July 2005 Edition
GM
The way developed countries have reacted to genetically modified (GM) is in contrast to the way they have been embraced in poorer countries. China is studying two strains of modified rice that the government is hoping to commercialize. The results show that in the hands of small farmers, who dominate the countryside, these strains produce higher yields, consume less pesticide and are better for the health of those farmers than non-GM strains. Also, both strains are designed to enhance protection against insects.
ASYLUM
The number of people seeking political asylum in rich countries fell by around 22 per cent between 2003 and 2004. In the Netherlands, applications have dropped by 27 per cent, due to tougher policies. The U.S., the top destination for asylum-seekers in 2003, saw a 29 per cent decline in new applicants last year. Applications rose in France, which entertained more pleas for asylum than any other rich country in 2004. Russia, for the second year in a row, produced more asylum-seekers than any other country.
PORTS
The General Accounting Office of the U.S. says the nation's $1-trillion agricultural industry is at risk from fewer inspections of imported food and threats of animal and plant diseases. Agriculture accounts for 13 per cent of GDP and 18 per cent of domestic employment. There has been a decline in agricultural inspections at U.S. ports. In 2002, there were 40.9 million inspections, but the number dropped to 37.5 million in 2004.
E-BUSINESS
According to The Economist, Denmark is still the best place to do e-business. It has ranked the "e-readiness" of the world's 65 largest economies to find the countries most amenable to internet-based business. The factors considered included broadband and mobile-phone penetration, as well as government regulation. America rose from sixth to second place in the ranking since last year. Britain fell from second to fifth and India, despite being an IT superpower, is ranked only 49th. Canada is 10th, up from 12th.
FURNITURE
Brazilian furniture makers are intent to capture a bigger share of the retail furniture market thanks to an abundance of raw materials such as fast-growing pine and eucalyptus trees. Presently, Italy is the world's top furniture producer with exports valued at US$6-billion annually, followed by China at US$2-billion. Brazil expects to export US$1-billion this year and overtake Italy and China before long. The leading destinations for Brazilian furniture are the U.S., Argentina and France.
TEQUILA
The recently implemented free trade agreement between Japan and Mexico along with the removal of the 25.2 yen-per-litre tariff on tequila. Exports of tequila will increase 30 per cent this year and will double in three years. Japan will become one of the world's five largest importers of tequila. Japan is currently 7th after the U.S., Germany, Greece, England, Canada and Italy. The Free Trade agreement Mexico signed with Europe in 1997 saw tequila exports to the EU increase by 50 per cent.
GOLF
Swindlers are spreading Chinese-made counterfeit golf gear to internet auction sites around the world The increasing sophistication of these swindlers has prompted six major manufacturers to cooperate in a bid to close down suppliers at their source. Demand for fakes is spurring production that siphons tens of millions of dollars from equipment makers each year. In addition, equipment makers can hardly turn their backs on China's low-cost, high skilled workforce and take their designs elsewhere. Clubs that retail for $70 to $90 each cost $3 to $5 to make in China.
SUGAR
For more than 70 years, the U.S. sugar industry has thrived under a sweet deal of price guarantees and strict import quotas. But domestic growers see the Central America Free Trade Agreement as the thin edge of a dangerous wedge. The stakes are high. Last year the sugar subsidy regime raised the price paid by Americans for their sugar by nearly US$2-billion. The sugar lobby is leading a broad anti-CAFTA coalition which also includes organized labour and textile makers.
SLAVES
The global demand for cheap labour has helped force at least 12.3 million people into slave-like work worldwide and created a multibillion-dollar human trafficking industry, according to a United Nations agency. The International Labour Organization says the vast majority of those affected are in Asia and Latin America, many working in agriculture or imprisoned in work camps. Almost half of those forced into these working conditions are children. Sex-workers in Western countries are the single biggest moneymakers in the human- trafficking industry generating US$28-billion annually.
SMARTWATER
This is a clear, odourless, non-toxic liquid embedded with high-tech microscopic particles that carry a unique code. It's invisible to the naked eye but glows under ultraviolet light. The fluid comes in a small container, and once a drop or two is dabbed on an item such as a piece of stereo equipment, jewellery or a car and allowed to dry, it is virtually impossible to remove. When forensic technicians come across an item treated with the liquid, they just read the coded particles to identify the owner.
FIRINGS
Companies worldwide replaced CEOs at a record pace last year as investors sought to boost earnings and share prices. One in seven CEOs at the world's 2,500 largest publicly traded companies lost their jobs in 2004 compared with one in ten a year earlier. The rate of dismissals has surged 300 per cent since 1995. In Europe, ousted CEOs left after an average of 21/2 years, on U.S. boards it was 41/2 years.
FACT
The London Observer reports that the average cow in the European Union receives more than $3.25 a day in subsidies, more than the amount that half the world's human population survives on.
CULTURE
In 2004, the U.S. was the marketplace for 92 per cent of Canadian culture goods exports (books, CDs, films, paintings, etc). Canada exported more than C$2.1-billion to the U.S. in 2004, down 9.8 per cent from 2003. Imports of culture goods from the U.S. edged down to just over $3.5-billion, the first decline in seven years.
NICKEL
The world's biggest nickel producers are already benefiting from prices near 16-year highs and have now identified a new market.They are now training their sights on the small but fast-growing market for hybrid electric/gasoline vehicles, which use nickel-containing rechargeable batteries. Hybrids are a drop in the world of car sales, but purchases have soared as oil prices stay high and countries try to limit emissions.
PIRACY
Despite the fact that the software piracy rate dropped by one per cent in 2004, losses due to piracy soared US$4-billion, to US$33-billion. More than a third (35 per cent) of software installed on personal computers worldwide was pirated in 2004. The world spent more than US$59-billion on commercial packaged PC software last year but over US$90-billion was actually installed. Countries with the highest piracy rates were Vietnam, Ukraine and China. Those with the lowest rates were the U.S., New Zealand and Austria.
TRAFFIC
Between 2000 and 2003 the number of trucks on Canadian roads actually edged down 0.2 per cent while there were 5.5 per cent more cars on the roads. In 2000, for every truck registered, there were 25 cars, three years later there were 27 cars on the roads. In terms of the largest trucks, such as 18-wheelers, there were 63 cars for every truck. However, trucks were driven 2.5 times as many kilometres on average than cars. In 2003, 53 per cent of Canadian exports and 79 per cent of imports were moved by truck.
LUMBER
Two years ago, China was the 12th largest importer of Canadian wood. Today it is the fourth-biggest and this year it is expected to surpass Britain to become the third largest importer, behind only the U.S. and Japan. Most of the new, wood-frame houses in China are built of Canadian wood but the Canadian industry is barely scratching the surface. China still accounts for only about C$80-million of Canada's $40-billion in wood and pulp exports. Up to 1,500 wood-frame houses are built in China every year, a tiny percentage of the country's 10 million annual housing starts.
TIRES
The mammoth 3.65 metre tires, which cost up to US$30,000 each, found on mining dump trucks are in short supply worldwide leaving earth-moving industries, including coal, in the lurch.The shortage is because of a rise in equipment orders, an increase in worldwide mining because of increased mineral prices and growth in China and other Asian countries. Goodyear Tire has said that every large tire produced through 2006 is already spoken for. Between 2003 and 2004, demand for large tires grew 20 per cent.
TRADE
Arab and South American countries have set the stage for a free-trade accord by signing a co-operation agreement. It is estimated that South America's bilateral trade with Arab nations is presently about US$10-billion annually. Brazil currently accounts for about US$8-billion of this trade and hopes to increase this to US$15-billion by 2007.
DROUGHT
Canadian beef and grain exporters, who have endured several tough years, stand to reap benefit from a deadly dry spell that has hit farmers in Australia which is a fiercely competitive exporter of beef, wheat, barley and canola and appears headed for one of the worst droughts in a century. Canada beef shippers feel that the Australian plight could be one of the final straws that convinces Asian countries to lift import bans on Canadian beef imposed after mad-cow disease was discovered. The Canadian Wheat Board also sees opportunities in countries where Australia could have problems delivering product.
POLLEN
This year the pollen count in Tokyo is the highest on record and is forecast to reach 13 times higher than last year. One in four city residents is affected. The two biggest offenders, cedar and cyprus trees, were planted after the Second World War as part of a national reforestation program and together cover 18 per cent of the country. Replacing them could take 100 years.
GROCERIES
India plans to open its booming retail sector to foreign investment, initially by providing access for international grocery companies. This is a US$190-billion industry and it will be opened in a way that encourages investment while protecting the jobs of millions of small shopkeepers.
HAVENS
Although they have only one per cent of the globe's inhabitants, they hold a quarter of U.S. stocks and nearly a third of all the world's assets. Tax havens are 70 mostly tiny nations that offer no-tax or low-tax status where the wealthy can keep their money. It is estimated that nations lose US$255-billion each year in tax revenues because of the havens.
MOPS
Users of conventional floor mops spend as much time cleaning the mop as they spend cleaning the floor.
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
The way developed countries have reacted to genetically modified (GM) is in contrast to the way they have been embraced in poorer countries. China is studying two strains of modified rice that the government is hoping to commercialize. The results show that in the hands of small farmers, who dominate the countryside, these strains produce higher yields, consume less pesticide and are better for the health of those farmers than non-GM strains. Also, both strains are designed to enhance protection against insects.
ASYLUM
The number of people seeking political asylum in rich countries fell by around 22 per cent between 2003 and 2004. In the Netherlands, applications have dropped by 27 per cent, due to tougher policies. The U.S., the top destination for asylum-seekers in 2003, saw a 29 per cent decline in new applicants last year. Applications rose in France, which entertained more pleas for asylum than any other rich country in 2004. Russia, for the second year in a row, produced more asylum-seekers than any other country.
PORTS
The General Accounting Office of the U.S. says the nation's $1-trillion agricultural industry is at risk from fewer inspections of imported food and threats of animal and plant diseases. Agriculture accounts for 13 per cent of GDP and 18 per cent of domestic employment. There has been a decline in agricultural inspections at U.S. ports. In 2002, there were 40.9 million inspections, but the number dropped to 37.5 million in 2004.
E-BUSINESS
According to The Economist, Denmark is still the best place to do e-business. It has ranked the "e-readiness" of the world's 65 largest economies to find the countries most amenable to internet-based business. The factors considered included broadband and mobile-phone penetration, as well as government regulation. America rose from sixth to second place in the ranking since last year. Britain fell from second to fifth and India, despite being an IT superpower, is ranked only 49th. Canada is 10th, up from 12th.
FURNITURE
Brazilian furniture makers are intent to capture a bigger share of the retail furniture market thanks to an abundance of raw materials such as fast-growing pine and eucalyptus trees. Presently, Italy is the world's top furniture producer with exports valued at US$6-billion annually, followed by China at US$2-billion. Brazil expects to export US$1-billion this year and overtake Italy and China before long. The leading destinations for Brazilian furniture are the U.S., Argentina and France.
TEQUILA
The recently implemented free trade agreement between Japan and Mexico along with the removal of the 25.2 yen-per-litre tariff on tequila. Exports of tequila will increase 30 per cent this year and will double in three years. Japan will become one of the world's five largest importers of tequila. Japan is currently 7th after the U.S., Germany, Greece, England, Canada and Italy. The Free Trade agreement Mexico signed with Europe in 1997 saw tequila exports to the EU increase by 50 per cent.
GOLF
Swindlers are spreading Chinese-made counterfeit golf gear to internet auction sites around the world The increasing sophistication of these swindlers has prompted six major manufacturers to cooperate in a bid to close down suppliers at their source. Demand for fakes is spurring production that siphons tens of millions of dollars from equipment makers each year. In addition, equipment makers can hardly turn their backs on China's low-cost, high skilled workforce and take their designs elsewhere. Clubs that retail for $70 to $90 each cost $3 to $5 to make in China.
SUGAR
For more than 70 years, the U.S. sugar industry has thrived under a sweet deal of price guarantees and strict import quotas. But domestic growers see the Central America Free Trade Agreement as the thin edge of a dangerous wedge. The stakes are high. Last year the sugar subsidy regime raised the price paid by Americans for their sugar by nearly US$2-billion. The sugar lobby is leading a broad anti-CAFTA coalition which also includes organized labour and textile makers.
SLAVES
The global demand for cheap labour has helped force at least 12.3 million people into slave-like work worldwide and created a multibillion-dollar human trafficking industry, according to a United Nations agency. The International Labour Organization says the vast majority of those affected are in Asia and Latin America, many working in agriculture or imprisoned in work camps. Almost half of those forced into these working conditions are children. Sex-workers in Western countries are the single biggest moneymakers in the human- trafficking industry generating US$28-billion annually.
SMARTWATER
This is a clear, odourless, non-toxic liquid embedded with high-tech microscopic particles that carry a unique code. It's invisible to the naked eye but glows under ultraviolet light. The fluid comes in a small container, and once a drop or two is dabbed on an item such as a piece of stereo equipment, jewellery or a car and allowed to dry, it is virtually impossible to remove. When forensic technicians come across an item treated with the liquid, they just read the coded particles to identify the owner.
FIRINGS
Companies worldwide replaced CEOs at a record pace last year as investors sought to boost earnings and share prices. One in seven CEOs at the world's 2,500 largest publicly traded companies lost their jobs in 2004 compared with one in ten a year earlier. The rate of dismissals has surged 300 per cent since 1995. In Europe, ousted CEOs left after an average of 21/2 years, on U.S. boards it was 41/2 years.
FACT
The London Observer reports that the average cow in the European Union receives more than $3.25 a day in subsidies, more than the amount that half the world's human population survives on.
CULTURE
In 2004, the U.S. was the marketplace for 92 per cent of Canadian culture goods exports (books, CDs, films, paintings, etc). Canada exported more than C$2.1-billion to the U.S. in 2004, down 9.8 per cent from 2003. Imports of culture goods from the U.S. edged down to just over $3.5-billion, the first decline in seven years.
NICKEL
The world's biggest nickel producers are already benefiting from prices near 16-year highs and have now identified a new market.They are now training their sights on the small but fast-growing market for hybrid electric/gasoline vehicles, which use nickel-containing rechargeable batteries. Hybrids are a drop in the world of car sales, but purchases have soared as oil prices stay high and countries try to limit emissions.
PIRACY
Despite the fact that the software piracy rate dropped by one per cent in 2004, losses due to piracy soared US$4-billion, to US$33-billion. More than a third (35 per cent) of software installed on personal computers worldwide was pirated in 2004. The world spent more than US$59-billion on commercial packaged PC software last year but over US$90-billion was actually installed. Countries with the highest piracy rates were Vietnam, Ukraine and China. Those with the lowest rates were the U.S., New Zealand and Austria.
TRAFFIC
Between 2000 and 2003 the number of trucks on Canadian roads actually edged down 0.2 per cent while there were 5.5 per cent more cars on the roads. In 2000, for every truck registered, there were 25 cars, three years later there were 27 cars on the roads. In terms of the largest trucks, such as 18-wheelers, there were 63 cars for every truck. However, trucks were driven 2.5 times as many kilometres on average than cars. In 2003, 53 per cent of Canadian exports and 79 per cent of imports were moved by truck.
LUMBER
Two years ago, China was the 12th largest importer of Canadian wood. Today it is the fourth-biggest and this year it is expected to surpass Britain to become the third largest importer, behind only the U.S. and Japan. Most of the new, wood-frame houses in China are built of Canadian wood but the Canadian industry is barely scratching the surface. China still accounts for only about C$80-million of Canada's $40-billion in wood and pulp exports. Up to 1,500 wood-frame houses are built in China every year, a tiny percentage of the country's 10 million annual housing starts.
TIRES
The mammoth 3.65 metre tires, which cost up to US$30,000 each, found on mining dump trucks are in short supply worldwide leaving earth-moving industries, including coal, in the lurch.The shortage is because of a rise in equipment orders, an increase in worldwide mining because of increased mineral prices and growth in China and other Asian countries. Goodyear Tire has said that every large tire produced through 2006 is already spoken for. Between 2003 and 2004, demand for large tires grew 20 per cent.
TRADE
Arab and South American countries have set the stage for a free-trade accord by signing a co-operation agreement. It is estimated that South America's bilateral trade with Arab nations is presently about US$10-billion annually. Brazil currently accounts for about US$8-billion of this trade and hopes to increase this to US$15-billion by 2007.
DROUGHT
Canadian beef and grain exporters, who have endured several tough years, stand to reap benefit from a deadly dry spell that has hit farmers in Australia which is a fiercely competitive exporter of beef, wheat, barley and canola and appears headed for one of the worst droughts in a century. Canada beef shippers feel that the Australian plight could be one of the final straws that convinces Asian countries to lift import bans on Canadian beef imposed after mad-cow disease was discovered. The Canadian Wheat Board also sees opportunities in countries where Australia could have problems delivering product.
POLLEN
This year the pollen count in Tokyo is the highest on record and is forecast to reach 13 times higher than last year. One in four city residents is affected. The two biggest offenders, cedar and cyprus trees, were planted after the Second World War as part of a national reforestation program and together cover 18 per cent of the country. Replacing them could take 100 years.
GROCERIES
India plans to open its booming retail sector to foreign investment, initially by providing access for international grocery companies. This is a US$190-billion industry and it will be opened in a way that encourages investment while protecting the jobs of millions of small shopkeepers.
HAVENS
Although they have only one per cent of the globe's inhabitants, they hold a quarter of U.S. stocks and nearly a third of all the world's assets. Tax havens are 70 mostly tiny nations that offer no-tax or low-tax status where the wealthy can keep their money. It is estimated that nations lose US$255-billion each year in tax revenues because of the havens.
MOPS
Users of conventional floor mops spend as much time cleaning the mop as they spend cleaning the floor.
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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