August 1998 Edition
MERCOSUR
Canada and the South American trade bloc are signing an agreement to work towards trade liberalization. Ottawa hopes the deal will help open up the four Mercosur countries--Brazil, Argentina, Paraguay and Uruguay--to Canadian business opportunities, especially in natural resources and telecommunications. Trade between Canada and Mercosur was worth $3.6 billion in 1997. Mercosur is a market of 240 million people and has a gross domestic product of $1.4 trillion. Canadian businesses currently face double-digit tariff barriers in these countries.
TECHNOLOGY
Canadian investment dealers and money managers are falling behind when it comes to using technology according to a survey of investors. From simple applications such as using electronic mail to send research reports to sophisticated areas such as "black box" electronic trading, principals at Greenwich Associates found a number of Canadian financial players have failed to embrace technology. 38 per cent of Canadian institutional investors are making use of non- traditional trading methods, which includes electronic stock trading. By comparison, 57 per cent of U.S. institutions take non-traditional routes in trading and the figure rises to 96 per cent in trading on the Nasdaq Stock Market.
RETAIL
Results of a survey by the Retail Council of Canada indicate that, due to a wave of consumer confidence, retailers are planning to build between 900 and 1,800 stores over the next three years. Nearly one-quarter of Canada's retailers are planning to expand and on average will open between one and five stores. Many of these stores will be in new markets and be built by mid-sized chains. The largest stores are forecasting around 700 new stores, however, this will be counterbalanced by about 300 store closings. Survey respondents ranked customer service as their top strategy for building sales followed by customer loyalty programs.
WOMEN
The growing economic clout of women is confirmed by recent U.S. statistics which show that women now control 80 per cent of all household spending. Women buy 65 per cent of all cars, 53 per cent of all stocks, 51 per cent of all sports equipment, 50 per cent of all personal computers and pay for 40 per cent of all home improvement projects. If current trends persist, women will control most of the money in the U.S. by 2020.
APPRENTICESHIPS
Even though the 166,500 enrolments in apprenticeship programs in 1996 was slightly higher than in the previous year, enrolments have decreased 13.7% since 1991. The number of persons completing apprenticeship training has also declined over the same period, by 18.4% to 16,100. The decline in apprenticeship training may be attributable in part to the economic downturn and subsequent slow recovery through the early 1990s. Trades are particularly sensitive to economic cycles. In a slow economy, employment opportunities are fewer and, consequently, there are fewer openings for apprenticeship training. Also, declines in the construction, mechanical and industrial trades may also reflect the structural changes taking place in the Canadian economy. Enrolment declines occurred in all major trade groups with the notable exception of the food and service trades.
TASTE
Rice is regularly eaten by more than 91 per cent of Canadians. The per capita consumption in 1996 was seven kilograms, compared to two kilograms in 1976.
ROLLER COASTERS
This year, 67 new roller coasters are scheduled to open around the world, the most in any single year since the late 1920s. This will bring the number of coasters to 350 in North America and about 700 worldwide. The trend is for bigger, faster and wilder rides and several former aerospace engineers are now working in the industry.
COMPLAINTS
If you need to vent your frustration about poor customer service and you feel there is no place to go, the World Wide Web can help. Service Intelligence Inc. a Seattle firm that does research into customer service quality, now has an area on its Web site (www.serviceintelligence.com) where consumers can post complaints--and compliments--about their experiences with airlines, retailers, hotels and other businesses.
JAPAN
Some $1.6 trillion (U.S.) worth of goods were at stake during a recent meeting of the 18 countries of APEC, the Asia-Pacific Economic Co-operation forum, which is aiming for free trade among its members by 2020. Some countries are suggesting that Japan is holding up a plan to liberalize trade immediately in nine key industries. Negotiators are striving to eliminate tariffs and other trade barriers in environmental products and services, energy, fisheries, forestry, toys, jewellery, medical goods, chemical products and telecommunications.
COMFORT
In San Francisco, the Society for Prevention of Cruelty to Animals runs a dog pound with television, sound-proofing, ventilation and artwork in each animal's "apartment." The $7 million Pet Adoption Center allows several homeless people to stay in the apartments overnight, so the dogs can have companionship.
COMPUTERS
Computer and electronic equipment sales were down for a fourth consecutive month in April of this year. The computer industry is being squeezed by falling prices from an oversupply of computer chips and the increasing popularity of low-cost computers. In the past, the introduction of major new software pushed consumers to buy more powerful computers. Now, the relative lack of software on the market that requires more powerful systems is also a reason behind the weakness of computer sales.
DEMOGRAPHICS
According to the most recent estimates, births in Canada declined for a sixth consecutive year in 1996. This trend shows no sign of reversing. As the death rate continues to rise, it is likely that by the year 2020, Canada's natural growth in the population will approach zero. These developments accentuate a situation that has been anticipated for a number of years, namely that population growth in Canada will depend increasingly on immigration. Immigrants represented 17.4% of the population in 1996 - the largest share in more than 50 years.
PRIVACY
Big companies that sell products on-line are banding together in a trade group to convince the U.S. government not to pass new laws to protect consumer privacy on the Internet. The group, called Online Privacy Alliance, includes Microsoft, Procter & Gamble, America Online and Disney. The alliance said companies should not collect information from any child under 13 without a parent's consent or without notifying parents, but did not announce how it would punish companies that violate that or other privacy principles. The U.S administration is being urged to pass new privacy legislation in the wake of a study from the U.S. Federal Trade Commission that showed widespread privacy abuses on-line.
MEXICO-EU
Negotiations for a free-trade agreement between Mexico and the European Union have begun. The Mexican Senate and the European Parliament have already approved an interim agreement on which the negotiations will be based. Total trade between the two groups reached $14 billion (USD) in 1997, making the European Union second only to the United States as Mexico's largest trading partner. However, the European countries have been losing market share in Mexico since the implementation of the NAFTA.
E-MAIL
The Wall Street Journal reports that when E-mail is introduced, the use of office printers increases 40 per cent.
SNACKS
A national survey on Canadian snacking habits reveals that the majority of Canadians snack at work. However, the choice of snacks varies dramatically across the country. 90 per cent of Vancouverites chose healthy snacks over taste, whereas 88 per cent of Torontonians chose taste over nutrition. Montrealers are split down the middle, 50 choose taste and 50 per cent chose a nutritious alternative.
EL NINO
Shoppers reacted to the warmest spring in 50 years by snapping up bikinis, birdbaths mountain bikes and barbecues two months early. Retailers registered a 13.2 per cent increase in sales in April, to $5.4 billion. The desire for fragrant flower gardens and lawn ornaments of all manner superseded all others among Canadian consumers. The category rose a stunning 69.9 per cent. Sporting and leisure goods jumped 19.7 per cent over the same month a year earlier. Clothiers also enjoyed an 18 per cent sales gain.
CRUISING
It will be the 16th consecutive year of growth for British Columbia to Alaska cruises, the third most popular cruise region in the world after the Caribbean and the Mediterranean. An international fleet of 21 ships will be based in Vancouver and 303 sailings are scheduled carrying 850,000 passengers. A Vancouver Port Corp. survey shows that cruise passengers are spending more on pre- and post- cruise vacations than they did five years ago, injecting some $200 million into the local economy.
SURVEY
A new monthly Statscan survey polled 80 of the largest national retailers, representing 36 per cent of total annual retail sales in Canada, including grocery, department and furniture stores. Data released recently showed that large retailers sold $69.9 billion in goods in 1997. Food stores accounted for 38.4 per cent of total sales, with departments stores capturing 25.3 per cent.
WINES
The success of the Canadian wine industry is putting pressure on the country's supply of premium grapes. An industry wide shortage of Canadian vinifera grapes, particularly red, is being forecast for varietal wines such as cabernet sauvignon, pinot noir and merlot. A recent report suggests that an adequate supply of premium-quality grapes represents the greatest challenge facing the industry in the years ahead. Over 1.500 acres of new vineyards have been planted in B.C. and Ontario in the past year. Typically, growers can expect to spend $15,000 an acre on a vineyard before it begins to show a return.
SUBSIDIES
Taxpayers and consumers shelled out $220 billion in 1997 to meet the cost of supporting most categories of farming in 28 out of 29 countries belonging to the Organization for Economic Co-operation and Development, excluding South Korea. The result is that consumers in many places continue to pay artificially high prices for food. Subsidies are almost non-existent in New Zealand but are equal to three-quarters of the value of all produce grown in Switzerland. The OECD says that 76 per cent of the value of its crops contains some form of actual or hidden subsidy.The 15 nation European Union was the highest spender in cash terms at $106 billion followed by the U.S. at $34 billion.
SOMETHING DIFFERENT
According to the Seattle-Post Intelligencer, British tourists looking for a sports vacation are being offered the chance to tag along with a Tacoma bounty hunter. The customers will wear bullet proof vest and uniforms and if they help catch a malefactor, they will have their pictures taken while slapping on the handcuffs.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
Canada and the South American trade bloc are signing an agreement to work towards trade liberalization. Ottawa hopes the deal will help open up the four Mercosur countries--Brazil, Argentina, Paraguay and Uruguay--to Canadian business opportunities, especially in natural resources and telecommunications. Trade between Canada and Mercosur was worth $3.6 billion in 1997. Mercosur is a market of 240 million people and has a gross domestic product of $1.4 trillion. Canadian businesses currently face double-digit tariff barriers in these countries.
TECHNOLOGY
Canadian investment dealers and money managers are falling behind when it comes to using technology according to a survey of investors. From simple applications such as using electronic mail to send research reports to sophisticated areas such as "black box" electronic trading, principals at Greenwich Associates found a number of Canadian financial players have failed to embrace technology. 38 per cent of Canadian institutional investors are making use of non- traditional trading methods, which includes electronic stock trading. By comparison, 57 per cent of U.S. institutions take non-traditional routes in trading and the figure rises to 96 per cent in trading on the Nasdaq Stock Market.
RETAIL
Results of a survey by the Retail Council of Canada indicate that, due to a wave of consumer confidence, retailers are planning to build between 900 and 1,800 stores over the next three years. Nearly one-quarter of Canada's retailers are planning to expand and on average will open between one and five stores. Many of these stores will be in new markets and be built by mid-sized chains. The largest stores are forecasting around 700 new stores, however, this will be counterbalanced by about 300 store closings. Survey respondents ranked customer service as their top strategy for building sales followed by customer loyalty programs.
WOMEN
The growing economic clout of women is confirmed by recent U.S. statistics which show that women now control 80 per cent of all household spending. Women buy 65 per cent of all cars, 53 per cent of all stocks, 51 per cent of all sports equipment, 50 per cent of all personal computers and pay for 40 per cent of all home improvement projects. If current trends persist, women will control most of the money in the U.S. by 2020.
APPRENTICESHIPS
Even though the 166,500 enrolments in apprenticeship programs in 1996 was slightly higher than in the previous year, enrolments have decreased 13.7% since 1991. The number of persons completing apprenticeship training has also declined over the same period, by 18.4% to 16,100. The decline in apprenticeship training may be attributable in part to the economic downturn and subsequent slow recovery through the early 1990s. Trades are particularly sensitive to economic cycles. In a slow economy, employment opportunities are fewer and, consequently, there are fewer openings for apprenticeship training. Also, declines in the construction, mechanical and industrial trades may also reflect the structural changes taking place in the Canadian economy. Enrolment declines occurred in all major trade groups with the notable exception of the food and service trades.
TASTE
Rice is regularly eaten by more than 91 per cent of Canadians. The per capita consumption in 1996 was seven kilograms, compared to two kilograms in 1976.
ROLLER COASTERS
This year, 67 new roller coasters are scheduled to open around the world, the most in any single year since the late 1920s. This will bring the number of coasters to 350 in North America and about 700 worldwide. The trend is for bigger, faster and wilder rides and several former aerospace engineers are now working in the industry.
COMPLAINTS
If you need to vent your frustration about poor customer service and you feel there is no place to go, the World Wide Web can help. Service Intelligence Inc. a Seattle firm that does research into customer service quality, now has an area on its Web site (www.serviceintelligence.com) where consumers can post complaints--and compliments--about their experiences with airlines, retailers, hotels and other businesses.
JAPAN
Some $1.6 trillion (U.S.) worth of goods were at stake during a recent meeting of the 18 countries of APEC, the Asia-Pacific Economic Co-operation forum, which is aiming for free trade among its members by 2020. Some countries are suggesting that Japan is holding up a plan to liberalize trade immediately in nine key industries. Negotiators are striving to eliminate tariffs and other trade barriers in environmental products and services, energy, fisheries, forestry, toys, jewellery, medical goods, chemical products and telecommunications.
COMFORT
In San Francisco, the Society for Prevention of Cruelty to Animals runs a dog pound with television, sound-proofing, ventilation and artwork in each animal's "apartment." The $7 million Pet Adoption Center allows several homeless people to stay in the apartments overnight, so the dogs can have companionship.
COMPUTERS
Computer and electronic equipment sales were down for a fourth consecutive month in April of this year. The computer industry is being squeezed by falling prices from an oversupply of computer chips and the increasing popularity of low-cost computers. In the past, the introduction of major new software pushed consumers to buy more powerful computers. Now, the relative lack of software on the market that requires more powerful systems is also a reason behind the weakness of computer sales.
DEMOGRAPHICS
According to the most recent estimates, births in Canada declined for a sixth consecutive year in 1996. This trend shows no sign of reversing. As the death rate continues to rise, it is likely that by the year 2020, Canada's natural growth in the population will approach zero. These developments accentuate a situation that has been anticipated for a number of years, namely that population growth in Canada will depend increasingly on immigration. Immigrants represented 17.4% of the population in 1996 - the largest share in more than 50 years.
PRIVACY
Big companies that sell products on-line are banding together in a trade group to convince the U.S. government not to pass new laws to protect consumer privacy on the Internet. The group, called Online Privacy Alliance, includes Microsoft, Procter & Gamble, America Online and Disney. The alliance said companies should not collect information from any child under 13 without a parent's consent or without notifying parents, but did not announce how it would punish companies that violate that or other privacy principles. The U.S administration is being urged to pass new privacy legislation in the wake of a study from the U.S. Federal Trade Commission that showed widespread privacy abuses on-line.
MEXICO-EU
Negotiations for a free-trade agreement between Mexico and the European Union have begun. The Mexican Senate and the European Parliament have already approved an interim agreement on which the negotiations will be based. Total trade between the two groups reached $14 billion (USD) in 1997, making the European Union second only to the United States as Mexico's largest trading partner. However, the European countries have been losing market share in Mexico since the implementation of the NAFTA.
The Wall Street Journal reports that when E-mail is introduced, the use of office printers increases 40 per cent.
SNACKS
A national survey on Canadian snacking habits reveals that the majority of Canadians snack at work. However, the choice of snacks varies dramatically across the country. 90 per cent of Vancouverites chose healthy snacks over taste, whereas 88 per cent of Torontonians chose taste over nutrition. Montrealers are split down the middle, 50 choose taste and 50 per cent chose a nutritious alternative.
EL NINO
Shoppers reacted to the warmest spring in 50 years by snapping up bikinis, birdbaths mountain bikes and barbecues two months early. Retailers registered a 13.2 per cent increase in sales in April, to $5.4 billion. The desire for fragrant flower gardens and lawn ornaments of all manner superseded all others among Canadian consumers. The category rose a stunning 69.9 per cent. Sporting and leisure goods jumped 19.7 per cent over the same month a year earlier. Clothiers also enjoyed an 18 per cent sales gain.
CRUISING
It will be the 16th consecutive year of growth for British Columbia to Alaska cruises, the third most popular cruise region in the world after the Caribbean and the Mediterranean. An international fleet of 21 ships will be based in Vancouver and 303 sailings are scheduled carrying 850,000 passengers. A Vancouver Port Corp. survey shows that cruise passengers are spending more on pre- and post- cruise vacations than they did five years ago, injecting some $200 million into the local economy.
SURVEY
A new monthly Statscan survey polled 80 of the largest national retailers, representing 36 per cent of total annual retail sales in Canada, including grocery, department and furniture stores. Data released recently showed that large retailers sold $69.9 billion in goods in 1997. Food stores accounted for 38.4 per cent of total sales, with departments stores capturing 25.3 per cent.
WINES
The success of the Canadian wine industry is putting pressure on the country's supply of premium grapes. An industry wide shortage of Canadian vinifera grapes, particularly red, is being forecast for varietal wines such as cabernet sauvignon, pinot noir and merlot. A recent report suggests that an adequate supply of premium-quality grapes represents the greatest challenge facing the industry in the years ahead. Over 1.500 acres of new vineyards have been planted in B.C. and Ontario in the past year. Typically, growers can expect to spend $15,000 an acre on a vineyard before it begins to show a return.
SUBSIDIES
Taxpayers and consumers shelled out $220 billion in 1997 to meet the cost of supporting most categories of farming in 28 out of 29 countries belonging to the Organization for Economic Co-operation and Development, excluding South Korea. The result is that consumers in many places continue to pay artificially high prices for food. Subsidies are almost non-existent in New Zealand but are equal to three-quarters of the value of all produce grown in Switzerland. The OECD says that 76 per cent of the value of its crops contains some form of actual or hidden subsidy.The 15 nation European Union was the highest spender in cash terms at $106 billion followed by the U.S. at $34 billion.
SOMETHING DIFFERENT
According to the Seattle-Post Intelligencer, British tourists looking for a sports vacation are being offered the chance to tag along with a Tacoma bounty hunter. The customers will wear bullet proof vest and uniforms and if they help catch a malefactor, they will have their pictures taken while slapping on the handcuffs.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
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