Wednesday, August 01, 2007

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