July 2002 Edition
ANNIVERSARY
With this issue of the Economic Digest, we complete ten years of publication. Originally designed as a hard copy to be read with a cup of coffee and passed on, the majority of copies are now distributed electronically. We have published 120 editions, with 2,400 separate items and 210,000 words proving that almost anything has an economic impact to someone, somewhere. As the world of economics has moved along, so has A&A Contract Customs Brokers. Ten years ago, we were a mid-sized western customs broker with a staff of around 50 in five locations in the Lower Mainland of British Columbia concentrating on brokerage. Now, we have a staff of 120 and branches in Manitoba, Ontario, Quebec, Washington State and Pennsylvania. We have also added freight forwarding and warehousing to the services we offer clients. It will be interesting to see what the next ten years will bring.
ECONOMIES
If the Pacific NorthWest Economic Region were a nation, it would rank 11th among the world's leading industrial economies, with a combined population of more than 18 million and an annual gross regional product of over US$350 billion.
SPENDING
Canadian households spent an average of $55,830 in 2000 on everything from shelter to travel, allocating more to vehicle purchases and energy costs than in previous years. On average, households spent about 4 per cent more in 2000, a year of strong economic growth. Personal taxes accounted for an estimated 22 per cent of the household budget, shelter costs claimed about 19 per cent, and food, 11 per cent. These proportions were virtually unchanged from 1999. Transportation took up 14 per cent of the household budget, continuing the slight increase seen in 1999.
PORK
One of the most significant increases shown by the recent Canadian agricultural census was a 26 per cent jump in hog numbers since 1996, while the number of farms reporting hogs fell by nearly 27 per cent. International demand, particularly from the U.S. and Japan as well as new markets such as Mexico, was partly responsible for the increase. A number of tariff reductions, combined with the relatively low Canadian dollar and plentiful supplies of feed grain, have made Canadian pork increasingly attractive to international markets.
LAWN
Though not yet ready commercially, genetically altered grass is being developed which will inch up more slowly than regular grass so it requires less cutting and watering.
FUNDS
British Columbia is about to get C$12 million in federal money to organize and innovate business in the province. C$5.4 million will go to developing a single identification number for firms to deal with a range of federal and provincial government departments. This is considered a key to cutting through a lot of regulatory red tape to get access to services quickly. Another C$5.6 million will be put into an innovation investment program to help diversify B.C.'s economy.
FRUIT
Grapes, a relatively small commodity in terms of area farmed, have made a large impact since the industry was transformed by the Canada United States FTA in 1988. Since 1996, grape area has increased 41 per cent, the largest relative increase in area of the top five fruits grown in Canada.
TRIVIA
The London Observer reports that the Arctic ice cover is shrinking by an area the size of the Netherlands every year.
FEES
The costs of legal work by private firms for the Canadian government have increased on average 15 per cent per year over the past three years. Last year, the fees were a record C$63 million. The largest fee was C$10.9 million to a U.S. law firm mostly to act on its behalf in the battle over softwood lumber. Most of the increases are for legal work on international trade disputes for the Department of Foreign Affairs and International Trade. That ministry paid out C$13.7 million for legal representation, more than triple the C$4 million the previous year.
WASTE
As consumers acquire new models, old cellphones are making their way into incinerators and landfills. According to a new study, toxicants from the devices, such as lead and arsenic, become airborne or leach into the soil and groundwater. By 2005, as many as 130 million still-functioning cellphones could be heading for the garbage, representing 65,000 tons of hazardous waste each year.
FLOATING
Dangerous marine organisms are hitching rides across the world's oceans on an ever expanding flotilla of trash. Barnacles, worms, mollusca and other organisms previously limited to logs or ships or coconuts now have more travel opportunities than ever. Plastic has proved especially attractive because it is easy to grip, it doesn't rot and it moves more slowly than a ship.
CHECKOUT
Units of self-checkout equipment to retail grocery stores in the U.S. increased 142 per cent in 2001. This market should crack $1-billion in annual sales by 2003. Now that consumers are accepting it, twenty-five per cent of U.S. grocery retailers have self-checkout equipment installed.
FILMS
A recent study confirms that business is booming in Hollywood North. The amount of money spent to produce films in the U.S. dropped 17 per cent from 1998 to 2001. Meanwhile, the amount spent on production in Canada grew by 144 per cent. About US$750 million was spent last year in Canada to produce 29 films with budgets from $10- million to $50-million. In 1998, US$309-million was spent in Canada to produce 15 films in the same range.
SHEEP
Australian scientists have developed a hands-free way to harvest sheep. Instead of shearing sheep with instruments, farmers inject the animals with a naturally-occurring protein that causes a break in the wool. Farmers attach a net to their sheep and about a week later, they have a net full of fleece, and nearly-bald sheep. This has already been used on a quarter of a million Australian sheep. The Australian wool export industry is worth US$2.3-billion a year.
MAGAZINES
Reader's Digest is still the most widely read English-language magazine in Canada with eight million readers. Canadian Geographic is the nearest competitor with around five million readers. A recent study indicates that the readership of business magazines has dropped across the board.
WASTE
An ocean advocacy group describes the growing cruise industry as a floating environmental menace, with luxury ships free to dump millions of gallons of untreated waste and toxic chemicals into the oceans. The industry generates more than 400 million pounds of waste annually. Some larger cruise ships produce 37,000 gallons of oily bilge daily, 30,000 gallons of sewage, 255,000 gallons of wastewater from showers and sinks and 15 gallons of toxic chemicals from dry cleaning and photo processing.
TAMPERING
The USDA has prepared six pages of food safety guidelines telling plants how they should manage their security, production, workers, transportation and storage. The department is urging U.S. meat, poultry and egg plants to seal shipments and take other steps to protect the food supply from deliberate contamination.
MEXICO
This year, Mexico holds the rotating presidency of the Asia-Pacific Economic Cooperation trade group (APEC) and hopes to become a bridge for trade between Asia and the west. The free trade agreements Mexico has signed with 32 countries, make it the common element linking the leading markets in Europe and North America. The APEC region is the world's most dynamic and fastest growing and is home to half the world's total trade and production.
DEATHS
The International Labour Organization (ILO), reports that two million workers die each year because of accidents and illness in the workplace where they are exposed to hazards including chemicals, stress and passive smoking. The annual toll includes 12,000 children according to the report.
GREAT LAKES
Delegates to a National Marine Conference have been urged to explore new concepts of transportation to boost traffic on the Great Lakes and St. Lawrence Seaway system. Several proposals have been advanced which would also help relieve road congestion and protect the North American environment. These include the development of trans-Lake or inter-Lake roll-on-roll-off and ferry systems. In Europe and Japan such truck/trailer ferry systems are common and economically sound.
EXPANSION
The Wall Street Journal reports that the McDonald's Corp is exploring how to use its restaurant locations to sell items other than food. The company is about two years away from any sort of launch, but will be trying several experiments. There is little space to display merchandise or to store inventory. Clothes are probably out because of the odours from the food but some speculate that items such as stamps, videos and even watches are being considered.
FISHING
The headquarters of the European Union has announced plans for a radical overhaul of Europe's fishing industry. It calls for cuts of up to 60 per cent of its fishing fleets despite tough opposition from member nations. The plan would result in the withdrawal of some 8,600 boats from Europe's main fishing areas. New rules also propose changes in the shape and size of nets to prevent landings of small fish.
CASINOS
Israel has approved specially fitted planes that will give gamblers a four-hour flight. By leaving Israeli airspace, the planes will get around Israel's gambling ban. The service will start in 2003 and will be run by an airline from Iceland with three flights a day. The project is expected to generate about US$50-million a year in revenue for Israel.
READING
English research shows that newspapers have taken over from the novel as the most popular form of reading matter. On average, people devote 17 minutes a day to the press, compared with only 11 minutes reading fiction. Magazines follow closely attracting on average five minutes' reading time each day. Two minutes are spent on reference books. The study shows that people spend six hours a week reading compared with 23.5 hours a week watching television.
ORGANIC
A U.S. consumer group claims that nearly a quarter of organic fruits and vegetables contain pesticides. Organic crops are a small percentage of the North American market, less than five per cent, but the industry is growing rapidly. Sales of organic food are expected to grow by 20 to 30 per cent this year.
CUSTARD
A recent science festival was told that spraying ironing starch over a bowl of custard dramatically improves its flavour and texture. Also, non-perfumed starches makes sauces and purees richer without adding calories.
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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