December 2007 Economic Digest - Importing and Exportin

December 2007 Edition

SCOTCH

Soaring sales in the Far East and emerging markets worldwide have led to an unprecedented boom in the Scotch whisky industry. Total export volumes for Scotch are expected to be up 17 per cent on last year, the equivalent of 71 million bottles, or US$190-million in shipment value. The most important period for the industry is typically the last two months of the year. Predictions are that the full-year exports could well be above $5-billion.

CARS

The average midsized sports utility vehicle has grown 25cm longer, 10cm in width and gained 215 kilograms weight in the past decade. Midsize and large sedans also weigh hundreds of pounds more. Auto makers say they are just catering to the desires of customers but boosting the size of vehicles helps foster brand loyalty as customers stick with the models they know and love.

EMISSIONS

Cement is a vary basic material with no obvious substitutes in terms of satisfying basic needs of housing and infrastructure all over the world. Building construction eats up concrete, and to make one tonne of cement, a key ingredient of concrete, 900kg of carbon dioxide (CO2) are released into the atmosphere. Production of cement causes twice as many carbon emissions as the world's airline industry currently does. Eighteen major cement manufacturers produce a combined one billion tonnes of cement a year, just under half the global output.

RECRUITING

The British spy agency Government Communications Headquarters (GCHQ) which is responsible for surveillance, hopes to attract computer-savvy recruits by embedding job advertisements in video games. The GCHQ, which employs about 5,000 people, says it hopes this will capture the imagination of people with a particular interest in Information Technology.

DIGITAL

The U.S. Library of Congress has announced a plan to digitalize a collection of the world's rare cultural materials, artifacts ranging from a photo collection of a 19th century Brazilian empress to a crackly recording of a 101-year-old grandson of a slave. The Library has signed an agreement with UNESCO in Paris to move ahead with their World Digital Library. The World Digital Library started two years ago with a US$3-million grant from Google.

WEDDINGS

In 1998, the last year for which Statistics Canada numbers could be found, Canada's wedding industry was worth an estimated C$4-billion a year. More recent figures from the U.S. put the value of the industry at US$50-billion a year. In 2005, 714,000 Japanese brides spent an average of US$70,000 per wedding and in India, estimates of the size of the wedding market range as high as $20-billion a year.

WASTE

The paperless office, predicted in an 1975 article called the Office of the Future, has proven to be greatly exaggerated. Although an estimated nine trillion pages a year are confined to computer screens, the number of printed pages stands at between 2.5 and 2.8 trillion pages worldwide, a figure that is expected to grow over the next 10 years. About one trillion of these sheets, churned out by office printers, are estimated to be thrown out within hours. Xerox found that office workers throw away 48 per cent of everything they print within a day.

RETAIL

A new PricewaterhouseCoopers study suggests that the retail industry will become more segmented and customer-driven by the year 2015. The study identifies 15 growth drivers and predicts 15 trends that will redefine the retail environment in 2015. Among shifting demographics, household downsizing and new marketing channels, the retail industry will face a variety of new challenges. Overall, the retail industry will need to adopt a more targeted approach in order to reach its customers.

RADIO

U.S. scientists have unveiled a detector thousands of times smaller than the diameter of a human hair that can translate radio waves into sound. This is the first time a nano-sized detector has been demonstrated in a working radio system. Made of carbon nanotubes a few atoms across, it is almost 1,000 times smaller than current radio technology. Many companies are interested in the long-term potential of carbon nanotubes, tiny cylinders of carbon that measure just a few billionths of a metre across.

VIETNAM

Growth in Vietnamese shipments to the U.S. is outpacing overall export growth for the Asian nation, whose government is banking on the American market to help ease a widening trade deficit. Exports to the U.S., Vietnam's largest market, climbed 22 per cent to August of this year reaching US$6.69-billion. Vietnam has set a target of 20.5 per cent for overall exports to grow.

GAMING

Canada's video games firms have developed an international reputation for being among the best and most innovative developers with annual revenues reaching upwards of $2-billion. The Canadian video game industry comprises more than 260 firms and a combined 9,000 employees in nine provinces. About 20 per cent of the top selling games in North America are developed in Canadian studios. It is estimated that the worldwide market will top US$55-billion by 2009.

INDIA

The retail sector in India has sales of US$300-billion annually which is projected to rise to $560-billion by 2010. Some 95 per cent is accounted for by small, family-run stores but it is predicted that their share will have shrunk to about four-fifths by 2012 as bigger stores, such as Reliance Retail, start to lure shoppers. Reliance has opened more than 300 stores in the past year, including grocery stores.

TOYS

There are over 200 companies in Canada that manufacture toys and games. Annual retail sales of toys and games in Canada are worth C$1.4-billion. Since the massive recall of toys manufactured in China earlier in the year which saw 21 million toys recalled by Mattel Inc., some Canadian manufacturers have seen their sales increase by 10 per cent in Canada and 25 per cent internationally.

HOTELS

The most expensive five-star hotel rooms in the world may be found in New York, San Francisco and Nice. The cheapest are in Cape Town, Cairo and Warsaw.

COTTON

The US could face billions of dollars in trade sanctions for failing to scrap illegal subsidies paid to American cotton growers. The ruling by the World Trade Organization is a victory for Brazil's cotton industry and for West African countries which say the payments harm their producers. Brazil has reserved the right to impose annual sanctions of up to US$4-billion on the U.S. but would likely settle for less.

SIZE

PetroChina Co gained the most in five months in Hong Kong trading as oil rose to over $85 a barrel, vaulting the state-owned oil producer over General Electric to become the world's second largest company. The largest is still Exxon Mobil Corp. with a value of over $518-billion. PetroChina's stock has soared 14-fold since its 2000 public share sale.

DEVELOPMENT

The Netherlands, Denmark, Norway and Sweden have the most effective policies to help poor countries according to a Washington, DC think tank. The report grades 21 rich countries each year on how well they support development in poor countries. Each country is assessed on its policies in seven areas including aid, migration, investment and trade.

RAIL

Canada's railways collectively operate one of the largest railway systems in the world and are fully integrated with the U.S. rail system. According to industry figures, Canada's freight railways handle more than 65 per cent of surface traffic, more than 4.3 million carloads of freight and containers annually. Passenger railways move over 60.6 million commuters annually. Overall, Canada's railways directly employ 34,500 people and contribute approximately $10-billion to the Canadian economy.

MAFIA

Revenue from organized crime amounts to an estimated US$127-billion annually in Italy, making it the largest segment of the economy. The figure, representing about 7 per cent of the country's gross domestic product, is made from illicit activities such as extortion, drug trafficking, loan sharking and prostitution.

BEER

Trouble is predicted for small beer makers across North America as the price of hops and barley, two of the essential ingredients in brewing, continue to rise, as do the costs of shipping and transport. Ironically, some farmers abandoned the growing of hops and barley after a glut in the market. Because of lifestyle changes, it is estimated that for the next five years, sales of wine will increase 3.5 per cent. sales of spirits increase 2 per cent but beer sales only by 0.5 per cent.

CANS

The American Iron and Steel Institute (AISI), in cooperation with a major supermarket chain, have rolled out a campaign to educate consumers on the nutritional and safety benefits of canned food. Research shows that canned foods are nutritionally comparable to their cooked fresh and frozen counterparts, and in some cases even more nutritious. The ASAI has 31 member companies, including integrated and electric furnace steelmakers and 130 associate and affiliated member companies representing about 75 per cent of U.S. and North American steel capacity.

TECHNOLOGY

When the northern pygmies of Congo-Brazzaville go into the forest these days, besides their traditional bows and arrows, they are carrying hand-held satellite tracking systems. They use the GPS handsets to pinpoint sacred sites and hunting areas. They are protecting their livelihoods and habitats against the chainsaws and bulldozers of commercial logging.

OUTSOURCING

Smarties, the famous British candy, is to be produced in Germany after 70 years in England. Also, Black Magic is now manufactured in the Czech Republic and Dairy Box is manufactured in Spain. The Smarties move will cost about 650 jobs. About 73 million pounds of Smarties are sold annually.

SAFETY

An endangered species of whale is to get extra protection after a safe haven from shipping has been set aside off Nova Scotia in Canada. The voluntary restriction asks ships captains to avoid a 1,800-sq-km area. Collisions with container ships are seen as a key threat to some whales.

COAL

The coal that has powered China's economic growth is also choking its people. The country is home to 16 of the world's most polluted cities. Coal provides about 70 per cent of China's energy needs. The country consumed some 2.4 billion tons in 2006, more than the U.S., Japan and the United Kingdom combined. In 2000, China anticipated doubling its coal consumption by 2020. It is now expected to have done so by the end of 2007.

SUNSCREEN

New research shows that broccoli juice is better than conventional sunscreens when it comes to protecting against the sun's harmful ultraviolet rays. The extract reduced sunburn symptoms by up to 78 per cent.

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

November 2007 Economic Digest - Importing and Exporting

November 2007 Edition

LINGERIE

The first Russian retailer has just opened in Britain. Russia's biggest lingerie retailer, the Wild Orchid group, is trying to cash in on the booming sales of ladies underwear. Britain's fast growing lingerie market is forecast to grow from US$5-billion in 2006 to $6-billion by 2011. Women in the UK buy more underwear than any country in the European Union.

ENERGY

The sun remains largely untapped as a source of energy. The world's biggest solar farm, where more than 400,000 mirrors cover four square miles of California's Mojave desert, was built in the 1980s and still churns out 354 megawatts of electricity, enough for 900,000 homes. Until recently, no more large solar plants have been built, despite souring demand. A new plant went on line in June in Nevada which will generate 64 megawatts of power.

TRENDS

Despite the notion that bank machines and the Internet will replace the teller and the local bank branch, one Canadian bank is experimenting in selected branches in Toronto and Vancouver with opening on Sundays. Another major Canadian bank is adjusting its hours so as to be open 60 hours a week from its present 50 hours.

AIRLINES

A recent forecast states that the international airline sector could post a US$5.6-billion profit this year, finally recovering after being stuck in red ink since September 11, 2001. The forecast reflects robust consumer demand for flights and efficiency gains made by airlines operating with greater labour productivity and lower non-fuel costs.

MARKETS

China has now firmly eclipsed Canada as the No.1 seller of goods to the U.S., a shift in trade that reflects the Asian consumer goods juggernaut's ever deeper penetration of the U.S. market. Trade statistics show that in the year to July 31, 2007, China sold US$312-billion worth of merchandise while Canada shipped $$306-billion. The U.S. shipped $238-billion to Canada in the same 12-month period while it sold only $60-billion to China.

QUITTING

An international survey of more than 82,000 people in 11 countries sugggests that Canadians are more daring than workers in other countries when it comes to resigning their jobs to start all over again. Canadians were the least conservative with just 35 per cent taking a new job in the same sector and the most likely to jump to a new career in a new sector. Indians were the most conservative with 51 per cent who resigned staying in the same industry sector. Over nine per cent of Canadians leave to start their own business.

DRESS

Business casual is here to stay according to a survey of 1,182 executives in New York and London making more than $100,000 a year. 89 per cent said they prefer to wear business casual or outright casual attire for work. 62 per cent said they have made casual their standard office dress code. 22 per cent say their definition of casual attire could include jeans. The survey found that 39 per cent of executives said employees who are dressed casually are perceived to be creative.

LAND

The European Union has unveiled plans to make more land available for farming in a bid to curb soaring prices of cereals such as wheat. Under the proposal a requirement that farmers must leave 10 per cent of their land fallow would be abolished for one year. The changes would bring about 10 million tonnes of grain onto the markets. The rule about fallow land was introduced in the early 1990s to cut Europe's crop surplus and appease exporters such as Australia.

ENVIRONMENT

China's environmental problems are mounting. Water pollution and water scarcity are burdening the economy, rising levels of air pollution are endangering the health of millions of Chinese, and much of the country's land is rapidly turning into desert. China has become the world's leader in air and water pollution and land degradation and a top contributor to some of the world's most vexing global environmental problems, such as the illegal timber trade, marine pollution and climate change. All of these pose risks to the economy, public health and social stability.

GOVERNORS

The highest pay for a governor in the U.S. is $206,500 (Governor Schwarzenegger turns his salary back). The lowest gubernatorial salary is $70,000 in Maine which has kept the status quo for 20 years. The governors of New Jersey and Tennessee only accept $1 a year. The average salary for all 50 governors is $124,398.

GROOMING

In a society obsessed with beauty and celebrity, two-thirds of U.S. consumers agree that the pressure to look good is much greater now than ever before. U.S. consumers reported spending the most of their grooming dollars on hair care followed by skin care and facial treatments. The fewest dollars are spent on hair removal and tanning. If money wasn't a concern, U.S. consumers would spend the most on body massages, teeth whitening, hair care, facial treatments and manicures.

FREEDOM

The Fraser Institute, a Canadian think-tank publishes a list annually of countries according to how much they encourage free trade, both internally and with other territories. Countries with fewer taxes, strong property rights, low regulation and sound money score best. Hong Kong retains its top position. Britain, the U.S. and Canada tie for fifth position. Germany is ranked 18th, on a par with El Salvador. France and Italy are outside the top 50.

GUM

Easy-to-remove chewing gum is to become a reality, thanks to a breakthrough by scientists at a British university that could save Britain the estimated $300-million spent annually on removing discarded gum. The British start-up company that announced the non-stick, degradable gum hopes to take a bite out of the global market worth about US$10-billion of which Britons alone spend about $750-million annually.

ACCESS

Despite the potential of the Internet as a tool to overcome distance, living in rural and small town Canada continues to be a factor associated with lower rates of Internet use. Last year, in a survey of 30,466 Canadians, only 58 per cent of residents living in rural and small town areas accessed the Internet, well below the national average.The gap between rural and urban areas may reflect the interaction of other socio-economic indicators, or the availability of broadband.

MIGRATION

The godwit is a small bird that has been shown to make the longest non-stop migratory flight in the world. Recently, a satellite-tagged bar-tailed godwit, a female known as E7, landed in New Zealand after taking a week to fly 11,500 kilometres from Alaska. Unlike sea birds which feed and rest on long journeys, godwits just keep going. E7 set her first record on the way north when she flew 10,200km non-stop from New Zealand to Yalu Jiang in China before flying a further 5,000km to Alaska.

POWER

Fuel derived from cotton and a shrub said to relieve constipation could soon power mobile networks across India. The crops will be used to generate biodiesel to fuel mobile stations in unconnected rural areas without access to electricity. One third of Indian homes are not connected to the power grid and demand for mobile phones is growing rapidly.

HEALTH

According to a new survey of 2,000 U.S. companies, health care insurance costs have jumped 6.1 per cent this year, the slowest health care premium growth since 1999. The bad news is that it is still more than double the rate of inflation and continues to outpace wage increases.

METRIC

Europe's Industry Commissioner is ending the decades-old battle to get Britain to ban using imperial measurements such as pints, pounds and miles. The country has long sought to keep its traditional units that date back to the Middle Ages. Britain had been due to go completely metric by 2010.

SERVICES

Statistics canada reports that in 2006, Canada's services trade deficit increased by C$3.0-billion to reach $15.2-billion,the largest deficit ever. Record deficits were registered for travel and transportation services. In 2005, the most recent year with complete detailed information, services were largely in deficit with the U.S., and in lesser measure with Europe and Asia.

SIZE

The world's largest casino recently opened in Macau. Costing US$2.4--billion, more than Macau's entire public works budget for the past five years. The building is Asia's largest and required 20,000 construction workers and used three million sheet of gold leaf. Running it takes 16,000 employees. It uses enough power for 300,00 homes and the casino has 870 tables and 3.400 slot machines in the world's largest gambling hall which is encircled by 350 shops.

SMILE

The Cyper-shot T is a new compact camera from Sony that is said to automatically weed out pictures where a person isn't smiling. It can automatically detect a smile and immediately drop the shutter. The photographer can program the camera to detect which type of facial expression to look for, be it a faint smile or a tooth-baring grin. The user can turn off the function and use it as a normal camera.

PROTECTION

British police are testing a DNA for property aimed at tackling burglars. Homes are being given enigmaTag, a system that uses microparticles to mark valuable possessions. Each 5-millimetre bottle, similar to a nail polish container, has a unique coded solution registered to each home. A tiny amount is applied to every item and the solution can be identified only by special hand-held readers.

HEADACHES

A new global health survey of 26,486 Internet users around the world by the Nielson Co indicates that headaches, colds, sleeping problems and back aches are the most common ailments of the world's consumers and when it comes to their treatment in an estimated US$70-billion industry, consumers are loyal and habitual purchasers of over-the-counter (OTC) self-medication products. Headaches are the top complaint for consumers with the result that analgesics are the largest category in the OTC market.

PORTS

Australia, the world's biggest exporter of coal, risks losing as much as C$7-billion in export revenue in the next decade if port and rail congestion aren't resolved, government figures show. The development of coal transport infrastructure is currently lagging the demand for exports. About a third of Australia's coal export capacity is at the port of Newcastle where, in late summer, the line of ships waiting load cargoes was a record 79.

ROADS

Bangladesh and Burma have signed a deal to construct the first major road between the two countries. Officials hope that the road, most of which will be inside Burma, will form part of an Asian super highway to boost trade.

TV

An Austrian TV channel in Salzburg is screening The Sound of Music non-stop 24 hours a day. The film was shot in Austria.

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

October 2007 Economic Digest - Importing and Exporting

October 2007 Edition

SIZE

 
Houses in the U.S. keep growing. One in five American homes had at least four bedrooms in 2005, up from one in six in 1990, despite shrinking families and increasing costs for construction and energy. Houses with five or more bedrooms were the fastest growing type in that time. Utah leads the nation with 40 per cent of homes having at least four bedrooms. This was followed by Maryland, Virginia, Colorado and Minnisota. Arkansas had the smallest share at 12.6 per cent.

TUNGSTEN

Canada's planned ban on incandescent light bulbs will have no impact on Canada's resurgent tungsten mining business, experts say, because lighting makes up such a small proportion of the overall demand for the heavy metal. In fact, tungsten mining and exploration in Canada and around the world is enjoying a boom caused by significantly higher prices for the metal. More than half of tungsten production goes into superhard alloys of steel, which are used to make cutting tools and saw blades.

WINE

Consumer tastes for wine are becoming more upscale in the U.S. driving sales of premium-priced rose wines up 45 per cent in the past year. In the year to March 2007, rose table wine accounted for more than US$9-million in sales in food, drug and liquor stores. Twenty-eight new brands of premium rose wine were introduced in 2006, nearly twice as many as the 15 brands launched in 2005.

COINS

Because of a surge in the price of copper, the U.S. Mint decided 25 years ago to manufacture the U.S. penny almost entirely from zinc, save for the coating on which Abraham Lincoln's profile is engraved. Now, the fate of the penny is up in the air once again. With the price of zinc soaring it costs the government almost 2 cents to make each 1-cent-coin.

CAMP

In a country where credit is king, this summer, U.S. parents have been sending their kids to "money camps" designed to teach the value of saving and the pitfalls of massive debt.

SUDS

U.S. soap and detergent makers say they are being hurt by a double whammy of federal subsidies and mandates that has reduced the supply and pushed up the costs of a key ingredient, beef tallow. The steeply rising price of corn, driven by federal requirements to use more ethanol, has pushed up corn prices, making animal feed more expensive and prompting farmers to blend the less expensive tallow and other fats into their feeds. In the past year, tallow fats have doubled.

TOYS

India is struggling to prevent millions of condoms from being made into toys or sold as balloons. The contraceptives were distributed free to control the country's population and restrict the AIDS virus. However, they are being used to strengthen roads, provide extra waterproofing for houses and to carry water. Millions were melted down for their latex and made into toys. Others were dyed and sold as balloons.

DATA

The UK National Archives is warning that there is a growing problem of accessing old digital file formats which it describes as a "ticking time bomb." There is a possibility that we may lose years of critical knowledge because modern PCs cannot always open old formats. The National Archives holds 900 years of written material and has more than 580 terabytes of data, the equivalent of 580,000 encyclopaedias in older file formats that are no longer commercially available.

CITIES

Most of humanity will be living in cities by next year, raising the threat of increased poverty and religious extremism unless the needs of the growing urban populations are met, according to the United Nations. Some 3.3-billion people will live in cities by 2008 and by 2030, the number of city dwellers is expected to climb to 5-billion.

READING

Britons, particularly women, are spending more time reading than 30 years ago. The average time women spent reading a book jumped from two minutes a day in 1975 to eight minutes in 2000. Men's reading rose from three minutes to five minutes a day. The number of people reading books in Britain also rose over the same period, from a low of only 13 per cent to 17 per cent.

INDIA

Part of India's economic boom has been the growing emancipation of women. This trend is being watched carefully by Indian and global companies hoping to sell to the country's fast-growing middle class. It is predicted that the rising incomes and consumption of women could add US$35-billion to India's gross domestic product over the next five years, lifting consumer demand by 10 per cent.

LAND

Some charities are attacking the drive to grow more biofuels which are being heavily promoted by the U.S. and Europe as a solution to climate change. The UN says basic food prices for poor countries are being pushed up by competition for land from biofuels. A new report says governments and biofuel firms in developing countries are collaborating to push hundreds of thousands of indigenous people and peasant communities off their land

POST-PRODUCTION

Total revenues in the Canadian film, television and video post-production has been increasing, but a large increase in expenses have eaten into profits. The industry recorded total revenues of C$844-million in 2005, an 8 per cent increase over the previous year while expenses rose 10 per cent. Profits totalled $47-million. Ontario and Quebec companies accounted for 90 per cent of total operating post-production revenue.

MACHINES

When the first cash machine appeared at a bank in the UK in 1967, plastic cards had not been invented. so the machine used cheques that were impregnated with carbon 14, a mildly radioactive substance. The machine detected it and then matched it against a PIN number. The first machine paid out a maximum of ten pounds. There are now more than 1.6-million cash machines worldwide.

FUEL

U.S. scientists say that the sugar found in fruit such as apples and oranges can be converted into a new type of low-carbon fuel for cars. The fuel, made from fructose, contains far more energy than ethanol. In a separate report on biofuels, UK scientists say all types of waste products, including plastic bags can be used to make biodiesel fuel.

GIVING

Americans set a new record for charitable giving in 2006, donating nearly US$300-billion for a one per cent increase over 2005. Individuals gave a combined 75.6 per cent of the total, with 32.8 per cent of that going to religious organizations, followed by 13.9 per cent going to educational causes.

AFRICA

There is more trade going on today between China and Africa than ever before. In the late 1980s, trade between the country and the continent was US$12-million. Last year, according to official Chinese figures, it reached a record $55-billion. The backbone of China's blossoming relationship with the continent is raw materials. China, with its rapid economic and industrial growth, needs them and Africa has them in abundance. Some 30 per cent of China's oil imports now come from Africa.

LOCAL

Food safety issues and America's growing health and wellness segment are two key factors driving a surge in locally grown food sales, which could jump to US$5-billion this year and reach $7-billion by 2011. Restaurants, drug stores, convenience stores and even academic foodservice venues are turning to the fresh and local consciousness which is becoming so popular in America.

RAILWAYS

Nobody likes the rising price of oil better than the U.S. railroads. As the cost of crude soars, rail is gaining a competitive edge after losing ground to trucks for half a century. Even as automotive plants closings and reduced U.S. housing starts have contributed to a 4.4 per cent drop in train shipments this year, serious investors are flocking to railroad shares, betting that higher oil prices and surging Asian imports along with congested highways will boost long-term demand.

SERVICE

Time-starved shoppers are more likely to patronize retailers that enable them to take care of their own business through self-service devices according to a new North American study. Among the top three locations where the 633 U.S. and Canadian consumers surveyed would like to see this kind of convenience were grocery stores, chosen by 55 per cent. Only airports and malls ranked higher at 70 and 65 per cent respectively. However, a significant number still say they prefer person-to-person interaction.

KRILL

A food oil is being manufactured from Antarctic krill, a species of tiny shrimp-like zooplankton that thrive in the Antarctic Ocean. The oil is rich in omega-3 fatty acids and antioxidants. The oil shows considerable promise in treating a variety of human ailments from osteoarthritis to high cholesterol. It is being marketed in North America, Asia and Europe as a dietary supplement.

POWER

China is now building two power stations every week. and a Dutch think tank reports that China has now overtaken the U.S. as the world's biggest emitter of CO2. Much of China's emission growth is being driven by consumers in the West buying Chinese goods. China's emissions per person are still well below those of rich nations.

SOAP

A team of U.S. scientists has conducted the first known comprehensive analysis of whether anti-bacterial soap works better than plain soap. Their conclusion is that expensive anti-bacterial washes are no better at cleaning hands than ordinary soap and may actually encourage superbugs.

GROWTH

Since the inception of the Web, online commerce has enjoyed hypergrowth with annual overall sales increasing more than 25 per cent, and far more rapidly in some sectors. But last year, growth slowed sharply in major categories like books, tickets and office supplies. Online sales also dropped in diverse categories such as health and beauty products, computer peripherals and pet supplies.. However, sales on the internet are expected to reach US$116-billion this year, or five per cent of all retail sales.

HOURS

One in five, or more than 600-million people worldwide work excessively long hours with Peruvians topping the list and British employers the worst among rich nations. This comes from an International Labour Organization report on working trends in 50 countries. Progress towards a maximum 48-hour week is still uneven nearly 100 years after the standard was agreed by ILO members.

GAMBLING

Canadians gambled away C$14.5-billion last year playing slot machines, buying lottery tickets and betting at the racetrack. The industry took in more than $15-billion in revenue including $700-million on non-gambling activities such as food and drinks. Profits were massive, pegged at $10.6 billion, including commissions and taxes, with roughly $7.4-billion enriching provincial coffers and $3.2-billion going to charities.

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 2007 Economic Digest - Importing and Exporting

September 2007 Edition  

LOCATION


A new emerging-markets index says that the most attractive location for manufacturing is now Vietnam, not China. Also, the United Arab Emirates beats India as a location for service-sector activities. The index assesses 20 prominent emerging-market locations on the basis of "reward" factor, including production costs, size of market, taxes, transport costs and tariffs and "risk" factors. It finds that Russia, Brazil, India and China do not come top as locations for either manufacturing or services.

ELECTRONICS

The growing popularity of hi-tech devices in the UK, such as flat-screen TVs and digital radios is threatening to undermine efforts to save energy. UK consumers spend US$25-billion a year on electronics and by 2020 it is estimated that gadgets will account for about 45 per cent of electricity used in UK households. The equivalent of 14 power stations will be needed by 2020 just to power consumer electronics.

OIL

A U.S. based company has developed a way to turn oil-based plastics back into the oil from which they were made. By zapping such materials with a finely tuned microwave, they are reduced back to oil and combustible gas. Running 9.1 kilograms of ground-up tires through a machine produces 4 litres of diesel oil, one and a half cubic metres of combustible gas, one kilogram of steel and three kilograms of carbon black.

PLANES

The chairman of Emirates Airlines has grand ambitions and a bankroll to match. He has US $82-billion from his government, the airline and other financiers and has ordered 55 super jumbo A380s to create the largest fleet of these double-decker planes in the world. He wants to make Dubai, a sheikhdom by the sea, the busiest airline hub in the world, overtaking London, New York and Singapore. In 1985, starting with $10-million, Emirates was a two-plane operation. It now has 105 planes.

INDIA

Indian software and services exports are expected to earn about US$40-billion in the year to March 2008. It is estimated that this sector will achieve $60-billion in export revenue by 2009\2010. A large pool of English-speaking and well-educated workers have helped to win outsourcing contracts from firms in the U.S. and Europe. The industry contributes 5.2 per cent to the Indian economy.

SHIPS

Britain's merchant navy once ruled the waves. Since 1975, the number of UK-owned and registered vessels with a capacity of 500 gross tons or more has slumped from 1,600 to less than 300, while the number of British seamen serving on them has dropped from 90,000 to just 16,000. Some experts fear that the decline of the service will weaken Britain strategically and economically by forcing it to become dependent on foreign shipping. Britain's maritime industry is worth US$20-billion a year.

IMPORTS

According to Statistics Canada, the top foods in volume Canada imported from China in 2006 in millions of kilograms were: Mandarins, clementines and similar citrus hybrids, fresh and dried, (33.9); Frozen fish fillets, (24.4); Fresh pears and quinces, (13.6); Raw peanuts, (10.6); Frozen shrimp and prawns, (10.4); Pasta, (10.3); Mushrooms, (8.9); Other citrus fruits, (8.8) and Shrimps and prawns, prepared or preserved, (7.3).

TRAVEL

The U.S. has lost billions of dollars and an immeasurable amount of good will since the September 2001 terrorist attacks because of a decline in foreign tourists. Visits to the U.S. from countries outside Canada and Mexico totalled 21.7 million in 2006, down 17 per cent from a peak of 26 million in 2000. In the same period, cross-border travel around the world was up 20 per cent. Visits from Britain, Japan, Germany, France, South Korea and Australia have dropped 15 per cent while travel from those countries to other countries was up 39 per cent.

COPPER

South African copper exports are booming but there is little rejoicing. The trade is being fuelled by theft of copper cables that carry electricity, regularly plunging whole suburbs into darkness, stranding thousands of train passengers and wreaking havoc with the national economy. Nationally, it costs an estimated US$70-million to replace stolen cables every year and $350-million in further losses, including the impact of power outages. The Western Cape province which has no copper mines reported exports last year of $11-million.

CORN

U.S. farmers planted 92.9 million acres of corn in 2007, the largest amount of acreage since 1944 and 19 per cent more than was planted last year. Iowa continues to lead all states in total corn acres and state records were set in Illinois, Indiana, Minnisota and North Dakota. These increases are attributed to favourable prices, growing ethanol demand and strong export sales.

TRADE

The U.S. and South Korea have signed a free trade agreement, the biggest such deal for the U.S. in 15 years, though it is not certain that Congress will approve the deal. The pact eliminates nearly 95 per cent of tariffs on bilateral trade in consumer and industrial goods within three years and almost two-thirds of U.S. farm exports will be immediately duty free when the FTA is implemented. This is the biggest U.S. free trade deal since the NAFTA. However, some are concerned that the automobile provisions don't go far enough.

VENDING

Two Scottish entrepreneurs have come up with an invention that battles the humidity to keep hair straight during a night on the town. The coin-activated "Straight Up" vending machines will provide 90 seconds of hair straightening time for about the same price as a coat check at a night club. They launched the first machine in 2005 and now have more than 800 units in bars, clubs, gyms and offices.

GREEN

As part of an eco-initiative by one of Britain's largest retailers, they are now selling trousers made from 14 mineral water bottles. They are made in factories in Indonesia from recycled clear plastic bottles that have been spun into polyester in Taiwan. The trousers cost about C$40.00 and come in charcoal and navy and the crease-resistant trousers are machine washable. If they sell successfully the line could be extended to women's clothes.

COMMUTING

Seventy-seven per cent of workers in the U.S., more than 102-million people, drive alone to and from work, up from 1990. This has happened despite the fact that retail gasoline prices rose by 60 cents per gallon in the same 15-year period, adjusted for inflation. Biking is showing no gains and carpooling is also on a downward trend.

BRANDING

The Canadian Brand Index ranks the country's most recognizable brands by total value and overall strength. Topping the list is Cirque de Soleil with a brand value of C$880-million. Second is Ski-Doo, ($293-million); CBC, ($283-million); Roots, ($134-million); Toronto Maple Leafs, ($95-million) and Montreal Canadians, ($87-million).

TEENS

The market for products bought by and for the 25.6-million-member teen market in the U.S. will experience a growth spurt, increasing from US$189.7-billion in 2006 to $208.7-billion in 2011, despite an estimated three per cent decline in the 12-to 17-year-old population in the same period. Teen spending money, accumulated through paying jobs, allowances from parents and monetary gifts will increase an estimated 3.5 per cent annually.

POTASH

Global interest in biofuels has helped push prices for potash, a mineral-based fertilizer to record levels and those prices will increase further through the balance of the year. Worldwide, the three crops using the most potash per hectare planted are sugar cane, palm oil and corn. This has stepped up fertilizer use in Asia, Brazil and North America.

SEAFOOD

Overall seafood consumption in the U.S. was 16.5 pounds per person last year, up from 16.2 pounds in 2005 and 14.8 pounds in 2001. Shrimp continues to lead seafood consumption followed by Canned Tuna, Salmon and Pollock. Tilapia, a mild-tasting white fish, is now in fifth position replacing catfish which is sixth.

TEA

The hottest investment in China today is in the shape of a small, compressed cake that smells earthy and is wrapped in paper. Pu'er tea, a strong aromatic brew from Yunnan has long been prized in China for medicinal qualities. Now, instead of drinking it, millions of Chinese are hoarding it after the price jumped 50 per cent last year. Like fine wine, Pu'er tea is considered to improve with age and it is now six times more expensive than gold.

MATCHBOX

These miniature die-cast toys were a favourite of children in the 1950s and 1960s. The range of toys that flowed from it were sold in over 140 countries. At one point, Matchbox was selling two million models every week, outpacing rivals like Meccano's Dinky range by adding two new models each month. Eventually their popularity waned to be replaced by Mattel's models with friction wheels which meant they ran further and faster.

DOWNLOADS

Sales of CDs in the UK fell by 10 per cent in the first half of the year. The decline was much greater in the U.S., the world's largest music market, where sales dropped by 20 per cent. However, this decline was partially offset by the growth in digital downloads to two million units in the U.S. which left overall sales down by 9 per cent.

VACCINES

The dream of cheap, easy-to-store, needle-free vaccines is now closer to reality. Japanese researchers have created a strain of rice that protects against cholera. Edible rice vaccines could also be developed to protect against diseases such as HIV-AIDS, SARS and influenza. These rice-based mucosal vaccines offer a highly practical and cost effective strategy for orally vaccinating large populations.

TRENDS

London is to rip out more than 2,000 coin parking machines, as with rates of nearly $10.00 an hour, it is unreasonable to expect motorists to carry fistsfull of coins. Motorists will use credit or debit cards for parking. Those with a cell phone will be able to do so by text after setting up an account, with their card and car registration details. Drivers will have to text in the parking space number and the amount of time for which they wish to pay. They will be sent a text warning shortly before the time is up.

SPICES

Emerging ethnic cuisines are giving Americans a taste for bold spices from all over the globe. Spices are finding their way onto menus and specialty food products attracting new customers and even adding health promises. A key reason for the new interest in exotic spices is the shifting cultural makeup of the nation. Beyond salt and pepper, the spice market has now reached US$1.2-billion.

SPORRANS

Because of new EU regulations brought in to protect wild animals, anyone who has bought a sporran since 1994 may have to obtain a licence for them because otters and badgers, from which sporrans are made, are now protected.

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 2007 Economic Digest - Importing and Exporting

August 2007 Edition

POLLUTING

 
New research shows that computers generate an estimated 35 million tons of carbon dioxide each year. Globally the IT industry accounts for around two per cent of carbon dioxide emissions, much the same as aviation. It takes around 1.8 tons of chemicals, fossil fuels and water to produce a PC and its operation generates 0.1 tons of carbon dioxide in a typical year. They last, on average, three years and once junked most are buried in landfill where the soil can become polluted with cadmium and mercury.

WATER

The fastest growing bottled water brands are flavoured and enhanced waters, waters with a splash of fruit or vitamins or electrolytes. One new brand even contains fibre which claims to help maintain healthy intestinal regularity and glucose levels.

FRAUD

The online auction giant eBay is trying to clean up its site. It recently announced a significant shift in its philosophy towards protecting eBay members from fraud. The company has reported a 60 per cent decline in the number of complaints from luxury goods makers that counterfeits of their products are being sold on the site. It also claims that it has banished tens of thousands of sellers from its auction marketplace who do not meet new, elevated standards.

SAUCE

It was invented by the British from an Indian recipe over 175 years ago and has been exported across the world as a vital cooking ingredient. Now, Worcestershire Sauce has been named as the UK's most important contribution to world cuisine. In a major survey of food lovers, over 71 per cent named the sauce as the greatest culinary ingredient, beating the likes of Cheddar Cheese, Clotted Cream and English Mustard.

COGNAC

The cognac industry of south-west France is reporting record exports, thanks to an explosion of sales to Russia and China. Overseas sales grew by 9.7 per cent in the year to April, to reach 157 million bottles. This is the highest figure since 1990, before a long period of decline led to the destruction of 8 per cent of cognac vineyards. The biggest increases in sales were in Russia, up by 55 per cent, and China, up 49 per cent. The U.S. remains the biggest importer of cognac.

PIZZA

It is estimated that the pizza quick-service restaurant (QSR) segment in Canada generated sales in 2005 of about C$2.5-billion with around $1.2-billion made in Ontario. In 2004, the pizza QSR segment represented 18 per cent of the total QSR segment. Most of this segment is served by branded chains which account for two-thirds of sales. The top four chains by sales are: Boston Pizza, $513-million; Pizza Pizza, $341-million; Pizza Hut, $300-million and Domino's, $123-million.

SEEDS

Scientists are worried that many plant species will not be able to adjust to climate change. With more than 100 partners worldwide, the Millennium Seed Bank Project (MSBP) in Britain is acting as a repository for all the world's wild plant seeds. So far, MSBP has banked about 18,000 species from 126 countries. On track to meet its goal of banking 10 per cent of the world's flora by 2010, it hopes to bank another 45,000 by 2020.

STRESS

Mainland Chinese business leaders are the most stressed in the world, with 84 per cent reporting an increase in stress levels over last year, followed by Taiwan, 82 per cent, India, 79 per cent and Russia, 76 per cent. The report, covering the opinions of 7,200 privately owned companies in 32 countries, found that 56 per cent of business leaders worldwide feel their stress levels have increased in the past year. In contrast, business leaders in Europe are the least stressed.

COWS

It may soon be possible to produce skimmed milk straight from the cow in a development that could revolutionize the dairy industry. Scientists in New Zealand have discovered that some cows have genes which give them a natural ability to deliver skimmed milk. They plan to exploit their find to breed herds of cows to meet the rising demands of health conscious consumers.

TOYS

The Chinese consumer watchdog has warned that more than 20 per cent of Chinese-made toys and baby clothes are below standard. Industrial waste, including dirty carpet fluff, paper and used instant noodle packaging has been found in some toys. And some baby clothes contain harmful chemicals. China is the world's largest exporter of toys.

CHEMICALS

Legislation requiring the safety testing of tens of thousands of chemicals, many in everyday use, has come into effect in the European Union. For the first time, it will be up to the industry, rather than the regulatory authorities to prove that chemicals are safe. About 30,000 chemicals are covered by the new rules, from paints to flame retardants to fragrances in shampoos.

ART

Sotheby's set a record total for a contemporary art auction raising US$255-million in one night earlier this year, including the highest amounts ever paid for 15 individual artists. But within 24 hours, the figure was smashed by Christie's, its rival, with a $385-million buying spree, including 26 artist records.

EXPENDITURE

The U.S. Food Marketing Institute is always interested in how shoppers spend their money. Their research shows that on a $100 expenditure, roughly half the money spent by customers goes towards perishable items, such as meats, produce and dairy products.and about eight per cent is used for nonfood grocery products, such as soap, detergent, and paper goods.

REAL ESTATE

A 1,400 sq. ft., one -bedroom apartment in Eaton Place, London, one of the most desirable addresses in the world, which has a 125 year lease, is on the market for US$6-million. At least 10 other apartments in the same street are for sale for a similar price, but they have either two, three or four bedrooms.

AGING

Women looking for more natural alternatives are driving makeup sales in the U.S. which hit $6-billion in 2006. Recently, the anti-aging lines have expanded considerably tripling their sales, growing from $22-million to $61-million in the past two years. More than 200 new products in this segment have debuted in the U.S. in the past year. More than one fifth of global organic and natural new product launches have come from the U.S. alone.

OFFENSE

Civic officials in the Devon, UK, community of Totnes are considering re-covering all their furniture with plastic instead of leather in case leather offends vegetarians.

SCRAPBOOKS

A scrapbook is essentially a photograph album with decorations. Ribbons, stickers and stamps are the basic kit in the scrapbook arsenal. According to the Craft and Hobby Association, sales of decorations and other scrapbooking supplies reached US$2.6-billion in 2006 and they claim that it is the most popular craft in the U.S. with 12 per cent of homes having a scrapbooker on the premises, almost all of whom are women.

DEMAND

A growing demand for energy, coupled with an increase in prices, has led to consistent growth in Canada's oil and gas sector during the past ten years. In 2006, the contribution of the oil and gas sector to Canada's gross domestic product exceeded C$40-billion. Total employment in all oil and gas industries was about 298,000, a 22 per cent increase from 1997. Workers in this sector earned on average about C$30.36 an hour compared with $16.73 for the labour market as a whole.

GRAFFITI

In the U.S., the cleaning up of graffiti is estimated to cost about $10-billion a year. Now, a new hi-tech system is being used that analyses and tracks graffiti and its perpetrators. Rather than simply obliterate the graffiti, the system keeps a permanent record of it which allows police to compile a database of similar daubings. Keeping a database of known graffiti means offenders, when caught, can be charged with multiple counts of vandalism.

BAROMETERS

Britain's traditional barometer makers and restorers are facing closure after the EU voted to uphold a ban on the use of mercury. The decision effectively consigns more than 350 years of unique British tradition and craft to history. After a two-year phase-out period, production of thermometers and barometers containing mercury will be banned.

TECHNOLOGY

Eight gigabytes of data are produced after each race by one Formula One team. Each F1 car contains a minimum of 120 sensors to either transmit or collect During a race, engineers and technicians in Britain, Germany or France, along with people in the pits, are watching the endless streams of real-time data pouring in from the sensors.

PATENTS

The U.S. government wants to overhaul the U.S. patent system by requiring better information from inventors and allowing public scrutiny of applications. Improving the quality of patents should curb the rising wave of disputes and lawsuits.

TRADE

Canada recently signed its first free trade deal in six years. A number of other bilateral deals are in the works. The new agreement is with the European Free Trade Association, which includes Switzerland, Norway, Iceland, and Liechtenstein. The Swiss are the fifth-largest investor in Canada and together the four countries engage in C$11-billion in two-way trade each year. The last free trade deal Canada signed was with Costa Rica.

LOANS

More than 100,000 people in rural India have benefitted from a innovative loan scheme that helps families buy home solar power systems. The US$1.5-million project led by the UN Environment Programme, supports Indian bankers who offer finance to people who want to purchase a unit. The sunlight-powered systems are used to light homes and shops instead of expensive and polluting lamps. A system capable of powering two to four small appliances costs about $400.

ASPARAGUS

A new variety of purple asparagus that is so tender that it can be eaten raw without getting stuck in your teeth has been grown commercially in Britain for the first time. The Pacific Purple strain contains only tiny amounts of lignin, the fibre that makes normal green asparagus spears stringy.

INSPECTIONS

Last year, Food and Drug Administration officers in the U.S. sampled just 20,662 shipments out of more than 8.9 million that arrived at American ports. Last year, the FDA visually inspected over 115,000 shipments in addition to sending 20,000 shipments to a laboratory for inspection. China, which in one decade has become the third-largest exporter of food, by value, to the U.S. sent 199,000 shipments of which less than two per cent were sampled.

QUALIFICATIONS

A Chinese court has jailed two officials who allowed a blind contractor to build a bridge which collapsed during construction injuring 12 people.

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

July 2007 Economic Digest - Importing and Exporting

July 2007 Edition

ILLEGALS

 
European businesses caught employing illegal immigrants face jail sentences under new proposals from the EU to control immigration. As much as 16 per cent of Europe's business is done off the books. It is estimated that there are about five million illegal immigrants in the EU, a figure increasing by 500,000 every year because of easy access to illegal work.

MANUALS

Luxury-car makers are bulking up the guides that motorist are supposed to check if they wish to understand their new vehicles. The manual and two supplements for the Lexus hybrid runs to 1,097 pages and the manual for the Mercedes-Benz GL is 983 pages. The manual for the Cadillac Escalade is 574 pages. Land Rover instructions are only 265 pages and the BMW gets all the information into 253 pages.

UNIVERSITIES

Unless they improve quality and access, British, French and German universities will be overtaken by those in China and India within a decade. Britain is the second most popular destination for overseas students, second to the U.S., with Oxford and Cambridge in the top ten. Europe has 200 universities in the top 500 but the U.S. has 37 in the top 50. Indian technology is now the third best in the world and China aims to have several top universities by 2015.

OIL

The U.S., the world's largest oil consumer, imports 60 per cent of the oil it consumes, over 95 per cent of which arrives by sea. Japan, the world's third-largest oil consumer, is almost completely dependent on maritime imports. In 2005, China imported 46 per cent of the oil it consumed, India 68 per cent. By 2025, import figures are expected to balloon to 75 per cent of total consumption for China and about 85 per cent for India. Both bring in about 90 per cent of their imported oil by sea.

SERVICES

According to the World Trade Organization, trade in commercial services, measured by adding up exports, rose by 11 per cent in 2006. Trade in goods rose by 15 per cent. India enjoyed the biggest proportionate rise in services exports last year, by 34 per cent to US$73-billion and imports grew to $70-billion. The U.S. topped the imports league with $307-billion as well as that for exports of services, with $387-billion.

ONLINE

Consumers in the U.S. spent more money online for clothes than computers last year, the first time this has happened. A recent report shows that apparel, accessories and footwear sales hit US$18.3-billion in 2006 while computers were $17.2-billion. It is predicted that 10 per cent of all clothing sales will occur online this year. Autos and auto parts sales online were $16.7-billion and home furnishings were $10-billion.

SKILLS

A girl's school in Japan is refusing entry to students who are not expert with chopsticks. Entrants must be able to transfer marbles, beads and beans from one plate to another using chopsticks.

TANKERS

The size and the strength of the global tanker fleet have increased markedly over the last two decades. From 1980 to 2006, the number of tankers grew from 2,516 to more than 10,000, and the average capacity of each tanker increased by 400 per cent, with a disproportionate amount of the new tonnage having been added in recent years. Single-hulled tankers are being phased out in favour of more resilient double-hulled ones.

FACT

Filling the 25-gallon tank of an SUV with pure ethanol requires over 450 pounds of corn, which contains enough calories to feed one person for a year.

TRAINING

The Conference Board of Canada reports that Canadian organizations spend an average of around C$850 per employee on training and educational programs, an amount that has remained constant for a decade. Adjusted for inflation, the figure is 17 per cent less that a decade ago. Last year, the average employee received 25 hours of education and skills development training.

ANTARCTIC

An extraordinarily diverse array of marine life has recently been discovered in the deep, dark waters around Antarctica, Scientists have found more than 700 new species of marine creatures in seas once thought too hostile to sustain such rich biodiversity. Groups of carnivorous sponges, free-swimming worms, crustaceans and molluscs have been collected.

WOMEN

The popularity of chick lit and chick flicks--books and movies aimed at women, may have spawned the marketing world's latest trend: chick food. More than 1,000 new foods and drinks targeting women have hit the global market in the past four years. These are not just diet foods. There are energy bars for women, even one just for pregnant women. There's bread for women, and a tortilla and a tea for women.

IT

Canadian companies plan to boost their spending on information technology by 5.5 per cent this year to C$86.6-billion, led by purchases of computer servers, data storage equipment and software. By 2010, annual spending will reach $100-billion. Business services companies, financial institutions, governments and manufacturers will be the biggest spenders on IT.

WINES

Six American, Australian and European wine regions have joined forces in a growing U.S.-based movement to prevent wine makers from using misleading place labels on their products. The movement, which now includes 13 wine regions, was originally formed in 2005 after the California Supreme Court ruled that a U.S. wine with "Napa" on the label was required to use Napa valley grapes or cease using the name.

FAKE

After tainted Chinese pet food ingredients killed and sickened thousands of dogs and cats in the U.S., China is facing growing international pressure to prove its food exports are safe to eat. There is evidence that China also exported counterfeit drug ingredients that could undermine the credibility of another of its booming exports. At stake for China is more than US$30-billion a year in food and drug exports to Asia, North America and Europe. Recently, Wal-Mart Stores, the largest U.S. retailer, announced a recall of baby bibs made in China after some of them tested for high levels of lead.

LIBRARIES

The Library of Congress of the U.S. in Washington has almost twice as many volumes (29.6-million) as any other library, public or private. But there are impressive collections elsewhere with 85 having more than three million volumes each. The next largest are: Harvard University (15.2 million), Boston Public (14.9 million), Yale University (11.1 million).

ENERGY

The Altamont Pass in California is one of the largest wind-generating areas in the U.S. Oakland leads the country in using renewable energy and now draws 17 per cent of its electricity from renewable sources such as wind, solar and geothermal. California has mandated that by 2020, 20 per cent of utility purchases come from renewable resources. The next biggest renewable resource users are Sacremento, San Francisco and San Jose, followed by Portland, Oregon and Boston.

INDIA

This country currently has 8 per cent growth and a billion-person potential. Experts are assuming an average annual growth of 7.3 per cent over the next two decades and India may overtake Germany as the world's fifth-biggest consumer market by 2025. It is predicted that the middle class will expand from 50 million to 583 million, leaving only a fifth of Indians in the bottom income bracket.

FLIGHTS

The New Scientist reports that between May 1, 2005 and April 30, 2006, the world's airlines logged 3.2-million flights.

SERVICES

According to the World Trade Organization, trade in commercial services, measured by adding up exports, rose by 11 per cent in 2006. Trade in goods rose by 15 per cent. India enjoyed the biggest proportionate rise in services exports last year, by 34 per cent to US$73-billion and imports grew to $70-billion. The U.S. topped the imports league with $307-billion as well as that for exports of services, with $387-billion.

LIGHTING

The value of the global lighting market in 2006 was estimated to be US$102-billion. $30-billion is the estimated energy savings expected from solid-state lighting systems by 2027. Lighting's share of global electricity demand is 25 per cent.

DESIGNS

The value of the Canadian specialized design and landscape architecture industry was C$2.6-billion in 2005, up 5 per cent from the previous year. Operating revenues earned by firms in Western Canada grew at a much higher rate than those in the rest of the country

LAND

The U.S. Embassy in Britain is one of the most prestigious addresses and is about to go on sale with a price tag of around US$180-million. The 133,300 square foot building in Grosvenor Square has 939 years left on a 999 year lease. The sell-off is part of a move to provide staff with more secure premises overseas.

COUNTERFEIT

A new report by the OECD estimates that counterfeit products account for 2.4 per cent of global trade, about US$500-billion annually, more than the GDP of Switzerland.

RUSSIA

A huge appetite for autos has some Russians waiting months to drive a new vehicle off the lot, and when they do, it's likely to be a Ford or a Renault as the country's iconic Lada. Russian auto sales surged 20 per cent in 2006 from the year before, cracking two million for the first time. Strong growth is expected for the next four years with estimates of 3.4-million cars being sold in 2010. Last year, foreign cars made up 57 percent of the new car market.

TRENDS

Old vessels that once hauled cement and fuel to offshore oil rigs are being reborn as "shadow boats" to ferry jet skiis, helicopters and luxury cars for the super rich who do not want clutter on their yachts. The shadow boat conversion industry is one that is expected to grow as the number of new mega-yachts hitting the water increases. Shadow boats range in cost from US$7- to $13-million

CHIPS

A new process from IBM is copying nature's creation of seashells and snowflakes. Called airgap, it enables trillions of microscopic vacuum holes to be placed between the copper wire in chips to act as an insulator. This solves the problem of electrical energy leaking between wires, which creates unwanted heat. IBM says the chips will run 35 per cent faster and consume 15 per cent less energy.

CAFFEINE

A U.S. company is offering a soap that releases caffeine right through the user's skin and straight into the bloodstream. Called Shower Shock, soaping up with this product provides the same amount of caffeine as two cups of coffee. The soap is scented with peppermint oil.

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 importance of Compliance

This morning, I was at the CSCB (Canadian Society of Customs Brokers) BC Regional Annual Conference.

CBSA (Canada Border Services Agency) - Customs - talked about the quality of trade data - or the data that Importers and Customs Brokers transmit to Canada Customs. They feel that there is a very low level of compliance with regards to origin, tariff classification, value for duty and end use of goods.

They have done some studies and found that there has been a 'high level' of non compliance.

This really disturbs me. We spend a great deal of time and effort to make sure that the information for our clients shipments is very accurate. Almost to a fault. Some of our clients complain about the amount of calls or information requests they get. On the other hand, some of our clients have been audited and have been very happy with the results.

Customs is working on audits for importers who are not compliant. I suppose our extra efforts are appreciated by some clients, and may never be truly appreciated until they are audited.

June 2007 Economic Digest - Importing and Exporting

June 2007 Edition

IMPORTS

 
The U.S. remained by far the world's leading importer of goods in 2006, with more than twice the share of Germany, ranked second in the global total. Third-place China's imports grew by 20 per cent last year, the fastest pace of any of the top 15 importers; its exports grew by 27 per cent. Hong Kong and Singapore owe their high positions in the list to imports for re-export. According to the WTO, global merchandise trade grew by 8 per cent last year, the fastest rate since 2000.

TUNNEL

Russian officials along with some Alaskan backers, are stepping up their long-dormant scheme to build a US$60-billion rail and tunnel link across the Bering Strait to connect Asia and North America. The sponsors insist the scheme, which would include 6,000 kilometres of transportation links over some of the world's most inhospitable terrain, makes perfect sense. The project would take 15 years to construct. The idea of a tunnel or bridge across the 85-kilometre Strait first emerged more than 100 year ago.

PURCHASING

A company called ShopText has introduced a system that lets people buy products instantly using text messages, a process that eliminates the need to go to a store or even visit a website. Someone seeing an advertisement in a magazine for instance, can order it on the spot simply by sending the text code found beside the item through their cellphone. CosmoGirl magazine will feature text-message codes throughout its June\July issue, both in the advertising and editorial pages.

TRAFFIC

The world's largest shopping centre in Dongguan, China looks almost deserted. Situated north of Hong Kong with a population of six million, the development stands as a symbol of China's failure to stimulate more spending by its 1.3-billion people. The mall's 220 palm-tree-lined acres has an indoor amusement park, replicas of seven cities including Venice, Milan, and Amsterdam, and a model of the Arc de Triomphe. There is retail space for 1,500 stores in the 85-hectare mall only a handful of which are leased. The developers expected to attract 100,000 visitors a day but get only 10,000 a day.

WIRELESS

The City of London has become Europe's biggest wireless hotspot. The network spans the entire Square Mile, giving its estimated 350,000 workers internet access via their laptop or mobile phones. Some 130 base stations are being used to cover the area and users will be charged about US$20.00 a month. There are 2,000 conventional internet hotspots around London However, they require users to log in every time. Users of the City's system will log in only once.

ARTS

The live performing arts industry in Canada, including both for-profit and not-for-profit companies generated operating revenues of C$1.2-billion in 2005, up 2.2 per cent from the previous year. Total industry operating revenue was split almost equally between the two sectors. Performing arts companies in Ontario and Quebec combined, continued to generate three-quarters of total industry revenues.

SAVINGS

The U.S. Department of Energy predicted energy savings of 0.4 per cent a day as a result of the earlier-than-usual daylight savings time. However, the data indicates U.S. electricity usage was virtually unchanged for the three weeks in question. It also appears to have driven up gasoline consumption as motorists took advantage of the evening daylight to hit the road. The increase in usage represents an additional 266,000 barrels of oil each day of crude oil imports.

MUSIC

Specializing in Latin music could be a life-saver for CD shops in the US, which have suffered a big fall in sales in recent years because of piracy and internet downloads. Album sales fell 4.9 per cent to 588-million units in 2006. By contrast, Latin music sales have increased by 5.2 per cent over the same period, notching up 37-million units. Demographic tendencies suggest that these figures will continue to grow.

POWER

Russia has started building the world's first floating nuclear plant, designed to provide power for remote areas. The plant, costing US$200-million is due to be launched in 2010 and is to be used by Sevmash, a shipbuilding firm that produces nuclear-powered submarines. However, Russia hopes that the technology will be of interest to Pacific island states and more than 12 countries have expressed interest in the project. Russia plans to build seven floating nuclear plants by 2015.

WASTE

US and European cities have wrestled with excess food waste for more than a decade, but Hong Kong's prosperity and shrinking landfill space are now pushing it to adopt a new consumption ethic. In the past five years, the amount of food wasted by Hong Kong's restaurants, hotels and food manufacturers has more than doubled. Food accounts for about one third of the 9,300 tons of waste deposited at landfills each day. One restaurant is now charging customers US$.64-cents an ounce for leftovers and many other restaurants are threatening to do so.

METERS

Every household in the UK will be able to request a free device that shows how much electricity is being used in the home at any one particular moment. It is hoped that the monitors will help to cut greenhouse gas emissions and the amount of energy wasted by appliances being left on standby. Households in the UK are responsible for about one third of the nations greenhouse gas emissions.

FORTUNE

General Electric tops the Fortune list of most admired companies in 2007. Second is Toyota followed by Proctor & Gamble, Johnson & Johnson, Apple, Berkshire Hathaway, FedEx Microsoft, BMW and PepsiCo.

NAVIGATION

Millions of drivers use satellite navigation systems. Now scientists believe that they have discovered why such space-age technology seems to fail for no good reason. It is because of the sun. Bursts of radiation caused by solar flares interfere with the signal from the satellites orbiting the earth, causing the receivers in cars to lose track of their position.

CHAMPAGNE

France's champagne makers have agreed to harvest more grapes from 2007 and to plant new vines in the future to head off possible shortages amid growing demand from outside Europe. France's champagne makers sold an estimated 322-million bottles in 2006 and harvested enough grapes to produce 360-million bottles in two years' time once the wine has matured. Production in champagne is limited by an 80-year-old law to 34,000 hectares.

TRADE

A free-trade pact between the U.S and South Korea is putting pressure on Japan to move towards a similar agreement with Washington. While Tokyo has pursued free-trade deals with other Pacific Rim countries, the U.S.-South Korea accord has spurred fears that Japan might fall behind in the global race to cut trade barriers. Total trade between the U.S. and South Korea last year was US$74-billion while trade between the U.S. and Japan was $200-billion. Japan and the U.S. together account for 38 per cent of global gross domestic product.

BAGS

British Airways has been named as the carrier that has lost more bags than any of its European rivals. Last year, BA mislaid 23 bags per 1,000 passengers, two more than the carrier in second place, Air Portugal and nearly five more than Lufthansa. One consumer watchdog estimates that 5.6-million bags were "mishandled" last year by 24 European carriers.

ITALIAN

Increased consumption of pizza and pasta in the U.S. are expected to drive retail sales of Italian foods to more than US$13.8-billion by 2011, from nearly $12-billion in 2006. Pizza and pizza products account for more than 45 per cent of total Italian food sales at retail. Sales in this category topped $5.3-billion in 2006.

POLLUTION

The Port of Los Angeles and the nearby Port of Long Beach are being encouraged by a broad coalition of local activists to curb emissions related to the shipping industry. Their first action item is to try to streamline the trucking network that transports goods to and from the ports. Recently, the coalition unveiled a plan calling on the two ports to give trucking contracts only to companies that pledge to honour existing government standards for emissions. It is hoped that this plan, which would affect 16,000 truckers, could become a model for the rest of the nation's ports and its 85,000 truck drivers.

METALS

Shortages and strong demand continue to support metal prices. Nickel rose by 44 per cent earlier in the year with the price briefly reaching US$50,000 a tonne. Tin prices have passed $14,000 a tonne for the first time in 20 years. Copper prices are rising again because of strong demand from China. However, aluminum prices are only 13 per cent higher than they were a year ago.

PENCILS

More than half of all pencils come from China. In 2004, factories there turned out 10 billion pencils, enough to circle the earth more than forty times. The average pencil holds enough graphite to draw a line about 35 miles long or to write roughly 45,000 words. Most pencils sold in North America today have eraser tips, while those sold in Europe have none.

OIL

Britain became a net importer of oil and oil products last year for the first time since 1980. Net imports were 6.6 million tonnes in 2006, compared with 2.4 million tonnes the year before. Once a major producer of oil, Britain's aging North Sea oil fields are drying up and new ones are too small to compensate.

PUBLISHING

The Canadian publishing industry recorded total revenues of just over C$2.4 billion in 2005, up only 1.6 per cent from 2004. Total revenue gains were strong in the West with British Columbia up 19.9 per cent, Saskatchewan up 9 per cent and Alberta up 8 per cent. Companies in Ontario and Quebec accounted for the majority of book publishing industry profit. They earned C$270-million of the industry's $285-million profit.

WAITING

A recent survey in the U.S. showed that one in ten shoppers leaving a store without making a purchase cited wait-to- checkout as a factor in their decision not to buy. The study conducted from 3,500 in-store audits, as well as 17,000 shoppers, further found that when forced to wait in line for more than four minutes, customer satisfaction levels fell below 80 per cent.

MEASUREMENTS

M:Metrics of Seattle, which focuses on mobile analytics, is offering a new research service that measures mobile Web access trends. It is the first service that measures which services are actually being used, which games subscribers play, how many e-mail messages they send, music they download and other features they use. This could unleash the cellphone's advertising potential and will be of great interest to the advertising industry.

CHEESE

Italian supermarkets are now training their in-store cameras on Parmesan cheese which has become very popular with thieves.

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

May 2007 Economic Digest - Importing and Exporting

May 2007 Edition

 LAPTOPS

 

Analysts predict that laptops will overtake desktop PCs as the dominant form of computer by 2011. The demand for bulky machines will continue to grow slowly but at a declining rate as portable machines become quicker and more efficient. The report predicts the laptop market will grow by 16 per cent each year until 2011 compared to 3.8 per cent for desktop PCs. In 2006, more than 82 million portable computers and nearly 140 million desktop PCs were shipped around the world. The gradual shift away from fixed machines may reflect the needs of an increasingly mobile workforce.

BEES

Honeybees in the US are vanishing from their hives and experts are scrambling to find a cause before the insects and the crops they pollinate are wiped out. Nationwide, the value of honeybees to US agriculture is more than US$14-billion a year. Officials say that "colony collapse disorder," in which bees are not returning to their hives is being reported in 24 states.

FIGURES

* It is estimated that 10 to 20 per cent of all adults in the world take vitamin supplements.
* The U.S alone uses 500 million tonnes of cement each year. The cement industry is responsible for 7 per cent of the world's carbon dioxide emissions. After water, concrete is the product most consumed by humans on earth.
* Greece, with a population of 11 million, expects to draw more than 15 million tourists this year.

SIZE

Twenty years ago, there were only about 300 yachts measuring 100 feet (30 metres) or more. Today, there are believed to be more than 5,000. Last month, construction began in Italy on "Hull 6154" which is expected to be the world's most expensive privately owned yacht. The vessel, 133 metres long, will have seven decks, two helicopter pads and storage space for a submarine. The crew of 60 will entertain guests in 15 staterooms fitted with the latest entertainment systems, gold and marble bathroom fittings and jacuzzis.

PERFUME

Archaeologists have found the world's oldest perfumes in the south of Cyprus. They are scented with extracts of lavender, bay, rosemary, pine or coriander and kept in translucent alabaster bottles and are more than 4,000 years old. The scientists have found what they believe was an enormous 43,000 sq. ft. perfume-making factory. At least 60 distilling stills, mixing bowls, funnels and perfume bottles were found perfectly preserved at the site which had been blanketed in earth after a violent earthquake around 1850 BC.

POLLS

The majority of Britons believe that life was better before joining the European Union. But the EU has rejected a new poll that finds that lives for 52 per cent of Britons have got worse since the UK joined in 1973. Citing increased economic prosperity and longer life expectancy, officials also dismissed survey results showing dissatisfaction among more than 44 per cent of citizens in Germany, France and Italy, founder members of the EU 50 year ago.

PARKING

Based on 2006 data, it cost just $6 to park all day in an unreserved spot in Memphis and $6.50 in Bakersfield, California. However, the cost in midtown New York is $40 a day, Boston, $31, Honolulu, $30 and Chicago, $25 a day.

NICHE

Functional foods and beverages, products that provide a positive pharmaceutical benefit beyond basic nutrition by virtue of their inclusion of medically beneficial ingredients, are growing into a huge niche market estimated at nearly US$25-billion in 2006 and destined to touch $39-billion by 2011. The largest increase in nutraceutical ingredient demand are expected to be for glucosamine, probiotics, whey protein, omega-3 fatty acids and Co-Q10, all key drivers in the nutraceutical market.

RESPONSE

Sixty-four per cent of Hispanic adults in the U.S. who read direct mail responded to the advertising medium over a 30 day period, versus 46 per cent of the general U.S. population. A study further revealed that 72 per cent of Hispanic adults read direct mail advertisements. With more Hispanics reading direct mail advertising than non-Hispanics, this indicates a need for marketers to continue creating more bilingual marketing pieces. When Hispanics see bilingual pieces, the urge to respond is significantly higher.

ACIDS

Scientists are claiming that the fatty acid content in children's diets can boost their mental abilities. Some overweight children aged between eight and 13 given capsules containing omega-3 and omega-6 were said to have undergone three years' worth of development in just three months. They were also said to have made remarkable improvements in reading and problem solving. The children were also encouraged to cut down on carbonated drinks and do more exercise.

FLIGHTS

Canada and the U.S. have officially unveiled a new deal that will help open up North America's skies. The deal, which is seen as the biggest step in a decade towards free trade in the airline sector, will provide so-called fifth freedom rights, a move that should lead to better prices and more choice for airline passengers on both sides of the border. The key to the deal is that a Canadian airline transporting passengers or cargo to a U.S. city will now be able to pick up more business in that U.S. city, and then fly the people or goods to a third country. The reverse will also hold true for U.S. airlines.

MOLYBDENUM

This rare metal is set to join a growing list of commodities, including gold, silver and more recently, uranium, with a new fund that will give investors direct exposure to the price of the metal. The offering, which will attempt to raise roughly $75 million, will buy and sell molybdenum and invest in companies that explore for, mine and process the silvery white material that is used in furnaces, pipelines and aircraft engine parts. The metal is often found alongside copper and is used to make high-grade stainless steel.

RICHES

Forbes magazine has counted a record 946 billionaires around the world, with a combined net worth of US$3.5 trillion. Seven of the world's ten richest people are citizens of countries other than the U.S. Newcomers to the club include 19 Russians, 14 Indians, 13 Chinese and 10 Spaniards. The billionaire boom reflects the big rise in global wealth thanks to strong equity and property markets and buoyant commodity prices.

STORES

U.S. coffee shop giant Starbucks plans to open at least 40,000 more stores over the medium term, half of them outside the U.S. The company currently has more than 13,000 shops, 9,000 of them in the U.S., with operations in 39 countries employing 130,000 people. The chain is currently expanding at a rate of six stores and 350 new employees a day. The coffee giant is planning to launch its own record label and there is talk of Starbucks putting kiosks in its shops so that customers can shop for music while waiting for their coffee.

FABRIC

Military Special Forces could soon be wearing smart fabrics that monitor how they cope in combat situations. The fabric gathers information on heart beat, skin temperature, posture, activity and breathing rate when against the skin. The fabric could also be used by athletes to hone their performance by measuring how they react during training. It can either record a week's worth of data or transmit data as it is gathered to a nearby laptop.

SEAFOOD

The consumption of seafood in the U.S was 16.2 pounds per capita in 2005, down slightly from the previous year. However, overall consumption has risen 9.5 per cent from 14.8 pounds in 2001. Overall, seafood consumption totalled 4.78 billion pounds (edible weight) for the year. Shrimp continued to lead in types of seafood with canned tuna in second place and salmon in third place.

ADVERTISING

Despite the fact that advertising spending in the U.S. was US$285-billion last year, up from $271-billion in 2005, 81 per cent of American consumers could not name one of the top 50 new products launched in 2006. This was a record high for lack of recognition and up from 57 per cent the previous year. There were a total of 32,624 new products unveiled in 2006.

SERVICES

The food services and drinking place industry edged ahead in Canada in 2005 as operating revenue reached C$38.9 billion, up four per cent from 2004. The majority of revenue in the industry was generated by sales of food and non-alcoholic beverages at 84 per cent followed by sales of alcoholic beverages at 14 per cent. The majority of expenses came from the cost of goods, 37 per cent and labour costs, 32 per cent. Rental and leasing costs were third.

MORTGAGES

Late mortgage payments in the U.S. shot up to a 3 1\2-year high in the last quarter of 2006 and new foreclosures surged to record levels as borrowers with tarnished credit histories had trouble keeping up with monthly payments. A banking association that surveys 43.5 million loans reported that the percentage of payments that were 30 days or more past due jumped to 4.97 per cent.

ZONES

India's plans to emulate China's economic success with huge low-cost economic zones have been put on hold after protests by farmers' groups. The Government had hoped that the zones would form the backbone of a manufacturing industry employing millions of farmers left behind by the country's economic boom. India plans about 600 economic zones to lure foreign investors with tax perks and modern infrastructure .

APPAREL

Customers bought US$9.6 billion worth of apparel online in the U.S. last year. But online purchases of clothing represent a paltry five per cent of overall apparel sales. Customers return 30 per cent of clothes they buy online.

GOLD

Sales of gold for jewellery reached a new high of US$44-billion last year, helping total demand climb to $65-billion. However, the volume of jewellery demand slipped by 16 per cent to 2,267 tonnes. According to the World Gold Council, volatile prices hurt jewellery sales in the first eight months of the year but sales surged later when prices settled under $600 an ounce. Purchases of gold for industrial purposes also set new records in terms of both value and volume.

LIGHTING

Street lights in Britain will be fitted with "dimmer switches" in a bid to cut light pollution. The Highways Agency is to begin tests later this year on lights that will automatically dim when there are fewer cars or trucks on the roads. The new lights could eventually be fitted on all highways. Safety groups are worried they may lead to more accidents.

MEDICINE

Researchers are close to creating an artificial tooth which automatically releases medicine. The device is small enough to fit inside two artificial molars. It could benefit patients with diabetes and high blood pressure.

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