January 2001 Edition
FRUIT
Each Canadian ate just over 124 kg of fruit in 1999, up from 110.7 kg at the beginning of the decade. Consumers clearly preferred fresh fruit; bananas, apples and oranges topped the list. They also increasingly turned to melons such as watermelons and cantaloupes. In 1999, the consumption of all melons totalled 8.6 kg per person, more than double the level at the start of the decade. In addition, tropical fruits such as guavas, mangoes, kiwis and papayas have become increasingly popular.
LOGISTICS
China is calling for more overseas investment in its logistics sector. As a newly emerging domestic sector, e-commerce application in industry still lags behind foreign counterparts. Logistics accounts for almost 90 per cent of the production cycle time and 40 per cent of general production costs. Expenditure on logistics is equivalent to 20 per cent of Gross Domestic Product, against less than 11 per cent in the U.S. China's total commodity warehouse capacity is the greatest in the world. It is estimated that the use of e-commerce could slash business costs by 40 per cent.
EFTA
The European Free Trade Association (EFTA) has agreed to a trade deal with Mexico. It will come into force in July 2001 and abolish all tariffs on trade between Mexico and the EFTA countries by 2007 and will ensure that no tariff is higher than 5 per cent by 2003. The four EFTA countries are Norway, Iceland, Switzerland and Liechtenstein. About 60 per cent of exports from EFTA will have duty free access to Mexico as soon as the agreement takes effect.
FREE TRADE
A free trade agreement has been signed between New Zealand and Singapore. It is a comprehensive agreement covering trade in goods, services, investment and government procurement, among others.
FISH
Fish consumption rebounded in recent years, after dropping to below 8 kg per person in 1995. By the end of the decade each Canadian had consumed 10 kg per person of fish, up from 9 kg per person in 1990. These increases are due in part to a demand for other sources of protein, marketing and promotional campaigns, the availability of convenient and easy to prepare products for busy consumers and the dietary preferences of a growing Asiatic population in Canada.
PASTA
Two Japanese companies have jointly developed what they say is the world's fastest thawing frozen spaghetti. The new noodle promises to thaw in eight seconds once dipped in boiling water, compared to the 30 seconds it takes typical spaghetti to do the same. The developers have forecast sales of millions of cases the first year, mostly to restaurants looking to make more pasta faster.
RESTRICTIONS
As of last November, 22 nations had imposed restrictions on 106 kinds of Korean imports. The U.S. enforced import restraints on Korean products 20 times, followed by Central and South America with 17 times, India 16 times, the European Union 14 times and South Africa 10 times. Of the restricted Korean imports, 33 cases were related to steel, 26 in petrochemicals, 19 in fabrics and 12 in electronic goods.
HERBS
Japanese and Nepalese scientists have called for the conservation and commercial exploitation of medicinal herbs in Nepal which would bring great economic benefits to the Nepalese people. Scientists say that the Himalayan region has one third of the 30,000 species of plants around the world having medicinal properties. Nepal, which shares the Himalayan region with Tibet and India, reportedly accounts for 70 per cent of the Himalayan medicinal resources.
IT
The demand for telecommunications services and technology in Europe is growing faster than expected. The IT market in Europe grew by 11 per cent in 2000, with an output of US$440 billion. It is expected to grow by 9.5 per cent in 2001 reaching US$484 billion in output. There are now 14.5 million IT and e-business specialists in Europe and the number is expected to grow to 22 million by 2003. The IT growth rate in 2000 for the U.S., Japan and the world was eight per cent, six per cent and 10 per cent respectively.
SECURITY
A new survey indicates that the world is becoming an increasingly dangerous place in which to do business. Control Risk Group says the number of countries, wholly or partially rated as extremely high-risk areas, has more than doubled since 1997 and continues to rise. Increasing instability in Africa has seen the number of high-risk countries jump from 39 to 47. Besides political instability, technology and disease have opened up new risks for business.
TRENDS
McDonald Corp. has announced it will open two hotels and introduce its coffee cafes in Switzerland as it expands beyond the hamburger business. McDonalds, which has about 27,000 company-owned and franchised restaurants, is expanding abroad and beyond its namesake chain as the U.S. market for hamburgers becomes saturated. The Golden Arch hotels will open in the spring and will target families and business travellers.
RED TAPE
A new study by the World Bank and Harvard University indicates that Canada has the least regulatory red tape for new businesses. The U.S., often seen by Canadians as the height of efficiency, ranked fourth out of the 75 developed and developing countries surveyed. Canada ranked first for its generally low level of red tape, with new small businesses typically facing just two procedural steps. These involve filling out tax forms as well as a licensing application or some other form of regulatory paperwork.
CHINA
Trade between China and Latin America increased 63 per cent between January and September 2000 to a total of US$9.5 billion. China sold goods valued at US$5.3 billion to Latin America, an increase of 45 per cent over the same period in 1999. Chinese imports from Latin America were US$4.1 billion, a nine per cent increase. China's main trading partners in the region were Brazil, Chile and Mexico followed by Argentina and Panama.
ENTREPRENEURS
Canada ranks sixth out of 21 countries in a global study of entrepreneurial activity. About one in 16 adults in Canada tried to start a new business in 2000. However, the Global Entrepreneurship Monitor survey found that only one in 45 adults in Canada had operated a new business that was less that 42 months old. In 1999, Canada was second behind the U.S. but only 10 countries were surveyed. In 2000, with 21 countries surveyed, Brazil ranked first, followed by South Korea and then the U.S.
TOURISM
Mimicking the Swedish concept, Canada's first "ice hotel" opens in Quebec this month. It is 10,760 square feet and built out of 4,750 tons of snow and ice. Although the cost is more than $100 a night, about 1,000 people have already made reservations. Ice-bed suites will be complemented with a bar, movie theatre and art galleries.
DIABETES
The International Diabetes Federation estimates that 151 million adults in the 130 countries it profiles now suffer from diabetes. Fourth-fifths of these are "non-insulin dependent". That type of diabetes tends to afflict ageing, sedentary and obese populations; it is most common in industrialized countries and is a growing problem in developing countries such as Pakistan and Mexico. The number of diabetes sufferers worldwide is expected to double in the next two decades. Paying for long-term treatment of diabetes is a heavy burden on health-care systems. In the U.S. it is estimated to cost more than US$44 billion a year.
INVESTMENT
In 1999, global inflows of foreign capital reached US$865 billion, a new record and a 27 per cent rise over 1998. According to the United Nations, the U.S. was the biggest recipient, with US$276 billion worth of inflows. Funds moving into the EU increased by 23 per cent to US$305 billion. Britain, with US$82 billion was the world's second-largest recipient. Sweden topped the OECD for foreign investment received as a share of GDP; its US$60 billion amounted to one-quarter of the economy's total size.
PENSIONS
Aging populations in most industrialized countries will set off a pensions "time-bomb" as the ranks of retirees swell over the next 50 years. Over the next 25 years, the number of people over 65 in the industrialized world will swell by 70 million, while the working age population will grow by just over 5 million. In Europe the number of workers will actually decline. Adverse demographics threaten to cheat youth, impoverish the elderly, bankrupt governments and wreak macroeconomic havoc, ultimately affecting financial markets, exchange rates and the balance of payments.
BULK
About 80 per cent of bulk supply chain participants in the U.S. are dissatisfied with the state of logistics, yet have not made maximum use of the Internet to address their concerns. More than 140 producers, traders and distributors in the chemical, steel, forest products, liquid bulk and related industries were surveyed regarding use of the Internet in bulk material supply chains. Poor communications, documentation problems, paper intensity and low quality of customer service are the key sources of their dissatisfaction. The main reasons for not using the Web more include security, desire for one-stop shopping and quality of e-logistics offerings.
OFFICES
Vacancy rates across Canada have plunged to their lowest level in 15 years, leading to a jump in rental rates and a surge of new downtown construction. Construction crews have broken ground on six million square feet of office space--equivalent to 15 25-storey towers-- for occupancy in 2001.
FORESTRY
The B.C. government is moving to help forestry companies that could be shut out of a $1-billion-a-year market for hemlock wood in Japan if their wood does not meet new construction standards there. The government is putting up $4.2 million for a marketing and research initiative designed to address Japanese concerns about the stability and quality of coastal hemlock. Japan's post-and-beam housing sector is favouring kiln-dried wood needed to meet new 10-year construction guarantees. Several B.C. companies are scrambling to find drying techniques that will remove moisture from large hemlock logs.
ANIMALS
Blood shortages and costly medical procedures are as much a concern for animals these days as they are for humans. The four national animal blood banks operating in the U.S. are currently back-ordered for dog and cat blood and plasma. Most animal blood banks rely on donations from cat and dog volunteers. Most dogs can give blood once every two months but only about five per cent meet the criteria to give blood.
MEMORIALS
South Hatfield in Yorkshire has commemorated Thomas Crapper, the Victorian plumber whose name is synonymous with the flush toilet, in a $90,000 stained-glass window in the local church. The window incorporates a tastefully rendered silhouette of a toilet as part of a celebration of local achievements
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
Each Canadian ate just over 124 kg of fruit in 1999, up from 110.7 kg at the beginning of the decade. Consumers clearly preferred fresh fruit; bananas, apples and oranges topped the list. They also increasingly turned to melons such as watermelons and cantaloupes. In 1999, the consumption of all melons totalled 8.6 kg per person, more than double the level at the start of the decade. In addition, tropical fruits such as guavas, mangoes, kiwis and papayas have become increasingly popular.
LOGISTICS
China is calling for more overseas investment in its logistics sector. As a newly emerging domestic sector, e-commerce application in industry still lags behind foreign counterparts. Logistics accounts for almost 90 per cent of the production cycle time and 40 per cent of general production costs. Expenditure on logistics is equivalent to 20 per cent of Gross Domestic Product, against less than 11 per cent in the U.S. China's total commodity warehouse capacity is the greatest in the world. It is estimated that the use of e-commerce could slash business costs by 40 per cent.
EFTA
The European Free Trade Association (EFTA) has agreed to a trade deal with Mexico. It will come into force in July 2001 and abolish all tariffs on trade between Mexico and the EFTA countries by 2007 and will ensure that no tariff is higher than 5 per cent by 2003. The four EFTA countries are Norway, Iceland, Switzerland and Liechtenstein. About 60 per cent of exports from EFTA will have duty free access to Mexico as soon as the agreement takes effect.
FREE TRADE
A free trade agreement has been signed between New Zealand and Singapore. It is a comprehensive agreement covering trade in goods, services, investment and government procurement, among others.
FISH
Fish consumption rebounded in recent years, after dropping to below 8 kg per person in 1995. By the end of the decade each Canadian had consumed 10 kg per person of fish, up from 9 kg per person in 1990. These increases are due in part to a demand for other sources of protein, marketing and promotional campaigns, the availability of convenient and easy to prepare products for busy consumers and the dietary preferences of a growing Asiatic population in Canada.
PASTA
Two Japanese companies have jointly developed what they say is the world's fastest thawing frozen spaghetti. The new noodle promises to thaw in eight seconds once dipped in boiling water, compared to the 30 seconds it takes typical spaghetti to do the same. The developers have forecast sales of millions of cases the first year, mostly to restaurants looking to make more pasta faster.
RESTRICTIONS
As of last November, 22 nations had imposed restrictions on 106 kinds of Korean imports. The U.S. enforced import restraints on Korean products 20 times, followed by Central and South America with 17 times, India 16 times, the European Union 14 times and South Africa 10 times. Of the restricted Korean imports, 33 cases were related to steel, 26 in petrochemicals, 19 in fabrics and 12 in electronic goods.
HERBS
Japanese and Nepalese scientists have called for the conservation and commercial exploitation of medicinal herbs in Nepal which would bring great economic benefits to the Nepalese people. Scientists say that the Himalayan region has one third of the 30,000 species of plants around the world having medicinal properties. Nepal, which shares the Himalayan region with Tibet and India, reportedly accounts for 70 per cent of the Himalayan medicinal resources.
IT
The demand for telecommunications services and technology in Europe is growing faster than expected. The IT market in Europe grew by 11 per cent in 2000, with an output of US$440 billion. It is expected to grow by 9.5 per cent in 2001 reaching US$484 billion in output. There are now 14.5 million IT and e-business specialists in Europe and the number is expected to grow to 22 million by 2003. The IT growth rate in 2000 for the U.S., Japan and the world was eight per cent, six per cent and 10 per cent respectively.
SECURITY
A new survey indicates that the world is becoming an increasingly dangerous place in which to do business. Control Risk Group says the number of countries, wholly or partially rated as extremely high-risk areas, has more than doubled since 1997 and continues to rise. Increasing instability in Africa has seen the number of high-risk countries jump from 39 to 47. Besides political instability, technology and disease have opened up new risks for business.
TRENDS
McDonald Corp. has announced it will open two hotels and introduce its coffee cafes in Switzerland as it expands beyond the hamburger business. McDonalds, which has about 27,000 company-owned and franchised restaurants, is expanding abroad and beyond its namesake chain as the U.S. market for hamburgers becomes saturated. The Golden Arch hotels will open in the spring and will target families and business travellers.
RED TAPE
A new study by the World Bank and Harvard University indicates that Canada has the least regulatory red tape for new businesses. The U.S., often seen by Canadians as the height of efficiency, ranked fourth out of the 75 developed and developing countries surveyed. Canada ranked first for its generally low level of red tape, with new small businesses typically facing just two procedural steps. These involve filling out tax forms as well as a licensing application or some other form of regulatory paperwork.
CHINA
Trade between China and Latin America increased 63 per cent between January and September 2000 to a total of US$9.5 billion. China sold goods valued at US$5.3 billion to Latin America, an increase of 45 per cent over the same period in 1999. Chinese imports from Latin America were US$4.1 billion, a nine per cent increase. China's main trading partners in the region were Brazil, Chile and Mexico followed by Argentina and Panama.
ENTREPRENEURS
Canada ranks sixth out of 21 countries in a global study of entrepreneurial activity. About one in 16 adults in Canada tried to start a new business in 2000. However, the Global Entrepreneurship Monitor survey found that only one in 45 adults in Canada had operated a new business that was less that 42 months old. In 1999, Canada was second behind the U.S. but only 10 countries were surveyed. In 2000, with 21 countries surveyed, Brazil ranked first, followed by South Korea and then the U.S.
TOURISM
Mimicking the Swedish concept, Canada's first "ice hotel" opens in Quebec this month. It is 10,760 square feet and built out of 4,750 tons of snow and ice. Although the cost is more than $100 a night, about 1,000 people have already made reservations. Ice-bed suites will be complemented with a bar, movie theatre and art galleries.
DIABETES
The International Diabetes Federation estimates that 151 million adults in the 130 countries it profiles now suffer from diabetes. Fourth-fifths of these are "non-insulin dependent". That type of diabetes tends to afflict ageing, sedentary and obese populations; it is most common in industrialized countries and is a growing problem in developing countries such as Pakistan and Mexico. The number of diabetes sufferers worldwide is expected to double in the next two decades. Paying for long-term treatment of diabetes is a heavy burden on health-care systems. In the U.S. it is estimated to cost more than US$44 billion a year.
INVESTMENT
In 1999, global inflows of foreign capital reached US$865 billion, a new record and a 27 per cent rise over 1998. According to the United Nations, the U.S. was the biggest recipient, with US$276 billion worth of inflows. Funds moving into the EU increased by 23 per cent to US$305 billion. Britain, with US$82 billion was the world's second-largest recipient. Sweden topped the OECD for foreign investment received as a share of GDP; its US$60 billion amounted to one-quarter of the economy's total size.
PENSIONS
Aging populations in most industrialized countries will set off a pensions "time-bomb" as the ranks of retirees swell over the next 50 years. Over the next 25 years, the number of people over 65 in the industrialized world will swell by 70 million, while the working age population will grow by just over 5 million. In Europe the number of workers will actually decline. Adverse demographics threaten to cheat youth, impoverish the elderly, bankrupt governments and wreak macroeconomic havoc, ultimately affecting financial markets, exchange rates and the balance of payments.
BULK
About 80 per cent of bulk supply chain participants in the U.S. are dissatisfied with the state of logistics, yet have not made maximum use of the Internet to address their concerns. More than 140 producers, traders and distributors in the chemical, steel, forest products, liquid bulk and related industries were surveyed regarding use of the Internet in bulk material supply chains. Poor communications, documentation problems, paper intensity and low quality of customer service are the key sources of their dissatisfaction. The main reasons for not using the Web more include security, desire for one-stop shopping and quality of e-logistics offerings.
OFFICES
Vacancy rates across Canada have plunged to their lowest level in 15 years, leading to a jump in rental rates and a surge of new downtown construction. Construction crews have broken ground on six million square feet of office space--equivalent to 15 25-storey towers-- for occupancy in 2001.
FORESTRY
The B.C. government is moving to help forestry companies that could be shut out of a $1-billion-a-year market for hemlock wood in Japan if their wood does not meet new construction standards there. The government is putting up $4.2 million for a marketing and research initiative designed to address Japanese concerns about the stability and quality of coastal hemlock. Japan's post-and-beam housing sector is favouring kiln-dried wood needed to meet new 10-year construction guarantees. Several B.C. companies are scrambling to find drying techniques that will remove moisture from large hemlock logs.
ANIMALS
Blood shortages and costly medical procedures are as much a concern for animals these days as they are for humans. The four national animal blood banks operating in the U.S. are currently back-ordered for dog and cat blood and plasma. Most animal blood banks rely on donations from cat and dog volunteers. Most dogs can give blood once every two months but only about five per cent meet the criteria to give blood.
MEMORIALS
South Hatfield in Yorkshire has commemorated Thomas Crapper, the Victorian plumber whose name is synonymous with the flush toilet, in a $90,000 stained-glass window in the local church. The window incorporates a tastefully rendered silhouette of a toilet as part of a celebration of local achievements
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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