Canada eyes China and India for exports
The United States remains the primary market for Canadian artists, musicians, and video game creators seeking international recognition, but a federal analysis suggests that China and India offer significant potential for growth in cultural exports. According to the Department of Canadian Heritage, these markets are characterized by more volatile patterns of growth, with past successes not anchoring future trade or supply chains, making them suitable for those seeking higher risk, higher reward scenarios.
An internal analysis of international markets by the Department of Canadian Heritage recommends directing resources from the creative export strategy toward high-potential, high-risk markets like India and China. This approach is part of broader efforts to diversify trade, as the government aims to reduce its reliance on the US market. The memo, obtained through the Access to Information Act, stresses the need to maintain Canada’s foothold in the US while exploring new opportunities.
Cultural Exports and Trade Diversification
The Liberal government announced the permanent renewal of the creative export strategy in May, with $95 million in funding over five years. The program, launched in 2018, has helped over 3,250 businesses and non-profit organizations reach 140 international markets. Cultural exports are a significant trade category, encompassing fashion, architecture, book publishing, and photography, among other sectors.
Canada’s cultural exports totaled approximately $27 billion in 2023, with two-thirds of that amount going to the US. However, the government recognizes the need to diversify its trade amid the ongoing trade war launched by US President Donald Trump. The Department of Canadian Heritage has identified India, China, Hong Kong, South Korea, and Australia as high-potential markets for growing cultural exports from 2026 to 2029.
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The memo notes that these markets are not without challenges, requiring large-scale interventions to grow market share. For instance, India’s media and entertainment sector is growing rapidly, with online gaming valued at $2.8 billion in 2024 and animation and visual effects at $1.2 billion. However, the country’s import of creative goods was relatively low in 2022, at $5.6 billion, representing less than one percent of the total global share.
Andrew Cash, president and CEO of the Canadian Independent Music Association, emphasized the importance of considering copyright protection and intellectual property enforcement when assessing opportunities in these markets. “There’s opportunity, no question about it, but there’s some spade work that has to be done,” he said. The department has begun to act on its analysis, with Culture Minister Marc Miller leading a trade mission to China in October.
Target Markets and Trade Missions
The Department of Canadian Heritage has shared its analysis with creative industries stakeholders, who generally agree with the list of target markets. However, those in the music and publishing sectors stress the need for careful consideration of copyright and licensing regimes in these markets. The government has also identified Europe as a key region, with France, Germany, and the UK deserving the most attention and resources.
In Europe, the memo recommends building on previous investments, such as the $14.5 million allocated for Canadian participation in the Frankfurt Book Fair. Other markets, like Ireland, the Netherlands, Spain, and Switzerland, may benefit from light touch support at international trade events to grow momentum. The department also suggests tracking trade data in countries like Poland or Peru, which show signs of growth but are too small for significant investment.
Jennifer Wicks, executive director of the Canadian Crafts Federation, highlighted the challenges faced by the crafts industry, including restrictive visa requirements and new US tariffs on Canadian goods. Her organization used a $33,000 grant to explore collector shows in France, Spain, and the UK, seeking to diversify their clientele. The new tariffs have hit the industry hard, with many artisans forced to halt their e-commerce sales to the US due to higher costs and red tape.
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The department’s analysis and recommendations aim to support Canadian creative businesses and organizations in handling complex markets and capitalizing on emerging opportunities. As the government continues to diversify its trade, the cultural exports sector is likely to play an increasingly important role in promoting Canadian talent and products globally. The $595,000 award to Toronto-based ethical fashion and home-goods brand Kotn to support its expansion to the UK is a notable example of the program’s impact.
Expanding into New Markets
This mission aims to rebuild market share lost in China due to the pandemic and the cooling of bilateral relations, and to build business relationships with India, a fast-growing market.
The department has invested $14.5 million in Canadian participation in the Frankfurt Book Fair, and plans to build on this investment to grow momentum in the region.
Supporting Creative Industries
The department’s international engagement plan is still in the works, but spokesperson Martine Courage confirmed that the federal government has begun to act on its advice. The plan will guide the department’s allocation of resources to support Canada’s creative industries as they grow around the world.
