July 2000 Edition
ALBERTA
According to the Export Development Corporation, exports from Alberta are expected to increase by nine per cent this year following an 11 per cent jump in 1999. Nearly 55 per cent of Alberta's export sales are in the energy sector. 85 per cent of Alberta's exports head to the U.S. Exports of automotive products by the province were up 22 per cent in 1999 and the forestry sector saw export sales increase 17 per cent. Agri-food products and consumer goods exports were both down in 1999.
NUTRITION
Studies show that dandelions are among the most nutritionally potent plants nature has to offer. They rank ahead of broccoli and spinach in overall food value. They are a good source of iron, have more potassium than bananas, more beta carotene than carrots and more lecithin than soybeans.
CHECKOUT
Loblaws, Canada's biggest grocery chain, will shortly allow shoppers at two supermarkets to scan their own groceries at the checkout as the retailer prepares to test a cashier-less counter--a move that could considerably shave labour costs. Self-serves in Europe and the U.S. have not been entirely successful. The equipment is expensive and increases the risk of theft. U.S. research has found that grocery stores can save 0.25 to 0.5 per cent of annual sales by moving to the self-serve checkout.
LOYALTY
U.S. consumers are making fewer trips to the grocery store as the availability of similar goods in other retail outlets impacts their shopping patterns, according to an AC Nielsen study. Last year, the number of trips declined from 91 to 90: shoppers made 94 trips in 1997. Today, the same products can be found at a number of stores. The most successful chains will be those that give their customers more reasons to shop with them - whether it's linking their loyalty programs to those of other industries, such as airlines, or offering more personally tailored promotions.
MONEY
In 1995, only 10 per cent of Canadians used debit cards and 58 per cent used cash. The latest figures show that debit cards for the first time are running neck and neck with cash. A recent survey showed that in 1999, 38 per cent of respondents used debit cards while 39 per cent preferred to pay cash. 16 per cent used credits cards and only three per cent paid by cheque.
MEXICO
The NAFTA has brought an influx of U.S. companies to Mexico since it was signed in 1994. However, far from turning Mexico into an economic sycophant, the pact has given the country's leading companies the impetus to learn from the invaders--competitors and partners alike--turning themselves into export powerhouses and disciples of globalization. Last year, Mexico climbed to eighth place among the world's exporters from 26th in 1993. From managing 2,000 workers overseas in 1993, Mexican companies now employ about 70,000 in two dozen countries, generating about $2 billion in annual revenue.
AGREEMENTS
A Business Week poll found that most Americans believe that globalisation is generally good for U.S. consumers, for the US economy and for strengthening the economy of poor countries (68 percent, 64 percent and 72 percent respectively). Respondents were split as to the effect of globalisation on job creation in the US. 50 percent believe it has a good effect, while 42 percent say it is detrimental to US employment. 69 percent of Americans believe that trade agreements with low-wage countries drive down US wages.
GATS
The Vancouver, B.C. City Council has passed a motion urging the government of Canada to consult widely and in depth with the people of Canada, especially and including municipal councils, before taking any further action on the WTO General Agreement for Trade in Services (GATS). Councillors are concerned that proposed changes to the GATS structure could affect existing jurisdictions for local governments and may result in significant administrative burdens and costs.
VOTES
Safeway Inc. shareholders overwhelmingly rejected a move to ban genetically modified products from store shelves. Company officials said that a vote on a resolution put forward by a coalition of environmental, agricultural, consumer and religious groups showed more than 97% of shareholders against banning genetically modified foods. Officials also said that the resolution was unnecessary because all foods sold by the chain have been certified as safe by the U.S. Food and Drug Administration.
INDONESIA
The value of Indonesia's exports is expected to reach US$44 billion this year. In the first quarter, total export value reached US$14 billion, a thirty-nine per cent increase over last year. The government is forming a consortium which will consist of seven overseas and local banks to provide working capital to selected export-oriented companies.
SOFT DRINKS
Japan is one of the most competitive soft drink markets in the world. Approximately 1,000 new soft drinks are launched in Japan every year, of which only a small number survive. There are more than 7,000 different soft drinks sold in the country.
COINS
Germany's central bank is planning to bury $6.6 billion worth of coins when it switches to the new euro currency in 2002, rather than melting them down. Germany fears flooding the world's nickel and copper markets. The coins will weigh about 100,000 tonnes. Annual copper consumption is about 15 million tonnes and nickel consumption is 1.1 million tonnes.
GLOBALISATION
The Economist reports that despite the best efforts of protesters, globalisation continues apace. Figures from the United Nations Conference on Trade and Development showed that cross-border merger and acquisition activity was up by more than a third in 1999 to $720 billion.
PLANES
According to the International Air Transport Association, air passenger and freight traffic is expected to grow by around 5 per cent a year in the coming decade, significantly outpacing the rate of global economic growth. The IATA forecasts that the annual number of passenger journeys by air on scheduled flights will exceed 2.3 billion by 2010, compared with 1.6 billion last year. International air transport remained one of the fastest growing sectors of the world economy in 1999, and around 40 per cent of the world's manufactured goods, by value was transported by air.
TAXES
The European Union has announced plans to force foreign companies to levy value-added tax on services delivered through the internet to customers in the EU. The draft law is aimed at services such as downloading CDs, software, videos or computer games supplied in digital form. If approved, the law will require foreign companies with sales of more than $95,000 (U.S.) inside the EU to register in at least one EU country and levy VAT at a rate of somewhere between 15 and 25 per cent.
SUBSIDIES
The OECD reports that governments in rich countries gave more money to their farmers last year than in any year since the mid-1980s, with support of $361 billion (U.S.) or $327 a farmer. The worst offenders offering subsidies were the countries of the European Union,, Norway and Switzerland, Japan and Korea. Canada and the U.S. were less generous but have both raised payments. Support for farmers in th EU amounted to 49 per cent of income. In Switzerland and South Korea it was 70 per cent. In the U.S. support was 24 per cent of income and in Canada, 20 per cent.
LOST
A system for the home has been developed that can locate lost objects or even people. Small radio-frequency tags attached to various objects like keys, wallets, and glasses emit a homing beacon. That beacon is then picked up 24 hours a day by a locating computer in the home. When you lose your keys, you need only walk up to the locating computer and ask where the keys are.
VEHICLES
A total of 21.5 million motor vehicles of all types were registered in Canada in 1999. Of this total, 16.5 million (77%) were passenger cars and light vehicles such as pickup trucks and minivans. The remainder consisted of 73,000 buses, 275,000 motorcycles and mopeds, 1.7 million farm and off-road construction vehicles, and 2.9 million (14%) trucks (weighing at least 4500kg) and truck tractors.
COMPLAINTS
Consumer complaints about advertising jumped 30 per cent in 1999. Advertising Standards Canada (ASC) the ad industry's self-regulatory body said it received 1,075 consumer complaints last year, up from 828 in 1998. ASC said complaints focused on four broad themes; depictions of violence; adult-themed ads in family oriented media; inappropriate teen language and behaviour, and safety issues.
PENSION FUNDS
According to InterSec, a research company, Americans now own three-fifths of the world's retirement assets. American pension assets were worth $7.8 trillion in 1999, 140 per cent more than in 1994. Japanese pension assets were the next biggest, worth $1.5 trillion. British pension assets were worth $1.4 trillion. Most other European countries have few pension assets. World pension assets totalled $13 trillion last year, 95 per cent more than in 1994.
GROWTH
Europe's 11-member common currency zone is enjoying its best growth in more than a decade and is set to start reducing its millions of unemployed. Euro zone growth is forecast to be 3.5 per cent of GDP in 2000 and 3.3 next year. This growth is expected to take 1.5 millions from the unemployed figures which will still be around 12 per cent in 2001.
BUILDINGS
According to a recent report, the next big environmental crisis will be dealing with sick buildings that are contaminated by mould, ozone, carbon monoxide and carcinogens of various kinds. The report claims that U.S. companies could save as much as $58 billion a year by preventing sick building illnesses, and reap another $200 billion in worker performance boosts by creating offices with better indoor air.
TRENDS
Superquinn is an Irish supermarket chain. Utilizing modern technology, it is using checkout receipts to show consumers the amount of Irish products they purchase and to relay the name of the farmer that is responsible for the beef they bought -- a move to boost confidence in the product.
AGE
New research shows that the farther west you live in Canada, the higher your life expectancy. British Columbia is tops at 79.3 years, and Newfoundland last at 77 years. While Canada has one of the highest average life expectancies in the world, the variations among provinces are increasing, causing concern for health professionals.
WORDS
The first use of the word "software" has been attributed to John Tukey, a Princeton University mathematician, who used it in an 1958 article published in the American Mathematical Monthly. Tukey had a fondness for coining new words and in 1946 coined the word "bit," short for binary digit.
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
According to the Export Development Corporation, exports from Alberta are expected to increase by nine per cent this year following an 11 per cent jump in 1999. Nearly 55 per cent of Alberta's export sales are in the energy sector. 85 per cent of Alberta's exports head to the U.S. Exports of automotive products by the province were up 22 per cent in 1999 and the forestry sector saw export sales increase 17 per cent. Agri-food products and consumer goods exports were both down in 1999.
NUTRITION
Studies show that dandelions are among the most nutritionally potent plants nature has to offer. They rank ahead of broccoli and spinach in overall food value. They are a good source of iron, have more potassium than bananas, more beta carotene than carrots and more lecithin than soybeans.
CHECKOUT
Loblaws, Canada's biggest grocery chain, will shortly allow shoppers at two supermarkets to scan their own groceries at the checkout as the retailer prepares to test a cashier-less counter--a move that could considerably shave labour costs. Self-serves in Europe and the U.S. have not been entirely successful. The equipment is expensive and increases the risk of theft. U.S. research has found that grocery stores can save 0.25 to 0.5 per cent of annual sales by moving to the self-serve checkout.
LOYALTY
U.S. consumers are making fewer trips to the grocery store as the availability of similar goods in other retail outlets impacts their shopping patterns, according to an AC Nielsen study. Last year, the number of trips declined from 91 to 90: shoppers made 94 trips in 1997. Today, the same products can be found at a number of stores. The most successful chains will be those that give their customers more reasons to shop with them - whether it's linking their loyalty programs to those of other industries, such as airlines, or offering more personally tailored promotions.
MONEY
In 1995, only 10 per cent of Canadians used debit cards and 58 per cent used cash. The latest figures show that debit cards for the first time are running neck and neck with cash. A recent survey showed that in 1999, 38 per cent of respondents used debit cards while 39 per cent preferred to pay cash. 16 per cent used credits cards and only three per cent paid by cheque.
MEXICO
The NAFTA has brought an influx of U.S. companies to Mexico since it was signed in 1994. However, far from turning Mexico into an economic sycophant, the pact has given the country's leading companies the impetus to learn from the invaders--competitors and partners alike--turning themselves into export powerhouses and disciples of globalization. Last year, Mexico climbed to eighth place among the world's exporters from 26th in 1993. From managing 2,000 workers overseas in 1993, Mexican companies now employ about 70,000 in two dozen countries, generating about $2 billion in annual revenue.
AGREEMENTS
A Business Week poll found that most Americans believe that globalisation is generally good for U.S. consumers, for the US economy and for strengthening the economy of poor countries (68 percent, 64 percent and 72 percent respectively). Respondents were split as to the effect of globalisation on job creation in the US. 50 percent believe it has a good effect, while 42 percent say it is detrimental to US employment. 69 percent of Americans believe that trade agreements with low-wage countries drive down US wages.
GATS
The Vancouver, B.C. City Council has passed a motion urging the government of Canada to consult widely and in depth with the people of Canada, especially and including municipal councils, before taking any further action on the WTO General Agreement for Trade in Services (GATS). Councillors are concerned that proposed changes to the GATS structure could affect existing jurisdictions for local governments and may result in significant administrative burdens and costs.
VOTES
Safeway Inc. shareholders overwhelmingly rejected a move to ban genetically modified products from store shelves. Company officials said that a vote on a resolution put forward by a coalition of environmental, agricultural, consumer and religious groups showed more than 97% of shareholders against banning genetically modified foods. Officials also said that the resolution was unnecessary because all foods sold by the chain have been certified as safe by the U.S. Food and Drug Administration.
INDONESIA
The value of Indonesia's exports is expected to reach US$44 billion this year. In the first quarter, total export value reached US$14 billion, a thirty-nine per cent increase over last year. The government is forming a consortium which will consist of seven overseas and local banks to provide working capital to selected export-oriented companies.
SOFT DRINKS
Japan is one of the most competitive soft drink markets in the world. Approximately 1,000 new soft drinks are launched in Japan every year, of which only a small number survive. There are more than 7,000 different soft drinks sold in the country.
COINS
Germany's central bank is planning to bury $6.6 billion worth of coins when it switches to the new euro currency in 2002, rather than melting them down. Germany fears flooding the world's nickel and copper markets. The coins will weigh about 100,000 tonnes. Annual copper consumption is about 15 million tonnes and nickel consumption is 1.1 million tonnes.
GLOBALISATION
The Economist reports that despite the best efforts of protesters, globalisation continues apace. Figures from the United Nations Conference on Trade and Development showed that cross-border merger and acquisition activity was up by more than a third in 1999 to $720 billion.
PLANES
According to the International Air Transport Association, air passenger and freight traffic is expected to grow by around 5 per cent a year in the coming decade, significantly outpacing the rate of global economic growth. The IATA forecasts that the annual number of passenger journeys by air on scheduled flights will exceed 2.3 billion by 2010, compared with 1.6 billion last year. International air transport remained one of the fastest growing sectors of the world economy in 1999, and around 40 per cent of the world's manufactured goods, by value was transported by air.
TAXES
The European Union has announced plans to force foreign companies to levy value-added tax on services delivered through the internet to customers in the EU. The draft law is aimed at services such as downloading CDs, software, videos or computer games supplied in digital form. If approved, the law will require foreign companies with sales of more than $95,000 (U.S.) inside the EU to register in at least one EU country and levy VAT at a rate of somewhere between 15 and 25 per cent.
SUBSIDIES
The OECD reports that governments in rich countries gave more money to their farmers last year than in any year since the mid-1980s, with support of $361 billion (U.S.) or $327 a farmer. The worst offenders offering subsidies were the countries of the European Union,, Norway and Switzerland, Japan and Korea. Canada and the U.S. were less generous but have both raised payments. Support for farmers in th EU amounted to 49 per cent of income. In Switzerland and South Korea it was 70 per cent. In the U.S. support was 24 per cent of income and in Canada, 20 per cent.
LOST
A system for the home has been developed that can locate lost objects or even people. Small radio-frequency tags attached to various objects like keys, wallets, and glasses emit a homing beacon. That beacon is then picked up 24 hours a day by a locating computer in the home. When you lose your keys, you need only walk up to the locating computer and ask where the keys are.
VEHICLES
A total of 21.5 million motor vehicles of all types were registered in Canada in 1999. Of this total, 16.5 million (77%) were passenger cars and light vehicles such as pickup trucks and minivans. The remainder consisted of 73,000 buses, 275,000 motorcycles and mopeds, 1.7 million farm and off-road construction vehicles, and 2.9 million (14%) trucks (weighing at least 4500kg) and truck tractors.
COMPLAINTS
Consumer complaints about advertising jumped 30 per cent in 1999. Advertising Standards Canada (ASC) the ad industry's self-regulatory body said it received 1,075 consumer complaints last year, up from 828 in 1998. ASC said complaints focused on four broad themes; depictions of violence; adult-themed ads in family oriented media; inappropriate teen language and behaviour, and safety issues.
PENSION FUNDS
According to InterSec, a research company, Americans now own three-fifths of the world's retirement assets. American pension assets were worth $7.8 trillion in 1999, 140 per cent more than in 1994. Japanese pension assets were the next biggest, worth $1.5 trillion. British pension assets were worth $1.4 trillion. Most other European countries have few pension assets. World pension assets totalled $13 trillion last year, 95 per cent more than in 1994.
GROWTH
Europe's 11-member common currency zone is enjoying its best growth in more than a decade and is set to start reducing its millions of unemployed. Euro zone growth is forecast to be 3.5 per cent of GDP in 2000 and 3.3 next year. This growth is expected to take 1.5 millions from the unemployed figures which will still be around 12 per cent in 2001.
BUILDINGS
According to a recent report, the next big environmental crisis will be dealing with sick buildings that are contaminated by mould, ozone, carbon monoxide and carcinogens of various kinds. The report claims that U.S. companies could save as much as $58 billion a year by preventing sick building illnesses, and reap another $200 billion in worker performance boosts by creating offices with better indoor air.
TRENDS
Superquinn is an Irish supermarket chain. Utilizing modern technology, it is using checkout receipts to show consumers the amount of Irish products they purchase and to relay the name of the farmer that is responsible for the beef they bought -- a move to boost confidence in the product.
AGE
New research shows that the farther west you live in Canada, the higher your life expectancy. British Columbia is tops at 79.3 years, and Newfoundland last at 77 years. While Canada has one of the highest average life expectancies in the world, the variations among provinces are increasing, causing concern for health professionals.
WORDS
The first use of the word "software" has been attributed to John Tukey, a Princeton University mathematician, who used it in an 1958 article published in the American Mathematical Monthly. Tukey had a fondness for coining new words and in 1946 coined the word "bit," short for binary digit.
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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