November 1999 Edition
MERCOSUR
Mercosur is the world's third-largest trading bloc: intra-Mercosur trade accounts for about US$15 billion annually. A currency devaluation in Brazil earlier this year ignited trade tensions among its members, most notably between Brazil and Argentina. Argentina's economy is expected to shrink this year, partly because of reduced exports to Brazil. It claims that the devaluation of the Brazilian currency earlier this year seriously impaired the competitiveness of Argentinean goods in the Brazilian market. Argentina's exports to its Mercosur partners, almost all of which go to Brazil, fell 26 percent in the first half of the year.
UNITED NATIONS
A national survey has confirmed strong U.S. voter support for the United Nations. Nearly 90 per cent of voters indicated that the U.S. must belong to the U.N., an institution that 72 per cent of voters view favourably. In other findings, 66 per cent of Americans know that nations pay dues to the United Nations, and more than 79 per cent of that group are aware that the U.S. is behind in paying its dues to the U.N. Overall, 66 per cent of Americans disapprove of the U.S. withholding the more than $1 billion it owes the U.N.
WORLD TRADE
The World Trade Organization (WTO) has released statistics concerning world trade in 1998. Canada was the seventh-largest importer in terms of world merchandise trade with imports of $206.2 billion (USD), an increase of three per cent. The severity of the financial crisis that hit Asia is demonstrated by the fact that Japan lost 17 percentage points in terms of its importations in world merchandise trade. Hong Kong's merchandise trade was reduced by 12 per cent, Singapore by 23 per cent, the Republic of Korea by 35 per cent, Malaysia by 26 per cent, Thailand by 32 per cent, Indonesia by 34 per cent, and the Philippines by 17 per cent.
VERSATILE
A French designer has developed clothing that changes colour to reflect changes in temperature and humidity.
COMPARISONS
In 1998, each Canadian ate 15 dozen eggs and almost 12 kg of cheese, compared with about 20 dozen eggs and almost 13 kg of cheese consumed by each American. Per capita consumption of red meat increased in 1998 in both Canada and the U.S. after steady declines since the mid-1970s. Consumption of poultry continued to increase - driven in part by strong consumer demand in both countries for a wide variety of convenient processed food products. Overall, Americans eat more red meat and poultry than Canadians.
eCOMMERCE
A new survey shows that interest in eCommerce and eBusiness is high among Latin American companies. International Data Corporation (IDC), conducted interviews with 500 companies in the region during the summer of 1999. Results reveal that nearly 85% of companies indicated they are using or will evaluate using eCommerce within the next 2 years. However, actual implementation rates are relatively low with only 11% of companies currently using eCommerce. The finance industry is the most active industry segment adopting eCommerce in Latin America.
PENETRATION
A survey by Scarborough Research shows that five U.S cities have reached 50% Internet penetration among the adult population. Washington, D.C. ranks number one with 59.9% of the adult population online, followed by San Francisco (56.1%); Austin, Texas (55.5%); Seattle (53.3%) and Salt Lake City (50.0%). Scarborough measured Internet usage over a one-year period both at home and at work for these findings.
TIME
According to the International Time Capsule Society based in Atlanta, there are an estimated 10,000 time capsules worldwide. The majority are American and Canadian and most have been lost or forgotten.
Y2K READINESS
While Canada is considered to be one of the most prepared countries in dealing with the Year 2000 problem, other countries are not so advanced, and the degree of readiness in sectors such as aviation, maritime shipping and ports, telecommunications, banking and finance, government services and energy varies from one country to the next. Country readiness statements, containing factual and non-judgemental information from public sources on the Y2K readiness of foreign infrastructure, are available on the Canadian Department of Foreign Affairs web site at: http://www.dfait-maeci.gc.ca/y2k, and via a toll-free telephone line, 1-800-O-Canada.
FILMS
Three of North America's top seven film production centres are now in Canada according to the Boston Globe. Vancouver, Toronto and Montreal join Los Angeles, New York, Chicago and Orlando, Fl.
DIAGNOSIS
The National Institute of Standards and Technology's (NIST) Advanced Technology Program has selected a team headed by Motorola Labs to develop a biochip-based device that would enable the rapid diagnosis of life-threatening bacterial infections. The goal of the project is to develop a small inexpensive device that could rapidly profile bacteria, which in turn would help to control the spread of often deadly infections. The envisioned device would be capable of performing all preparation steps and genetic analysis functions on a single biochip.
FASHION
The Canadian apparel industry accounts for $1.2 billion in domestic sales and $450 million in export sales annually and employs more than 100,000 people. In Toronto alone, there are 750 fashion manufacturers and designers, employing 18,000.
SOUTH AFRICA
A Trade Development and Co-operation Agreement has been signed between the European Union and South Africa. The agreement will establish a free trade area between the parties over the next twelve years liberalizing about 95% of trade and will have long-term benefits and commercial advantages for both sides. In particular, it will give South Africa preferential access to the world's largest market, opening up important opportunities for South African companies in sectors such as textiles and clothing, chemicals, food and vegetables.
CHIPS
The September earthquake in Taiwan caused inestimable damage to life and property on the island nation. However, the quake's aftershocks are just beginning to hit the U.S. computer industry, which relies heavily on Taiwan as a source of integrated chips for its lifeblood. Taiwan's huge chip industry was idled by the quake and could be crippled for weeks. As a result, prices for silicon chips were up sharply in the days after the disaster. With a disaster such as the Taiwan earthquake, which occurs thousands of miles from Silicon Valley and other U.S. high tech corridors, experts emphasize the importance of having insurance policies that include contingent business interruption, as well as first-party property damage coverage. The September earthquake in Taiwan caused inestimable damage to life and property on the island nation. However, the quake's aftershocks are just beginning to hit the U.S. computer industry, which relies heavily on Taiwan as a source of integrated chips for its lifeblood. Taiwan's huge chip industry was idled by the quake and could be crippled for weeks. As a result, prices for silicon chips were up sharply in the days after the disaster. With a disaster such as the Taiwan earthquake, which occurs thousands of miles from Silicon Valley and other U.S. high tech corridors, experts emphasize the importance of having insurance policies that include contingent business interruption, as well as first-party property damage coverage.
SOY
Soybeans are already used to make everything from tofu to newspaper ink. Now they are being developed into a biodegradable plastic that may hold promise for a host of practical uses and create a welcome new source of demand for struggling soybean farmers. Forks, spoons golf tees and fast food containers are a few uses for soy-based plastic.
COPYRIGHT
According to the Business Software Alliance (BSA), online copyright theft is rising to epidemic proportions, threatening the creative industries while inhibiting the development of electronic commerce. Losses due to Internet piracy are on the rise, contributing an increasing percentage of overall global piracy losses, estimated at nearly $11 billion each year. The economic impact of this activity, the BSA states, extends far beyond the confines of the software industry, harming economies worldwide in the form of greatly diminished tax revenues and substantial numbers of lost jobs.
CANDLES
This industry generates more than $2 billion every year on this continent. According to Carleton Cards, sales in Canada have more than doubled since 1997. 96 per cent of candles are purchased by women, and there are some seasonal trends such as Valentine's Day and Christmas, but 67 per cent of sales have no real holiday hook. More than a third (41 per cent) of all candles are purchased at discount department stores, with 20 per cent bought at supermarkets, 9 per cent at home parties and 6 per cent at drug stores.
FISHING
The U.S., Australia, New Zealand, Iceland and the Philippines have called for the end to subsidies to national fishing industries. The U.S., et al said that fishing subsidies lead to environmentally damaging over-fishing and distort trade by reducing harvesting costs and reducing fish prices world-wide. This in turn, the countries said, hurts the livelihoods of fishing communities especially in poor countries. In their appeal, the U.S., et al were targeting the EU and Japan, both of which provide subsidies to their fisheries sectors. A report from the World Bank, states that national governments provided US$14-20 billion annually to the fisheries sector.
LOSSES
While the population of the world recently reached six billion, 32 countries around the world are losing people, or are about to. The population of these countries currently totals about 800 million, but the UN estimates that by 2050 they will be down to 670 million. These countries include: Russia, Ukraine, Japan, Germany, Britain, Italy and Spain.
CIGARS
Two years ago cigars were all the rage, but this fad is fading fast. In 1996, sales of premium, hand-rolled cigars jumped 67 per cent and in 1997, they leaped another 30 per cent. But now the trend is reversing itself. For 1999, analysts predict a 10 per cent fall in sales.
INSURANCE
Life insurers need to make their policies more intelligible to consumers according to industry watchdogs. The Canadian Council of Insurance Regulators say that insurance contracts may be too complex or difficult to understand. Regulators are proposing that every consumer who buys a life insurance policy or product be given a one-page, plain-language document outlining its key components.
GROWTH
American export volumes grew by 67 per cent between 1990 and June this year. This rapid growth far outstrips the rise in British exports of 41 per cent and in German exports of 38 per cent over the same period. Japanese exports have grown only 19 per cent in this period. However, U.S. export performance has been less spectacular recently with growth of three per cent in 1998 and a decline of 1.3 per cent this year so far.
E-MAIL
The Wall Street Journal reports that when E-mail is introduced, the use of office printers increases 40 per cent.
WEALTH
The 400 richest Americans have for the first time amassed a total net worth of $1 trillion US, a figure greater than the gross domestic product of China.
QUOTES
"I have travelled the length and breadth of this country and talked with the best people and I can assure you that data processing is a fad that won't last out a year." A Prentice Hall editor in charge of business books, in 1957.
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
Mercosur is the world's third-largest trading bloc: intra-Mercosur trade accounts for about US$15 billion annually. A currency devaluation in Brazil earlier this year ignited trade tensions among its members, most notably between Brazil and Argentina. Argentina's economy is expected to shrink this year, partly because of reduced exports to Brazil. It claims that the devaluation of the Brazilian currency earlier this year seriously impaired the competitiveness of Argentinean goods in the Brazilian market. Argentina's exports to its Mercosur partners, almost all of which go to Brazil, fell 26 percent in the first half of the year.
UNITED NATIONS
A national survey has confirmed strong U.S. voter support for the United Nations. Nearly 90 per cent of voters indicated that the U.S. must belong to the U.N., an institution that 72 per cent of voters view favourably. In other findings, 66 per cent of Americans know that nations pay dues to the United Nations, and more than 79 per cent of that group are aware that the U.S. is behind in paying its dues to the U.N. Overall, 66 per cent of Americans disapprove of the U.S. withholding the more than $1 billion it owes the U.N.
WORLD TRADE
The World Trade Organization (WTO) has released statistics concerning world trade in 1998. Canada was the seventh-largest importer in terms of world merchandise trade with imports of $206.2 billion (USD), an increase of three per cent. The severity of the financial crisis that hit Asia is demonstrated by the fact that Japan lost 17 percentage points in terms of its importations in world merchandise trade. Hong Kong's merchandise trade was reduced by 12 per cent, Singapore by 23 per cent, the Republic of Korea by 35 per cent, Malaysia by 26 per cent, Thailand by 32 per cent, Indonesia by 34 per cent, and the Philippines by 17 per cent.
VERSATILE
A French designer has developed clothing that changes colour to reflect changes in temperature and humidity.
COMPARISONS
In 1998, each Canadian ate 15 dozen eggs and almost 12 kg of cheese, compared with about 20 dozen eggs and almost 13 kg of cheese consumed by each American. Per capita consumption of red meat increased in 1998 in both Canada and the U.S. after steady declines since the mid-1970s. Consumption of poultry continued to increase - driven in part by strong consumer demand in both countries for a wide variety of convenient processed food products. Overall, Americans eat more red meat and poultry than Canadians.
eCOMMERCE
A new survey shows that interest in eCommerce and eBusiness is high among Latin American companies. International Data Corporation (IDC), conducted interviews with 500 companies in the region during the summer of 1999. Results reveal that nearly 85% of companies indicated they are using or will evaluate using eCommerce within the next 2 years. However, actual implementation rates are relatively low with only 11% of companies currently using eCommerce. The finance industry is the most active industry segment adopting eCommerce in Latin America.
PENETRATION
A survey by Scarborough Research shows that five U.S cities have reached 50% Internet penetration among the adult population. Washington, D.C. ranks number one with 59.9% of the adult population online, followed by San Francisco (56.1%); Austin, Texas (55.5%); Seattle (53.3%) and Salt Lake City (50.0%). Scarborough measured Internet usage over a one-year period both at home and at work for these findings.
TIME
According to the International Time Capsule Society based in Atlanta, there are an estimated 10,000 time capsules worldwide. The majority are American and Canadian and most have been lost or forgotten.
Y2K READINESS
While Canada is considered to be one of the most prepared countries in dealing with the Year 2000 problem, other countries are not so advanced, and the degree of readiness in sectors such as aviation, maritime shipping and ports, telecommunications, banking and finance, government services and energy varies from one country to the next. Country readiness statements, containing factual and non-judgemental information from public sources on the Y2K readiness of foreign infrastructure, are available on the Canadian Department of Foreign Affairs web site at: http://www.dfait-maeci.gc.ca/y2k, and via a toll-free telephone line, 1-800-O-Canada.
FILMS
Three of North America's top seven film production centres are now in Canada according to the Boston Globe. Vancouver, Toronto and Montreal join Los Angeles, New York, Chicago and Orlando, Fl.
DIAGNOSIS
The National Institute of Standards and Technology's (NIST) Advanced Technology Program has selected a team headed by Motorola Labs to develop a biochip-based device that would enable the rapid diagnosis of life-threatening bacterial infections. The goal of the project is to develop a small inexpensive device that could rapidly profile bacteria, which in turn would help to control the spread of often deadly infections. The envisioned device would be capable of performing all preparation steps and genetic analysis functions on a single biochip.
FASHION
The Canadian apparel industry accounts for $1.2 billion in domestic sales and $450 million in export sales annually and employs more than 100,000 people. In Toronto alone, there are 750 fashion manufacturers and designers, employing 18,000.
SOUTH AFRICA
A Trade Development and Co-operation Agreement has been signed between the European Union and South Africa. The agreement will establish a free trade area between the parties over the next twelve years liberalizing about 95% of trade and will have long-term benefits and commercial advantages for both sides. In particular, it will give South Africa preferential access to the world's largest market, opening up important opportunities for South African companies in sectors such as textiles and clothing, chemicals, food and vegetables.
CHIPS
The September earthquake in Taiwan caused inestimable damage to life and property on the island nation. However, the quake's aftershocks are just beginning to hit the U.S. computer industry, which relies heavily on Taiwan as a source of integrated chips for its lifeblood. Taiwan's huge chip industry was idled by the quake and could be crippled for weeks. As a result, prices for silicon chips were up sharply in the days after the disaster. With a disaster such as the Taiwan earthquake, which occurs thousands of miles from Silicon Valley and other U.S. high tech corridors, experts emphasize the importance of having insurance policies that include contingent business interruption, as well as first-party property damage coverage. The September earthquake in Taiwan caused inestimable damage to life and property on the island nation. However, the quake's aftershocks are just beginning to hit the U.S. computer industry, which relies heavily on Taiwan as a source of integrated chips for its lifeblood. Taiwan's huge chip industry was idled by the quake and could be crippled for weeks. As a result, prices for silicon chips were up sharply in the days after the disaster. With a disaster such as the Taiwan earthquake, which occurs thousands of miles from Silicon Valley and other U.S. high tech corridors, experts emphasize the importance of having insurance policies that include contingent business interruption, as well as first-party property damage coverage.
SOY
Soybeans are already used to make everything from tofu to newspaper ink. Now they are being developed into a biodegradable plastic that may hold promise for a host of practical uses and create a welcome new source of demand for struggling soybean farmers. Forks, spoons golf tees and fast food containers are a few uses for soy-based plastic.
COPYRIGHT
According to the Business Software Alliance (BSA), online copyright theft is rising to epidemic proportions, threatening the creative industries while inhibiting the development of electronic commerce. Losses due to Internet piracy are on the rise, contributing an increasing percentage of overall global piracy losses, estimated at nearly $11 billion each year. The economic impact of this activity, the BSA states, extends far beyond the confines of the software industry, harming economies worldwide in the form of greatly diminished tax revenues and substantial numbers of lost jobs.
CANDLES
This industry generates more than $2 billion every year on this continent. According to Carleton Cards, sales in Canada have more than doubled since 1997. 96 per cent of candles are purchased by women, and there are some seasonal trends such as Valentine's Day and Christmas, but 67 per cent of sales have no real holiday hook. More than a third (41 per cent) of all candles are purchased at discount department stores, with 20 per cent bought at supermarkets, 9 per cent at home parties and 6 per cent at drug stores.
FISHING
The U.S., Australia, New Zealand, Iceland and the Philippines have called for the end to subsidies to national fishing industries. The U.S., et al said that fishing subsidies lead to environmentally damaging over-fishing and distort trade by reducing harvesting costs and reducing fish prices world-wide. This in turn, the countries said, hurts the livelihoods of fishing communities especially in poor countries. In their appeal, the U.S., et al were targeting the EU and Japan, both of which provide subsidies to their fisheries sectors. A report from the World Bank, states that national governments provided US$14-20 billion annually to the fisheries sector.
LOSSES
While the population of the world recently reached six billion, 32 countries around the world are losing people, or are about to. The population of these countries currently totals about 800 million, but the UN estimates that by 2050 they will be down to 670 million. These countries include: Russia, Ukraine, Japan, Germany, Britain, Italy and Spain.
CIGARS
Two years ago cigars were all the rage, but this fad is fading fast. In 1996, sales of premium, hand-rolled cigars jumped 67 per cent and in 1997, they leaped another 30 per cent. But now the trend is reversing itself. For 1999, analysts predict a 10 per cent fall in sales.
INSURANCE
Life insurers need to make their policies more intelligible to consumers according to industry watchdogs. The Canadian Council of Insurance Regulators say that insurance contracts may be too complex or difficult to understand. Regulators are proposing that every consumer who buys a life insurance policy or product be given a one-page, plain-language document outlining its key components.
GROWTH
American export volumes grew by 67 per cent between 1990 and June this year. This rapid growth far outstrips the rise in British exports of 41 per cent and in German exports of 38 per cent over the same period. Japanese exports have grown only 19 per cent in this period. However, U.S. export performance has been less spectacular recently with growth of three per cent in 1998 and a decline of 1.3 per cent this year so far.
The Wall Street Journal reports that when E-mail is introduced, the use of office printers increases 40 per cent.
WEALTH
The 400 richest Americans have for the first time amassed a total net worth of $1 trillion US, a figure greater than the gross domestic product of China.
QUOTES
"I have travelled the length and breadth of this country and talked with the best people and I can assure you that data processing is a fad that won't last out a year." A Prentice Hall editor in charge of business books, in 1957.
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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