April 2012 Edition
EXPORTS
Germany's trade surplus reached US$209-billion in 2011 on record exports that rose 11.4 per cent to top US$1.35-trillion. Imports also rose 13.2 per cent to $1.2-trillion. German exports to countries outside the 27-nation European Union showed the strongest growth.
COLOMBIA
In 2010, Canada imported C$23.5-million worth of roses from Colombia. In fact, almost a third of all cut flowers sold in Canada are imported from Colombia, our number one supplier, including $14.1-million worth of carnations and $9.6-million worth of chrysanthemums. For local growers, who cultivate $1.4-billion worth of flowers annually, the bloom fell off roses long ago. Colombia's equatorial climate, with warm days and cool nights allows roses to grow year-round. Roses are very durable and can be shipped without water or soil and last for a week after harvesting.
AGRICULTURE
Crop insurers paid out a record US$9.1-billion in indemnities on 2011 U.S. crops and the total could reach $10-billion when all claims are settled. The claims are due to damage from drought, flooding and freezing weather. The previous record was $8.7-billion in 2008. Crop insurance, which is subsidized by the government, is expected to be a key point in the pending overhaul of U.S. farm law. The program's cost has doubled in a decade.
WIND
A British electricity national network grid paid out US$20-million to wind farms in 2011 to compensate them for switching off turbines when the grid overloaded on stormy days. The highest sum paid on a single day was $2.66-million as 14 wind farms were compensated for turning off 4,650 megawatt-hours of power.
TRANSPORT
A tiny revolutionary fold-up car designed in Spain's Basque region as the answer to urban stress and pollution was recently unveiled before hitting European cities in 2013. The "Hiriko" the Basque word for "urban" is an electric two-seater with no doors whose motor is located in the wheels and which folds up like a child's stroller for easy parking. It can run 120 kilometres without a recharge and its speed is electronically set to respect city limits.
TRENDS
The Automobile Association in the U.K. has launched a new insurance policy which uses sat-nav technology to track driver performance. The system will allow better drivers to receive cheaper premiums and involves the installation of a small black box into the driver's car which records how they drive. The measures include measuring speed, braking severity, cornering and the types of roads used during certain times of the day. This information is transmitted remotely to the insurers and can also be accessed by users via a website which gives information on overall performance, warning them if they are likely to be moved to a higher premium.
MANUALS
The U.S.Air Force is rumoured to be buying as many as 18,000 iPads or similar devices in what would be one of the military's biggest orders of computer tablets. They would be used to lighten the loads of flight crews and the goal is to replace the bag of manuals and navigation charts carried by pilots and navigators which often weigh as much as 20 kilograms. The airline industry is already way ahead of the military and most major airlines have switched to tablets.
PAKISTAN
Despite the misery bought on by the massive flooding of the past two years, Pakistan is one of the world's most arid countries. The average rainfall is just 240mm, and the total availability of water per person has fallen from about 5,000 cubic metres per person in the 1950s to about 1,100 now, just above the 1,000 cubic-metre-per-person definition of "water scarce." A recent study forecasts that by 2025, Pakistan's annual water supply will fall short of demand by around 100-billion cubic metres.
DOWNLOADS
London, England, has topped the illegal downloads chart in 2011, with Adele becoming the most pirated artist. She was also the highest selling artist last year and she also became the first artist to break the Apple iTunes one million sales barrier in Europe. Manchester was the second UK city where illegally downloading was most popular, however, in London the activity was three times more prevalent.
TRAINS
It takes both skill and courage to control huge locomotives laden with mineral ore as they wind up and down the Andes mountains, making Peru possibly the toughest country in the world to be a train driver. The trains travel from sea level to the mines at Cerro de Pasco, at 14,200 feet. The ascent on some of the steepest tracks in the world is a slow grind but the real skill is in bringing fully loaded 200 metre trains back down to the Pacific Coast. Up in the mountains the railway tracks have few signals or even safety barriers to guard against the sheer drop.
LASER
Scientists have shown off the smallest ever laser. They are just one-fifteenth the size of the light waves they produce. Lasers are ubiquitous in daily life, from supermarket checkouts to CD players, but the quest for smaller lasers has been underway for years. The principal application for the tiny lights would be in computing and telecommunications. Laser beams can, in principle, carry vast amounts of information faster than traditional semiconductor electronics.
FISHING
Overfishing of the European Union fisheries is estimated to be costing US$4.2-billion a year and 100,000 jobs, according to a recent report. It added that overfishing is the single most destructive force in the marine environment. In just 43 sample stocks, the cost of overfishing is five times higher than the value of EU subsidies. Restoring the 43 fishstocks to their "maximum sustainable yield" (the largest catch that can be maintained over the long-term) would result in an additional 3.5-million tonnes of fish reaching markets, enough to meet the demand for almost 160-million EU citizens.
RUBBER
10.8-million tonnes of rubber was consumed globally in 2010 of which 1.1-million tonnes were consumed in North America. China consumed 35 per cent of global rubber consumption. Though the price of rubber declined 35 per cent in 2011 the price recently jumped 20 per cent in one month as Thailand, the world's largest producer, intervened with a massive buying program. Whether higher prices can be sustained will depend on the strength of the global economy and growth in China and India's automotive sectors.
CIGARETTES
China's tobacco industry is both owned and regulated by the government. It makes and sells more than two-fifths of the worlds' cigarettes, 2.4-trillion in 2011, three per cent more than in 2010. The government says the industry took in profits and tax receipts of US$119-billion in 2011. As a signatory to a World Health Organization tobacco-control treaty, China is meant to reduce smoking. About one-million Chinese die each year from smoking-related illnesses.
DIETING
A bizarre new cutlery set has gone on the market in the UK to aid in weight loss. The Eat Fit Cutlery set attaches dumbbells to knives, forks and spoons. The hefty chrome knife and fork weigh 1 kilogram each, the equivalent of a bag of sugar. The spoon weighs twice as much at 2 kilograms, heavier than a complete 32-piece set of cutlery.
WATCHES
Swiss watch exports hit a record of US$21-billion in 2011, growing 19.2 per cent from a year earlier. Watches in the $2500 price range make a strong showing. All this at a time when the Swiss franc was making a particulary strong showing. Except for a major downturn in 2010, growth in the past 20 years has been consistently high.
TOURISM
Toronto tourism had a record year in 2011 with the number of hotel-room nights sold topping nine million for the first time. 1,118 new hotel rooms were added in 2011 and there was a 9.2 per cent increase in travellers to Toronto from Brazil over 2010 and 6.7 per cent from the U.S. The fastest growing sector was from overseas with a 6.2 per cent growth. Overseas visitors tend to stay longer and also visit other parts of Ontario and Canada on the same trip.
CRUISING
The images of a sinking Italian cruise ship have scared off some cruise passengers, at least temporarily. Bookings for this year are down significantly as passengers are fleeing over safety concerns. This drop is across all cruise lines. Nearly 11-million Americans took a cruise last year.
TUNA
A bluefin tuna caught off north-eastern Japan recently sold for a record $736,000, this translates to $1,238 a pound. Bluefin tuna is prized for its tender meat. Japanese eat 80 per cent of the Atlantic and Pacific bluefins caught, the most sought-after by sushi lovers. However, Japanese fishermen face growing calls for tighter fishing rules amid declining tuna stocks worldwide. The bluefin fishing quota in the eastern Atlantic and Mediterranean was recently cut from 13,500 to 12,900 tonnes annually.
CATTLE
A devastating drought, record feed costs and intensifying competition with cash crops for land are accelerating a five-year decline in the U.S. cattle herd. The herd is now estimated to be around 91.26-million head, the smallest since 1952. The shrinking inventory may keep beef and cattle supplies tight for months, or years, even as beef exports are booming.
TRADE
Brazil's trade with the Arab world soared more than 28 per cent in 2011 to reach US$25.13-billion and is expected to grow a further 15 per cent this year. Brazil registered a trade surplus of $5.15-billion with the 22 countries making up the Arab League last year.
TIMBER
Current tropical timber practices are not sustainable and nations are advised that the standard cutting cycle of 30-40 years is too short to allow trees to grow to a volume required by commercial loggers. For a decade the government in the Solomon Islands, where the industry is a major source of government revenue, has been warned that the volume of timber annually harvested from native forests is too high and if unchecked the timber stocks would be depleted by this year. The problem is compounded by that of global illegal logging. Interpol estimates that globally an area of forests equivalent in size to that of Austria are illegally logged each year.
CAMERAS
Eastman Kodak, the inventor of the hand-held camera, plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of this year in a bid to cut costs. The 131-year-old company at its high point churned out film for cameras across the continent at a rate of 350 kilometres of 35-mm film every day. The company will continue to offer photo and desktop printing.
AIRLINES
According to the Telegraph newspaper, the shortest scheduled flight in the world is one and a half miles long (2.4 kilometres) from Westray to Papa Westray in the Orkney Islands of Scotland. The journey takes one minute 14 seconds to complete.
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
Germany's trade surplus reached US$209-billion in 2011 on record exports that rose 11.4 per cent to top US$1.35-trillion. Imports also rose 13.2 per cent to $1.2-trillion. German exports to countries outside the 27-nation European Union showed the strongest growth.
COLOMBIA
In 2010, Canada imported C$23.5-million worth of roses from Colombia. In fact, almost a third of all cut flowers sold in Canada are imported from Colombia, our number one supplier, including $14.1-million worth of carnations and $9.6-million worth of chrysanthemums. For local growers, who cultivate $1.4-billion worth of flowers annually, the bloom fell off roses long ago. Colombia's equatorial climate, with warm days and cool nights allows roses to grow year-round. Roses are very durable and can be shipped without water or soil and last for a week after harvesting.
AGRICULTURE
Crop insurers paid out a record US$9.1-billion in indemnities on 2011 U.S. crops and the total could reach $10-billion when all claims are settled. The claims are due to damage from drought, flooding and freezing weather. The previous record was $8.7-billion in 2008. Crop insurance, which is subsidized by the government, is expected to be a key point in the pending overhaul of U.S. farm law. The program's cost has doubled in a decade.
WIND
A British electricity national network grid paid out US$20-million to wind farms in 2011 to compensate them for switching off turbines when the grid overloaded on stormy days. The highest sum paid on a single day was $2.66-million as 14 wind farms were compensated for turning off 4,650 megawatt-hours of power.
TRANSPORT
A tiny revolutionary fold-up car designed in Spain's Basque region as the answer to urban stress and pollution was recently unveiled before hitting European cities in 2013. The "Hiriko" the Basque word for "urban" is an electric two-seater with no doors whose motor is located in the wheels and which folds up like a child's stroller for easy parking. It can run 120 kilometres without a recharge and its speed is electronically set to respect city limits.
TRENDS
The Automobile Association in the U.K. has launched a new insurance policy which uses sat-nav technology to track driver performance. The system will allow better drivers to receive cheaper premiums and involves the installation of a small black box into the driver's car which records how they drive. The measures include measuring speed, braking severity, cornering and the types of roads used during certain times of the day. This information is transmitted remotely to the insurers and can also be accessed by users via a website which gives information on overall performance, warning them if they are likely to be moved to a higher premium.
MANUALS
The U.S.Air Force is rumoured to be buying as many as 18,000 iPads or similar devices in what would be one of the military's biggest orders of computer tablets. They would be used to lighten the loads of flight crews and the goal is to replace the bag of manuals and navigation charts carried by pilots and navigators which often weigh as much as 20 kilograms. The airline industry is already way ahead of the military and most major airlines have switched to tablets.
PAKISTAN
Despite the misery bought on by the massive flooding of the past two years, Pakistan is one of the world's most arid countries. The average rainfall is just 240mm, and the total availability of water per person has fallen from about 5,000 cubic metres per person in the 1950s to about 1,100 now, just above the 1,000 cubic-metre-per-person definition of "water scarce." A recent study forecasts that by 2025, Pakistan's annual water supply will fall short of demand by around 100-billion cubic metres.
DOWNLOADS
London, England, has topped the illegal downloads chart in 2011, with Adele becoming the most pirated artist. She was also the highest selling artist last year and she also became the first artist to break the Apple iTunes one million sales barrier in Europe. Manchester was the second UK city where illegally downloading was most popular, however, in London the activity was three times more prevalent.
TRAINS
It takes both skill and courage to control huge locomotives laden with mineral ore as they wind up and down the Andes mountains, making Peru possibly the toughest country in the world to be a train driver. The trains travel from sea level to the mines at Cerro de Pasco, at 14,200 feet. The ascent on some of the steepest tracks in the world is a slow grind but the real skill is in bringing fully loaded 200 metre trains back down to the Pacific Coast. Up in the mountains the railway tracks have few signals or even safety barriers to guard against the sheer drop.
LASER
Scientists have shown off the smallest ever laser. They are just one-fifteenth the size of the light waves they produce. Lasers are ubiquitous in daily life, from supermarket checkouts to CD players, but the quest for smaller lasers has been underway for years. The principal application for the tiny lights would be in computing and telecommunications. Laser beams can, in principle, carry vast amounts of information faster than traditional semiconductor electronics.
FISHING
Overfishing of the European Union fisheries is estimated to be costing US$4.2-billion a year and 100,000 jobs, according to a recent report. It added that overfishing is the single most destructive force in the marine environment. In just 43 sample stocks, the cost of overfishing is five times higher than the value of EU subsidies. Restoring the 43 fishstocks to their "maximum sustainable yield" (the largest catch that can be maintained over the long-term) would result in an additional 3.5-million tonnes of fish reaching markets, enough to meet the demand for almost 160-million EU citizens.
RUBBER
10.8-million tonnes of rubber was consumed globally in 2010 of which 1.1-million tonnes were consumed in North America. China consumed 35 per cent of global rubber consumption. Though the price of rubber declined 35 per cent in 2011 the price recently jumped 20 per cent in one month as Thailand, the world's largest producer, intervened with a massive buying program. Whether higher prices can be sustained will depend on the strength of the global economy and growth in China and India's automotive sectors.
CIGARETTES
China's tobacco industry is both owned and regulated by the government. It makes and sells more than two-fifths of the worlds' cigarettes, 2.4-trillion in 2011, three per cent more than in 2010. The government says the industry took in profits and tax receipts of US$119-billion in 2011. As a signatory to a World Health Organization tobacco-control treaty, China is meant to reduce smoking. About one-million Chinese die each year from smoking-related illnesses.
DIETING
A bizarre new cutlery set has gone on the market in the UK to aid in weight loss. The Eat Fit Cutlery set attaches dumbbells to knives, forks and spoons. The hefty chrome knife and fork weigh 1 kilogram each, the equivalent of a bag of sugar. The spoon weighs twice as much at 2 kilograms, heavier than a complete 32-piece set of cutlery.
WATCHES
Swiss watch exports hit a record of US$21-billion in 2011, growing 19.2 per cent from a year earlier. Watches in the $2500 price range make a strong showing. All this at a time when the Swiss franc was making a particulary strong showing. Except for a major downturn in 2010, growth in the past 20 years has been consistently high.
TOURISM
Toronto tourism had a record year in 2011 with the number of hotel-room nights sold topping nine million for the first time. 1,118 new hotel rooms were added in 2011 and there was a 9.2 per cent increase in travellers to Toronto from Brazil over 2010 and 6.7 per cent from the U.S. The fastest growing sector was from overseas with a 6.2 per cent growth. Overseas visitors tend to stay longer and also visit other parts of Ontario and Canada on the same trip.
CRUISING
The images of a sinking Italian cruise ship have scared off some cruise passengers, at least temporarily. Bookings for this year are down significantly as passengers are fleeing over safety concerns. This drop is across all cruise lines. Nearly 11-million Americans took a cruise last year.
TUNA
A bluefin tuna caught off north-eastern Japan recently sold for a record $736,000, this translates to $1,238 a pound. Bluefin tuna is prized for its tender meat. Japanese eat 80 per cent of the Atlantic and Pacific bluefins caught, the most sought-after by sushi lovers. However, Japanese fishermen face growing calls for tighter fishing rules amid declining tuna stocks worldwide. The bluefin fishing quota in the eastern Atlantic and Mediterranean was recently cut from 13,500 to 12,900 tonnes annually.
CATTLE
A devastating drought, record feed costs and intensifying competition with cash crops for land are accelerating a five-year decline in the U.S. cattle herd. The herd is now estimated to be around 91.26-million head, the smallest since 1952. The shrinking inventory may keep beef and cattle supplies tight for months, or years, even as beef exports are booming.
TRADE
Brazil's trade with the Arab world soared more than 28 per cent in 2011 to reach US$25.13-billion and is expected to grow a further 15 per cent this year. Brazil registered a trade surplus of $5.15-billion with the 22 countries making up the Arab League last year.
TIMBER
Current tropical timber practices are not sustainable and nations are advised that the standard cutting cycle of 30-40 years is too short to allow trees to grow to a volume required by commercial loggers. For a decade the government in the Solomon Islands, where the industry is a major source of government revenue, has been warned that the volume of timber annually harvested from native forests is too high and if unchecked the timber stocks would be depleted by this year. The problem is compounded by that of global illegal logging. Interpol estimates that globally an area of forests equivalent in size to that of Austria are illegally logged each year.
CAMERAS
Eastman Kodak, the inventor of the hand-held camera, plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of this year in a bid to cut costs. The 131-year-old company at its high point churned out film for cameras across the continent at a rate of 350 kilometres of 35-mm film every day. The company will continue to offer photo and desktop printing.
AIRLINES
According to the Telegraph newspaper, the shortest scheduled flight in the world is one and a half miles long (2.4 kilometres) from Westray to Papa Westray in the Orkney Islands of Scotland. The journey takes one minute 14 seconds to complete.
Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp
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