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August 2014 Economic Digest - Importing and Exporting

August 2014 Edition

DOMAINS

European wine producers together with their Californian and Australian counterparts are fighting a rearguard action to prevent the introduction of internet domain names such as .vin and .wine. Producers of fine wines argue that making these names available could make it easier for unscrupulous companies to pass off inferior wines such as Champagne, or Napa Valley sparkling wines. European wine producers are prepared to boycott the new domain names if they are introduced saying that protecting wine-growing place names is critical to all wine-growing regions of quality.

PHONES

More than one in five households in Canada have cell phones as their only form of telephone service. In 2013, 21 per cent of households reported using a cell phone exclusively, up from 13 per cent in 2010. This is more pronounced in young households where all of the members are under 35 years of age. Total cell phone usage, whether used exclusively or in a combination with other types of phone service, continues to grow in popularity in Canada. In 2013, 83 per cent of Canadian households had an active cell phone, up from 78 per cent in 2010. The province with the highest proportion of cell phone users was Alberta with 91 per cent and the lowest was Quebec with 76 per cent.

LABELS

Consumer demand for more natural, environmentally friendly and socially-responsible food has proliferated. More than ever, consumers want to know exactly what is in their food, and they are turning to food labels to provide this information. When shopping for foods, according to Consumers Reports, two-thirds of Americans are checking to see if their food is locally produced. The majority of consumers (59 per cent) are also checking to see if their food is natural. Consumers are less likely to look for fair-trade (31 per cent of consumers), animal welfare (36%), antibiotic (39%) and non-GMO (40%).

KOI

Japanese Koi fish have been found in Boundary Dam in Estevan, Saskatchewan. They are not native to the province and are causing problems. The government which has known about the Koi since 2010 speculate that they were dumped into the Dam. The fish uproot submerged vegetation that can impact how other fish and other aquatic species do as they depend on the aquatic vegetation. Koi fish are also known for stirring up sediment and eating the eggs of other fish. There does not appear to be a feasible method that is environmentally friendly of getting rid of the Koi.

CONSUMERS

Online shoppers in the UK now have longer to cancel orders under new laws. The cooling-off period for an online order has been extended to 14 calender days from seven working days. Shoppers can now claim a full refund during this period without having to give a reason for the cancellation.

CODES

Doctors in the US complain that errors in how they code treatments are often mistaken for fraud and that the automation of claims-monitoring could make this worse. Next year, Medicare will have 140,000 different codes, including nine for injuries caused by turkeys. (Was the victim struck or pecked? Once or more often? Did she suffer negative after-effects? And so on). Many clinics have fallen under suspicion and had payments suspended, only to win a reprieve when the facts are studied closely. This could make many doctors reluctant to take Medicare patients.

DRINKS

Just as Russia has its vodka, Mexico its Tequila and Scotland its Scotch, China has its Baijiu. It is the world’s biggest-selling spirit category and represents a US$23-billion market. Producers are now seeking new markets in the US and Europe as sales fall in China after a crackdown on wasteful spending. The Chinese white spirit is distilled from sorghum, wheat or rice and accounts for more than one-third of all the spirits consumed in the world because China is the leading spirit consuming nation. Baijiu can trace its history to the first century BC. Experts say western palates may need some training to appreciate the product which some have compared to drinking paint thinner.

COAL

Power plants fired by coal in the US will be hit hardest by an Environmental Protection Agency plan to cut carbon dioxide emissions from existing power stations by 30 per cent from their 2005 levels by 2030. Industry groups are already lining up to object with the US Chamber of Commerce warning of a US$51-billion annual hit to the economy from higher energy bills. However, if that estimate is accurate it would still represent only about 0.3% of the annual US GDP. It also ignores the environmental and medical benefits of reducing the use of coal which pumps out double the carbon dioxide of natural gas when burned and contributes to smog and respiratory problems.

HOGS

Iconic motorbike manufacturer Harley Davidson, has revealed its first electric motorcycle. The bike will not go on general sale, instead the company will select customers from the US to ride it and provide feedback. The bike will travel down the US’s Route 66 visiting more than 30 Harley Davidson dealerships between now and the end of the year.

FAIRTRADE

A new British report from the School of Oriental and African Studies (SOAS) says that coffee drinkers who choose brands carrying the Fairtrade label are not helping the poor and the “ethical trading” claims made by fair-trade organizations are hollow. The researchers investigated labour markets for export crops in Uganda and Ethiopia, The report’s conclusions will come as a shock to consumers in rich countries who pick brands carrying the Fairtrade logo, supposedly supporting the earnings of family farms and small-holders by paying of a “Fairtrade premium” helping them compete in a world dominated by large plantations. The SOAS researchers are urging Fairtrade organizations to improve their audit procedures and establish minimum wage standards.

TOURISTS

Visitors to Scotland spent 20 per cent more last year than in 2012, a bigger increase than London and the UK as a whole. The number of visitors was up 9.8- per cent to 2.44-million, spending a total of US$3.36-billion. Edinburgh was the biggest draw with 1.3-million people staying one night or more in the city, second only to London. A further increase is expected for 2014.

BLEEDING

A Canadian trauma specialist and an armed forces surgeon has developed a new tool for first responders. It looks like a futuristic hair clip and is about the size of a child’s hand-held toy. It looks innocent except for the eight needles protruding from the clamp. The iTClamp is specially designed to close a wound in a way that is so simple, anyone can do it. Instead of applying a complicated tourniquet with the right amount of pressure, let alone performing the long and complicated process of stitching a profusely bleeding wound, the clamp can be placed simply over the injury and squeezed together. This closes the wound and takes about three seconds to apply. The device has been approved by Health Canada for more than a year and a half, by the US Food and Drug administration for a year and by Europe for about 15 months.

UBER

The next big thing in the tech world is forecast to be Uber which has raised US$1.2-billion in capital from private investors, giving it an estimated market value of $17-billion. Uber’s limousine and car-sharing services operate in 128 cities in 37 countries through its app. which is a challenge to licensed taxi services. There have been protests by European taxi drivers in Paris and London, angry at what they say is unfair competition from Uber’s unregulated service.

FISH

Deforestation is reducing the amount of leaf litter falling into rivers and lakes, resulting in less food being available to fish, a new study claims. Researchers found that the amount of food available affected the size of young fish and influenced the number that went on to reach adulthood. The results illustrate a link between watershed protection and healthy freshwater fish populations. A team of scientists from Canada and the UK collected data from eight locations with varying levels of tree cover around Daisy Lake in Canada which forms part of the boreal ecosystem.

GOLF

Golf, which usually rides out a recession because so many players are affluent is one of the last victims of the financial crisis. In the US, an estimated five million fewer people play the game at least once a week than a decade ago. A similar measure in England shows a 16 per cent drop in the same period. In Canada the number of occasional golfers is down 17 per cent and those classed as playing infrequently have plunged 49 per cent according to a 2012 study. It is estimated that golf accounts for C$11.3-billion worth of Canada’s GDP. The combined revenues of $4.7-billion produced by golf courses, driving ranges and the like nearly matched the total of all other sports and recreational activities.

MIGRAINES

An estimated 2.7-million Canadians, or 8.3 per cent of the population have been diagnosed with migraine, a debilitating disorder characterized by pulsating headaches that can last for a few hours to several days, often accompanied by nausea and sensitivity to light and sound. Females were more than twice as likely as males to report migraines, 11.8 per cent versus 4.7. For both sexes, migraine was most common in ages 30 to 49. Compared with the national figure, the prevalence of migraine was lower in Quebec, (6.8 per cent) and higher in Manitoba (9.5), Nova Scotia (9.1) and Ontario, (8.8).

QUALITY

Canadian workers are winning a reputation for building quality vehicles. A Toyota plant in Cambridge, Ontario led the global rankings in the widely watched annual survey by J.D. Power and Associates that measures vehicle quality. The General Motors plant in Ingersoll, Ontario, placed second in North America, and Canadian-built vehicles placed first in five out of 23 categories. Quality has a direct and meaningful impact on subsequent loyalty and it costs hundreds of millions of dollars to win back customers who have abandoned a brand.

FRIDGES

Doctors in the UK are warning that Britain’s obesity crisis could cripple the National Health Service as hospitals are forced to buy and rent special equipment to keep bodies cool because they are too large to fit into mortuary fridges. Hospitals are also having to widen corridors, buy reinforced beds and lifting equipment in order to cope with the growing numbers of obese patients. A quarter of adults in the UK are estimated to be obese and the number is expected to grow to account for more than half the population in the next 30 years.

NIGERIA

India has taken over from the US as the largest importer of oil from Nigeria. The US has drastically reduced its demand for Nigerian crude in recent months and now buys about 250,000 barrels a day. India buys considerably more, about 30 per cent of the country’s 2.5-million barrels of production. US demand for imported oil has fallen sharply because of increasing domestic shale gas and oil production. It is estimated that the US will be largely energy independent by 2035.

CLAIMS

Researchers into unusual claims by cellphone owners in Britain has revealed the most bizarre and outlandish accidents befalling the nations’s technology. One farmer claims to have damaged his iPhone while calving, acccidently inserting it into the rear of a cow while attempting to use it as a flashlight. And a woman absentmindedly baked her Nokia 6303i into a sponge cake intended for her daughter’s birthday.

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