December 2013 Economic Digest - Importing and Exporting

December 2013 Edition

ORGANICS

According to a recent report, organics now represents C$3.7-billion a year in sales in Canada, a number that has tripled since 2006. This makes the Canadian market for organics the fourth largest in the world. 58 per cent of Canadians buy organic foods weekly with such foods representing 23 per cent of their grocery bill. Organics are the fastest sector of the food industry.

ORE

Since late 2010, at least five ships loaded with Indonesian minerals have sunk when bound for China. The most recent vessel was carrying nickel ore, a potentially deadly cargo which has accounted for four out of the 20 bulk carriers lost worldwide during 2010-11. The ships were found to have sunk because the cargo had liquified. Nickel ore is dangerous because if it gets too wet, the fine, claylike particles that are often present in the ore, turn to a liquid that sloshes about the holds with such momentum that even a giant ship can capsize.

RAISINS

According to some, the US Agricultural Marketing Agreement Act of 1937 is the world's most outdated law. Since 1940, raisin farmers have been required to make over a portion of their crop to a government agency called the Raisin Administrative Committee. The committee decides each year how many raisins the domestic market can bear, and thus how many it should siphon off to preserve an "orderly" market. It does not pay for the raisins it appropriates and gives many of them away, while selling others for export.

POWER

A Canadian entrepreneur is planning a C$1-billion underwater transmission line to take electricity from Ontario to the US northeast. The cable, to run across Lake Erie, would carry surplus electricity to Pennsylvania and on to 13 US states and the District of Colombia, where there is an increasing demand for power, particularly from "clean" sources. The project would deliver Canadian-generated power to the grid that supplies power to 60-million Americans. It will involve laying two six-inch high-voltage cables.

TABLETS

The fourth quarter of this year will see shipments of tablet computers top personal computers for the first time. Tablet shipments will hit 84.1-million units, compared with 83-million for PCs. The total market for Internet-connected devices of desktops, laptops, smartphones and tablets in 2013 will rise 28 per cent to US$622.4-billion and hit $735-billion by the end of 2015. The growth of smartphones and tablets is making up for a projected decline of 10 per cent of PCs this year.

WEALTH

Canadian wealth is hitting new heights, though debt still remains a worry. Earlier this year, according to Statistics Canada, household net worth climbed to reach a record C$7.2-trillion. On a per capita basis, net worth rose to $204,800. The 1.9 per cent increase in household net worth was led by gains in equities and pension assets

CHEESE

Sophisticated cheese flavours and varieties continue to develop a following in the United States. Bolder flavours are the hottest cheese trend as consumers venture beyond younger-aged cheeses to more robustly aged and flavourful ingredient-filled cheeses. The top three fastest growing natural cheeses at retail are manchego, gruyere and gouda. Restaurants are offering more cheese varieties on menus for appetizers, to accent entrées and for desert. Deli cheeses account for 19.8 per cent of deli department dollar sales.

POULTRY

Between 2011 and 2012, sales in the US of turkey, duck and other specialty birds grew a considerable 6.5 per cent in one year, reaching US$7.1-billion, up from $6-billion in 2008. 84 per cent of Americans surveyed say they eat turkey and 92 per cent eat chicken.

BANANAS

Climate change could lead to bananas becoming a critical food source for millions of people and could replace potatoes in many developing countries. Cassava and the little known cowpea plant could play increasingly important roles in agriculture. As temperature increase, the world's three biggest crops in terms of calories, maize, wheat and rice will decrease in many countries. Potatoes could also suffer from volatile weather patterns and be replaced by bananas in certain regions.

OIL

OPEC has acknowledged that technology for extracting oil and gas from shale is changing the global supply picture significantly and that demand for crude will rise more slowly than previously predicted. It is now forecast that shale oil will contribute two million barrels per day (bpd) to global supply by 2020 and three million bpd by 2035. For comparison, two million bpd is equal to the current output of OPEC member Nigeria, which is Africa's top exporter.

MOUNTAINS

It is being billed as the largest "mountain-moving" project in Chinese history. One of China's biggest construction firms will spend US$2.2-billion to flatten 700 mountains, levelling the Lanzhou area and allowing developers to build a new metropolis. The new area could increase the region's gross domestic product by $27-billion by 2030 and has already attracted $7-billion of corporate investment.

COAL

The International Energy Agency forecasts that coal will catch up with oil as the world's leading energy source by 2022. Increased demand from India and China are fuelling the push. By 2017, the agency says that global coal consumption will stand at 4.32-billion tonnes of oil equivalent, versus 4.4-billion tonnes for oil itself. However, natural gas offers the best hope for reducing carbon emissions.

GRASS

New research indicates that a species of invasive grass is making wildfires in the western US larger, hotter and more frequent. A variety of grass called cheatgrass dries out and burns more rapidly than other vegetation. It is believed that this grass has fuelled almost 80 per cent of the largest fires in the American West over the last 10 years. The species gets its name because it grows very early and very quickly and then dies, cheating other varieties out of valuable nutrients.

VIEWING

In 2012, 12-million Canadian households subscribed to basic television services. Of these, 68 per cent obtained the service from a cable company, 24 per cent from a satellite company and eight per cent from companies that deliver television programming over telephone lines. The average amount spent monthly was C$52.

PROSPECTING

An amateur prospector in the Australian state of Victoria has astonished experts by unearthing a gold nugget weighing 5.5kg (177 ounces). The man used a handheld metal detector and found the nugget lying 60cm underground. The estimated value of the nugget is $315,000.

MERCURY

More than 140 countries have agreed on a set of legally binding measures to curb mercury pollution. Mercury can produce a range of adverse human health effects, including permanent damage to the nervous system. Mercury emissions have been increasing recently in several developing countries. Mercury can be released into the environment through a number of industrial processes, including mining, metal and cement production and the burning of fossil fuels.

ROADS

The EU has spent billions of euros to build roads in sub-Saharan Africa. The EU now finds that poor maintenance by recipient countries is leaving roads in ruins, jeopardising work to reduce poverty and hunger. A recent review shows that despite the US$6.1-billion spent on building modern highways between 1995 and 2011, the investments were less successful than expected because governments failed to follow up with maintenance or enforced weight limits.

GPS

Researchers in Spain have developed a system they say can greatly improve the accuracy of car sat-navs. It combines a conventional global positioning system (GPS) with those of other sensors, accelerometers and gyroscopes, to pinpoint a car's location to within 2 metres (6ft 6in). The system can be installed cheaply in any car and has the potential to help the emerging driverless car industry. The margin of error of a commercial GPS used in cars is about 15 metres in an open field where the receiver has good visibility.

SPAM

Since a peak in 2008, the share of e-mails that are junk has steadily declined. In 2011, it fell from 80 per cent to 67 per cent of the global total with spam filters doing their job. Also, police are cracking down on spammers and users are ignoring the spam that does get through. Many spammers have switched to peddling fake handbags and baldness cures via online ads which are often cheaper and more likely to be clicked.

LIGHTING

France is forcing shops and offices to go dark overnight in a bid to fight light pollution. Under a new law, lights in shop window displays will be turned off at 1am. Interior lights in offices and other non-residential buildings will have to be turned off an hour after the last employee leaves. Exceptions will be made for Christmas and other special occasions. The move is expected to save 250,000 tonnes of CO2, enough energy to power 750,000 French households.

WILDLIFE

Animals and plants bought to Europe from other parts of the world are a bigger than expected threat to health and the environment, costing at least US$16-billion a year. More than 10,000 "alien" species have gained a foothold, from Asian tiger mosquitos to North American ragweed and at least 1,500 are known to be harmful. Some of them were introduced as early as 77AD by the Romans.

SECURITY

German security researchers have found that freezing an Android phone for one hour to -10C allowed them to reveal its confidential contents, including contact lists, browsing history and photos. They found that quickly connecting and disconnecting the battery of a frozen phone forced the handset into a vulnerable mode allowing them to copy data on the phone.

BEER

A new economic impact study has found that the US beer industry, comprising brewers, beer importers, beer distributers, brewer suppliers and retailers, directly and indirectly contributes US$247-billion annually to the American economy. The industry encompasses 2,851 brewing establishments, 3,728 distributers and 576,353 retailers. The beer industry directly employs 1.1-million people paying nearly $31.8-billion in wages.

INFRASTRUCTURE

A recent survey indicates that a high number of bridges in the United States are structurally deficient. In New York, 2,000 bridges are deficient and badly in need of repair. The estimate of the cost of repairs is US$3.6-trillion. There are 607,380 bridges in the national inventory of which 20,808 are considered to be "fracture critical" which means that they have no structural redundancy.

LOST

The Royal Mail National Return Centre, a vast warehouse in Belfast, holds 20-million "undeliverable" items which have been separated from their owners. Only a fifth of the 20-million lost items are returned successfully.

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 2013 Economic Digest - Importing and Exporting

November 2013 Edition

LEGO Denmark's Lego has become the world's second-biggest toy maker after reporting a 13 per cent increase in sales. It generated sales of US$1.8-billion in the first half of this year, overtaking US-based Hasbro. The world's biggest toy maker is Mattel with annual sales of $2.3-billion. On average, each person on earth owns 86 Lego blocks and ten lego sets are sold each second. 400-million Lego figures were sold last year. Lego recently introduced a series of building blocks designed for girls. JOBS Older Canadians who can't find higher paying jobs are pushing out students in the low-wage part-time work force. The jobless rate among students 15- to 18- looking for part-time work has soared to more than 20 per cent, the highest on record, as older workers are forced into part-time jobs. Since 2007, employment in the 15-to-18 age group has plummeted dramatically by 22 per cent, well above the 4-per cent drop in that group's population. SWISS MADE Switzerland's parliament has taken steps to tighten rules governing how Swiss-made products are labelled. The government has approved a threshold of 60 per cent of the value of manufactured goods in order for them to carry the coveted Swiss Made label. The threshold for most food products has been set at 80 per cent of the product's weight. The new requirements are expected to become law next year. GENETICS In 2012, the global dairy-genetics business was worth C$1.5-billion, up 155 per cent since 2006. Canadian exports of dairy animal genetics (bovine embryos, semen and live cattle) totaled $110.3-million and went to more than 100 countries. The Canadian dairy industry generated total net farm receipts of $45.9-billion in 2012. FISHING It is a good time to be a fisherman. The global fish-price index of the UN's Food and Agriculture Organization hit a record high earlier this year. Changing consumer diets, particularly in China, explains much of the sustained upwards movement. High oil prices, which increase the cost of fishing and transportation, also add to the price of putting fish on the table. The FAO's price for wild fish nearly doubled between 1990 and 2012 while that of farmed fish only rose a fifth. The amount of wild fish captured globally has barely changed in two decades with a ceiling of about 90-million tons a year. COMPETITIVENESS Switzerland and Singapore top the list of the most competitive countries in the world in a global ranking that puts Canada in a distant 14th place. Finland, Germany and the United States round out the top five of this years most competitive countries. In 2009, Canada sat in ninth position. However, Canada fares well in education, efficient financial and labour markets and its strong institutions. Innovation and business sophistication is where Canada has tumbled in the rankings. BUYING In 2008, 11.8-billion pieces of mail were sent, in 2012, that figure was 9.8-billion. In 2012, e-commerce spending in Canada was C$21.45-billion, up from C$15.3-billion in 2010. By 2016, e-commerce spending in Canada is projected to be $35-billion. Based on a survey of 4,000 Canadians who shop on line, 37% bought apparel; 35% books and music; 23% consumer electronics; 19% computer hardware and 16% other general merchandise. BUMPING Passengers who are denied a seat on overbooked Air Canada flights within Canada may be able to get larger refunds. The Canadian Transportation Agency has upheld an earlier ruling that previous compensation for passengers involuntarily bumped from domestic flights was inadequate. Air Canada passengers who are delayed less that two hours should be compensated C$200. Between two and six hours the compensation rises to $400 and at more than six hours the amount jumps to $800. STYLE Japanese apparel stores are testing a new way to attract shoppers: digital mannequins that model the piece of clothing you have just picked off the rack. The system uses an innovative hanger that signals a computer when it is picked up. The computer then displays the clothing on a model on a nearby screen. This technology is part of a trend among bricks-and-mortar retailers who are trying to match the personalized shopping experience provided online. SERVICE The upsurge in popularity of food trucks among consumers in the US is threatening the quick service restaurant (QSR). New research shows that about half the respondents in a survey would have ordered from a fast food restaurant had they not obtained a meal or a snack from a food truck. The top reasons consumers gave for using food trucks related to availability of "interesting" foods and convenience, which are the traditional strengths of QSR outlets.  DEVICES It is estimated that the market for smartwatches will reach US$9-billion with unit sales of 90-million by 2018. And by the end of this year, global tablet shipments are expected to reach 227-million units. Chinese app users spend 64 per cent of their time on apps developed locally, if more foreign app developers can make apps that catch on in China, there is a great potential there. HEIGHT  The average height of European men grew by a surprising 11 centimetres from the early 1870s to 1980, reflecting significant improvements in health across the region. The swift advance may have been due to people deciding to have fewer children in this period as smaller family size has previously been found to be linked to increasing average height. The study analyzed data on height in 15 European countries. CALLS The average monthly complaints in the US from consumers who signed up for the Do Not Call List but still are getting telemarketing calls have jumped 63 per cent from 2011. Much of the blame is on a proliferation of computerized robocalls. Illegal robocall operations are taking advantage of increasingly sophisticated technology that has made it much easier to simultaneously send thousands of robocalls costing less than one cent a minute. RADIO Despite pressure from online listening services, radio in Canada continues to churn out consistent profits. Last year, Canada's 675 commercial radio stations saw their revenues increase, reaching C$1.62-billion. Profit before interest and taxes increased almost four per cent to $323-million. In 2012, these stations employed 10,050 people and paid $681-million in salaries. FM stations bought in the most money. Eleven stations were started last year bringing the total to 546. LABELS Eight meat and livestock groups from the United States and Canada have asked a US court to strike down stricter US meat labelling rules that they say have hurt US processors and Canadian farmers. The suit seeks to undo recent revisions to rules that required retail outlets to label meat according to where it came from. The country of origin labelling rules have led to lower US imports of Canadian cattle and pigs which has hurt Canadian farmers and US processing plants that relied on imported livestock. HIGHWAYS The Durango-Mazatlan Highway is one of Mexico's greatest engineering feats. It has 115 bridges and 61 tunnels and is designed to bring people, cargo and legitimate commerce through a mountain range known until now for marijuana, opium poppies and an accident-prone road called the Devil's Backbone. The 230-km highway will link port cities on the Gulf of Mexico with the Pacific and will eventually move five million vehicles a year, more than four times the number on the old road plus more goods and produce from Asia to the Mexican interior.  HAIR Venezuela is calling on the police to act against gangs that are stealing women's hair. The thieves sell the hair, sometime stolen at gunpoint, to salons where it is used for extensions and wigs. ADVERTISEMENTS A British online broadcaster, along with a German advertising agency, wants to turn bus and train windows into talking advertisements. The company is using technology that beams high-frequency oscillations, or vibrations, through the glass. When a commuter rests their head against a train window, the oscillations are converted into sound through a process called bone conduction, they will hear the message while other passengers remain oblivious. In recent tests, some commuters were annoyed that they could not rest their heads and sleep. TIME In 1979 the United Auto Workers (UAW) had more than 1.5-million members and nine of the country's best selling cars were American brands. The Toyota Corolla came eighth, the first time a foreign brand had cracked the top ten. Today, the UAW's membership is around 400,000, and not all are car workers. And of the top selling cars last year, seven were foreign badged. Americans are not only buying foreign cars, they are also making them. Seven of America's 15 most productive assembly plants were foreign owned.  CARS Americans are paying record prices for new cars and trucks. The average price of a vehicle in the US hit US$31,252 recently, up almost $1,000 over last year. The sharp increase has been driven by consumers loading cars up with high-end stereos, navigation systems, leather seats and safety gadgets. This buying pattern began about two years ago with low interest rates that let buyers choose pricier cars while keeping monthly payments in check. Add in booming sales of expensive pickup trucks and you get record high prices. CROPS Researchers in the key corn-growing state of Illinois are finding significant damage from rootworms in farm fields planted in a rotation with genetically modified corn, a combination of measures that are supposed to protect the crop from pests. Evidence from two Illinois counties suggests that pest problems are mounting as the rootworms grow ever more resistant to efforts to fight them. The Western corn rootworm is one of the most devastating corn rootworm species in North America. DEBT An anonymous half-million pound bequest to Britain has mushroomed to 350 million pounds (US$546-million) since it was made 85 years ago. The donor left the money in 1928 but said it should be handed over once Britain had amassed enough funds to pay off its entire national debt, which now totals 1.2-trillion pounds. POWER South Korea has switched on a road which can recharge electric vehicles as they drive over it. The project's developer says the 12km route is the first of its kind in the world. Vehicles fitted with compatible equipment do not need to stop to recharge and can also be fitted with smaller than normal batteries. Two public buses are already using the technology. CENSORSHIP A man using the British Library's wi-fi network was denied an online version of Shakespeare's Hamlet because the text contained "violent content."

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 2013 Economic Digest - Importing and Exporting

October 2013 Edition

 METHANE

Scientists say that the release of large amounts of methane from thawing permafrost in the Arctic could have huge economic impacts for the world. Researchers estimate that the climate effects of the release of this gas could cost US$60-trillion, roughly the size of the global economy in 2012. The impacts are most likely to be felt in developing countries and would include flooding, sea level rise and damage to agriculture and human health. However, it is also estimated that 30 per cent of the world's undiscovered gas and 13 per cent of undiscovered oil lie in Arctic waters.

METRO

The Saudi government has announced it will spend US$22-billion on a metro system for the capital Riyadh. The project is said to be the largest public transport initiative in the world. It will have six lines with over 180km of track and will help to boost the economy. Construction will begin next year, with trains running by 2019. Saudi has a lot of spare cash and needs to spend it.

ROYALTIES

China has not paid Hollywood its share of the profits from some of this year's big box office films because of a dispute over a new two per cent tax on foreign films. China's box office revenues increased by 36 per cent to US$2.7-billion in 2012, making it the second-biggest movie market in the world, underscoring its importance as a key market for Hollywood's moviemakers.

NUTRITION

Driven by 77-million consumers of sports drinks and 28-million consumers of nutrition bars in the US, the sports nutrition market has experienced significant growth in recent years. Women dominate the market for nutrition bars, as only 45 per cent of those eating at least one bar in the last 30 days are men, while 55 per cent are women. In contrast, men account for 64 per cent of high-volume users of sports drinks.

CONCRETE

One of the biggest drawbacks of concrete is that it is not as weatherproof as the stone it often substitutes for. Salt and ice routinely turn microscopic fractures in its fabric into gaping holes which let in water. Scientists have now shown that it is possible to mix special bacteria, which releases crack-sealing chemicals into concrete before it is poured, in effect creating self-healing concrete. Another approach is using a protective waterproof polymer that sticks readily to the concrete and forms a seal.

ICE CREAM

Despite the vast array of ice cream flavour varieties available in the US, it turns out that vanilla has staked its claim as the most popular among consumers, followed by chocolate and butter pecan in second and third place with Neapolitan and Rocky Road tied for fourth. However, there is an increasing trend towards frozen yogurt.

GLUTEN

The US Food and Drug Administration has now set a standard for gluten-free claims on food labels, a step that will help the three million Americans with celiac disease and bring uniformity to the US$4-billion market for gluten-free products. Gluten is a composite of starch and proteins found in certain grassy grains like wheat, barley and rye which, when eaten by people, can trigger the production of antibodies that damage the lining of the small intestine.

TUNNELLING

The world's largest tunnelling machine has started drilling under the city of Seattle. The machine is 326 feet long, weighs 7,000 tons and will leave a tunnel nearly 58 feet in diameter. It will take about 14 months to complete the two-mile tunnel which will drill beneath 200 downtown Seattle buildings. The machine was built in Japan, arrived in 41 pieces and is worth US$80-million.

RESEARCH

Spending on research and development (R&D) in Canada's higher education sector increased over the past year to C$11.6-billion. This sector comprises universities and affiliated research hospitals, experimental stations and clinics. Provincially, R&D spending by higher education institutions increased in every province except Prince Edward Island and Saskatchewan. Ontario and Quebec continue to report about two-thirds of R&D spending.

HOUSING

America's housing market is in recovery but home-ownership rates, at 65.1 per cent, are at their lowest since 1995. In the second quarter of this year America's total inventory was 132.8-million units of which over 30 per cent are now renter-occupied. The rental vacancy rate has fallen from 11.1 per cent in 2009 to 8.2 per cent now. This has pushed rents up which could make home-ownership more attractive.

FERRARI

Britain has now overtaken Germany to become Ferrari's biggest market in Europe. The manufacturer delivered 415 cars in the first half of the year, a rise of six per cent, overtaking Germany where 388 cars were sold in the same period. A total of 3,767 vehicles were delivered to dealerships in this period, a rise of 2.8 per cent. Sales in US and Canada were 1,048, a growth of 9 per cent.

BREWING

Non-alcoholic beer is growing in popularity around the world. Last year, 2.2-billion litres was downed, 80 per cent more than five years ago. In the rich world it is mainly consumed by a health-conscious minority, but in the Middle East it now accounts for almost a third of worldwide sales. In 2012, Iranians drank nearly four times as much as in 2007 and consumers in Saudi Arabia, Egypt and the United Arab Emirates have a growing taste for it.

FRUIT

Georgia is famous as a major producer of the peach whose image appears on state license plates. But now the state actually makes more money from the sale of blueberries. The value of blueberry production in Georgia beat the peach crop in 2005 and the gap has grown bigger since then. Blueberries generated an estimated US$94-million for Georgia growers in 2012 making it more than three times as valuable as the $30-million peach crop.

TRASH

Sweden has run out of trash. The country of more than 9.5-million is so big on recycling that only four per cent of all waste generated in the country goes to landfill, an amazing figure when compared to the US where half the garbage goes into landfill. However, this creates a dilemma as the country relies on waste to heat and provide electricity to a quarter of a million homes. Sweden is now importing trash from neighbouring countries including Norway and has considered importing it from the US.

BUILDINGS

Competition to build the country's skyline higher is continuing even as China's economy has slowed and the government reins in credit. The Shanghai Tower will be China's tallest building when completed in 2015 at 632-meters. China completed 22 buildings higher than 200 metres last year, accounting for 33 per cent of the global number, more than any other country. However, the 660-meter Ping An Finance Centre will become China's tallest building when completed in 2016. The tallest building currently is the 492-meter Shanghai Financial Centre.

DINNERS

Surveys indicate that the restaurant supper occasion (as they are called in the trade) lost over 650-million consumer visits since 2006 but will gain 795-million visits over the next decade. Restaurant supper visits have steadily declined since 2006, while supper meals eaten in-home have increased. Per capita annual supper meals eaten in-home increased from 235 in 2006 to 250 in 2012. Conversely, per capita supper meals eaten away from home fell from 67 in 2006 to 61 in 2012.

FREIGHT

Europeans have long pitied Americans for the quality of their passenger trains, but when it comes to moving goods, the US has a well-kept freight network that is the most cost effective in the world. In 2011, the seven largest freight railways had revenues of US$67-billion (up from $47.8-billion in 2009). Net income was $11-billion. By 2035 the demand for rail freight is expected to double with new business coming from moving consumer goods. Truckers are battling high fuel and labour costs, shortages of drivers and congestion.

TRENDS

Falling TVs sent nearly 200,000 US children to the emergency room over 20 years and the injury rate has climbed substantially for these sometimes deadly accidents. Safety experts say better awareness is needed about the dangers, especially the risks of putting heavier, older model TVs on top of dressers and other furniture young children may try to climb on. Most injuries are in children under 5; head and neck injuries, including concussions are the most common.

POLLUTION

Air pollution in Los Angeles has declined due to California's strict vehicle emission controls according to scientists. Despite a three-fold increase in the number of vehicles on southern California roads since 1960, pollution there has declined. In addition, ozone levels have improved though ozone pollution in Los Angeles remains the worst of any American city.

HAY

In some parts of the US, bales of hay have become the focus of a crime spree. Long periods of severe drought and grass fires across much of the western US have forced the price of hay and other livestock feeds to record highs. Some US auctions have reported 800lb-hay bales, enough to feed the average cow for about 20 days, fetching close to US$350 each. Many thieves are stealing one bale at a time hoping farmers won't notice but the more brazen are stealing truckloads.

RACE

Britain is on course to become one of the most diverse countries in the world. Within half a century half the people in the UK will be foreign or from an ethnic minority. This would mean the UK could overtake the US as the world's melting pot with fewer people describing themselves as British or white. One in three babies in England now has a parent who was born abroad. By 2050, non-whites and foreigners could account for 38 per cent of people in the UK.

SNAILS

South Florida is battling a growing infestation of the giant African land snail. The snail is considered one of the most destructive invasive species, feeding voraciously on more than 500 plant species. They can also eat through plaster walls which provides the calcium content they need for their shells. More than 1,000 are being caught each week in Dade County and 117,000 in total since the first one was spotted in 2011.

LOBSTER

In the early days, residents in the Massachusetts Bay Colony found them to be so abundant that they washed up on the beach in two-foot-high piles and people thought of them as trash food, fit only for the poor or to be served to servants or prisoners. Lobster shells around a house were considered to be a sign of poverty and degradation. In the 19th century consumers could buy Boston baked beans for 53 cents a pound, canned lobster sold for 11 cents a pound and it was fed to cats.

RECORDS

A retired pig consultant in the UK has logged every mind-numbing detail in the world's biggest personal diary. It spans 66 years, contains four million words on 21,000 pages in 51 volumes and includes 33,000 photos and weighs half a ton.

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 2013 Economic Digest - Importing and Exporting

September 2013 Edition

COFFEE

Farmers in Brazil are upset by falling prices. Their beans now fetch around US$106 a 60kg bag, a four-year low and less than half they got two years ago. A reversal soon looks to be unlikely. A third of the world's coffee is grown in Brazil. There are two problems. First, the traditional markets for their wares are saturated. Growth in Europe, America and Japan which between them drink over half the world's coffee is flat. Second, in the parts of the world where demand is growing like China, Indonesia and Brazil itself, drinkers are filling their pots with cheaper beans.

BANKS

The Industrial and Commercial Bank of China (ICBC), with assets of US$160-trillion has now displaced the Bank of America to become the world's biggest bank. China now boasts four of the world's ten biggest banks, (the same number as the United States), whereas Europe and Japan have only one each.

SEAFOOD

Total retail sales of fish and seafood products in the U.S. exceeded US$14.7-billion in 2012, up from $13.3-billion in 2008. However, the industry is at a crossroads. As of 2011, the per capita consumption by Americans was about 15-pounds of fish and shellfish per year. That figure represents a decrease from 15.8-pounds per capita in 2010 which itself was a drop from 16-pounds per capita in 2009.

HEADPHONES

A Glasgow engineer has designed a prototype pair of headphones which can harness solar power to keep mobile devices charged. The headphone band is fitted with a flexible solar cell and the energy generated is stored in two small lithium batteries. The inventor is hoping to raise US$300,000 to get the headphones into production.

COMPOST

Over half of Canadian households (61%) participated in some form of composting activity in 2011, more than double the rate in 1994. Overall, 45% of all households reported composting kitchen waste and 68% of households with a lawn or garden reported composting yard waste. Households in Prince Edward Island (96%) and Nova Scotia (94%) were most likely to have composted.

CHOCOLATE

According to the latest research, just more than half (51%) of adult consumers say that their favourite type of plain chocolate is milk chocolate, followed by 35 per cent who favour dark chocolate and 8 per cent prefer white chocolate. In the last survey in 2011, 57% favoured milk and 33 per cent preferred the dark variety. The better understood health benefits of dark chocolate may be increasing its popularity as more consumers are looking for snack foods that can serve a nutritional function. The chocolate confectionary market has grown 19 per cent from 2007 to 2012 in the U.S.

RICHES

Last year, 12-million people in the world had $1-million or more in investible assets. This is a million more than in 2011. After falling in two of the last five years, their wealth increased by 10 per cent in 2012 to a record $46.2-trillion. America is home to 3.4-million of the rich, Japan (1.9-million), and Germany over one million and account for more than half of the world's wealthy. Canada has about 600,000 of the super rich.

SEEDS

The destruction of tropical rainforests is having an even greater impact on the environment than was previously thought. Scientists have found that deforestation in Brazil is causing trees to produce smaller, weaker seeds that are less likely to regenerate. It is believed that this has been triggered by the loss of large birds from the forests, which have beaks big enough to feed on and disperse the seeds. Brazil's Atlantic rainforest was once home to a vibrant array of plants and animals. With the arrival of sugar and coffee plantations, the forest has been reduced to just 12 per cent of its original size.

TAXES

Taxes on property go back a long way. Ancient civilizations from Greece to China had levies on land. In the U.S. local governments have raised money from property taxes since the colonial eraand in the States they still account for 17% of all government revenue: in Britain and Canada the figure is around 12%. Only 2% of revenue from property taxes is assessed in Germany and Italy and in Switzerland it is just 0.4%.

BEES

A higher than expected loss of honey bees over the winter is causing Canada to reassess whether to open the U.S. border to the importation of packaged bees. Meanwhile, in Ontario, there have been several cases reported of both bees and whole hives being stolen. The same occurred last year both in B.C. and Alberta. In Ontario, honey production contributes C$25-million to the provincial economy.

HOMES

Britons now live in the smallest homes in western Europe with the average one-bed new-build the same size as a Tube carriage. Developers bent on making more profit are now cramming a lounge, kitchen, bedroom and bathroom into just 46 square metres. Overall, the average UK house is 76 square metres, 10 per cent smaller than 30 years ago. The average house in the Netherlands is 115.5 square metres, 53 per cent bigger. British architects are claiming that the lack of space and light in new British homes is causing marriage break-ups, health problems and hold children back at school.

PLASTER

U.S. scientists have designed a super-grip plaster covered with microscopic needles to heal surgical wounds. The "bed-of-needles" patch was inspired by a parasitic worm that lives in the guts of fish and clings on using cactus-like spikes which fixes skin grafts firmly in place without the need for staples. The patch is three times stronger than the materials currently used for burns patients.

CARS

The Royal Automobile Club in the UK has launched a device that will warn motorists about faults in their cars before they break down. The match-box sized device transmits data about the car before and after every journey by slotting it into a cars' computer. The automated system means that drivers then get a phone call, text or email telling them there is a fault with their car.

BHUTAN

This small Himalayan country of 1.2-million people plans to become the first country in the world to turn its agriculture completely organic. It will ban the sales of pesticides and herbicides and rely on its own animals and farm waste for fertilisers. The government expects farmers to be able to grow more, and to export increasing amounts of high quality niche foods to neighbouring India, China and other countries.

GLASS

Murano is a small island near the centre of Venice that attracts five million visitors a year and has been home to glass factories for over 700 years. Recently there has been a shift in taste from elaborate, heavy glass to inexpensive, contemporary designs that go in the dishwasher which has hurt local artisans. More than a third have closed in the past decade. At the bottom end of the market, Chinese glass now does the job more cheaply.

SHRIMP

Thailand is fighting a new disease that has reduced its shrimp output as much as 40 per cent, driving prices as much as 20 per cent higher in major markets and pressuring Western restaurants and retailers. Early mortality syndrome appeared in Thailand, the world's largest shrimp exporter last year after ravaging stocks in China in 2009 and then in Vietnam.

CHERRIES

Okanagan cherry growers in B.C. are looking ahead with an anticipated extra C$20-million in sales annually to China. Some growers have been converting acres of apple tree land into cherry orchards. It costs $30,000 an acre to replant new apple varieties and as little as $15,000 per acre for cherry trees. It is predicted that sales of cherries will be worth $10-million in 2014, increasing to $20-million annually over the next five years. The fruit is considered a luxury item in China where ripe cherries with green stems represent good luck.

THEATRE

Broadway, America's theatre district had a record breaking 2011-12 season with takings of US$1.14-billion.. However, the boost was largely down to rising ticket prices as admissions were down from 12.53-million to 12.33-million. Tourists accounted for 63.4 per cent of tickets sold while international tourists made up 18.4 per cent of all admissions. 67 per cent of audiences were female. Musicals attracted the biggest audiences accounting for $933-million of overall takings. The average price for a musical was $94.85 and $79.54 for a play.

PENSIONS

A giant mountain of 20-million kilos of maturing cheddar is to be used in the UK as security for a pension fund. In the event of the fund running into financial trouble, the trustees will be able to sell blocks of cheddar to make up the shortfall.

WASTE

An American company has developed a technique that it says can make bread stay mould-free for 60 days. The company says it could significantly reduce the amount of wasted bread, in the UK, almost a third of the loaves purchased. Food waste is a massive problem in most developed countries. In the U.S., figures released this year suggest that the average American family throws away 40 per cent of the food they purchase, which adds up to US$165-billion annually.

TIN

Exports of tin by Indonesia, the world's biggest supplier, may exceed earlier estimates by as much as 33 per cent after the government eased a quality rule. Sales will probably total 100,000 metric tons as the amended regulation will allow smelters to boost shipments.

DELAYS

China's major airports have the worst flight delays in the world. According to figures from around the world, Beijing and Shanghai came bottom for on-time flights. Eight of the 10 worst-performing Asian airlines in terms of delays were Chinese carriers. A flight is considered on-time if it arrives or departs within 15 minutes of the scheduled take-off or landing time. Tokyo's Haneda airport topped the list with an on-time performance of 95.04 per cent.

JETS

Demand for bigger, longer-range business jets is increasing again after a fall from grace during the recession. As farflung destinations in Africa and Asia, such as Angola and Mongolia attract more business travellers, corporate jets become more fuel-efficient. As a result, companies are in the market for big-cabin, corporate aircraft for long, intercontinental trips. They also find it cheaper to send larger teams by private jets when so many commercial flights are fully booked and expensive. The industry delivered 129 business jets worldwide in the first quarter of this year.

WINE

A year ago, Canadian law was changed to permit individual purchases of wine across provincial borders. So far, just two provinces, British Columbia and Manitoba, have authorized interprovincial internet and phone sales to individuals.

PROFIT

Two men in Essex, England, were sent to jail for stealing a Henry Moore sculpture which they sold for scrap for US$90. The sculpture was valued at $750,000.

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 2013 Economic Digest - Importing and Exporting

August 2013 Edition

MORE SIZE

Denmark's Maersk Line has unveiled the world's biggest container ship, hoping a new fleet of super-size vessels will deliver savings and return it to profit in an industry suffering from overcapacity, weak economies and cut-throat competition. The 55,000-tonne ship with the length of four football fields is worth US$185-million and is the first of twenty to be delivered to Maersk Line. It will have the capacity to transport 18,270 20-foot containers and will consume approximately 35 per cent less fuel per 20-foot container. Maersk moves 20 per cent of all containers from Asia to Europe and 18 per cent the other way.

TRADE

The UK has announced plans for what could be the biggest bilateral trade deal in history between the European Union and the U.S. worth hundreds of billions of dollars. A successful agreement aimed at boosting exports and driving growth could have a greater impact than all the other world trade deals put together. It is estimated that such a deal could be worth US$150-billion to the EU economy, $120-billion to the U.S. and $127-billion to the rest of the world. The deal will focus on bringing down remaining tariffs and other barriers to trade. Agriculture is expected to be a significant bone of contention.

INVESTMENT

The World Bank is calling on Canadian companies to help reduce extreme poverty by making more investments in the developing world, as development assistance alone cannot do the job of wiping out chronic poverty and that the private sector has much to gain from boosting its presence in struggling countries. About 60 per cent of total mining investment in Latin America comes from Canadian firms. The total annual spending on development assistance is US$125-billion, a pittance compared with the $200-billion per year infrastructure deficit over the next five years in India alone. Ninety per cent of all the jobs created in the world come from the private sector.

CALORIES

Lower-calorie foods and beverages dramatically boosted revenue at 16 US food and beverage companies that account for nearly US$100-billion in annual sales. Between 2006 and 2011, sales of low-calorie products increased more than $1.25-billion, over four times the growth of higher calorie products. These companies had committed to reduce 1.5-trillion calories in food and beverage sales in the U.S. and have achieved the target three years earlier than planned.

RECORDS

In 2006 23 per cent of Canadian doctors were using electronic medical records (EMRs). Now, 56 per cent of family physicians are using them, with an average savings of 3.8 hours per week. 15.6 minutes are saved on average managing a lab report. Last year it is estimated that 4.4-million hours were saved by doctor using EMRs.

WASTE

Tossing out food is a waste of money and water, according to the World Resources Institute, an environmental think-tank. Inside the 1.3-billion tons of food wasted every year worldwide is 45-trillion gallons of water. This represents a staggering 24 per cent of all water used for agriculture.

CONFECTIONARY

In 2011, the global confectionary industry reached almost US$185.5-billion, representing growth of five per cent year over year. The Asia-Pacific region led the market in sales volume with over 3,000 tons of confectionary products and chocolate accounting for more than 55 per cent of total confectionary sales. The US, UK, Brazil, Germany and Russia made up the top five markets in terms of value. This market is expected to be worth $208-billion by 2017.

TECHNOLOGY

Canadian enterprises sold almost C$122-billion of goods and services over the Internet in 2012, double that value of online sales in 2007. Three sectors, manufacturing, wholesale trade and retail trade, accounted for more than 61 per cent of the total value. Overall, 11 per cent of Canadian enterprises made sales of goods or services online in 2012. Volume was highest in the wholesale trade sector at $44.6-billion and the percentage of firms online was highest in the information and cultural industries sector at 35 per cent.

CANALS

Nicaragua is reported to have signed a 100-year concession with a Chinese company to build an alternative to the Panama Canal, a step that could have profound geopolitical ramifications. The US$40-billion project will reinforce Beijing's growing influence on global trade and weaken U.S. dominance over the key shipping route between the Pacific and Atlantic oceans.

BREADWINNERS

Mothers are now the main breadwinners in 40 per cent of American households according to Pew Research. Most of those are single parents, but the big rise is in the share of households in which the wife earns more than her husband, which is now the case in 15 per cent of all households with children. The median family income in such homes is US$80,000, compared with a national median of $57,000 and $23,000 for single mother households. Women's participation in the workforce has been rising for decades but that number has shot up since the 2007 recession.

DRONES

Anti-hunting groups in Britain, conservationists on African game reserves and U.S. animal welfare groups have started using drones to combat poaching and to monitor suspected illegal activities. The cost of unmanned aerial vehicles has dropped so fast in the last year that it has now become cost effective for civilians, rather than only the military, to use them widely. The Sea Shepherd conservation society pioneered the use of UAVs in 2011 to locate the Japanese whaling fleet heading for the Arctic. UAVs can film anything and go anywhere and what cost US$30,000 a few years ago can now be got for $5,000.

POPULATION

India looks set to overtake China as the world's most populous nation from 2028. At that point, both nations will number 1.45-billion people. Subsequently India's population will continue to grow until the middle of the century, while China's slowly declines. The UN estimates that the current global population of 7.2-billion will reach 9.6-billion by 2050. Nigeria's population is expected to exceed that of the U.S. by the middle of the century and could rival that of China by 2100.

PROFITS

The world's 40 largest mining companies saw profits fall 49 per cent last year to US$68-billion during a slump that has stretched into 2013. Weak commodity prices have dragged down the sector which saw volumes rise by six per cent but revenues remain flat.

DAMS

Ethiopia has started diverting a stretch of the Blue Nile to make way for a US$4.7-billion hydroelectric dam that is causing a dispute with countries downstream. The Great Ethiopian Renaissance Dam, which is currently under construction, is part of a $12-billion investment project to boost power exports. The Blue Nile is one of two major tributaries of the Nile, one of the world's longest rivers. Both Egypt and Sudan are objecting to the dam which they say violates a colonial-era agreement which gives them rights to 90 per cent of the Nile's water.

TRENDS

A German cafe is charging customers for the amount of time they spend in the facility instead of charging them for the items they order. Customers are given time-marked wristbands when they enter the cafe. Clocks around the establishment are purposely set to different times to help customers stop thinking about time.

PESTICIDES

Insecticide sales are surging in the U.S. after years of decline as American farmers plant more of their acreage to corn and a genetic modification designed to protect the crop from pests has started to lose its effectiveness. This is a boon for big pesticide makers but it has sparked fresh concerns that one of the most widely touted benefits of genetically modified crops, that they reduce the need for chemical pest control, is unravelling. At the same time, the resurgence of insecticides could expose both farmers and beneficial insects to potential harm.

MENUS

The Angus burger is going away and it may not be the only McDonald's dish on the chopping block. The world's largest restaurant chain has also considered axing Caesar salads, the McSkillet Burrito, the Southers Style Biscuit and steak bagels. The culling is an effort by McDonalds to streamline a menu that has expanded 70 per cent to about 145 items since 2007.

EGYPT

Two years of political upheaval have battered tourism, a motor of Egypt's economy, and lingering uncertainty over the future means it may be years before Egypt regains its place in the sun. In 2010, the last year before Egypt's revolution, a record 14-million tourists arrived and the industry was 13 per cent of GDP and directly or indirectly employed one in seven workers. Arrivals plummeted to 9.5-million in 2011. Hotel occupancy rates are barely 15 per cent in Cairo and below five per cent in Luxor.

FARMS

Equity in Canada's farm sector totalled C$341.4-billion at the end of 2012, up 7.7 per cent from a year earlier. Strong gains in the value of assets outpaced a rise in liabilities. Manitoba recorded the largest percentage increase, up 13.7 per cent to $22.3-billion. Total value of farm assets rose to $408.1-billion while liabilities rose to $66.7-billion. The largest dollar increase was in the value of farm real estate. Growth in the value of crop inventories outweighed a decline in the value of livestock and poultry inventories.

SIZE

Sharp has released what it says is the largest TV ever to go on sale in Europe. The Aquos features a 96-inch screen, trumping the 84-inch screen from LG. Sharp has offered the size in the U.S since 2012, the world's biggest market for jumbo-TVs but believes that there is significant demand in the UK and the rest of Europe for such a set. Eight per cent of all TVs sold in the U.S are sixty inches or larger. In the UK, six per cent of all units sold are over fifty inches.

ICELAND

It may not be the prospect of cheap fish that has prompted China to sign its first free trade deal with a European nation. The pact will waive most tariffs in the two countries' bilateral trade, which Iceland says was more than US$400-million in 2012. With the Icelandic population a mere 320,000 and no low-tariff entry to other European markets included in the deal, many believe that China's real goal is better access to shipping routes through the Arctic.

PHONES

New research shows that the average smartphone user looks at their phone 143 times per day, which works out to nine times every waking hour, or once every 6.7 minutes.

CHOCOLATE

The maker of Cadbury chocolate is close to introducing heat-resistant bars it can sell at market stalls in Africa and some of the world's hottest places. Mondelez International the maker of Cadburys products, which also makes Oreo cookies, has spent ten years on research and is close to introducing the new snacks to consumers. The product was patented last year and can withstand 40 degrees and not turn to liquid.

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 2013 Economic Digest - Importing and Exporting

July 2013 Edition

HEALTH

New data shows that Canadians consume, on average C$220,000 in publicly funded health-care over a lifetime. Spending is fairly consistent across income groups, despite significant differences in the health status of rich and poor. People in the lowest income group have $237,000 in lifetime health costs compared with $206,000 for the highest income group. The wealthy live an average of five years longer than the poor. But the wealthy also tend to be healthier, so their lifetime cost to the health-care system tends to be less.

FUNGUS

The orange-coloured fungus called roya, or coffee-leaf rust, continues to wreak economic havoc in Latin America. The fungus is hurting production and is expected to cause crop losses of US$500-million and cost 374,000 jobs in Central America alone. Roya is making some of the world's most desired coffee beans scarcer and driving up their prices. Some varieties of Guatemalan coffees now cost about 70 cents more a pound. The fungus has swept through coffee fields from Mexico to Panama, where some of the world's rarest and most expensive beans are grown.

ACCIDENTS

Each year, 1.3-million people die in car accidents and 10 countries are responsible for nearly half these deaths. Over all, India is responsible for the highest number of road deaths, followed by China and the United States. Meanwhile Eritria is home to the highest concentration of road deaths (48.4 per 100,000 people) followed by the Cook Islands, Egypt and Libya. The World Health Organization estimates that road traffic deaths will be the fifth leading cause of death by 2030.

WINE

Researchers are predicting a two-thirds fall in production in the world's premier wine regions because of climate change. The study forecasts sharp declines in wine production from Bordeaux and Rhone regions in France, Tuscany in Italy, in the Napa Valley in California and Chile by 2050, as a warming climate makes it harder to grow grapes in traditional wine country. But is also anticipates a big push into areas once considered unsuitable. This could mean more grape varieties from Northern Europe, including Britain, the U.S. Northwest and the hills of central China. Wine grapes are one of the most sensitive crops to subtle shifts in temperatures, rain and sunshine.

REFUGE

Last year, 32.4-million people around the world were forced to flee their homes by disasters such as floods, storms and earthquakes. While Asia and west and central Africa bore the brunt, 1.3-million were displaced in rich countries, with the United States particularly affected. Ninety-eight per cent of all displacement was prompted by climate and weather-related events, with flood disasters in India and Nigeria accounting for 41 per cent of global displacement in 2012. In India, monsoon floods affected 6.9-million people and in Nigeria, 6.1-million.

CUBA

Five decades after Fidel Castro ordered golf courses to be closed in Cuba because he considered them to be elitist, the island's Communist government has approved the construction of a luxury golf resort, complete with an 18-hole golf course. The US$350-million resort is the start of a new policy to increase the presence of golf in Cuba according to the Ministry of Tourism. A second golf project with Chinese investment is expected to be approved by the end of the year. Other resorts will then be developed gradually across the island with Spanish, Vietnamese and Russian funding.

NIGERIA

Some 60 per cent of Nigeria's 167-million people are farmers and farming accounts for 41 per cent of the GDP of Nigeria according to the Central Bank. Nigeria's governments talk grandly about the potential of large scale agri-business but the country still awaits its green revolution. Nigeria should be able to feed itself but fails to do so. It spends about US$11-billion a year importing food and is the world's largest buyer of rice. Before the discovery of oil in the 1970s, Nigeria was the world's biggest exporter of peanuts and palm oil but since then farming has been neglected and less than half of Nigeria's arable land is used.

PAINT

Houses could be painted with a super-material that generates electricity from sunlight and can even change colour on request, according to new research. Manchester University scientists used wafers of grapheme with thin layers of other materials to produce solar-powered surfaces. The resulting surfaces, which are paper-thin and flexible are able to absorb sunlight to produce electricity at a level that would rival existing solar panels. These could be used to create a "coat" on the outside of buildings to generate power needed to run appliances inside while also carrying out other functions too, such as being able to change colour.

DEBT

Danes are the most indebted people in the world with personal debt that is equal to almost three times income. Denmark is the Scandinavian economy hardest hit by the global financial crisis. Households there saw their personal wealth drop by US$69,900 on average since the property market peaked in 2007 when house prices dropped by 20 per cent, wiping out more than 12 banks.

MARKETS

Between 2000 and 2010 Latino buying power in the U.S. has more than doubled. But wooing Latino consumers is easier said than done. And as they grow richer and more numerous, their tastes are changing too. One sign of the shift is language. When Latino advertising was born in the 1980s, a largely immigrant audience could safely be addressed in Spanish. Today, most Hispanics were born in the U.S. and only 23 per cent of the young ones prefer Spanish to English. 62 per cent reside in California, Florida, Texas or New York. Marketing to Latinos was once a niche affair, Now it can be at the heart of a campaign.

AIRPORTS

It is estimated that Canadians are cross-border shopping for cheaper air fares which cost the country's airline business an estimated 70 flights a day. A recent Senate committee report recommends giving the carriers a fee break that could help them fight back by ending rental charges for the use of the country's 26 busiest airports as a means of making Canadian airlines more competitive. It is estimated that the leakage of Canadian airline passengers to the U.S. in 2010 cost the GDP C$1.1-billion, 8,890 jobs and $190-million in tax revenues.

TRENDS

A Swedish start-up is selling a stamp-sized wearable camera called Momento that you can pin on your clothes which takes a photograph every thirty seconds ensuring that no experience, however mundane, will go undocumented. The device also has an app and cloud-storage, so your pictorial record of commuting, shopping or cooking can be searched and shared. Something must have appealed as when Momento tried to raise US$50,000 on a crowdfunding platform, it raked in more than $500,000. It will sell for $279 and will offer support services such as storage for a subscription fee.

SHORTAGES

First it was milk, then butter, coffee and cornmeal ran short, now Venezuela is running out of the most basic of necessities, toilet paper. The embattled government has had to import 50-million rolls recently as state-controlled prices have led to shortages of basic consumer goods. Economists say that Venezuela's shortages stem from price controls meant to make basic goods available to the poorest parts of society and the government controls on foreign currency.

LUMBER

Canada's lumber producers ought to be enjoying the fruits of a U.S. housing recovery but they cannot take advantage of it. The forestry companies say that a shortage of rail cars is causing them to lose sales and market share, just as American demand for their products returns after a long, severe slump. The problems the companies face include irate customers threatening to impose penalties for late delivery; empty ships sitting uselessly in port for lack of timber to move; and idled shipments that have to be stored under tents.

COAL

The coal mining industry in British Columbia contributes C$3.2-billion in value added GDP to the provincial economy. It also pays $715-million in total tax payments by the coal industry to all levels of government. There are 10 operating mines in BC which contribute 40 per cent to the national coal production. The industry contributes 21.8 per cent of B.C.'s total exports. 26,000 jobs in BC are attributable to the coal industry with estimated annual earnings of $95,174 for workers directly employed by coal companies.

DRUGSTORES

Canada's major drugstores say they can help save provinces up to C$11-billion over three years if pharmacists were to get the green light to treat minor illnesses, administer vaccines and manage chronic conditions. While provinces have moved to varying degrees in these areas, more can be done that would result in better health outcomes for patients and urgently needed government savings, the stores say.

POVERTY

The OECD reports that the gap between rich and poor widened more in the three years to 2010 than in the previous 12 years. It says the richest 10 per cent of society in the 33 OECD countries received 9.5 times that of the poorest in terms of income. Those with the biggest gap included the U.S., Turkey, Mexico and Chile. The OECD says that this gap will grow wider if governments do not stop cutting back on welfare programs which they have been doing to reduce debt and balance government books as tax revenues have fallen because of weak growth.

CROPS

British scientists have developed a new type of wheat which could increase productivity by 30 per cent. The group has combined an ancient ancestor of wheat with a modern variety to produce a new strain. In early trials the resulting crop seemed bigger and stronger than the current modern wheat varieties but it will take at least five years of tests and regulatory approval before it can be harvested by farmers. One in five of all the calories consumed around the world come from wheat.

TAXES

The U.S. Senate has passed a bill that would impose sales taxes on online retailers. The vote to enable States to collect the taxes now has to go to the House of Representatives where some Republicans oppose it as a new tax. States lost US$12-billion last year in sales on online purchases. The law would not apply to retailers with less than $1-million in online sales.

COMPUTERS

China has overtaken the U.S. as the world's biggest market for personal computers. Shipments to the country rose to 69-million units in 2012. The U.S. was the biggest market up until 2011. Last year, it had orders for 66-million units. China is also the world's biggest market with more than 500-million users. Laptops are the fastest growing sector in developed markets and have overtaken PCs, but in China, sales of desktops and laptops is evenly split.

TATTOOS

A New York real estate company is allegedly offering a 15-per cent raise to employees who get the company's logo tattooed on their bodies. A total of 40 employees have now been tattooed.

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

June 2013 Economic Digest - Importing and Exporting

June 2013 Edition

BOOKS

The book industry has felt more pain than pleasure in the past few years, largely thanks to technology. But in only three years, things have changed for electronic books. American publishers generated US$2.1-billion in revenue from them in 2012, up more than 3,200 per cent since 2008. In theory e-books offer better margins because they are cheaper to produce but publishers worry that customers will soon expect to pay less for all books which will impact profits. However, if piracy hits publishing as it did music, profits could evaporate anyway.

FISH

The international organization of fishing countries has decided to follow scientific recommendations and maintain strict quotas on the fishing of endangered Atlantic bluefin tuna resisting the call for a major increase in quotas. The quota will rise from 12,900 tonnes a year to 13,500, within the limits recommended by scientists. Lax quotas resulted in stocks of bluefin falling by 60 per cent from 1997 to 2007.

LIGHT

A group of University of Toronto graduates claim to have built the most energy-efficient light bulb in the world. At about 200 per cent more efficiency than the current wave of energy-saving LED technology, the Nanolight doesn't even look like a regular bulb.The 10-or 12-watt bulbs which cost C$30 and $40 respectively, pump out the equivalent of 75 or 100 watts, and pay for themselves over their lifespan, about 20 years at three hours per day. The first bulbs will be shipped by September. It is not a bad time to revolutionize the LED business which is estimated to be worth $1-billion by 2014.

COMPUTERS

The number of personal computers shipped in the first three months of this year decreased by almost 14 per cent, the largest drop since worldwide sales began to be tracked by International Data Corp. in 1984. The drop highlights a generational shift among users who have turned to the convenience and portability of tablets and smartphones for most of their computing needs.

BUILDING

China is building a high eco-city where no one will need to drive. Outside Chengdu in central China, a 78-million square foot site has been allocated for an unconventional construction project: It will be a city built from scratch for 80,000 people, none of whom will need a car to get around.The ambitious urban centre is designed to limit its residents environmental impact by producing clean energy, reducing waste and promoting public transportation over individual car use. The project expects to reduce energy use by 48 per cent, water use by 58 per cent and produce 89 per cent less waste compared to a conventional development.

EUROPE

Households in Europe's fragile southern countries have far higher paper wealth than in Germany. A report compiled through a survey of over 60,000 households across the euro zone between 2009 and 2010 shows a dichotomy between cash strapped governments and wealth citizens. Households in Cyprus, whose government recently agreed to a 10-billion euro (US$13-billion) rescue from the European Union and the IMF, are the second wealthiest in the euro zone with an average net wealth of 670,000 euros, trailing only Luxembourg whose households had accumulated net wealth of more than 700,000 euros. German households had just under 200,000 euros in net wealth.

PORTS

Until recently, Duqm was a dusty fishing village and little else. Home to Bedouin tribes it lies 450km south of Muscat, Oman's capital. But in the next decade it is to be turned into a vast port and international business hub. A dry dock, the second biggest in the Middle East, has already been built at a cost of US$1.5-billion. Its quays stretch for 4km and a special economic zone is to be ringed with a petro chemical factory, a refinery, an airport, beach front hotels, and housing for more than 100,000 people. The project is to use this export hub to make Oman's economy less reliant on dwindling reserves of oil.

RIVERS

More than half the rivers previously thought to have existed in China appear to be missing, according to 80,000 surveyors who compiled the first national water census. Only 22,909 rivers were located, compared with the more than 50,000 in the 1990s. Officials are blaming the apparent loss on climate change, arguing it has caused waterways to vanish and on mistakes by earlier cartographers. Environmental experts though say the disappearance of the rivers is real and a result of headlong, ill-conceived development where projects are often imposed without public consultation.

PAY

Australia, Norway and Canada lead the world with the highest salaries in the oil and natural gas industry, according to a new survey. Average annual salaries for locally employed professionals in the industry are highest in Australia at the equivalent of US$163,600, while Norwegians earned $152,600. Average salaries in the U.S. were $121,400 ranking below Canada, New Zealand and the Netherlands. The average global annual salary was $87,300, an 8.5 per cent increase from the previous year.Local workers in the Sudan earned the least at $31,100.

LAND

Between 2001 and 2011, corporations bought or leased an estimated 227-million hectares of property around the world, a land grab that's about equal to Quebec and Alberta combined. The top countries where land was purchased were: Indonesia, Malaysia and India for agriculture and forestry and Brazil and the Philippines for agriculture and resources extraction. An Alberta based corporation purchased 2,500 square kilometres of forestry land in Australia for C$412-million in 2011 and a Toronto company bought $28.7-million of agricultural landholdings in Uruguay.

CASH

Moody's Investor Service estimates that at the end of 2012 non-financial companies in America had amassed a record cash pile of US$1.45-trillion, much of it because of the swelling coffers at tech companies. Apple had by far the most cash , with $137-billion in hand which is facing investor pressure to return more of its money mountain to shareholders. The next cash-rich companies were Microsoft, Google, Pfizer and Cisco Systems.

E-COMMERCE

As China is set to become the world's biggest economy, it's e-commerce market is overtaking America's. One giant company dominates the market: Alibaba, by some measures already the world's largest e-commerce company. Last year, two of Alibaba's portals together handled US$170-billion in sales, more than eBay and Amazon combined. Alibaba is on track to become the world's first e-commerce firm to handle $1-trillion a year in sales. Alibaba's sites account for over 60 per cent of parcels delivered in China. The company is expected to go public shortly and estimates for the initial public offering range from $55-billion to $120-billion.

TRENDS

In 1980, more than half French adults were consuming wine on a near-daily basis. Today that figure has fallen to 17 per cent. Meanwhile, the proportion of French who never drink wine has doubled to 38 per cent.

BEES

The mysterious malady that has been killing honey bees for several years appears to have expanded drastically last year. U.S. commercial beekeepers say it has wiped out 40- to 50-per cent of the hives needed to pollinate many of the nation's fruits and vegetables. A conclusive explanation has so far eluded scientists studying the ailment since it surfaced in 2005. A quarter of the American diet, from apples to cherries, to watermelons to onions depends on pollination by honeybees. Fewer bees mean smaller harvests and higher food prices.

NEWS

Canadians are increasingly choosing pixels over paper and ink when it comes to getting their news. A new survey found that while fewer people are reading traditional newspapers, they are still turning to established publications when looking for their news online. The Globe and Mail leads all publications in terms of national readership, with a national audience of 3.5-million in print and online. Online readership is 1.7-million readers weekly and is steadily gaining on print readership of 2.5-million. Numbers add up to more than 3.5-million because many readers consume both print and online versions.

E-CIGARETTES

Electronic cigarettes are now posing a serious threat to the large tobacco companies. In 2012, sales of e-cigarettes in America were between $300- and $500-million. This is paltry compared with the $80-billion-plus market for conventional cigarettes in the country. But e-cigarette sales doubled last year and are expected to double again in 2013 and it is believed that sales of e-cigarettes could overtake sales of normal cigarettes within a decade. E-cigarettes work by turning nicotine-infused liquid into vapour, which is then inhaled. A user is said to be "vaping," not smoking. Last year, one large U.S. tobacco company bought an e-cigarette maker for $135-million.

COUPONS

Ninety-five per cent of Americans use coupons when shopping and 73 per cent say they use them at least a couple of times a month. While 78 per cent of respondents named the Sunday paper as the source for their coupons, 61 per cent also use online sites for coupons and promotion codes. Age is a factor with 85 per cent of those 45 or older clipping coupons from the Sunday paper. When shopping 67 per cent of respondents say they check their smart phones to see if there is a better deal elsewhere.

TRAVEL

The UN World Tourism Organization reports that the Chinese have now become the single biggest source of global tourism after spending US$102-billion on travelling abroad in 2012. Higher incomes, looser travel restrictions and a strengthening economy are behind the surge which is 45 per cent higher than the year before and puts China well above the next two highest spending countries, Germany and the U.S. The Russian Federation also saw spending rise by 32 per cent to $43-billion.

APPLIANCES

The real estate boom is being credited with the boom in the sales of small appliances in Canada. Sales of products such as blenders, mixers, deep fryers and coffee makers grew to C$122-million in 2012, from $22-million in 2009. In the same period, sales of consumer electronics, excluding smartphones and tablets were down 17 per cent. Sales of traditional drip coffee makers dropped to $52-million from $59-million in 2009.

FISH

Global consumption of fish and seafood per person is rising steeply, but research also shows that much of what gets sold turns out to be not as described on the packaging. Cheap fish is being substituted for expensive fish and new varieties, never being consumed are being detected in fish dishes. Researchers believe there is large-scale deception going on. For example, scientists found that seven per cent of cod and haddock, the staples of British fish and chips are actually cheaper fish substituted to save costs.

SPENDING

The City of Waterloo, Ont, plans to spend as much as C$90,000 studying whether to erect a wind turbine despite a report saying the city wasn't windy enough. Ottawa is giving another $63,000 to keep studying the project.

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