Local Content & the Broadcasting Sector in Trinidad & Tobago: A Global & Trade Policy Perspective

Transcription

1 Local Content & the Broadcasting Sector in Trinidad & Tobago: A Global & Trade Policy Perspective Feature Presentation at the Telecommunications Authority of Trinidad & Tobago (TATT) Port of Spain, Trinidad & Tobago April 22nd, 2009 Dr. Keith Nurse Director Shridath Ramphal Centre for International Trade Law, Policy and Services UWI Cavehill, Barbados keithnurse@mac.com

2 Outline of Presentation The Local Content Challenge Global Context National Policy Context T&T Creative Sector What Needs to be Done 1

3 The Telecoms & Broadcast Sector In Trinidad and Tobago has grown rapidly in recent years. 2

4 Gross Revenues of the Telecoms and Broadcast Sectors in Trinidad & Tobago, (Source: TATT 2008) 3

5 Mobile Market Revenues in Trinidad & Tobago, (Source: TATT 2008) 4

6 Internet Subscribers, (Source TATT 2008) 5

7 Gross Revenues for Free to Air TV Broadcasting Service Providers, (Source TATT 2008) 6

8 There is limited or no data on Local Content levels on the Trinidad & Tobago broadcast sector. The available data is dated and narrow in scope. However, it does suggest that local content levels in T&T are low relative to other Caribbean countries and is plagued by the problem of seasonality (i.e. peaks at Carnival time). 7

9 Airplay in Trinidad & Tobago by Genre and Season, Alice Schwarz,

10 Airplay on Caribbean Airwaves Source: Berry 1999, Nurse

11 Local Content Levels in Selected Countries (Source: NZ on Air) 10

12 The Global Context For Local Content Regulation 11

13 Local Content in Global Economics Local content regulations which require that a firm uses a certain amount of domestically produced inputs in producing its final output are commonplace internationally and have been increasing in popularity in developed and developing countries alike (Lahiri & Ono 1998: 445). 12

14 The Goals of Local Content Regulation To encourage foreign firms to localize content To shift rents to local firms and the domestic economy To generate backward linkages To increase local value-added, employment, profits To deepen the multiplier effect 13

15 Local Content Regulation and the Cultural/Creative Sector There are two main rationales: 1. To promote pluralism and to enhance national identity and cultural sovereignty. 2. To redress the global imbalances in trade in cultural goods, services and intellectual property. 14

16 An Example of a Country Policy: The South African Broadcast Policy Given the neglect and degradation of many aspects of South African cultural expression in the past, local content on the public broadcaster helps to restore a sense of pride and dignity in local music, performance, film and the arts. This, in turn, assists in furthering important public interest goals such as nation-building and reconciliation (SABC: 41). 15

17 Trade in Cultural Goods: The Developing World Context <== Figure 1: Top Developing Countries: Balance of Trade in Creative Goods, 2005 (US$mn) Source: UNCTAD 2008 Figure 2: Small Island Developing States: Creative Goods, Imports & Exports, 2000 & 2005 (US$mn)Source: UNCTAD 2008 ==> 16

18 Key Mechanisms for Implementing Local Content Regulations Restrictions on foreign ownership and control of broadcasting services; The provision of tax incentives and government subsidies to local producers; and Local content rules for television and radio broadcasters. (Bhattacharjee & Mendel 2001: 2) 17

19 Recommendations for Implementing Local Content Rules in the Broadcast Sector Aim to promote pluralism; Be implemented by appropriate legal means; Be realistic and practicable, and based on suitable criteria, in the sense of being tailored to specific broadcasting sectors and their particular needs; And be implemented progressively. 18

20 Select List of Countries with Local Content Regulations (Sources: Bhattacharjee & Mendel 2001) European territories Other countries Hungary France Latvia Netherlands Portugal Poland Slovenia Spain Sweden Australia Canada South Korea South Africa Malaysia Chile Argentina Brazil 19

21 The Trinidad and Tobago Policy Context: A Comparison of the Broadcast and Energy Policies 20

22 Local Content - National Broadcast Policy The Government is of the view that it is contrary to both the Country s Constitution and the tenets of free enterprise to legislate content for the broadcast industry. Besides, such a move could be counterproductive, since it could engender complacency and consequential mediocrity. Local output in all fields, including culture, must develop the resilience for the tough competitive environment of the modern world (2003: 4). 21

23 Local Content - National Broadcast Policy The Government is not unmindful of its responsibility to foster the development of the local culture and entertainment industry. It also recognizes the acute challenges to local artists posed by the overwhelming presence of foreign products in the sector. It will enter into dialogue with the Broadcasting Industry to decide on a voluntarily imposed quota for local content on the television and radio stations of the country. The Government proposes to provide very significant exposure and development for local culture through the development of a Public Broadcasting Service (2003: 4-5). 22

24 Trinidad & Tobago Energy Sector: Local Content & Local Participation Policy Framework In seeking to achieve developed nation status, Trinidad and Tobago has to move to a position of increased GNP vs. GDP and of producing higher value-added goods and services for export. The energy sector provides excellent opportunities, so to do, but these are only achieved through increased local participation in the value chain. Current levels of local value capture are in the 10% range and increasing this will have a significant impact on the national economy (p. 1). 23

25 Trinidad & Tobago Energy Sector: Local Content & Local Participation Policy Framework The issues of local content and participation have recently gained prominence internationally and are a major feature of policy initiatives in both developed and developing countries and the huge value they can bring to an oil and gas producing community provides compelling reasons for the development and enactment of a local content and participation policy in Trinidad and Tobago (p. 2). 24

26 Energy Policy Content: Non-Fiscal Measures Local participation - maximizing the depth and breadth of local ownership, control and financing; Local content - maximizing the level of usage of local goods and services; Local capability development - maximizing the impact of the on-going sector activities through the transfer of technology and knowhow. Permanent Local Content Committee. 25

27 International Trade Policy Context for Caribbean Cultural Industries (Nurse 2006) CULTURE INDUSTRIES & INTERNATIONAL TRADE EPA UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions (2005) WTO US Bilateral GOODS > Market Access > Piracy & Infringement SERVICES > GATS > Immigration Policy INTELLECTUAL PROPERTY > TRIPS > Rights Owners > Collective Administration E-COMMERCE > Digital rights management > Information & Communication Technologies (ICTs) WIPO > WIPO Copyright Treaty (WCT) > WIPO Performances and Phonograms Treaty (WPPT) The use of quotas and content regulation is permitted under existing international trade regulation (Bernier 2005). 26

28 The Future of Broadcasting: Mobile Telephony? Will local content regulation make an impact in the emerging digital context? 27

29 The Trinidad and Tobago Creative Economy Context 28

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34 Trinidad & Tobago Creative Export Prospects 2016 (NIHERST Foresightng Study 2006) T&T creative sector has ranked in the top ten export sectors for the last decade and is projected to triple in the next decade. To achieve the 2016 target T&T needs to: deepen its commercialization of IP; develop strategic market alliances; upgrade its human resources; expand its R&D pathways; rationalize its policy framework; and build a global brand. 33

35 What Needs to be Done? Content Policy without Industrial/Innovation Policies does not achieve the desired results. 34

36 EPA Specific Measures Establishment of national certification procedures for artists to facilitate temporary movement (Mode IV). Encourage and facilitate services exports beyond the movement of natural persons, for example, Mode II (crossborder supply) and Mode III (commercial presence). Need for cultural attaches and help desks in Europe to facilitate export of cultural services and monitor performance of the agreement. Funding for Caribbean audio-visual productions to take advantage of co-production opportunities. Economic marketing intelligence is needed to identify export opportunities, trends and forecasts. 35

37 Industry/Innovation Policy Measures Human capital development requires trained talent and entrepreneurship. Institutional capacity development is needed to build advocacy and networking capabilities. Intellectual property commercialization, protection & administration needs to be enhanced to reduce copyright infringement and expand royalties collections. 36

38 Industry/Innovation Policy Measures Heavy marketing (e.g. media access) and branding based on genre is required to build audiences. Innovation and technological upgrading is vital to boost global competitiveness. Mapping and documenting the contribution of the sector is important for strategic planning. 37

39 Caribbean Creative Industries Exchange Tourism Agencies CCL Industry Assoc CSOs RCC CRNM creative industries exchange Caribbean Export International Organizations: UNESCO, CISAC, WIPO, IFPI, IPA

40 Thanks for your attention. Dr. Keith Nurse Director Shridath Ramphal Centre for International Trade Law, Policy and Services UWI Cavehill, Barbados 39