December 2001 Economic Digest - Importing and Exporting

  December 2001 Edition

WTO

After 15 years of negotiations, the World Trade Organization is about to welcome China as a member. China is the world's seventh-largest economy and ninth-largest exporter. It is also Canada's fourth-largest trading partner (two-way trade reached C$15 billion in 2000). Upon accession to the WTO, China will immediately institute tariff cuts. Most of these will be in place by 2005, with further cuts to be phased in over nine years. Industrial tariffs will fall from an average of 16.3 per cent to about 9 per cent and agricultural and agrifood tariffs from 21.4 per cent to about 16 per cent.

COMPETITIVE

Finland is the most competitive economy in the world, despite its rigid labour markets, powerful unions and high tax rates, according to the Global Competitiveness Report from the World Economic Forum. It displaces the U.S. from last year's top slot. Canada moved up to third from seventh position. Of the 75 countries included, Zimbabwe, experimenting with a more extreme form of socialism, languishes in last place.

KETCHUP

When they changed the colour and introduced a new container, the H.J. Heinz Co. transferred a mundane food product into a star. Last year, when the company launched green ketchup, consumers grabbed it off the shelves. In less than a year, Heinz boosted its share of the ketchup market by almost 5 percentage points. While most of the press focused on the colour, Heinz officials said that the new container, built to fit the hands of children and encourage extra squeezing, was more important to the product's success.

WATER

Residents of a district in Pakistan were left without running water for 16 years because someone forgot to switch on a set of water-pumping stations. Recently, an engineer discovered six unused pumping stations in the area. One village has never had running water despite being next to a working dam.

WATER

Residents of a district in Pakistan were left without running water for 16 years because someone forgot to switch on a set of water-pumping stations. Recently, an engineer discovered six unused pumping stations in the area. One village has never had running water despite being next to a working dam.

TOMATOES

A preliminary ruling by the U.S. Department of Commerce has placed a 33.9 per cent duty on B.C. hot house tomatoes entering the U.S. B.C. produced C$74 million worth of greenhouse tomatoes in 2000, almost all of which were exported to the U.S., primarily Washington, California, Texas, Connecticut and Florida. This duty is a blow to B.C. greenhouse vegetable growers who also produce peppers and cucumbers

HEALTH

Health Canada is re-evaluating its approval of pressure treated wood for use in play structures amid concern that harmful chemicals could be leaching from it. A study was conducted in the late 1980s but the results were never made public. Most commonly, treated wood contains Chromate Copper Arsenate or CCA, a pesticide that keeps the wood from deteriorating. It also contains arsenic. One piece of tested wood had levels of arsenic that exceeded the current Canadian guideline by more than 10 times.

CITIES

A new United Nations Population Fund report states that roughly 2.8 billion people presently live in cities. By 2005, that number will have risen to 3.9 billion, nearly three-quarters of them in the developing world. In 2015, there will be 23 mega-cities, those with 10 million or more people, compared with only five in 1975. The top five will be: Tokyo, Mumbai (Bombay), Lagos, Dhaka and Sao Paulo

WORTH

A woman seeking renewal of a 25-year licence for a refreshment kiosk near the Tower of London has been offered over US$4 million for it if she is successful. The kiosk's position, near the entrance to the Tower, which attracts more than five million visitors a year, is one of the busiest and most profitable in London.

FREE

For the eighth straight year, Hong Kong has topped the list of the freest economies in the survey compiled by the Heritage Foundation and the Wall Street Journal. Singapore ranked second and New Zealand third. The United States tied for fourth with Estonia, Ireland, Luxembourg and the Netherlands. Canada was 15th and China was 121st. An average tariff rate of 15.7 per cent; quotas; import licensing; import substitution and local content policies; restrictive quarantine and certification standards earned China the most negative rating for protectionist trade policies.

CELLPHONES

China has leapfrogged past the U.S. as the nation with the most cellphone users. China now has 120.6 million mobile phone users, compared with 120.1 million U.S. users. With less than 10 per cent of China's population using a cellphone, the market there is expected to continue to grow by another 80 million by 2002.

BRITAIN

After decades of drinking heavily, Britons are turning their backs on the bottle. New research shows that health-conscious consumers are cutting down on beer, wine and spirits and turning to bottled water and soft drinks. After 20 years of rising alcohol consumption, the number of people drinking regularly fell by almost 5 per cent between 1990 and 2000.

AFRICA

Now that sub-Saharan Africa has passed the threshold of one telephone subscriber per 100 inhabitants, all countries in Africa are connected to the Internet. The U.N. telecommunications agency has said that the number of subscribers more than doubled from 0.51 to 1.2 per 100 people from 1995 to 2000. This followed economic improvements in Africa and expansion of competitive operators on the continent. The agency has predicted that by the end of this year, there would be more mobile than fixed subscribers on the continent.

DRUGS

Canada's four Atlantic provinces want to set up a joint panel to review drugs for the entire region. They believe that a joint approach to drug review could eliminate duplication as well as increase Atlantic Canada's buying power when it signs contracts with drug manufacturers. Right now, each province reviews prescription drugs to decide which one should be covered by publicly funded plans.

MEXICO

The industrial corridor between Linares and Allende in the State of Neuvo Leon is becoming increasingly dedicated to providing food to the U.S. market. The zone is strategically important for the duty-free transport of food, originating in Europe, to the U.S. market. European foods that arrive as finished products in the U.S. are subject to duties, but producers are taking advantage of the NAFTA to send their products to the U.S. via Mexico.

THE ENVIRONMENT

A plastic golf tee has been developed that dissolves after five hours under a golf-course sprinkler system.

BUGS

About 150 experts recently gathered in London at the first international conference on bugs in books. From Nigeria to New Zealand, museums and libraries are taking pest control very seriously. No collection is safe from bookworms, beetles, booklice and even termites. Central heating in libraries gives tropical bugs a place to spend the winter and cutting back on cleaning staff brings the beetles marching in.

EUROPEAN UNION

The EU may, within three or four years, let in ten more countries all at once. Thirteen countries have asked to join the 15 that are already members. Most are from Central Europe and have been applying since the fall of communism in 1989. Negotiations with ten countries may well be concluded by the end of next year, paving the way for them to enter the Union as early as 2004. The ten new members would add some 75 million people to the EU's present population of 375 million.

TEXTILES

The textile and apparel industry employs more than 500,000 workers in the U.S. but it has lost 600,000 jobs since 1994, and almost 70,000 this year. Sales of U.S. cotton to textile companies in the U.S. have gone from about 11. 5 million bales in 1997 and 1998 to about 7.8 million bales this year.

MARRIAGE

The average Canadian bride and groom were well over 30 years old in 1998, according to new Statistics Canada data on marriages. The average age of a bride, including first-time brides as well as previously divorced women and widows, was 31.1 in 1998, up from 28.6 in 1988. The average man was wed at 33.7 years old in 1998, compared with 31.2 a decade earlier. In total, 152,821 couples were married in 1998, virtually unchanged from 1997.

EMPLOYMENT

In 2000, the percentage of employment in the service sector in Canada was 74.1 per cent. In the U.S. it was 74.5 per cent, France 74 per cent, U.K. 72.8 per cent and Japan 63.1 per cent.

CURRENCY

Vietnam has declared its numismatic independence with a 50-dong souvenir note crafted from polymer substrate--the first home-grown note after decades of dependence on Russian, Chinese and Swiss assistance in engraving and printing Vietnamese currency. It is worth only cents but has become a hot collectors item. Bank officials say the new note represents a trial run in using polymer substrate, which costs about one-and-a-half times as much as ordinary paper but is more durable and counterfeit-resistant.

PRODUCTIVITY

Boosted by new technology advances, labour productivity in the U.S. between 1995 and 2000, increased by an average of 2.6 per cent, up from 0.8 per cent between 1990-1995, and outpaced the European Union and Japan, according to the International Labour Organization. Labour productivity is considered a key indicator of economic performance and is influenced by factors such as accumulation of machinery and equipment, improvements in organization and transportation, workers skills, or human capital, and new technology.

VIEWING

More Canadians are tuning into pay-television and specialty channels at the expense of conventional Canadian and foreign stations. Of all television viewing, pay and specialty channels took 30 per cent of the audience during the fall of 2000 up from less than one per cent in 1992. The percentage of those watching Canadian channels only was down to 53 per cent in 2000 from 75 per cent in 1982.

RAGE

Japanese designers and engineers have developed a speaking car, called the Pod, that avoids road rage by telling drivers when they are overreacting and praises them for good manners.

OSAKA

The City of Osaka has introduced a subsidy programme for foreign-affiliated firms setting up business in Osaka. The programme applies to firms that establish a new base in the city between April 1, 2001 and March 31, 2002. Eligible expenses include commission fees for market research and other purposes, interpretation and licensing fees, registration and other legal formalities and non-refundable deposits for the rental of offices or other facilities. The amount of the grant is not to exceed half of the sum of applicable expenses.

PARROTS

At (www.parrotmountain.com), the Parrot Mountain company is selling rollerskates for parrots in three different sizes.

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November 2001 Economic Digest - Importing and Exporting

November 2001 Edition

 FRUIT

China has become the world's largest centre for fruit and vegetable production. Statistics show that in 2000, China's fruit growing area and production reached 8.67 million hectares and 62 million tons, accounting for 18 per cent and 13 per cent of the world total respectively. Meanwhile, China's vegetable growing area and production amounted to 14.67 million hectares and 440 million tons, accounting for 35 per cent and 67 per cent of the world total respectively.

RETIREMENT

Rates of early retirement in Canada have tapered off after peaking in 1997. During the early 1990s, the overall rate of early retirement increased steadily until 1997, when 46 per cent of all workers who retired did so before they were 60. One reason behind the surge in early retirement during the early 1990s may have been downsizing in some public?sector industries. Many older public servants were encouraged to take early retirement packages. In 1997, 65 per cent of those who retired were under 60.

MINIATURIZATION

In another milestone in computer miniaturization, IBM has announced that it's scientists have built the smallest-ever computer logic circuit made from a single molecule of carbon. The material used to construct the circuit is a carbon nanotube, a hollow strand 100,000 times thinner than a human hair.

POPULATION

As of July 2001, Canada's population surpassed 31 million reaching an estimated 31,081,900. From July 2000 to July 2001, the population increased by 312,200 people, the largest annual population rise since 1996/97. The population grew by an estimated 1.0 per cent in 2000/01, compared with increases of less than 0.9 per cent during the previous three years. The main factors behind this higher growth were an influx of 252,100 immigrants to Canada in 2000/01, about 46,000 more than in 1999/2000. In addition, the number of non?permanent residents rose by 22,900 in 2000/01, almost double the estimated number in 1999/2000.

CABS

More than 62,000 cellphones were left in London cabs during the past six months. Half were never reclaimed.

CHINA

Once in the WTO, China will represent the world's fifth largest trading power after the Quad group (composed of the US, the EC, Japan and Canada). Several analysts conjecture that China's entry will change the balance of forces in the body, adding weight on the side of developing countries. Conversely, easier access to a market of one billion people is widely believed to offset Quad concerns over the stance China might take in the trade organization.

VEHICLES

According to the international police organization Interpol, there has been a worldwide surge in car theft, with one vehicle being stolen every 10 seconds. It is urging improved cross-border cooperation to combat car thieves. Three million vehicles disappear each year and criminals make an annual profit of about $19 billion. In 1999, Interpol said 1.7 million vehicles had been reported as stolen, up from 1.1 million the previous year.

COSTA RICA

The President of Costa Rica has suggested that the country's suffering coffee growers shift to sugar for the Canadian market. Since signing an FTA with Canada, Costa Rica is allowed to export up to 20,000 metric tons of sugar each year. Under the treaty, the sugar quota could rise to 40,000 tons within seven years. Coffee producers have been losing about five dollars on each 100 pound bag of coffee.

E-BUSINESS

A survey of 500 IT executives, by Jupiter Media Metrix, concludes that U.S. businesses are more concerned about the impact that online security problems have on consumer confidence and trust in e-business, than about suffering an actual financial loss due to a security breach. Just over 12 per cent of U.S. companies with a Web presence said they have suffered direct financial losses due to an online security breach. 40 per cent said they are more worried about how online security invasions will affect their customers.

LOW TECH

Archaeologists in the City of London have unearthed two machines that show that the Romans used to lift water on an industrial scale.The three-foot high water wheels were found in two deep wells near the site of a Roman bathhouse and amphitheatre. They would have been turned by a man walking on a 10-foot high treadmill and, on an average day, would have raised an estimated 60,000 gallons of water, enough to fill nearly 2,500 modern bathtubs.

BIOTECH

Contradicting the prevailing sentiment in Europe against biotech crops, a recent report from the European Union suggests that they may be safer than regular foods. The biosafety report summarizes 81 research projects financed by the EU over the past 15 years, at a cost of US$64 million, on genetically modified crops and products made from them. The research has not found any new risks to human health or the environment, beyond the usual uncertainties of conventional plant breeding. In fact, the use of more precise technology and greater regulatory scrutiny probably make them safer than conventional plants and foods.

FRANCE

French vineyards have called for millions of litres of wine to be turned into either methylated spirits or cooking brandy, in a desperate attempt to survive the slump affecting the country's wine industry. French wine consumption has dropped dramatically in recent years: The average adult drinks only 57 litres of wine annually, compared with 91 litres in 1980

SAFETY

More than half the foreign ships inspected at Canadian ports last year were found to have defects and in 10 per cent of the cases those defects were serious enough that the ship had to be detained. Of the 1070 ships inspected at Canadian ports, there were 583 foreign vessels found to have defects and 103, with an average age of 16.3 years, were detained. The vast majority of ships inspected were involved in commercial transport. Passenger ships made up only four per cent of ships inspected. Ships operating under the Panamanian flag were the worst offenders in 2000.

CATFISH

This is a Dixie delicacy increasingly liked by other Americans. One recent poll placed it as the country's third-favourite seafood, beaten only by shrimp and lobster. Around 600 million pounds of catfish, worth US$500 million, are sold every year in the U.S. Most of it comes from Louisiana, Mississippi, Alabama and Arkansas. Last year some seven million pounds of catfish were imported from Vietnam, compared with two million pounds in 1999 and 575,000 pounds in 1998. Farmers are blaming the Vietnamese for falling prices, from about 80 cents a pound to 60 cents a pound in the past year.

FIZZ

An American researcher has injected carbon dioxide into oranges, pineapples and pears, making them fizz like a carbonated drink. The gas, which is said to enhance flavour and make fruit more appealing to children--except bananas which explode. The products are being test-marketed at U.S. grocery stores.

MARKETS

Kentucky Fried Chicken, which pulled off an extraordinary coup by opening a huge outlet next to Tiananmen Square in 1987, now has nearly 500 sites across China. McDonalds, which first erected its golden arches in Beijing in 1992, now has 370 outlets around the country. Starbucks, the Seattle-based coffee-shop chain is the latest symbol of American consumer culture to make its mark on China's urban landscape. Opening in 1999, it now has 35 outlets, mainly in Beijing and Shanghai, which is considered remarkable given that China is a country of devoted tea drinkers who do not take readily to the taste of coffee.

TRENDS

The percentage of Canadian-born players in the National Hockey League has reached another record low. There were 375 Canadian players, or 52.3 per cent of all players, on opening night rosters compared to 380, or 53.2 per cent, a year ago. European content is up for the 12th consecutive year.

DROUGHT

Saskatchewan farmers are expected to harvest 18 per cent less spring wheat this year. Production will probably fall by 1.6 million tonnes to 7 million tonnes, the lowest production estimate in recent history. The yield has declined by about 10 bushels per acre. Canola production has fallen by 38 per cent to 2.1 million tonnes.

ALLERGIES

The Center for Science in the Public Interest has petitioned the U.S. Food and Drug Administration to require food labels to show common allergens and to develop common manufacturing standards to prevent allergens from contaminating food. The CSPI estimates that 4 million Americans are allergic to foods such as peanuts, nuts, eggs, soybeans and wheat. Each year, 29,000 people visit a hospital after an allergic reaction and about 150 die as a result of their allergy.

CARTELS

The European Union Commission has fined six companies US$52 million for operating a secret cartel to fix prices and share the market for sodium gluconate, a cleaning solvent ingredient. The Commission found that the cartel, which accounted for most of the world-wide production, operated the cartel between 1987 and 1995. The market was worth US$16 million annually during the eight year infringement period.

CADILLAC

Once an American automotive icon of luxury, style and performance, Cadillac has fallen on hard times. In 1998, it was displaced as the top-selling luxury car brand in North America after leading the segment since 1950. Today, Cadillac is in sixth place with Toyota's Lexus division first.

DRUGS

A U.S. senator is spearheading an effort designed to encourage drug wholesalers and pharmacists to import cheap prescription drugs from Canada. The goal of the proposed legislation is to eliminate the need for individuals to visit Canada themselves and to put pressure on U.S. drug makers to ease prices. Canadian regulations hold the prices of most prescription drugs to much lower levels.

AGRI-FOOD

A new service should make it easier to move Canadian product into Mexico, one of the largest markets of Canada's agricultural and agri-food industry. A full-time resource person has been placed at the Mexican border to ensure that Canadian companies are well prepared to meet Mexican requirements. Mexico has a fairly complicated import regime and getting products (especially processed foods) across the border can be challenging.

ODD

Centuries after King Arthur, a new type of knight is wandering Britain. When asked their religious affiliation on the 2001 census forms, many Britons wrote in "Jedi Knight." So many have done so that the government has been forced to give Jedi Knight its own category when compiling the census results. Jedi Knights are warriors who battle evil through the ages in the Star Wars movies. Jedi Knights have been given its own code in processing the census because of the large number of people who entered it. However, officials report that this will not be included as a religion in a future census

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October 2001 Economic Digest - Importing and Exporting

October 2001 Edition

 RUSTLING

Beef prices are at a 10-year high in Canada and that has triggered a run on cattle. In Alberta, the demand for meat has created a serious problem in cattle rustling. About 6,000 head of cattle disappear in Alberta every year costing ranchers $6 million. Livestock detectives say the problem is getting worse. Some ranches have lost more cattle in the last three years than in the previous forty. One ranch lost 11 head of cattle in one day worth $1,900 each.

WATER

Mexico has missed a deadline for the payment of water to the U.S. under an international treaty governing the Rio Grande, a critical source of water for farmers along the river's valley in South Texas. Mexico has owed the U.S. about 1.3 million acre-feet of water since 1992 under the agreement and was supposed to pay about 600,000 acre-feet to the U.S. by the end of July 2001.

ONLINE

Canadian women are among the world's most eager surfers in cyberspace, while Germany has the lowest percentage of women Internet users among 26 countries in Europe, North America and Asia. Of the 26 countries surveyed, only Canada and the U.S. had female majorities in cyberspace, with 51 per cent and 52 per cent respectively. The study showed that only 37 per cent of German on-line users were women.

HOURS

Roughly one in six workers in developed countries is a part-timer (less than 30 hours a week). In the past few years the incidence of part-time work has risen sharply in some European countries, notably the Netherlands and Belgium, but has fallen in the U.S. Women dominate the part-time workforce, but in some countries, such as Britain, the share of men has been rising, from 15 per cent in 1990 to 20 per cent in 2000.

TRENDS

The former Soviet republic of Azerbaijan has abandoned the Cyrillic alphabet in favour of Latin letters. A government decree has ordered that all official documents and commercial signs, along with Azeri-language magazines, books and newspapers, be written in the Latin script. The Latin alphabet was the official script for the Azeri language for almost two decades before Stalin imposed the Cyrillic alphabet in 1939. Further back still, Arabic script was also used.

LATIN AMERICA

Competition between Japan and South Korea for the South American market has intensified, especially in the automobile and naval sectors. In 2000, South Korea exported US$9.36 billion worth of goods to Latin America, while Japan's exports to the region totalled US$19.54 billion during the same period. South Korea was at a disadvantage with respect to the number of companies it operated in Latin America, only 116 compared with Japan's 753. Japanese companies have diversified from manufacturing to service sectors, such as finance and investment.

MOODS

A day after the Hong Kong Mood Disorders Centre opened in May of this year, 1,000 people jammed its telephone hotline asking for help. The flood of calls was unexpected. Asians typically don't see mood problems like depression as an illness requiring medical attention. They don't think it's appropriate to tell their doctor they're anxious or depressed. Instead they complain about chronic fatigue, insomnia, headaches, chest discomfort or poor memory.

RUSSIA

The Russian foreign trade protection commission has announced its intention to reduce, by five percentage points, the import duties on 400 items of industrial equipment. The current duty on industrial equipment ranges between 10 to 15 per cent. The decree will apply to iron and steel, automobiles, light and textile industries, machine tool construction and food industries.

BACTERIA

British scientists say cooking with copper pots instead of stainless steel may lower the risk of infection from food bugs. Researchers from the University of Southampton released a study on E.coli 0157 which can survive for more than a month on stainless steel. The researchers are hoping to develop the bacteria-killing properties of copper. They found that the bug was able to survive up to 35 days and sometimes as long as three months on stainless steel surfaces, whereas it was only able to live on copper for four hours.

AGING

The world's elderly population (those over age 60) will be one billion by 2020, or 13.3 per cent of an expected total population of 7.5 billion. This is up from 8.5 per cent of the population in 1980 and 11 per cent now. Almost three-quarters of seniors will live in developing countries.

OATS

Months of below-normal rainfall in Saskatchewan and Alberta have threatened this crop and sent prices surging to a three year high. The two provinces supply half the oats consumed in the United States. The grain is of such high quality that it is used in breakfast cereals and animal feed going to breeders of Kentucky racehorses. More than two-thirds of all oats in the U.S are consumed by livestock.

PORTS

According to StatsCan, Canada's major container ports have competed successfully against their U.S. counterparts for overseas container traffic. The keys to the success of Canadian container ports have been a combination of natural endowments, investments in intermodal facilities and competitive pricing. These factors are likely to continue into the future; however, the competition among container ports is likely to intensify as industry consolidation continues and as publicly funded U.S. intermodal terminal and corridor projects come to fruition.

APPRENTICES

In 1999, the number of registered apprentices in Canada increased 6 per cent to 188,776. Since 1994, the number of such apprentices has grown 14 per cent ? almost returning to the peak reached in the early 1990s. Registrations have increased by 15 per cent or more since 1994 in all but two of the major trade groups. The two exceptions are building construction and electrical and electronics trades, where increases over the last year raised registrations to about the same level as in 1994.

SOLAR POWER

Newly installed solar-powered parking meters have fallen victim to Britain's notoriously gloomy weather. This is allowing hundreds of motorists to escape paying for tickets. The City of Nottingham spent US$2.25 million on 215 high-tech meters earlier this year. More than a quarter of the machines have stopped working due to the lack of sunshine.

PETS

Americans are the most pet-fond people in the world. In the year 2000, Americans spent more than US $27 billion on their small companions which is more than India's annual defence budget. 17 per cent of U.S. citizens keep a picture of their pet in their wallet or purse.

FASHION

A Japanese company has invented T-shirts that automatically dispense vitamin C to wearers. Each shirt is made of fibres impregnated with as much vitamin C as contained in two lemons. The vitamin-dispensing power fades only after 30 washes.

ENERGY

Canada is a big supplier of energy to the U.S. to the tune of US$20.2 billion last year. We provide our neighbour with 9 per cent of its oil needs and 15 per cent of its natural gas. Some claim that the Alberta tar sands contain 300 billion barrels of oil, far more than Saudi Arabia's proven reserves.

SPORTS

In 1937, when Gallup began asking Americans to name their favourite sport, baseball was the runaway winner with 34 per cent, peaking at 38 per cent in 1948. This year, baseball polled just 12 per cent, an all-time low, and a distant third behind football and basketball

FISH

Aquaculture sales soared past C$600 million in 1999 in the wake of increases in both production and prices of fish products. The industry generated revenues of C$611.4 million, a 17.6 per cent gain from 1998. Finfish, mostly salmon, accounted for C$560.2 million in sales, 91.6 per cent of the total, while molluscs accounted for C$44.8 million, or 7.3 per cent. Aquaculture exports increased 5.2 per cent to C$385.5 million in 1999. About 96.5 per cent of finfish exports go to the U.S. each year; France, Japan and Taiwan take the remainder.

REGULATIONS

A survey by the Canadian Federation of Independent Business concludes that provincial regulations have the greatest impact on the development of small and mid-sized enterprises. It also appears that the policies of the two wealthiest provinces, Ontario and Alberta, are the most popular among business. The survey of almost 8,100 entrepreneurs found that 39 per cent said policies set by provincial governments had the greatest impact. About 26 per cent said municipal decisions were the most important.

CORN MAZES

In recent years, spurred by a need to generate new revenue, farmers across North America are turning to agritourism. Some farmers claim that corn mazes can generate more revenue in five days as a maze then they would in a year as a crop. But mazes are not cheap. On average, farmers pay between C$10,000 and C$15,000 for the maze design which usually represents a theme.

BRITAIN

A new government study suggests that British companies conduct very little business over the Internet with online sales accounting for only two per cent of total sales of the sectors covered. Internet business in Britain could be worth US$83 billion annually. About 40 per cent of those questioned said that the cost of developing systems and uncertainties with contracts were barriers to making sales using e-commerce.

REFORM

Canada and 17 other top food-exporting countries are warning that attempts to launch a new round of trade liberalizing talks in Qatar could fail unless these include agricultural reforms. The 18-member Cairns group has said that agriculture is a significant enough issue that new negotiations on freer trade in products and services may not get off the ground if eliminating farm and exports subsidies is not on the table.

ADVERTISING

As U.S. retailers are gearing up for autumn, some are cutting their advertising budgets in favour of special events and better pay for sales-clerks. Instead of pulling out all stops to woo customers with typical newspaper inserts and local television and radio spots, many U.S. merchants are taking the axe to their ad budgets. Overall, national magazine advertising by retailers fell by 22 per cent in July with retailers spending US$9.2 million less then they did in July, 2001.

FILMS

The Screen Actors Guild in the U.S. is calling for an investigation into what it says are unfair trade practices in Canada. The actors union says Canadian tax incentives to American film studios are illegal. Earlier this year, an American government estimated that the U.S. was losing more than $15 billion a year because of so-called runaway film production outside the country. Canadian officials dispute that figure.

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

September 2001 Economic Digest - Importing and Exporting

September 2001 Edition

 EUROPE

Plans for the European Union to liberalise trade with the world's poorest countries are on hold. Following complaints from farm lobbies, Europe's trade commissioner has pushed back a proposed transition period for an "everything but arms" market-opening to 2006-08. The original plan was to eliminate tariffs on most goods by 2004.

PUBLIC SERVICE

Employment in the Canadian public sector has rebounded to the levels of the mid-1990s after several years of tight budgetary control and government restructuring. The public sector employed an average of just under 2.9 million people in the first quarter of 2001. This is an increase of 1.1%, or 31,100 people, from the first three months of 2000, and is the eighth straight quarterly increase. There are now as many people working in the public sector as there were in the first quarter of 1996.

PHONES

Nearly 50 per cent of children in Britain aged between 7 and 16 own a mobile phone. A study by the NOP Research Group revealed that 52 per cent of girls and 44 per cent of boys have their own mobile phones.

ICELAND

Global warming is giving Iceland an unexpected headache. Its roads--recently freed of much of their ice cover--are being ground to dust by cars fitted with studded winter tires. Plumes of asphalt are drifting across the island, raising cancer fears among health experts and environmentalists, while roads are breaking apart under the strain.

RADIO

Revenues of private Canadian radio broadcasters surpassed $1.0 billion for the first time in 2000, advancing 5.2 per cent from 1999. This increase was largely the result of the good performance of FM broadcasters, whose revenues grew 7.9 per cent; AM broadcasters' revenue grew 0.8 per cent. FM stations, as a group, have generated profit margins exceeding 16.0 per cent in the last four years, reaching a high of 22.5 per cent in 2000. During that period, AM stations recorded losses every year.

DANGER

A British 1999 study found that far more people were injured by magazines (4,371) than chainsaws (1,207); accidents involving tea cosies jumped to 37 from 20 the previous year.

FARES

The average Canadian domestic air fare in the second quarter of 1999 was a record $208, up 5.6% from the second quarter of 1998 and 2.1% above the previous record level of $204 reached in the second quarter of 1995. This was the ninth consecutive quarterly increase in average fares in the domestic sector, erasing the effect of seven consecutive quarterly decreases in 1995 and 1996. The average international air fare in the second quarter of 1999 was $364, 13.1% lower than the record average international fare of $419 reached in the third quarter of 1994.

TRAFFIC

The Mayor of London, England, has announced a plan that would see all vehicles entering the heart of London paying a $10.00, one-day, congestion fee starting in 2003. It is hoped that the plan will raise half a billion dollars a year to be ploughed into the public transport system and reduce traffic jams by 15 per cent. It is estimated that 750,000 vehicles pass in and out of the congestion zone each day. More than 100 digital cameras, both static and mobile, will enforce the new law. The pass will last the whole day and allow unlimited entries and exits.

CHINA

Swarms of newly affluent Chinese are helping to bolster the tourist-hungry economies of their Asian neighbours. More than ten million Chinese went abroad last year, up from just three million less than a decade ago. The Chinese list foreign travel as their No. 3 desire, after housing and education. Those that go abroad currently spend $2,000 to $3,000 (U.S.) each per trip. In Thailand and South Korea, for example, they are becoming an important source of revenue, particularly as arrivals from Western countries slow along with their economies.

FRANCE

The French government has announced a US$1.5 billion project to make high-speed Internet access available throughout France within five years. As part of a far-reaching technology initiative, government and industry will pool another US$180 million to bring mobile-phone service to the 8 percent of France that does not have it. The Internet services will be developed using cable, satellite and high-speed modem technologies.

CONTROL

The majority of Canadians are against letting control of the country's media and communications companies fall into foreign hands, fearing it could lead to a loss of national identity and sovereignty. A survey found that seven out of 10 Canadians oppose raising the current limits on foreign investment in the industry. 41 per cent said they strongly oppose changes that would allow foreign majority ownership. Just 5 per cent said they strongly favoured it.

PIRACY

The first pirate-proof compact discs which cannot be copied have gone on sale in California. CDs recorded on the new system play normally on a CD player or computer, but the digital code holding the sound is corrupted if anyone tries to copy it.

ONTARIO

Ontario's exports to Europe jumped 8.9 per cent in the first four months of 2001 relative to the same period last year. In 2000, Ontario's exports to Europe increased 9.7 per cent over 1999. According to the government, this year's increase has led to 2,000 new jobs in Ontario. In 2000, Ontario's exports to Europe totalled C$7 billion. Aircraft, computer parts, optical devices and precious metals led Ontario's export gains. Key markets were the U.K., France, Germany, Russia and Norway.

MEAT

The European Union, whose beef market collapsed in the wake of the mad cow epidemic, is to spend US$10 million promoting beef consumption. The 12 month scheme is to win back some of the estimated 1.5 million tons of consumption lost due to the collapse of public confidence in the safety of beef and beef products. The main emphasis of the campaign will be to reassure consumers that beef is safe to eat as well as emphasizing the nutritional benefits of eating beef.

ORGANIC

The Canadian government has created a national centre for organic agriculture based out of Nova Scotia's Agricultural College. The new facility will carry out research and education. Organic food accounted for C$1 billion in sales last year and has a 20 per cent annual growth rate. The centre will help Canadian producers eat into markets in Europe, Japan and the U.S. Key to the centre's mandate will be the development of four web-based courses in organic agriculture available to students and farmers across Canada.

DOGFISH

Marine biologists used to condemn these fish as an enemy of the fishing industry. Now, the spiny dogfish is creating a small Maritime industry. Landings of the small shark have shot up over the last four years. Meanwhile, markets have grown with a steady demand for their thick white meat in fish and chips in British pubs, in Chinese shark-fin soup and as snacks in German beer gardens. There are about 40 boats in Nova Scotia catching dogfish compared to eight four years ago. Fishermen caught about 2,400 tonnes last year, six times the catch in 1996.

PAY PHONES

It is predicted that pay phones and telephone booths will disappear in Canada within a few years due to the popularity of increasingly sophisticated and relatively cheap cell phones. Already, the explosive growth of cell phone use--20-to 30-per cent annually--is causing many Canadian pay phones to be permanently disconnected. About 9.1 million Canadians now carry cell phones.

TIME

Researchers have developed an atomic clock that keeps even better time than the microwave atomic clocks currently in use. The newer clock uses optical (visible) light and is accurate to one second in the lifetime of the universe--about 15 billion years. Until now, the best atomic clocks were only accurate to one second every 15 million years!

CHANGE

Tupperware Corp. is to begin selling its products in SuperTarget stores in the U.S in October. The stores will be staffed with Tupperware consultants who will explain and demonstrate the products like they do at Tupperware parties. The partnership with Target is only the latest step the company has taken recently to expand the distribution of Tupperware products beyond the parties. In the last three years, Tupperware has sold its kitchen utensils and plastic storage containers at 148 shopping mall kiosks, online and on television

FLOTSAM

The amount of buoyant, indestructible rubbish that floats in the world's oceans has exploded since the 1950s and 1960s. Before that, most marine garbage was organic, so it eventually rotted or sank. As many as 1,000 or more boxcar-size shipping containers fall off ships annually, releasing fleets of floatable goods. Autopsied sea animals have been found with items like cigarette lighters, plastic bags and toy soldiers.

OLYMPICS

In recent years, the Olympics have become a great commercial success. The TV rights alone have shot up from US$101 million for the 1980 Summer games to US$1.33 billion in 2000. By 2008, the IOC forecasts its TV rights for the Summer games will be worth US$1.72 billion. Revenue from its top 10 advertisers program will grow from US$96 million for the 1988 Calgary Winter and Seoul Summer games to an estimated US$600 million for the combined 2002 Salt Lake City Winter and 2004 Athens Summer Olympics.

BRIBES

Foreign companies bribed their way into obtaining US$37 billion in overseas commercial contracts over the past year, according to a Department of Commerce report. In the period from May 1, 2000 to April 30, 2001, the competition for 61 contracts may have been affected by bribery of foreign individuals, and of these contracts, US firms are believed to have lost nine, worth approximately $4 billion. Aided by eavesdropping and other intelligence, the US also found that over the past 15 years, firms from 53 countries have offered bribes and officials from 112 countries have taken them.

SIZE

Of the 100 largest economies in the world, forty-nine are countries and fifty-one are corporations. (Wal-Mart's $167 billion in sales for 1999, for example, is bigger than the GDP of Norway). Canada's GDP of about $1 trillion has yet to be surpassed by any corporation. With $45 billion in sales last year, Nortel was Canada's largest corporation. Larger, financially speaking, than every province except Ontario (provincial revenue last year $67 billion) and Quebec (revenue last year $56 billion).

MIMICS

The electronic tweeting of mobile phones is so widespread in Australia that some birds are mimicking the sound as part of their mating and territorial songs. Australia has six so-called mimic birds that commonly imitate sounds in nature.

MONEY

Australia's 'paper' currency is made from plastic. The special polymer is virtually uncounterfeitable and is recyclable.

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

August 2001 Economic Digest - Importing and Exporting

August 2001 Edition

GARAGE SALES

Health Canada is warning that dangerous products are ending up in garage sales where neither the seller nor buyer know the merchandise is defective. The department publishes a list of dangerous products which is periodically updated, but it only has 35 inspectors for the entire country to make sure these goods never make it to market. Some baby cribs, walkers, car seats and hockey gear are on the list. It's estimated that garage sales earn $100 million annually.

WINE

Canadians are drinking more red wine than all other kinds put together. Vintners are building dozens of new wineries across the country, planting new vineyards and converting production to fill the demand for the more sophisticated--and profitable--red wines. Sales of reds passed whites for the first time in fiscal 2000 which ended March 31st and passed all other wines in the next 12 months accounting for 53 per cent of all wine sales in Canada. They are still growing by 13 per cent a year, far outpacing the growth of whites and beer at about one percent each.

CALLS

Indiana has recently introduced the most stringent legislation restricting telemarketers. Under the new measure, consumers can put their name on a "do not call" list. Once a person is on the "no call" list, telemarketers are forbidden to call. The only exceptions are charities, newspapers, insurance agents and real estate agents, providing they don't use telemarketing firms. Companies that ignore the new rule risk penalties of up to $25,000 after January 1st, 2002.

PRODUCTIVITY

Four Canadian assembly plants and one Canadian truck factory ranked among the most productive of North American auto plants last year according to a recent report. The report measures how many hours it takes, on average, to assemble a vehicle in most of the assembly plants in North America.

CAVIAR

Canadian fishermen are trying to fill the world shortage of Russian caviar which sells in Canada for $90 a tiny jar. Canada has the fish, the lakes and the technical knowledge to produce caviar that is just as good as the exotic Russian variety; all that is needed is patience. A successful caviar operation is a long-term project. Some species of sturgeon live for 120 years and weigh 1.2 tonnes.

FTAA

The draft negotiating text for the Free Trade Area of the Americas (FTAA) has been released. An FTAA would create the world's largest free trade area with 800 million people in 34 countries and a combined gross domestic product of nearly $17 trillion. Despite a commitment to establish a free-trade zone by 2005, the draft shows that after more than seven years of consultation, little consensus has been agreed. Most of the 430-page text is in brackets meaning that at least one of the 34 countries objected to the wording of almost every paragraph.

SEEDS

In a move to cope with soaring vegetable imports, Japanese seed makers have begun curbing exports of seeds that are used overseas to grow vegetables for shipment to Japan. Domestic seed producers sell about 69 million tons of vegetable seeds a year. While 94 per cent of them are sold in Japan, the remaining six per cent are exported overseas for production of vegetables, such as green peppers, eggplants and watermelons for shipment to Japan.

HOLES

The U.S. Department of Agriculture is trying to determine how big the holes in Swiss cheese should be. The USDA has released a 15 page regulation that would require the holes in Swiss cheese to be reduced from an average of eleven-sixteenths to three-eights of an inch in diameter. The USDA claims it is considering the change because of lobbying from the cheese industry which wants the popular cheese to qualify for a federal Grade A rating rather than the present Grade B rating which reduces the price.

LEGO

It was invented in Denmark in 1916. Today the LEGO company has over 9,000 employees. In Latin, the term "Lego" means "I put together" or "I assemble." The product has enjoyed a boom in sales lately. U.S sales are up eight per cent from 1998 and one in ten Lego buyers is now an adult. The passion runs so strong among some in the high-tech sector that one recent recruit to a Seattle web company asked for, and received, a desk built entirely of Lego. The bricks alone cost US$2,975 and the desk took three solid weeks to build and glue.

CULTURE

Canada's trade deficit in cultural goods and services declined for the first time in five years in 2000, as the growth rate in exports far exceeded the growth in imports. The nation sold almost $4.5 billion worth of cultural products to the world last year, up 8.1% from 1999. However, imports rose only 1.7% to $7.5 billion resulting in a trade deficit of just over $3.0 billion. The U.S. is Canada's foremost trading partner, for imports and exports. In 2000, the U.S. received 94% of Canada's culture commodity exports and accounted for 83% of Canada's cultural commodity imports, worth $3.9 billion.

SWITZERLAND

The Swiss Senate has voted unanimously in favour of forging a free trade agreement with Mexico which is Switzerland's fourth most important trade partner in the Americas. The U.S. is first, followed by Canada and Brazil. Current Mexican exports to Switzerland total US$2.25 billion. Switzerland estimates that it will be able to save US$56 million in duty payments alone. Mexico will benefit from the waiving of duty payments on products such as coffee, bananas and honey.

EQUITIES

In the first four months of the year, Canadians bought $17.8 billion of international equities. The investments have gone 70 per cent to U.S. equities and the remainder to overseas shares. The investments have been driven by the Canadian mutual and pension fund sectors.

SHIPPING

Canada has unveiled a new policy framework that will boost the country's shipbuilding and industrial marine sector. The framework is comprised of more than 20 measures and it is expected that the new initiatives will support new business of C$200 and C$300 million annually which will almost double the current production of about C$230 million.

BARCODES

In 1974, a pack of chewing gum with a barcode became the first supermarket item to be scanned at a checkout counter. New two-dimensional designs will let manufacturers incorporate more information and security features into product packaging. A new code, based on a grid of tiny squares, can carry up to 7,000 pieces of information that can be read by a scanner. They can store photos, signatures and fingerprints, offering a multitude of security and anti-fraud applications.

EDUCATION

Children from both ends of the income distribution attend private schools in Canada; 29 per cent of children who attend private schools are from families with incomes below $50,000, while 26 per cent are from families with at least twice as much income. In 1998/99, 1 out of every 18 children, or 5.6 per cent, attended a private school for elementary or secondary education. In total, 298,000 were enroled in private schools; just under 5 million went to public schools.

EUROPE

Canada and the European Union continue trying to improve trade and economic relations though the EU's importance as a trading partner continues to decline. Europe's imports of goods and services from Canada have dropped to six per cent from 10 per cent a decade ago. EU officials have shown little enthusiasm for a bilateral pact even though eliminating tariffs could raise EU sales in Canada by 34 per cent or $7 billion a year. Canada's exports to Europe would jump by 11 per cent, or 16 per cent and if EU duties on agri-business were removed.

REPUTATION

Canadian business leaders are more likely than their international counterparts to fret about information on the Internet damaging their company's reputation. The study, which polled leaders in eight countries in North America and Europe, found that one-third of the 50 Canadian senior executives were "very concerned" about negative information about their company. At the same time, just over 20 per cent said that they periodically monitored what was said about their company on the Internet. In the U.S., 41 per cent said their firms made periodic checks and one quarter were concerned about negative comments.

ACKEE

Ever since the U.S. agreed last year to lift a decades-old ban on the importation of Jamaica's national fruit, sales have soared. Thousands of acres of new ackee trees have been planted and diplomats and farmers have used the fruit as an example of how greater free trade can benefit small countries such as Jamaica

ALBERTA

A recent Fraser Institute survey indicates that Alberta has established a clear lead over Ontario and other provinces as the best place for doing business in Canada. However, recent tax cuts introduced in British Columbia should allow it to move up quickly from its current status as the province with the least friendly business climate. Canadian investment fund managers responsible for $282 billion in pension assets rank Alberta No.1 because of its low tax and business-friendly regulatory environment.

AIRPORTS

In a survey of 90,000 international passengers to rank their satisfaction with 48 airports, Singapore's Changi airport ranked tops with the world's business and leisure travellers. Measured categories included: convenience, services offered such as restaurants, signposting, as well as for courtesy and helpfulness of their ground staff. Sydney and Helsinki were the next. Vancouver, the only Canadian airport on the list, was rated tenth.

LABELLING

Food producers will soon be able to label and advertise their products in Canada as helpful in the fight against specific illnesses, such as heart disease, osteoporosis, tooth decay, high blood pressure and some types of cancer. Such advertising has been legal in the U.S. since the mid-1990's and will be allowed in Canada as part of a revamping of the country's food labelling rules. Nutrition experts and food manufacturers applaud the move but warn that consumers will need to be educated on complicated nutritional information if they are to benefit from the changes.

INVESTMENT

China's largest investment in Canada is taking shape with the completion of the first phase of a textile company. Being built in Drummondville, Quebec, the new textile mill is expected to create 380 jobs in two years. The total investment will be US$30 million. The federal and Quebec governments have pledged a total of US$8.5 million in loans or subsidies to support the project. Canada hopes the project will encourage more Chinese firms to use Canada as a gateway into North America.

SIZE

A chip of silicon a quarter inch square has the capacity of the original 1949 ENIAC computer which occupied a full city block.

COMMUNICATIONS

Recently, 30 top British police officers were given training as magicians. The course, called the Magic of Networking, is aimed at improving communication skills.

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.

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July 2001 Economic Digest - Importing and Exporting

July 2001 Edition

 KETCHUP

Sweden is the biggest user of ketchup spending $4 a year per person on it. Australia comes in second with $2.50 spent on ketchup each year. Third place goes to the United States and Canada who spend $2.20 a year on ketchup. How do other countries stack up? Germany $1.70, U.K. $1.60, Poland and Japan $1.40, France $1.20, and Russia $0.90.

BLUBBER

Prices for whale blubber soared by nearly 60,000 per cent after Norway's controversial announcement that it would resume exports of whale products to Japan later this year despite a ban under the Convention on International Whaling Commission. This is the first time whale exports have occurred since the mid-1980s

PRUNES

Despite a US$10 million marketing campaign to kick off the trendy new name "dried plums," prunes are suffering from soaring natural gas bills and flat sales. To become a prune, a plum must spend 18 hours in a large concrete drying tunnel.

LANGUAGE

Oakland will soon become the first city in California, and possibly the U.S.,to mandate bilingual hiring in government agencies. Laws require agencies to make programmes and services accessible to people with limited English. Most limited-English speakers in Oakland converse in Spanish or Chinese. The ordinance would require departments such as fire, police and senior citizens centres to identify positions that deal with the public and determine whether they are bilingual employees.

McCHANGE

A McSnack burger kiosk being tested at a Midwestern mall, a McTreat dessert center operating at another mall and a proposal for french fries packaged to fit in a car's cupholder were among the new concepts for growth discussed at a McDonald's Corp.'s shareholders meeting. In the suburbs, McDonald's restaurants are testing at their drive-through SpeedPass instant-payment systems and digital menu boards that can be quickly updated with special offerings and displays.

MUSIC

The world trade in recorded music was worth US$36.9 billion in 2000. The number of units sold dropped by 1.2 per cent as falling sales of cassettes and singles outweighed growth in compact discs. The U.S. is the single biggest market, with 38 per cent of world turnover, but Icelanders continued to be the keenest listeners, ranked by sales per head. Norway was second followed by Japan. The U.S. was fourth and Canada fifteenth.

COMPUTERS

According to Statistics Canada, more than one-half of all workers in Canada now use a computer on the job. Data show that an estimated 8.3 million workers, or 57 per cent of the total employed, used a computer at their main job in 2000, compared with 33 per cent in 1989. The vast majority, some 6.4 million, or almost 80 per cent worked at their computer every day. Last year, about 60 per cent of women used a computer at work, compared with 38 per cent a decade earlier. 54 per cent of men did so last year, up from 32 per cent.

COFFEE

Millions of coffee growers are facing ruin because of soaring production and a massive worldwide oversupply. The collapse of the price of coffee beans, though not apparent in the price charged by coffee shops, has been dramatic. The price of robusta, used in blended and instant coffee, slumped to a 30-year low earlier this year. This is despite attempts by the Association of Coffee Producing Countries (ACPC) to create a cartel similar to OPEC. Many coffee growers are not wealthy plantation owners but poor farmers who face destitution if their businesses fail.

RETIREMENT

While most Americans over age 50 are financially better off than their counterparts 20 years ago, the gap between rich and poor is widening. An American Association of Retired Persons report says only 25 per cent of people in their 50s are secure for retirement. Those in the top quarter have a median income of $100,000 annually and are more likely to have health insurance. In the lowest quarter, the median income is $10,000 and sixty per cent are women. The number of 50- to 64- year olds without health insurance continues to climb, from 11 per cent in 1988 to 14 per cent in 2000.

FARMING

Canadian Prairie grain farmers have been warned by the Minister of Natural Resources to shift to raising livestock, potatoes, soybeans, and other specialty crops because Canada can no longer compete with "market-distorting subsidies" granted to European and American farmers. Since 1985, the federal government has provided more than C$32-billion in passive income support to farmers, with almost one-third going to Saskatchewan grain and oilseed farmers. Despite these payments, grain farmers have been unable to compete with their European and American counterparts,

UNDERWEAR

Jockey International, celebrating 125 years in business, has unveiled two lines of Jockey underwear sheets. Borrowed from the Jockey Classic Brief, the company adapts the patented Y-front design to the corners of fitted sheets.

CHINA

The country's efforts to meet WTO requirements are shaking up its legal system and cutting red tape for foreign business. Many laws have to be rewritten; legal concepts such as judicial independence are alien to many officials; and bureaucrats resist curbs on their power. The bid for WTO membership has been one of the most daunting challenges in its shift from central planning to a market economy. In the past year, the Shanghai WTO Consulting and Service Centre has trained some 2,000 local civil servants in how to cut red tape to smooth the way for freer trade.

WEALTH

A recent report by Cap Gemini Ernst & Young states that the wealth of dollar millionaires--those with over $1-million to invest--rose by 6 per cent to $27-trillion in 2000 despite crumbling stockmarkets around the world. The number of millionaires grew by 2.7 per cent to 7.2 million, but 80,000 "minute millionaires" appeared and then disappeared with the dotcom boom and bust.

ACCESS

A major U.K. retailer has launched an online service that will allow blind people to shop over the Internet without using special equipment. The system, developed with the assistance of the Royal National Institute for the Blind (RNIB), uses technology that converts text to speech, describing products on the company's website and guiding consumers through the buying process. This site is the first of its kind.

JAPAN

Business leaders in Canada have proposed setting up a joint panel with their Japanese counterparts to discuss ways to conclude a free-trade agreement between the two countries. However, it is reported that those in farming, forestry and fishing industries are likely to oppose the idea as 60 per cent of Canada's exports are agricultural, forestry and fisheries products. Japan is negotiating a bilateral FTA with Singapore, while Mexico is expected to propose a FTA pact with Japan soon.

IT

Statistics Canada reports that Canadian companies were hobbled last year by a shortage of information technology (IT) workers. Canadian industry was operating at only 75 to 80 per cent capacity within the IT sector because of a severe shortage of qualified workers.

INVESTMENT

Foreign direct investors' spending to acquire or establish U.S. businesses increased 17 percent to $321 billion in 2000, according to the U.S. Bureau of Economic Analysis. Spending increased 28 percent to $275.0 billion in 1999 after more than tripling in 1998. Investors from Europe accounted for 75 percent of total investment spending during 1998-2000; up from 64 percent in 1995- 97. Spending by British investors, which accounted for over a third of total investment spending, was more than three times larger than spending by Netherlands investors, who spent the second largest amount.

MEAT

Demand in Europe for ostrich meat is soaring. The recent outbreak of foot and mouth and mad cow diseases, has forced consumers' taste to turn to ostrich which costs $15 per kilogram compared to $8 per kilogram for beef. Some of the top export markets for ostrich are Germany, Belgium and Switzerland.

DOCTORS

A survey by the American Medical Association indicates that doctors who use the Internet to interact with patients and administer medical records remain in the minority. Only 17 per cent of doctors said they use the Web for obtaining or transferring medical records and eight per cent use it for health insurance claim processing. However, 70 per cent of doctors said they were Web users, up from 20 per cent in 1997.

PIRACY

The Business Software Alliance reports that one-third of all business software is pirated. The group estimates that piracy cost software makers almost US$12 billion last year. The global piracy rate rose from 36 per cent in 1999 to 37 per cent in 2000, largely because of fast growth in computer usage in countries with high piracy rates, such as China and Japan.

TRANSPORTATION

In accordance with the NAFTA, the U.S. Department of Transport will now process applications from Mexican carriers for authority to fully own and operate companies in the U.S. that transport international cargo between points in the U.S. and provide bus services between points in the U.S. Mexican-owned companies established in the U.S. under this NAFTA provision will operate like any U.S. motor carrier and be subject to the same laws, regulations and procedures that apply to U.S. and Canadian motor carrier companies operating in the U.S.

PIGEONS

At the end of the Second World War, 31 Allied homing pigeons were honoured with a medal for gallantry and devotion to duty. Even today, a hospital in Plymouth, England, uses pigeons to transport blood samples to its laboratory across town, saving money and beating traffic.

MONEY

Sony, the Japanese electronics giant, is moving its currency and fundraising activities to the City of London. The move will bring an additional $50 billion in annual trading to London's foreign exchange and it is believed to be the first time that a large international corporation has moved its treasury and foreign currency operation to a different country from its headquarters. The move to London is expected to save Sony around $75 million annually.

WORK

The average Canadian workweek for full-time employees is 42.2 hours, just below the U.S. average of 42.4 but ahead of Britain at 41.9 hours, Italy at 40.5 and France at 40.3. Employees in 28 other countries were ahead of Canada led by South Korea at 55.1 hours, Turkey at 54.1 and Argentina at 53.5 hours.

HEDGEHOGS

Britain's wild hedgehogs are getting drunk on dishes of beer gardeners leave out at night to trap slugs. The creatures have been found asleep, forgetting to roll into a protective ball. When they wake-up they wobble from side to side and zig-zag as they walk.

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

June 2001 Economic Digest - Importing and Exporting

June 2001 Edition

GREENHOUSES

The Canadian greenhouse industry showed continued growth as 255 more acres were added to production in 2000. Total greenhouse area has now reached 3,886 acres. Most of greenhouse production is under plastic rather than glass due to the relative lower cost of production. Area under plastic was 2,653 acres, and area under glass was 1,232 acres. Sales from greenhouse products, (flowers, plants and vegetables) were $1.7 billion in 2000, up 18 per cent over 1999.

RESPONSE

A new U.S report says that while 53 percent of retail companies respond to e-mail customer inquiries within six hours, most businesses in other industries are failing to meet consumer expectations. The research reveals that although more than half of consumers expect to resolve their customer service inquiry within six hours, only 38 percent of companies are meeting this expectation and 33 percent are taking three days or longer to do so or are not responding at all. According to the survey, 19 percent of companies did not respond to inquiries, but the most recent survey finds that this number has increased to 24 percent.

SPACE

Commercial hogs, kept eight or more to a pen, grow at an average rate of 1.6 pounds a week. However, if only two or three pigs are kept in a pen, there's less crowding and aggression from dominant hogs and the pigs grow at a rate of 2.3 pounds a day.

HEALTH

Compared with Canadian men, women take better care of themselves, and live longer. However, a higher percentage of women have chronic illnesses, and women use health care services more often, according to a special report. Some findings are paradoxical. For example, women experience more illness, more years of disability and more stress than men do. But they also live longer. Even after being diagnosed with a fatal disease, women survive longer than men.

DESERT

Deserts already smother 27 per cent of China's landmass and are expanding by more than 2,460 square kilometres every year. The danger of desertification is greatest in the northern part of the country and has prompted concerns that China's capital must retreat from Beijing to a safer location.

MEAT

American consumer misconceptions about Bovine Spongiform Encephalopathy (BSE), or mad cow disease, and foot-and-mouth disease (FMD) are beginning to impact purchase of beef and other animal products, according to a survey by Porter Novelli. 14 per cent of those surveyed said they already changed their food purchase or eating habits based on reports they had recently seen or heard regarding BSE and FMD. The survey underscores the need for more public education to help consumers understand distinctions between the two conditions.

ADVENTURE

The Canadian adventure travel industry boomed during the 1990s, as adventure-seekers signed up to do everything from whale-watching to hot-air ballooning, rafting and sea kayaking. Between 1993, when the Survey of Adventure Travel Operators was last conducted by Statistics Canada, and 1999, the number of adventure travel operations doubled from 669 to 1,336, and their sales more than doubled. Revenues in 1999 reached an estimated $362 million, up 119 per cent over 1993.

DUMPING

The worldwide steel and metals industry was the subject of the biggest number of anti-dumping investigations initiated by members of the World Trade Organization last year. There were 95 cases involving steel and metals--more than a third of the year's total. Of these, 32 were started by the U.S. in an attempt to protect its ailing steel industry from foreign competition. Steel accounted for 80 per cent of U.S. anti-dumping investigations in 2000. The paper and wood industries showed the biggest drop in dumping investigations, followed by textiles and related products.

SHIPPING

The World Shipping Council has issued a paper refuting the conclusions of a controversial World Bank report which claims that shipping conferences result in excess costs to U.S. shippers amounting to US$2 billion. The authors claim that repealing anti-trust immunity could save shippers some 25 per cent on freight rates.

PROPS

The economic slowdown is affecting the many companies that provide costumes and props to TV networks and movie studios. The companies, many of which are located in the San Fernando Valley, rent items such as spacesuits, vintage ballgowns, art deco lamps and disco balls. Because of rising rents, energy and runaway productions, owners are finding it difficult to stay in business. In the last eight months the merchandise of six Hollywood rental services has been liquidated.

NOSTALGIA

Dunlop of Britain has created a customized line of grubby tennis shoes, Dirty Flash, that cost around $100--about twice the cost of a regular, clean pair. The shoes, stained with tea, coffee and oil, have been designed for people in their late twenties and thirties who are nostalgic about school physical education.

CHINA

Private home ownership is finally taking off in China, with far-reaching implications for the economy and society. For decades, urban Chinese depended on their employers to provide cramped, no-frills, state-owned housing and couples often had to wait years for an apartment. Now, however, the market is seeing the effect of incentives introduced over the past two years such as easy mortgage terms, generous tax credits and employer subsidies which pushed private home purchases up 52 per cent in 2000 to US$34.6 billion.

TOURISM

A recent report by the World Travel & Tourism Council concludes that the Canadian tourism industry is the eighth-biggest tourism sector in the world valued at about US$36- billion. This is less than one-tenth the size of the U.S. tourism sector but much bigger than ninth-ranked China (US$32.8 billion) and 10th ranked Brazil (US$21.2 billion). The WTTC studied 160 countries as part of its 2001 forecast. A total of US$2.1-trillion will be spent on travel and tourism this year, including US$454 billion on business travel.

WEIGHT

"Smart Bath" is a Japanese electronic device that attaches to the wall of your bathroom and features a nozzle that dips into the bath water. As you lower yourself into the water, it calculates the water displacement and compares it with data already entered about you. Your body-fat level then appears on a screen. The device will sell for US$3,800.

WEATHER

According to NASA, The United States has the world's most violent weather. In a typical year, the U.S. can expect some 10,000 violent thunderstorms, 5,000 floods, 1,000 tornadoes, and several hurricanes.

HOOKAHS

These waterpipes for those who like water cooled smoking are now finding their way into the US at the rate of around 5,000 a month from Egypt. Besides the standard smoking gear--hollow glass bases, stainless steel "hearts", hoses and clay pipes, the importer also sells over a tonne of sticky hookah tobacco each month in flavours ranging from strawberry to mango. One Egyptian wholesaler estimates the country is exporting 200,000 hookahs a year.

LEATHER

Leather furniture is one of the fastest growing categories in the industry, accounting for about 25 per cent of the U.S. upholstery business: 20 years ago it was only about 4 per cent of the market. However, the industry is watching nervously as foot and mouth disease is severely affecting the global supply and price of animal hides.

LUXURY

In high-end motor-homes, which can cost up to US$1-million, it is standard to find granite floor inlaid with mother-of-pearl. The gold standard for luxury in these vehicles is $400 gold-plated toilet paper holders and $700 towel rings.

CARS

Luxembourg wins the race for the numbers of cars owned per head of population. Its ownership rate is 576 cars per 1,000 people. European countries dominate the rankings with Italy second and Iceland third, followed by Germany. The U.S. comes seventh with 486 cars per 1,000 people. That ranking is expected to fall in the next two years as U.S. car sales are forecast to drop by as much as 20 per cent. Japan is seventeenth with only 394 cars per 1,000 population. In Canada, there are 460 cars per 1,000 of population.

TAXES

While laws in 45 U.S. states say Internet taxes are owed, they rarely are collected. Congress must soon decide whether to keep the Internet a largely tax-free shopping zone or pave the way for states to collect taxes on online purchases. The General Accounting Office estimates the uncollected sales taxes on Internet purchases could cost the States $12.5 billion in 2003.

MINING

An industry report claims that B.C.'s mining industry posted losses of $8 million last year after losses of $133 million in 1999. The industry claims that if a new B.C. government acts to encourage exploration, it could lead to $4.2 billion in direct investment in B.C.. Compared to the rest of Canada, B.C.has lost about three-quarters of a billion dollars in mineral exploration spending since 1992.

ORGANIC

Scientists planted three new apple orchards in the Yakima Valley region of Washington. One was farmed conventionally, using the normal range of chemical pesticides and fertilizers; one was grown organically using naturally occurring sprays; and one used an integrated method combining organic and conventional methods. After five years, the orchards showed no significant difference in fruit yield or tree growth. However, there was evidence that organic farming is kinder to the environment than conventional farming. It also produced sweeter fruit that is more profitable for the farmers.

MAQUILADORAS

The President of Mexico has defended the use of maquiladoras saying that the average worker in these export-processing factories earns almost four times Mexico's minimum wage. Maquiladoras are bonded factories along Mexico's U.S. border that can export goods duty-free. They have been a target of anti-free-trade groups who say the U.S. and Canadian firms operating the factories exploit workers and flout environmental and labour laws.

PARLIAMENT

Sweden retains its position as the country with the biggest proportion of women in parliament, with 43 per cent. In Denmark, the Netherlands and Germany, more than 30 per cent of parliamentarians are women. The figure for Canada is 20 per cent and 14 per cent in the U.S. and 11 per cent in France and Germany. In Japan the figure is 7 per cent.

COWS

The Austrian province of Vorarlberg is banning the practice of blowing up dead cows with explosives on its picture-postcard meadows. The province lives off tourism and authorities are worried tourists may be put off by exploding cadavers. The remains of about 20 head of cattle die annually and have to be destroyed. They are either struck by lightening or fall down precipices.

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.

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May 2001 Economic Digest - Importing and Exporting

May 2001 Edition

 DEBT

A 1999 survey found that Canadians had on average an estimated $16 in debts for every $100 in assets. The debt burden was much higher for some types of families such as lone-parent families, most of which are headed by women. Canadians had debts estimated at $458 billion, three-quarters of which took the form of mortgages. Loans on owned vehicles amounted to about $29 billion, or 6 per cent of the total, while student loans (3 per cent) and credit card debts (3 per cent) each exceeded $14 billion.

MONEY

Until recently, salt bars were the standard currency of Ethiopia and cakes of salt, stamped to show their value, could be used as money in countries as far apart as Tibet and Borneo.

MILK

Ireland consumes more milk than any other country in the world. On average, each person drinks over 164 quarts of milk a year. Finland is second in milk consumption with 162 quarts consumed a year, next is Iceland with 160 quarts, then Norway with 158 quarts, and the Ukraine with 141 quarts of milk consumed each year.

SHOES

A Japanese company has invented a shoe with tail-lights for people who like to go for walks at night. The walking shoes have flashing red lights built into their heels. They also have built-in sensors that can tell night from day and detect car headlights. If a wearer strolls into an ill-lit area and a car approaches, the shoe lights start working automatically. They come in blue, beige and black, and cost US$157.

PRIVACY

The U.S. Senate has approved a bill that toughens rules on when bankrupt companies can sell customers' personal information. The legislation forbids companies, including brick-and-mortar and e-commerce dot-coms, from selling customers' personal information at the time of bankruptcy if they had previously promised they wouldn't. A sale, or lease of the data, can go through if it is consistent with pre-existing company policy or upon court consideration.

MEXICO

Retail sales in Mexico rose 10 per cent in 2000 over 1999 figures, supported by a strong rise in grocery and general merchandise sales, according to figures released by the National Association of Supermarkets and Department Stores (Antad). Grocery sales increased 6.8 per cent in 2000 from the previous year, general merchandise sales rose 14.1 per cent and clothing sales grew 11.6 per cent the industry group reported.

FEED

Two major British food retailers have announced they will provide a range of meat products from animals not fed with genetically modified (GM) feed. The decision is further evidence that food companies and retailers are reacting to a consumer backlash against GM food, amid concerns over its safety. One store commissioned a poll which revealed that of over 1,000 people surveyed, 64 percent said they would prefer to buy products from animals reared on a non-GM diet and 66 percent said it would be unfair to ask them to pay more.

TRENDS

The World is a 644-foot ship launched in February and now being fitted out. It is no ordinary cruise ship and sells an atmosphere of a private club rather than a cruise ship. Instead of carrying thousands of passengers for a week or two at a time, it will be home to around 200 residents who have paid between $2- and $7-million apiece for one of its 110 apartments. So far, 89 of the apartments have been sold. Residents pay an annual service charge of around 6 per cent of the cost of their apartments.

RETAIL

Where they experience bad customer service, more than 20 percent of customers walk out of retail stores without making a purchase, an equal number stop shopping at a store altogether, and 26 percent tell their friends and urge them not to shop at a store, according to a recent U.S. survey. The more affluent a customer, the more likely he/she is to walk out without making a purchase. Men are more likely than women to walk out without making a purchase, while women are more likely to complain to a manager.

HOLLYWOOD

A strike by the Writers Guild and the Screen Actors Guild would have a significant impact in Hollywood. In Los Angeles County alone, approximately 467,000 people, including limo drivers, stylists, florists, waiters, caterers, and bartenders, base their livelihood on the entertainment industry, according to the Los Angeles County Economic Development Corporation (LAEDC). That's roughly the population of the state of Wyoming. The potential economic impact on Los Angeles is US$1.8 billion per month.

OXFORD

More than 20 of Oxford's dons are now multimillionaires, the highest of any British university. Oxford has a share in over 32 companies which were founded to profit from ideas by academics. Their value has reached $5 billion. In the past three years alone, its academics have set up 20 companies worth $20 million. Cambridge has a share in eight companies worth around $10 million. Both institutions are dwarfed by American universities such as Massachusetts Institute of Technology which has shares in more than 4,000 companies.

WORK

The rise in the number of jobs requiring brains not brawn may be behind a rise in IQ levels in many Western countries. Research suggests that small changes in the environment experienced by a group of people, such as changes in the type of jobs people do, can bring about much bigger changes in society at large. Psychologists have long puzzled that IQ levels have risen over several generations in 20 nations.

CROCODILES

During the recent outbreaks of mad cow and foot and mouth disease, that have spread international fear and harmed farming in Europe, demand for alternative meat has risen sharply. Crocodile is one of the new tastes vying for international palates. Global demand for crocodile meat, which had averaged about 20 tons a month, has now doubled. In Germany and Netherlands, consumers prefer the meat for steaks while China and Hong Kong are keener on entrails, feet and blood for dishes such as crocodile satay, deep-fried crocodile with sour sauce, fried crocodile Chinese style and crocodile soup.

SNACKS

A new study indicates that consumers do not make snack food purchase decisions based solely on our traditional view of snacking categories (i.e., candy, cookies, salty snacks), but rather on product attributes such as better-for-you, private label, or salty vs. sweet. For example, consumers looking for a healthy snack alternative make their purchase decisions based on the health-related attributes of seemingly unrelated categories (i.e., pretzels, dried fruit, sugar free candy), not limiting themselves to one category.

E-TAILING

The U.S. e-retailing market grew by 120 percent to $33 billion last year, and is predicted to grow by 85 percent to $61 billion this year. While the costs of attracting new customers to online retail sites increased by 15 percent to $38 per customer last year, the survey found that multi-channel retailers' costs dropped to $11 per customer while pure-play sites spent $82 on each new account.

FISH

Americans could soon be eating sushi made from Arctic char reared in water pumped from closed Appalachian coal mines. The water that caused such headaches when the mines were operational, requiring continuous pumping to keep it out of miners' way, is perfect for raising coldwater fish. The mines act as natural cisterns, as clean mountain water continually seeps in. Millions of gallons of 55-degree water flow from hundreds of miles of former mine tunnels and drain into nearby streams. Fish farming is one of the fastest-growing sectors in U.S. agriculture, increasing to a $1 billion industry by 1998.

SURPLUS

The U.S. corn surplus has climbed toward its highest level in eight years, a mammoth 1.936 billion bushels, with spring planting expected to show growers cutting back on corn in favour of soybeans. In a monthly look at crop output and food demand worldwide, the Agriculture Department said the U.S. soybean stockpile would be stable with an estimated 310 million bushels in storage. Prices for corn and soybeans were at 15- to 25-year lows. At 829 million bushels, the wheat stockpile would be 12 percent, or 121 million bushels, smaller than a year ago.

METRIC

A fruit-and-vegetable vendor dubbed the "Metric Martyr'' was found guilty of selling his wares in pounds and ounces, in the first such prosecution in Britain. The vendor had attracted a groundswell of public support in his fight against using metric weights, as mandated by the European Union. The ruling went against him and he faces a maximum fine of $1,500 and could be liable for court costs as well. Under European legislation that took effect in January 2000, goods with the exception of draft beer are to be sold using metric as well as imperial measures.

FURNITURE

Last year, China became the leading exporter of household furniture into the United States, supplanting Canada. Chinese manufacturers shipped $1.65 billion in furniture to the U.S. compared to $1.37 billion from Canada. Chinese exports were up 40 per cent in January from January 2000, while Canadian exports increased just four per cent over the same period. China is also the fourth largest trading partner for the U.S. exporting $100 billion in 2000. This is more than six times its imports of American products.

MAIL

The average U.S. mailperson carries 17.8 tons of junk mail a year, the equivalent of four elephants. The amount of bulk mail thrown away unopened is 44 per cent.

POACHING

Russia loses between $1.5 and $2 billion dollars every year because of illicit fishing in its waters. One in every four boats, according to the Russian government, breaks the rules for fishing and sells its catch abroad. During 2000, Russian border guards imposed fines on 1,500 Russian and 120 foreign fishing vessels.

GREEN

In a recent study of environmental indicators by the University of Victoria which compared 29 countries in the Organization for Economic Co-operation and Development, Canada ended up second to last. The United States ranked last. However, in an international study, Canada was ranked third best out of 122 countries on environmental issues.

WINE

The U.S., Canada, Australia and New Zealand have signed an agreement to cement new guidelines for wine imports. The countries will accept wine imports from each other as long as the wines are made in accordance with each country's domestic laws and requirements. Argentina, Chile and South Africa participated in negotiations and have until 2002 to become signatories.

ART

The Custard Factory arts centre in Birmingham, England, has taken what constitutes art to a new extreme--by putting on an exhibition of absolutely nothing. There are no paintings or sculptures. Visitors are just confronted by the whitewashed walls of the 2,500 square foot hall.

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