LABOUR
Mexico was once feared as a key source of low-cost labour for American and Canadian companies when the NAFTA was signed, then along came China. But now, as China's workers increasingly demand higher wages, Mexico has re-emerged as an attractive place for North American manufacturers. Already, economists are saying that Mexican labour is as cheap as China. Mexico also has the advantage of being close to the United States and sharing a long land border which reduces shipping costs.
PIRACY
Last year, Somali piracy cost the shipping industry an estimated US$7-billion, but the recent fall in the number of successful hijackings has been dramatic. In 2010 there were 219 cases of pirates trying to board vessels and 236 in 2011. This year, the total is just 71. Successful seizures are down from 49 in 2010 to 28 in 2011 and only 13 this year. Piracy has become far riskier and less profitable in the last year or so.
LABELS
The ubiquitous "Made in China" label may be losing some of its power as Americans seek products manufactured at home but it is not just U.S. consumers who want to buy American. Recent research indicates that a rising middle class in China has an appetite for U.S. goods, preferring them to Chinese-made products because of their perceived higher quality and durability. However, a strong majority of consumers in Germany and France prefer products made in their own countries to U.S. goods, and would be prepared to pay more for local goods as well.
TRADE
Canada has been granted observer status in a new Latin American trade bloc. The Pacific Alliance is comprised of Colombia, Chile, Mexico and Peru and boasts about 215-million consumers with a combined GDP of US$2-trillion. While they are not as integrated as the European Union the members have sought to remove restrictions on the movement of goods and services as well as capital and people between them. They have also linked their stock markets, opened joint trade offices and moved to ease visa requirements. Canada has free trade agreements with all four countries but their integration should make it easier for companies to do business there.
SAFETY
The U.S. Transportation Department has proposed a regulation imposing criminal penalties and jail time for truck and bus companies that try to evade regulations by changing their names. The rule would let the agency more effectively keep the small number of carriers with the worst safety records off the road. The Department has been criticized for not being aggressive enough in targeting rogue carriers, especially so-called chameleons who repaint their buses and transfer employees and assets to a new company.
NUMBERS
By this month, there will be 379 Wal-Mart stores in Canada with a total square footage of 4.6-million and employing 90,000 staff. Each day, one million people visit the stores. Wal-Mart is set to open 73 more Canadian stores this year. The larger stores carry about 100,000 items with the small stores around 70,000. This year, Target is planning to open about 130 stores in Canada.
THEFT
The Canadian wireless industry is vowing to combat mobile device theft following months of pressure from the federal telecom regulator, police and politicians. The plan will make it more difficult for criminals to reactivate stolen devices, such as smart phones and tablet computers which should reduce the incentive for theft. Violent cell phone thefts have increased by 71 per cent from 2010 to 2011 in Montreal and 37 per cent in Vancouver in the same period. Stolen phones can sell for hundreds of dollars on the black market.
GROWTH
The fast-growing economies of China and India will soon be worth more than the combined domestic product of the Group of Seven countries. However, it is now predicted that China's GDP growth will slow significantly after 2020 because of a rapidly aging population that will present major policy challenges to the country's leadership. By 2030, more than 35 per cent of China's population will be older than 65 and by 2060, more than 60 per cent of people living in China will be seniors. After 2020, China's economic growth will be overtaken by India and Indonesia.
PRODUCTS
At least three firms paid millions for product placement and marketing rights in the latest James Bond movie Skyfall. Coke is the spy's soft drink of choice (specifically Coca-Cola Zero). French wine maker Bollinger makes Bond's Champagne but the biggest drink-related deal involves Heineken, which reportedly paid US$45-million to convince Bond to ditch his martini. Omega recently released 11,007 watches to mark the 50th anniversary of the franchise and an additional 5,007 limited edition Skyfall watches which have an 007 emblem on the dial.
GAS
The global market for liquified natural gas (LNG) will shift further to Asia by 2020, where high prices will attract new supply sources, while Europe is expected to remain dependent on pipeline supplies and North America will become a marginal LNG exporter. Trading in LNG will rise by over 4 per cent a year between now and 2020 with Asia taking the lion's share. The value of LNG cargoes will rise to around US$325-billion up from $250-billion in 2011, based on global supplies of 460-million tonnes a year. Japan and South Korea are the world's top two buyers of LNG with China and India not far behind.
EPA
It has been learned that both Hyundai and Kia overstated the gas mileage on 900,000 vehicles sold in the past three years, a discovery that could bring sanctions from the U.S. government and millions of dollars in reimbursements to car owners. The results were uncovered in an audit of test results by the Environmental Protection Agency which has ordered the window stickers on the Korean vehicles changed to show that they are one to six miles per gallon lower depending on the model. Hyundai and Kia executives said the higher figures were unintentional errors.
POWER
U.S. researchers are claiming that a device which can harness energy from the heart can produce enough electricity to keep a pacemaker running. Presently, pacemaker batteries need replacing. Tests suggest that the device could produce 10 times the amount of energy needed. If researchers can refine the technology and it proves robust in clinical trials, it will further reduce the need for battery changes.
CONSTRUCTION
The 105-storey hotel which dominates the skyline of the North Korean capital, Pyongyang, may open this year, 26 years after construction began. Started in 1987, the pyramid-shaped building has become known as the "Hotel of Doom" It is the 47th tallest building in the world at 1,100 feet and has the fifth greatest number of floors, 105. Construction was abandoned in 1992 when North Korea suffered an economic crisis. Esquire magazine has called it the "Worst Building in the History of Mankind" which is hideously ugly, even by communist standards.
BANANAS
An international trade dispute over bananas dating back two decades has finally been settled. The European Union and ten Latin American countries signed an agreement to formally end eight separate World Trade Organization (WTO) cases. Latin American banana exporters had long protested against EU tariffs designed to protect small growers in former European colonies in Africa and the Caribbean. The agreement involves the EU reducing tariffs on imported bananas from US$224 per tonne to $145 per tonne within eight years.
TAXES
The Danish government intends to abolish a tax on foods that are high in saturated fats. The measure, introduced a little over a year ago was believed to be the worlds first so called "fat tax." Foods containing more than 2.3 per cent saturated fat, including dairy produce, meat and processed foods, were subject to the surcharge. Authorities are now saying that the tax had inflated food prices and put Danish jobs at risk.
AID
The UK government is to end financial aid to India by 2015. Support worth about US$319-million will be phased out between now and 2015 and the UK will then shift to offering technical assistance. This move reflects India's economic progress and status. Until last year, when it was overtaken by Ethiopia, India was the biggest recipient of bilateral aid from the UK.
OIL
The United States will overtake Saudi Arabia to become the world's top oil producer by 2017. And by 2020, the U.S. will be a net exporter of gas. This will have enormous implications for an abundant supply of cheap gas for its chemical, plastics, glass and steel industries. The U.S. presently imports 20 per cent of its energy needs.
TASTE
With health and global realities important concerns for consumers, some food trends in 2013 will be moving from cutting-edge to mainstream. Sour will be common as palates move beyond sweet, salty and fatty to tart, acidic and bitter. Weight watchers will see chefs exchanging their butter and bacon for broth and beets. Asian foods will infiltrate American comfort foods and vegetables will star as the main dish rather than just a side plate or salad.
GROCERIES
The U.S. grocery market grew to US$645-billion in 2011 from $568-billion in 2007 a growth of 14 per cent. over four years.
DRUGS
Experts say that a global treaty is required to crack down on the deadly trade in fake medicines. Currently, there are more sanctions around the use of illegal tobacco than counterfeit drugs. The World Health Organization (WHO) says more than one in every 10 drug products in poorer countries are fake and that a third of malaria drugs are counterfeit. WHO estimates nearly a third of countries have little or no medicine regulation.
CONCRETE
Experimental concrete that patches up cracks by itself is to undergo testing. The concrete contains limestone-producing bacteria, which are activated by corrosive rainwater working its way into the structure. The new material could potentially increase the service life of concrete, with considerable cost savings as a result. Concrete is the world's most widely used building material, but it is prone to cracks, which means that structures need to be substantially reinforced with steel.
WINE
A poor wine harvest in 2012 is predicted to lead to a shortage of wine across the world. The International Organization for Wine and Vine (OIV) says wine production has fallen to its lowest level since records began in 1975. Hardest hit are wine-makers in Argentina, where output has fallen 24 per cent and in the world's two largest wine producers, Italy and France. Overall production is expected to have been around five billion gallons. Global thirst for wine is growing, especially in the developing world, and demand is expected to outstrip production. The exception is the U.S. where output grew by 7 per cent.
UNEMPLOYMENT
A Swedish town has hit on a novel way to cut its unemployment figures: it is paying young people to move to Norway, and more than 100 have already found work there.
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