rising incomes.

While trade and currency numbers have fluctuated in recent years, consumer s pending in t hat country has remained mostly stable, with the think- tank Demand Institute forecasting that consumer spending could reach as high as US$6.4 trillion by 2025.

In August, IMAX completed the biggest deal in its history through its Chinese subsidiary, in which it has a 68 per cent stake, to open 150 new theatres with Wanda Cinema Line, the country’s l argest cinema operator.

However, while China’s box office market grew 48.7 per cent to 44 billion yuan in 2015, f ollowing years of si milar astronomical growth, 2016 saw a significant cooling in the market, which grew just 3.7 per cent to 45.7 billion yuan, or about US$6.6 billion.

Joly said that having an ear to the ground in China will improve Canada’s competitive position.

The minister did not say whether the advisory group approach will be used in other key markets, but is set to meet with global economic stakeholders next week when she becomes the first Heritage minister to attend the World Economic Forum in Davos, Switzerland.

“We’ll be talking about the fact that we’re open for business,” Joly said of the trip.

“I’m the first Minister of Canadian Heritage whose thinking is export first, and that’s because I think our creative ecosystem is mature and providing a lot of quality content.”

Joly said Canada is the third- biggest exporter of musical talent, the third biggest producer of video games and that Toronto is the third biggest television and film production centre in North America. “The rea- son we care about this is because tapping export markets will lead to really good, really well paying jobs,” she said.

The minister acknowledged that the Trans Pacific Partnership Agreement, signed but not yet ratified by the 12 Pacific Rim count r i es i ncluding Canada and the United States, is in jeopardy with the incoming Trump administration having pledged to abandon the treaty.

In particular, TPP’s failure would prevent Canada from gaining easier access to Japan, the world’s thirdlargest economy.

However, she said new International Trade Minister François- Phili ppe Champagne will continue discussions with the other countries who signed the agreement last year.

One issue that experts, including the University of Ottawa’s Michael Geist, said Canada would have to confront should TPP be ratified is a ban on limitations of consumer access to foreign video products. That would mean Ottawa could not impose a tax on services like Netflix.

A Privy Council report from November revealed that the federal government last year conducted surveys testing the appetite of Canadians for a potential tax on foreign content providers, and that there was some support for making domestic telecoms and foreign companies contribute to support Canadian content production.

However, Joly affirmed her previously stated position against a foreign levy.

“We’ve already said we’re against a Netflix tax,” she said.

“At t he same t i me we are studying all the potent i al economic scenarios t hat were s ubmitted by stakeholders in the public consultations we held last year.”

WE’VE ALREADY SAID WE’RE AGAINST A NETFLIX TAX.