June 2006 Economic Digest - Importing and Exporting

June 2006 Edition

CHARITY

About US$11.1-billion a year is funnelled to poor countries through private charities, according to the OECD, which tracks aid from 22 donor countries. Private giving is stimulated partly by public policies. Some governments provide tax breaks for charitable giving. In others, low taxes assist private giving by leaving more money in the pockets of citizens.

WEIGHT

With the weight-loss products market slowing after the low-carb craze, marketers are refocussing their energies on low fat, low sugar, and low glycemic index products to regain market momentum. The industry was once expected to reach US$9-billion by 2008. It won't regain the drive it enjoyed in the low- carb craze which helped the market surge by 22 per cent between 2002 and 2003. It is now estimated the market will reach 7.5-billion by 2010, bolstered by strong growth in the weight-loss desserts and diet candy sectors.

DAMAGES

More than 73,000 people died in last year's earthquake in Pakistan and India. Swiss Re, a reinsurance company, estimates the total cost of the damage was US$5-billion, but most of it was uninsured. Hurricane Katrina caused the greatest damage last year, at $135-billion. Claims on insurers amounted to $45-billion, the biggest in post-war history.

TOURISM

A record 808-million people visited a foreign country last year, up 5.5 per cent from the previous year. According to the UN World Tourism Organization the number of international tourists is expected to hit one billion by 2010 and the 2020 forecast is 1.6-billion. Europe still attracted the lion's share of travellers with 444-million arrivals. Africa saw a 10 per cent increase while Asia-Pacific and the Middle East saw arrivals forge by seven per cent. The Americas were visited by 133-million travellers.

MEXICO

Two years ago, China pushed Mexico from second to third place as a supplier of imported goods to the U.S. and some experts predict the Asian country will replace Canada as the No. 1 country within two years. China also became Mexico's second-largest trading partner after the U.S. though the trading relationship is very uneven with China sending Mexico US$14-billion worth of goods while only importing $400-million worth.

OIL SANDS

India has jumped into the intense competition for Canadian oil sands assets with plans to invest US$1-billion this year. India has mounted a high-profile hunt for foreign reserves to help power its growing economy. India is reportedly now worried its plans will put it head-to-head with long-time rival China in bidding for Canada's oil assets.

INFRASTRUCTURE

The average age of the four main components of Canada's public engineering infrastructure has stabilized in recent years after 20 years of steady increases, thanks to higher investment. A new study examines the aging, from 1963 to 2003, of the main components: roads and highways, sewer systems, wastewater treatment facilities and bridges. Wastewater facilities, the oldest infrastructure, had 63 per cent of useful life behind them. Bridges, the youngest infrastructure, had reached 49 per cent of their useful life.

UKRAINE

The U.S. and Ukraine have signed trade agreement on market access issues bringing Ukraine a step closer to membership in the World Trade Organization. U.S. service providers and exporters of industrial and agricultural products will get more opportunities to sell their wares in Ukraine.

SHOPPING

Non-traditional retailers will continue to pose a serious threat to supermarkets as market share in the food retailing industry shifts even more from food-focused to general merchandise-focused retailers. In 2005, 51 per cent of market share in the U.S. for food and consumables went to food-focused retailers, while a significant 33 per cent went to general-merchandise-focused retailers. Industry experts predict that in 2009 49 per cent will go to food-focused retailers and 39 per cent to general merchandise-focused retailers

VIEWING

In Britain, surfing the Internet is now more popular than TV. On average, adults in Britain spend more time online, 41.5 days a year, than in front of the TV. Government figures show they now spend just 37.5 days a year watching television. Londoners spend the most time on line, 183 minutes a day, but it is the high-tech Scotland that is second with an average of 181 minutes each day.

HONESTY

Japan is revising a century-old law because of its people's honesty which has overwhelmed the police by swamping them with lost property. Over 10 million items were handed in to police in 2004. The figure, more than double that of 1964, reflects the law-abiding, yet forgetful nature of the Japanese. Unclaimed items become the property of the finder.

UNDERWEAR

Turkey is the third-largest exporter of underwear in the world. Revenue from the industry, which employs close to one million Turks, reached US$4-billion in 2004 giving Turkey eight per cent of the world market for bras, panties and bathing suits, behind China and Hong Kong. Turkey's textile industry owes its success to good quality, low production costs, technology and proximity to Europe.

FISHING

Recently, fishermen off the coast of Japan have often been pulling in giant jellyfish which can be over a metre across and weigh 150 kilos. Their arrival has been a disaster for many fishing communities, breaking nets and gear, crushing the fish catch or spoiling it with poisonous tentacles. The jellyfish spawn along the coast of the East China Sea and drift towards Japan.

WEALTH

In the latest Forbes ranking of the world's super rich, 22 Canadians have made the billionaire list including one, the son of a Saskatchewan pig farmer, who made his fortune in Internet gambling. The rise of emerging markets and a host of new billionaires from third-world countries helped boost the 10-figure club to a record 793. The average net worth of the list's members is US$3.3-billion. Their combined wealth grew 18 per cent last year to $2.6-trillion.

ADS

A church in England has been told it needs planning permission and has to pay $150 to put up a wooden cross because it constitutes an advertisement.

ENERGY

Alarmed by a surge in energy costs and the threat of an acute gas shortage, the European Commission is trying to get control of energy policy from national governments. The EU claims that Europe can no longer afford 25 different and uncoordinated energy policies. Brussels proposes the creation of a single European electricity grid, new gas and oil pipelines into the heart of Europe from North Africa and the Middle East and the setting up of emergency gas stocks.

BENEFITS

More than half Canadian employers, burdened by spiralling health care costs and bracing for the flood of baby boomer retirements, plan to cut the level of benefits they provide to retired employees, a new survey indicates. The cuts will primarily affect future retirees who will face tighter eligibility requirements and who, increasingly, will be forced to dip into their pension income to help pay for their drug, dental and vision benefits.

AUSTRALIA

More than 150 years after the discovery of gold sparked a digging frenzy in the Australian state of Victoria, prospectors are once again striking it rich as a new gold rush gets under way. Better equipment and sophisticated geological mapping are enabling modern mining companies to find gold deposits that were beyond the reach of the 19-century forebears. Victoria once produced 40 per cent of the world's gold.

BEER

Soon, Budweiser beer is to be sold in Russia, one of the few brands it doesn't already have. Russia's beer market has doubled since 1999 and is expected to expand a further 33 per cent by 2010. Bud will be sold at high end bars and restaurants in major cities. Russia was the fourth-fastest growing beer market in terms of volume in 2004 among the top 12 markets and the fastest-growing among emerging markets after China and Brazil.

FARMS

More than 1,000 years after the last Viking invaders settled on the East Coast of England, the Danes are back, and buying British farmland because it is a more attractive prospect than their own. In the past two years, some 7,500 acres of prime farmland in the East of England have been sold to Danish buyers. Not since Dutch bulb and vegetable growers started buying up land in the same area in the 1970s has there been such a large invasion.

WOOD

Manufacturers of B.C. wood products are aiming to make an aggressive return to South Korea in a bid to capture a share of the rising market there for wood-frame homes and building materials. Interest in Korea among B.C. manufacturers dipped in the late 1990s during the Asian economic crisis. Within the next five to 10 years, an estimated 40,000 single-family wood-frame homes will be built in Korea each year.

ROADS

The Indian government has begun a 15-year project to widen and pave some 40,000 miles of narrow, decrepid national highways, with the first leg budgeted at US$6.25-billion to be completed within a year. It amounts to the most ambitious infrastructure project since independence in 1947 and the British building of the subcontinents railway network the century before.

DISEASE

At least one new disease is jumping the species barrier from animals to humans each year, exposing people to emerging germs at an unprecedented rate. The first work to catalogue the range of germs capable of infecting people has disclosed that 38 new human pathogens have emerged in the last 25 years of which three-quarters originated as animal diseases.

CHEESE

The European Court of Justice has ended a thirteen year dispute ruling that the name "feta" must be used only for white cheese soaked in brine and made in Greece. This was done under the same legislation that ensures champagne comes from Champagne, France and Parma ham must come from Parma, Italy. The ruling has caused chaos in the European feta industry. There are large-scale feta manufacturers in Denmark, Germany and France.

POWER

Britain's dominant supermarkets could be stopped from opening more stores after a Government watchdog suggested that they had become too powerful. The Office of Fair Trading claims that the four big chains may be restricting choice and driving independent convenience stores out of business. These stores have nearly a 75 per cent share of Britain's US$250-billion grocery market.

COMMUTING

Japanese auto maker Mazda says it will pay employees who walk to the office, rather than commute by car, as part of an effort to improve their health and protect the environment. All the company's 20,000 workers at domestic plants are eligible.

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

May 2006 Economic Digest - Importing and Exporting

May 2006 Edition

LOW TECH

An Italian research institute is using a low-cost but effective tool to bolster communications in developing countries. Made from a can (those used for seed oil are best), a screw-on connecter and a short brass wire, the "cantenna" is being promoted as a cheap efficient tool to amplify access to information and communications technology. They are directional antennas and can be used for short- to medium-distance point-to-point links. They can also be used as feeders for parabolic dishes. They cost around C$5.00 instead of hundreds of dollars

CHINA

After an eight year ban, Avon Products has received approval to become the first country to resume direct sales in China. Direct sales were banned in 1998 when the government said it was hard for consumers to tell the difference between legitimate sales networks and fraudulent pyramid schemes which were common then.

CHOICE

It could soon be a common occurrence in Houston schools for students to be turned away when trying to check out some foods in the cafeteria. The district is to become one of the largest in the country with an automation system that lets parents dictate and track what their children get.

GAMES

Worldwide sales of video games and related services are forecast to double to US$65.9-billion in 2011 from $32.6-billion in 2005, lifted by online and mobile games. The market for games played via the Internet on consoles, personal PCs and hand-held terminals will increase 95 per cent a year in the period.

CABLE

An FCC study in the U.S. concludes that subscribers would save money if they were allowed to pay only for the channels they wanted. This conclusion reverses an earlier FCC finding. This provides new support for the consumer groups pushing for a pick-and-choose system to replace the bundled service. A similar report has been released in Canada.

DOGS

An on-line site for dog owners reports that 66 per cent of employees would work longer hours and 55 per cent would be willing to commute longer distance if it meant they could bring their dog to work. The survey also found that 49 per cent would switch jobs to a more dog-friendly employer

HOLLAND

A survey of 17,766 people in 17 countries found that residents of the Netherlands, armed with tax breaks for computer purchases and some of Europe's lowest broadband fees, lead the world in the use of personal computers and the Internet. 82 per cent of Dutch residents use computers at home or work. In Canada the number was 79 per cent and in the United States 76 per cent.

ZONES

North Korea has set aside 1,100 hectares for South Korean companies to set up shop. So far, 15 companies are producing and shipping manufactured goods such as footwear and cases for makeup and cosmetics. Construction on the complex began in 2005 and eventually it is hoped that 2,000 business will fill the zone by 2012. Trade between the two Koreas has surged 51 per cent since 2005 topping US$1-billion for the first time.

PORK

In 2005 exports of Canadian pork soared to 1.028 million tonnes, valued at C$2.84-billion. This represents an increase of about 10 per cent in terms of quantity and five per cent in value. over 2004. The U.S. remains the top customer though volume dropped by 10 per cent last year. Japan jumped by over 30 per cent to 265 thousand tonnes. Australia is the third largest market followed by Korea where exports doubled in one year.

FRUIT

The humble blueberry has replaced the apple as Canada's No. 1 fruit with sales of C$131-million in 2004, compared with sales of $72-million in 1996. British Columbia is the country's prime producer with nearly half (48 per cent and C$64.2-million) of total sales across the country.

FRIES

In England, where fries are one of that nation's favourite foods, there are 8,200 chip-fat pan fires each year that result in 34 deaths and 3,000 injuries.

LANGUAGE

Statistics Canada reports that there are more than 600 private sector firms that comprise Canada's language industry, including translation and training. They reached revenues of over C$404-million in 2004. Translation services revenues reached $154-million, or 38 per cent of total revenues. Classroom and online language training reported the highest revenues at $193-million, or 48 per cent of total revenue. About 7,405 permanent workers were employed in the industry.

SMELTING

U.S. aluminum giant Alcoa Inc is launching a feasibility study to build one of the world's first geothermal-powered smelters in Iceland as it seeks sources of power cheaper than in the U.S. and Europe. Power accounts for about a third of the cost of making aluminum and is about 30 per cent cheaper in Iceland than in other locations. Power for a second plant will be provided by Iceland's state-owned power company which is building a hydroelectric dam generating electricity from ice floes off Iceland's biggest glacier.

CHALLENGES

A new international survey reveals that executives are much more likely to leave a job for a greater challenge than for a bigger salary. Lack of challenge or career growth was the reason that 33 per cent of respondents changed jobs according to the study which polled 2,000 people in 80 countries. Ineffective leadership drove another 20 per cent from their jobs.

LUXURY

The Japanese company behind luxury heated toilet seats is opening a factory in Mexico in a bid to keep up with surging demand in the U.S. They claim the move will help lift sales of the seat which transforms into a warm water-spraying bidet at the touch of a button. The system was originally created by a U.S. company for the elderly and people with disabilities before the patent was bought by a Japanese company in the late 1960s. The new factory will be able to make 400,000 seats a year by 2008.

AIRPORTS

China expects to spend US$17.4-billion over the next five years on its airports as its expanding economy fuels demand for air travel. The country predicts its fleet of airliners will reach 1,580 by 2010, up from 863 flying currently. This is expected to accelerate to 4,000 commercial jets by 2020. By 2010, the mainland will have about 186 airports, up from 142 currently.

PRESCRIPTIONS

The UN drug watchdog says the abuse of prescription drugs in some parts of the world now rivals the use of all other illegal drugs. It claims this is a major problem in the U.S., Canada and Mexico where the abuse of prescription drugs, especially painkillers and inhalants, has been identified a major issue by the Vienna-based agency.

ROBOTS

Scientists have devised a way to help robot surgeons work in time to a beating heart. Usually, bypass surgery involves stopping the heart beating and, during the operation, sending blood round the body using an artificial pump. This involves opening up the heart and sending blood through a machine. However, the scientists have developed software that synchronises the movement of robotic surgical tools with the heart's beat. This allows surgeons to operate with the chest closed.

ANALOGUE

The U.S. Congress has approved plans to force broadcasters to switch off their analogue signals by 2009. Congress has also allocated US$1.5-billion to ensure Americans can convert their TV sets to receive digital signals.

MARKETS

Driven by advances in education and employment, the African-American market now commands a buying power of US$762-billion annually which is expected to reach $981-billion by 2010. Having roughly the same purchasing power as Hispanics, African-Americans have been left behind when it comes to marketing and advertising because Hispanics have been expected to have more rapid population growth.

ADVERTISING

The Super Bowl, European Championship Soccer and Formula One's Canadian Grand Prix each drew more than 50 million viewers in 2005, proving that top sports programmes are among the few remaining in a fragmented TV landscape to deliver large global audiences for advertisers.

LEAFLETS

A government department in the U.K. has been urged to cut the number of leaflets it produces after officials found they often made little sense. The Department for Work and Pensions spent US$62-million last year on publishing 250 different leaflets. The National Audit Office found they were frequently out of date and difficult for the public to understand.

DVDs

According to Screen Digest, consumer spending on DVDs in Europe fell last year, despite more being sold than ever. The price of the average European DVD fell by more than 11 per cent to just under US$20.00. Price reductions meant spending fell by 1.7 per cent, even though 732 million discs were sold, more than ever before. The publication predicts that VHS cassettes will die out completely by 2008.

BEACHCOMBING

An Australian couple who picked up an odd-looking fatty lump from a quiet beach are in line for a cash windfall. They took home a 14.75kg lump of ambergris, found in the inside of sperm whales and used in perfumes after it has been vomited up. Worth about US$20 a gram, the piece found on the Australian beach is worth about US$295.000.

GOLD

Fast-rising demand from China and India has helped lift the price of gold to 25-year records. Largely because of the growth in those two countries, global jewellery sales reached a record US$38-billion last year. In the third quarter of last year, Chinese shoppers bought 57.7 tonnes of gold jewellery, up nine per cent from a year earlier.

BABIES

The German government is urging companies to develop more family-friendly policies in a bid to make working life more attractive for staff with young families and help reverse the country's declining birth rate. Improved child-care facilities, easing mothers' reentry into the workplace and more flexible hours for young parents are among the goals of the new policy.

OIL

World-beating oil reserves in Alberta are finally being brought into production after years of talking about it. The oil is bound up in black bituminous sand close to the surface. Even though the reserves are huge and so obvious, the oil sands have to be steam heated to release the oil. Until recently, it's been a prohibitively expensive process but with the current high cost of oil, it is now worth extracting. Recent calculations show that the Alberta reserves are second to Saudi Arabia.

SUCCESS

An Italian "lawyer" who lost just one case out of 200 in a successful 13-year career, is facing an appearance in court after confessing that she has no legal qualifications.

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

April 2006 Economic Digest - Importing and Exporting

April 2006 Edition

 COLAS

United Arab Emirates-based Mecca Cola, touted by its makers as an Islamic alternative to Western brand soft drinks, has seen sales triple since anger erupted in Moslem countries over the cartoons published in Denmark. Muslin consumers in Europe were the target for Mecca Cola when it was introduced in 2002, but demand has now surged elsewhere. One billion litres of Mecca Cola were sold in 2005. In Malaysia, a key market, demand was 500,000 cans a month last year. It is now 1.5-million cans a month.

WRECKS

Last year CN Rail's main-line derailments jumped 35 per cent and rival CP Rail experienced a five-per cent increase while both carriers' accident rates climbed sharply over seven years. CN had 103 domestic main-track derailments, up from 76 in 2004 and 56 in 1999. CP had 66 derailments on main lines last year, compared with 63 in 2004 and 37 in 1999. CN's capital budget is C$1.5-billion this year with $800-million going towards replacing rail, ties and other track material, as well as upgrading bridges and signalling systems.

YACHTS

China's boat builders are turning to B.C. yacht engineers and designers in anticipation of a surging demand for large luxury craft as the number of wealthy Chinese continues to soar in the world's fastest-growing economy. While production in China is driven by low cost labour, most Chinese boat builders so far only manufacture smaller leisure boats. It is estimated that there are now more than 300,000 Chinese people with a net worth of at least US$1-million, excluding property.

PINEAPPLES

After 90 years in the islands, Del Monte states it will cease pineapple production in Hawaii in two years because the crop can be grown more economically elsewhere in the world.

WEATHER

The Journal of Science reports that in the late 20th Century, the Northern Hemisphere experienced its most widespread warmth for 1,200 years. Last year, Science published a paper showing atmospheric levels of the greenhouse gases carbon dioxide and methane are higher now than at any time in the past 650,000 years.

FLOWERS

The cool Andean valleys of Ecuador offer ideal growing conditions for roses and produce luxuriant blooms. Ecuador is now the largest exporter of cut flowers to the United States after Columbia. Critics complain that the country employs child labour and that workers have suffered from exposure to pesticides and punishment for trying to form unions. Now, exporters representing almost three-quarters of the country's rose beds have applied for certificates to show they meet basic environmental and labour standards. Though the market for "green" and "organic" flowers is growing in Europe, it is still small in the U.S.

HEALTH

A chemical in vegetables such as broccoli, cauliflower and cabbage can boost DNA repair in cells and may stop them becoming cancerous. Another chemical in soy also performs the same role. Also, a "slimmer" potato with as few as half the calories of the normal potato has been discovered by scientists.

SPACE

It now costs more than US$26 to rent a square foot of space in a large warehouse close to London's Heathrow airport. The next most expensive space is found in Dublin, Hong Kong, New York and Tokyo. Industrial rents are flat in the U.S. but rising in parts of Australia and New Zealand where high-quality space is hard to find. Such shortages are no longer a problem in Toronto where speculators are struggling to fill all the new warehouses they have built.

HOUSES

The average price of a home in Britain reached nearly US$353,000 in February, up 2.7 per cent from January's $343,000, the highest jump in two years. The price is being driven by a shortage of sellers and rising demand from buyers. The most expensive houses were in Greater London where the average asking price was nearly $517,000.

WATER

In 2004, the world consumed 154-billion litres of bottled water, an increase of 57 per cent in just half a decade. Huge resources are needed to draw it from the ground, add minerals, and package and distribute it, sometimes halfway around the world. Critics claim that, in industrialized countries, bottled water is no more pure and healthy than water that comes from taps.

MALARIA

The World Health Organization estimates that malaria costs poor sub-Saharan Africa US$12-billion a year in lost output and consumes 40 per cent of all the region's public-health spending.

CULTURE

Unesco has made a brave attempt to compare national data on international trade. In its report International Flows of Selected Cultural Goods and Services, 1994-2003, Unesco figures that world trade in all categories of cultural goods (including visual art, heritage goods, books, newspapers, recorded media, audiovisual etc) almost doubled from US$39-billion in 1994 to $59-billion in 2002, representing around one per cent of total world trade. The Unesco report also estimates that cultural and creative industries account for over 7 per cent of the world's gross domestic product.

SIZE

Royal Caribbean International has ordered the world's largest and most expensive cruise ship, a US$1.24-billion vessel that will hold up to 6,400 passengers. It's the latest step in the industry trend of supersizing ships. The ship, likely to be built in Finland, will be 1,180 feet long, 154 feet wide at water level and 240 feet high.

MAPPING

Statistics Canada reports that Canada's surveying and mapping industry generated C$1.95-billion in operating revenues in 2004. Operating revenues for firms classified under geophysical surveying and mapping rose to $1.07-billion, up 9.5 per cent over a year earlier while non-geophysical (land surveying) revenue was steady in 2004 generating $885-million.

SPRAWL

According to the national Resources Inventory, about 13.8 million hectares of countryside in the U.S.--an area the size of Illinois--was converted to developed uses between 1982 and 2001.

SCHOOLS

Students who are veteran computer users tend to do better at school than those with limited experience according to a study by the OECD. Although access to computers is now common at school, the study shows that 15-year-olds use computers more often at home. Usage at school is highest in Britain, Denmark and Australia. The U.S. and Canada are eighth and tenth respectively.

SANITARY

Scientists in Australia have developed an environmentally friendly coating containing special nanoparticles that could do the job of cleaning and disinfecting for us. Previously, self-cleaning materials were limited to outdoor applications because ultraviolet light was required to activate the molecules in the coatings.

POLLUTION

Pigeons fitted with cellphone backpacks are to be used to monitor air pollution in California. Researchers will fit a flock of 20 birds with a tiny mobile circuit board containing sensors to detect carbon monoxide and nitrogen dioxide. A miniature camera and a link to the GPS satellite system will enable the birds to send back text messages and pictures from smog-filled areas.

TRUCKING

Net income for trucking companies reached C$1.5-billion in 2004 compared with an average of $1-billion over the previous three years. There were 3,114 Canada-based trucking companies with annual revenues of more than $1-million in 2004, a 7.6 per cent increase from 2003. Trucking is the dominant mode, in terms of revenue, for transporting goods between Canada and the U.S.

SCENTS

Every year, the US$6-billion American perfume industry launches 350 new scents.

BRANDS

A recent survey by the market research company ACNielson shows that the Italian fashion labels Giorgio Armani and Gucci are the world's most coveted brands. The survey polled 21,000 people in 42 countries. One in three consumers said they would buy Armani or Gucci products if money weren't an issue. Another Italian label, Versace ranked third. Among the other brands consumers said they most desire are Christian Dior, Ralph Lauren and Louis Vuitton.

BABIES

Fertility treatment is a business with more than one million customers and revenues of US$3-billion a year in America alone. Top quality eggs cost about $50,000. A surrogate mother costs about $59,000. Guatemala generates around US$50-million a year by exporting babies at around $25,000 a time. These businesses thrive, in part, because they are in a global industry that is regulated nationally which leaves huge loopholes to be exploited by the customer willing to travel.

RETIRING

Scientists have predicted that the development of anti-aging therapies that significantly extend lifespan will lead to retirement ages needing to be raised as high as 85 by the middle of the century. If medical advances increase the average age of death by 20 years by 2050, few countries' economies will be able to cope without forcing people to work for much more of their lives. In countries such as Britain and the U.S., the retirement age would have to rise to 85 to maintain today's ratio of working people to the retired. In Sweden, even this increase would not be sufficient.

SNACKS

In an attempt to win the snack food dollars of Canada's largest ethnic group, one company is launching a new line of Asian-inspired potato chips and snacks. Bags of wasabi and spicy curry-flavoured chips are now on the shelves of grocery stores in Vancouver and Toronto. Chips account for more than 50 per cent of Canada's $1.1-billion salty snack food market. In the Greater Toronto area alone, South Asians annually spend C$12.6-billion on retail goods and services and Chinese consumers spend $12.2-billion.

SHIPPING

One large forestry company is launching a new ocean shipping service from British Columbia to southern California to bypass costly transportation bottlenecks most of which are along the I-5 corridor through the U.S. The ship has a capacity of 10,200 gross tonnes and will be able to carry both break-bulk cargo and containers. The ship is to complement the company's current modes of truck, rail and barge transportation but more shipping may be in the company's future.

OUTSOURCING

A study by the Asia Pacific Foundation has found that the outsourcing of production to Asia is not as popular in Canada as it is in the U.S. A survey of 110 Canadian companies with a presence in Asia shows that the main reason for their investment there is to serve the growing Asia market. Only 12 per cent of respondents said their investments were aimed at serving Canada while 62 per cent said their Asian activities were aimed at the Asian market.

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

March 2006 Economic Digest - Importing and Exporting

March 2006 Edition

PORTS

Shanghai, China's commercial capital, has surpassed Singapore as the world's top cargo port, a result of the country's fast-expanding trade in goods. Total cargo handled rose 17 per cent to 443 million tonnes in 2005, some 21 million tonnes more than Singapore. However, China's largest metropolis ranked third as a container port behind leaders Hong Kong and Singapore.

EXPANSION

Home Depot is planning to curtail retail store openings by nearly half over the next five years and rely more heavily on sales to commercial and industrial customers. It expects to open 80 to 100 stores a year and will continue experimenting with smaller stores in rural and urban areas. To compensate for slower retail growth it is hoping it can quickly capture a large share of the US$410-billion professional supply and maintenance industry.

MUSIC

The market for digital music downloads via the Internet and mobile phones nearly tripled in 2005, accounting for six per cent of total record industry sales. The value of digital music downloads rose to US$1.1-billion last year, up from $380-million in 2004 as music fans downloaded 420 million single digital tracks, twenty times the number legally downloaded two year ago.

HELP WANTED

Thirty-five per cent of respondents in a recent U.S. survey of various retail categories surveyed said they plan to shop for a new job in 2006. Compensation continues to top the list of retail workers concerns with more than half saying they did not receive a raise last year and 84 per cent reported not receiving a bonus. The number who are dissatisfied with their pay increased to 60 per cent, up from 54 per cent a year previously.

PCs

Global shipments of personal computers rose 15.3 per cent in 2005. Worldwide sales of Pcs rose to 219 million units from 189 million in 2004. Shipments in Europe, the Middle East and Africa rose 17 per cent to 72 million units overtaking the U.S. which rose 7.5 per cent to 67 million units. The fastest growth in 2005 was Asia Pacific and Latin America where unit sales increased 26 per cent to 43 million and 15 million respectively.

MAGLEV

A Tokyo company has announced that the first elevators controlled by magnetic levitation will be in operation as early as 2008. Using no cables, they will employ so-called maglev technology, capable of suspending objects in midair through the combination of magnetic attraction and repulsion to control the elevators. The maglev elevators will be quieter and more comfortable and will travel at 300 metre per minute, not as fast as conventional elevators which can move up to 1010 metres a minute. This technology has already been used to develop high-speed trains

CONGESTION

The crowded skies will get more crowded this year over the U.S. with the appearance of small, speedy, cheap jets that the big airlines worry will cause traffic jams around major airports. Called "microjets" or very light jets (VLJs), they have two engines and seating capacity for five or six people. They cost half as much as the most inexpensive business jet now in service. Three thousand of the little jets are already on order.

MINING

British Coumbia has seen the province's mining industry receive the biggest investment in exploration in a decade. Investment rose last year to C$220-million, up from $29-million just four years ago. High commodity prices have contributed to this increase as have changes to government policies and tax changes. Mining provides about 25,000 jobs in the province but the industry will still need more skilled workers.

CHAMPAGNE

Worldwide shipments of champagne topped 300 million bottles in 2004, an increase of two per cent over the previous year. Britain imports more champagne than any other country.

NAFTA

Surface trade between the U.S. and its NAFTA partners, Canada and Mexico totalled US$64-billion last October, the highest monthly level ever recorded. From that record, trucks hauled 63 per cent of US imports and 79 per cent of exports. The $42-billion surface trade with Canada and $22-billion with Mexico were monthly records also. Trucks carried 53 per cent of imports from Canada and 82 per cent from Mexico. Michigan led all states in surface trade with Canada with $6.5-billion while Texas' surface trade with Mexico was $7.2-billion in October.

PROFIT

The Shakespeare Globe Theatre in London has turned conventional thinking about arts subsidies on its head when it disclosed recently that it had made a pre-tax profit of around $3-million every year since it opened a decade ago. The replica of an Elizabethan theatre was expected to be a loss-maker and at best a small tourist attraction when it opened.

INVENTIONS

In 1944, Silly Putty was a failed attempt to make a synthetic rubber for soldiers boots and airplane tires. It found fame and fortune when someone thought to package it in plastic eggs and sell it as a toy in 1949.

HEALTH

A new report suggests that changes in western diets and farming methods over the last 50 years have played a major role in significant rises in mental health problems. Researchers say less nutritious and imbalanced diets have led to growing rates of depression, schizophrenia, attention deficit hyperactivity and Alzheimer's. Pesticides have altered the body fat composition of animals farmed for meat resulting in a large reduction of key nutrients such as essential fats, vitamins and minerals being consumed by large parts of the population.

CUBA

China became Cuba's second-largest trading partner after Venezuela in 2005, but Chinese companies worry about collecting payment for their increasing sales of durable goods to the Island. China's growing influence on the Cuban economy is evident on the streets and in the shops where Chinese goods such as toys, clothes and sports equipment have replaced imports from other countries. China is selling Cuba television sets, electric cookers, rice steamers and light bulbs as well as buses and locomotives. Chinese exports to Cuba in the first 10 months of 2005 grew 95 per cent to over US$500-billion to move from fourth place to second, displacing Spain and Canada.

DOOMSDAY

Norway is planning to build a "doomsday vault" inside a mountain on an Arctic island to hold a seed bank of all known varieties of the world's crops. Located on Spitsbergen, it will be designed to withstand global catastrophes like nuclear war or natural disasters. that would destroy the planet's sources of food. There are currently about 1,400 seed banks around the world, but a large number are in countries that are either politically unstable or face threats from the natural environment.

TRENDS

Major U.S airlines, in search of greater efficiency, are adopting new ways of getting passengers to board their flights. For instance, United Airlines boards its window passengers first followed by those in the middle and aisle seats. Its boarding is now four to five minutes faster, saving about US$1-million annually the company claims.

SEARCHING

Top technology minds in laboratories across France and Germany are working on what they hope will be the world's most advanced multimedia search engine, with tools for translating, identifying and indexing images, sound and text. Quaero, which means "to search" in Latin, is billed as Europe's answer to Google. The technology would work with desktops, mobile devices and even televisions.

TASTE

Canadians now spend more money on green, herbal and flavoured teas than they do on the traditional black tea. Last year, sales of green tea jumped 37 per cent on top of a 31 per cent increase the year previously. It's a trend that is transforming Canada's tea business. Six years ago, black tea commanded 60 per cent of tea sales. 77 per cent of Canadians consume an average of 0.59 kilograms of tea annually ranking 25th in world among tea drinking countries. Ireland is first, followed by Britain.

COMMODITIES

Experts forecast that 2006 will not be the year when India becomes the next big driver of commodities, pushing prices even higher. India's economy is still focused primarily on services rather than commodity-intensive manufacturing that isu driving China's boom. India makes up only two per cent of the world's demand for copper, aluminum and nickel. By comparison, China consumes about 22 per cent of the world's copper, 23 per cent of its aluminum and 16 per cent of its nickel.

THEME PARKS

Attendance at North America's 50 most popular amusement parks rose 4.2 per cent in 2005, powered by strong investment in new rides, the 50th anniversary of Disneyland and a hurricane season that by-passed the theme park capital of Orlando, Florida. An estimated 176-million visitors went to North America's most popular parks. Worldwide, amusement park attendance increased 2.2 per cent to 253-million visitors in 2005.

SPACE

A survey of prime office space shows that London is well out in front at a hefty US$141.72 per square foot. Now York is $44.85, Paris $72.06 and Tokyo $111.45. Britain's commercial real estate sector is booming so much that more than $100-million in property changed hands in 2005.

CAMERAS

Britain is to become the first country in the world where the movements of all vehicles on the roads are recorded. A new national surveillance system will hold the records for at least two years. The network will incorporate thousands of existing CCTV cameras which are being converted to read number plates automatically night and day and provide 24\7 coverage of all motorways and main roads as well as towns, cities, ports and gas-stations. Thirty-five million plates will be read each day.

HAPPINESS

In a "life satisfaction index" of 100,000 people in 90 countries, Canadians (69 per cent satisfied) were tied for eighth place, with Finland and Ghana. The happiest place was Malta (74 per cent happy). The U.S. ranked 13th on the list and Britain 21st.

BROADWAY

A string of high-performing musicals and plays helped Broadway to a record year. Ticket sales were US$825-million in 2005, up from $749-million the previous year. Although ticket prices did rise in 2005, an extra 650,000 visited Broadway theatres in 2005. Prices were as high as US$110 for the best seats.

HOURS

Today, the average American puts in 36 hours more than the Japanese (1,825 versus 1,789). The hardest workers are the South Koreans with 2,394 hours a year, followed by the Greeks, Poles, Turks and Czechs. The land of leisure is Norway whose average worker spends just 1,364 on the job.

WASTE

According to the Bumper Book of Government Waste the UK government spent half a million dollars last year on a scheme to advise the elderly how to wear slippers in case they tripped downstairs.

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

February 2006 Economic Digest - Importing and Exporting

February 2006 Edition

TRADE

Soaring export levels have trebled China's trade surplus for the first 11 months of 2005 to US$91-billion. Total foreign trade rose by 23 per cent in 2005 and was worth $1.2-trillion. The European Union is still China's main trading partner, trading goods and services worth over US$200-billion. China has now overtaken the U.S. as the world's largest exporter of hi-tech goods like computers, mobile phones and digital cameras.

DRINKS

Coke and Pepsi are headed for their first annual decline in U.S. soft drink sales in at least four decades as health-conscious consumers switch to bottled water, sports drinks and juices. Coke, the world's largest soft-drink company gets 82 per cent of its revenue from carbonated beverages, and is spending an additional US$400-million to win back soda drinkers and develop new products. The shift away from soft drinks is most pronounced among young people.

ALPACA

This shaggy wool is an economic mainstay for many villages in Peru and is the key to helping more than 150,000 of the poorest Peruvian families. Peru has some 3.5 million alpacas, some 80 per cent of the world's total. The country now plans to ban the export of live alpacas. As a result of such exports, there are now herds of around 60,000 alpacas in both Australia and the United States. Thanks to its ability to carry out genetic improvement, in 20 years Australia could overtake Peru as a producer of alpaca fibre.

INDIA

A new study indicates that India could earn US$60-billion a year by 2010 from information technology and outsourcing. Business worth US$110-billion is expected to be outsourced worldwide by 2010 and India is set to capture half of it. India's IT and outsourcing sector is currently worth about US$22-billion and expects to grow by 25 per cent until the end of the decade. The forecast predicts that the sector could employ about 2.3 million workers by 2010 compared to 700,000 now.

INVENTIONS

Bubble Wrap was created in the 1950s by two men working in a New Jersey garage who thought they had created a new textured wallpaper.

KANGAROOS

There are estimated to be 57 million of these animals in Australia where they do extensive damage to crops and property and compete with livestock for food and water. Now, scientists are experimenting with scaring them off with the thumping sound of the animals' own large feet, the animals own alarm signal. This sound is proving much more effective than some traditional methods such as artificial high pitched squeals.

BOOKINGS

A decade after the technology was first inaugurated, about 400 million passengers around the world are now booking their flights over the Internet.. The airline industry is now saving about US$1.2-billion a year by not having to pay flight reservation fees for the tickets sold on-line. British Midland Airways started using its first on-line booking engine in December 1995.

COLOUR

A recent study of 200 large law firms in the U.S. shows a strong majority, 58 per cent, use the same colour, classically conservative blue, as their main marketing colour. Experts say that blue is also the respectable colour of royalty and is also known to have a "calming" effect. The next most popular choice, at 19 per cent, was red a hue associated with "action and excitement." Just 8 per cent favoured grey and 2 per cent green.

ARCHITECTURE

After double-digit growth in 2002, Canadian architectural firms recorded a year of modest growth in 2004 as revenues slowed. Operating revenues of architectural firms amounted to C$1.9-billion, up only 2.5 per cent over the previous year. Firms in British Columbia recorded healthy revenue growth of 14 per cent, second only to Ontario which accounted for almost half of industry revenues.

ACCIDENTS

A U.S study has found that people who live within a mile of a grocery store have a 26 per cent higher risk of being in an auto accident, and thus pay higher insurance rates, second only to those living within a mile of a restaurant who have a 30 per cent higher risk of being in a car crash. The study looked at over 15 million policyholders and 2 million claims mapping the closeness of the vehicle owners' addresses to various businesses.

WORTH

By the third quarter of last year, the wealth of Canadians was greater than any time in history. The net worth of households rose to C$4.6-trillion according to Statistics Canada. That is about six times Canadians' annual disposable income. The ratio surpasses the previous high at the peak of the tech bubble in 2000. Real estate has picked up the slack in the Canadian economy with the value of households' real estate assets surging past $600-billion.

BEES

In Paris, several dozen apiarists tend their bees in balconies, parks, gardens and even the roof of the Paris Opera House. The city grows a wider range of plants than any comparably sized piece of countryside. There are advantages for the bees in city living because there are no poisonous pesticides or insecticides unlike the heavily sprayed French countryside. Also, the urban temperature is a few degrees warmer so bees can stay out longer. Some hardier specimens are out as late as December.

EXPORTS

By late last year, high natural gas prices and booming sales to the U.S. pushed energy to the top of Canada's export list, ahead of the perennial leaders cars and machinery. Energy exports totalled C$9.2-billion last October, nearly all of that to the U.S. Machinery and equipment exports totalled $7.9-billion and cars $7.8-billion in the same period.

CARDBOARD

China's shortage of natural resources and burgeoning manufacturing sector has triggered a rush to buy recycled cardboard. At the Port of Los Angeles, the No. 1 export by far is waste paper. At nearby Long Beach, it's No. 3 behind petroleum coke and petroleum.

LUNCH

A British supermarket is launching the ultimate life-enhancing snack, the musical sandwich. In a trial certain to be welcomed by the estimated one million Britons who eat their lunch at their desks each day, technology similar to that used in singing greeting cards will be used to sell musical sandwiches. Opening the top of the sandwich box will activate a tiny sound module that plays a selection of music.

RAILROADS

Amid rising fuel prices, more companies in the U.S. are turning to railroads as a cheaper way to transport goods. In fact, intermodal traffic, which includes loading trailers on flatbed railroad cars broke records in 2005. The surge in freight is so pronounced that it threatens to create a capacity crunch. With demand now exceeding supply, the rail system is strained overall and the problem is hard to fix. Unlike highways and waterways, the majority of the nations 140,000 miles of freight rail has been privately owned since deregulation in 1980.

TOURISM

Some experts are claiming that Canada is losing out to other countries as a global tourist destination and suggest a fresh strategy is urgently required that goes beyond selling mountains and wide open spaces. New destinations, notably Russia, Eastern Europe, Latin America, Southeast Asia and the Middle East are rapidly winning a greater chunk of the global tourism pie while Canada's share slips. Twenty years ago, Canada had 3.5 per cent of the global tourism business. It has now declined to under 2.9 per cent.

COWS

The Times of London reports that there are now 1.4-billion cows worldwide, each producing 500 litres of methane a day and accounting for 14 per cent of all emissions of gas. Carbon dioxide is by far the biggest contributor to climate change but methane has 23 times the warming potential of CO2, so reducing its emission is considered important. Scottish researchers have developed a diet that can reduce the amount of methane emitted by cows by as much as 70 per cent.

GOLF

Wealthy Chinese tourists could soon replace their American and Japanese counterparts as the most welcome high-rollers at Ireland's top golf courses. This year, four hundred rich Chinese will travel to Ireland to play, following deals with two golf clubs and two travel agencies in Shanghai. There are just 200 golf courses in China with 1,000 under construction. An AC Neilson study has found that Chinese tourists spend more abroad than tourists from any other country.

POWER

Most TVs, VCRs and other electronic devices remain in a standby mode when not in use, silently using up energy to the tune of 1,000 kilowatt hours a year per household. A computer left on can draw nearly as much power as an efficient refrigerator. The U.S. Environmental Protection Agency claims that Americans spend more money to power DVD players when the machines are turned off than when they are actually in use.

SUPERMARKETS

A new book claims there are no coincidences at supermarkets. For instance, many stores position the fruit and vegetable section near the front entrance because produce is the most lucrative part of the store and because the margin is the highest. Also, the ceilings are often slightly lower in the check-out section because it makes the interaction more personal and intimate.

FRANCE

In a victory for consumers, the French government recently fined the country's three main mobile telephone operators for colluding to set prices for phone calls. A few months ago, six major hotels in Paris were also fined for price fixing.

WIND

A new United Nations map shows that windmills have far bigger than expected potential for generating electricity in the Third World from China to Nicaragua. The new maps, part of a $9.3-million study, use data from satellites, balloons and other sources to model winds in 19 developing countries. Nicaragua, Mongolia and Vietnam had the greatest potential with about 40 per cent of the land area suitable for windmills. Least promising were Bangladesh, Cuba and Ghana.

MONEY

The World Bank reports that immigrants from poor countries sent more than US$167-billion home last year. This total is on a par with the amount of direct foreign investment in developing countries and more than twice the value of foreign aid. The Bank also reports that money sent through informal channels could add 50 per cent to this estimate. India, China and Mexico are the biggest recipients.

WEIGHT

A Taiwanese geologist is suggesting that the huge weight of the world's tallest building, Taipei 101, could be responsible for triggering a sharp increase in seismic activity in the Taipei basin. He claims the 508-metre and 700,000 metric ton building may have reopened an ancient earthquake fault.

STRESS

Yoga instructors are being employed on German trains to help calm stressed-out passengers. Commuters may also be treated to massages and be shown how to sit properly.

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

January 2006 Economic Digest - Importing and Exporting

January 2006 Edition

WIND

The Ontario government has unveiled plans for eight major wind power projects worth up to C$2-billion, the latest sign that a hitherto fringe technology is being embraced in Canada. These wind projects will total 995 megawatts by 2010, enough to power 250,000 homes annually. The Manitoba government has also called for expressions of interest to develop 1,000 megawatts of wind power over the next decade.

APPRENTICES

Statistics Canada reports that about one half of the individuals who registered in some sort of apprenticeship program in 1992 in Ontario, Alberta and New Brunswick had actually completed training a decade later in the trade they had chosen. A small minority were still in training by 2002. Some of these however, had completed their 1992 trade and were learning a new trade. This study traced a group of about 14,000 apprentices. Overall, about 50 per cent of apprentices interrupted their studies at some point.

COOKIES

One of Japan's biggest confectioners is re-tooling itself for the swelling ranks of the elderly. Because of the aging population, cookies and other products are being redesigned to look like the original, taste like the original and the first bite crunches like the original. But after that they must dissolve instantly so as not to strain aging jaws. Three years ago, one company developed a low-protein cookie aimed at the niche market of recovering kidney disease sufferers. It turned out to be a massive hit with the elderly because it was easy to chew.

FLASH

Soaring demand for consumer gadgets like Ipod and digital cameras is accelerating the production of flash memory that makes storing lots of data in a small space possible. The Semiconductor Industry Association has predicted that the sales of NAND flash memory will grow 16 per cent to US$21-billion in 2006 compared to $10-billion in 2005. The number is expected to rise to 35-billion in 2009. The entire market for flash memory is expected to blossom into a $47-billion market in 2009.

WAL-MART

A new Global Insight study has analyzed the national and regional impact of the largest U.S. retailer on the U.S. economy. The results found that the expansion of Wal-Mart over the 1985 to 2004 period can be associated with a cumulative decline of 9.1 per cent in food-at-home prices, a 4.2 per cent decline in commodity (goods) prices and a 3.1 per cent decline in overall consumer prices. The main driver of this impact was a 0.75 per cent improvement in the overall efficiency of the economy.

SEARCHING

Research has found that searching is now the number 2 activity for Web users. The report also found that reading the news is now the third most popular Web activity. The number of U.S. Web users taking advantage of search engines has risen sharply since mid 2004--from 30 per cent of the U.S. Web population in July 2004 to its current level of 41 per cent, which translates to some 59 million Americans. Despite the increase, searching has still to catch up with the top Internet activity: e-mail.

BUREAUCRACY

A European Union legal loophole is allowing Scottish farmers to pocket up to US$400-million in European funding. Hundreds of farmers no longer involved in agricultural production, including some who live abroad, are eligible for subsidy payments worth an average of $50,000 annually until 2012. One farmer collects $200,000 a year which is sent to Australia. Others receive $80,000 a year sent to France and $60,000 sent to Canada. The scheme is designed to reduce food production by European farmers and is available to all of Scotland's 20,000 farmers.

PUBLIC HEALTH

Since the late 1990s, average health spending in rich countries has risen in real terms at double the rate of economic growth . Since public money generally predominates in the financing of health care, this is straining government budgets. Yet public health and prevention programmes, which are especially cost-effective, account on average for only three per cent of current health-care spending.

ORGANIC

The number of Americans who have tried organic foods jumped to 65 per cent in 2005, compared to 54 per cent in 2003 and 2004. They are buying organic foods and beverages for a variety of reasons. The top three are: avoidance of pesticides (70 per cent), freshness (68 per cent) and health and nutrition (67 per cent). More than half (55 per cent) buy organic to avoid genetically modified foods. The main barrier to purchasing organic foods continues to be price.

LOGGING

According to the U.N.'s FAO, worldwide, a forested area the size of Canada's Maritime provinces has been cleared or logged annually since 2000. Widespread tree planting in China has slowed the rate at which the Earth's forested area is dwindling, but the clearing of tropical forests, much of it in areas never previously cut, continues to grow.

PLUMBING

In the 1890s, the most likely place for Americans to be killed by lightening was while lying in bed or doing something else around the house. The reason for this is that the houses of that era rarely had indoor plumbing, electricity or telephones. There were no grounded wires or metal pipes to attract the lightening and channel it into the ground. Without those modern metal conveniences, lightening can literally jump around inside a house looking for a path to the ground.

PESTS

Invented by Rentokil, a new humane trap has been developed that simply send vermin off to sleep by gassing them with carbon dioxide. Unconscious within ten seconds, they are dead in a minute. Not only is the device humane, it is also intelligent. It contains a cellphone unit that can send a text message or e-mail to the owner or a pest controller announcing that there has been a fresh kill.

INSOMNIA

An estimated 3.3-million Canadians aged 15 or older, or about one in seven, have problems going to sleep or staying asleep, and thus are considered to have insomnia. A study has found that just under one fifth (18 per cent) of these people average less that five hours of sleep a night. The study echoes earlier research that found close ties between insomnia and stress, as well as chronic conditions such as arthritis that involve pain. Weight is also a problem with a high proportion of people who were obese suffering insomnia.

PRODUCT PLACEMENT

Advertising has been creeping into TV shows and films for years. Now, Hollywood writers and actors are calling for a code to govern product placement in shows and films. Their main concern is not stopping such placements, rather their unions have demanded disclosure of details of product deals and a share of the billions of dollars in ad revenue generated by the practice. If they do not get a cut, they have said they will appeal to the government to intervene.

PORTS

Several Chinese companies are teaming up to build one of China's largest port facilities for shipping automobiles. Located in Guangzhou, it is scheduled to start operating in mid-2006 shipping finished cars from Toyota Motor Corp. Guangzhou is becoming a major auto production site. The US$62-million facility will be able to handle up to 600,000 vehicles a year.

PAINT

Air Canada is getting mixed results experimenting with stripping paint from parts of two of its 45-plane fleet of Boeing 767s. The airline figures that, in theory, it could save $24,000 a year in fuel bills for each plane shedding paint because that would reduce the weight of an aircraft by 163 kilograms.

FLU

Latest estimates are that up to 70 million workdays will be lost this season to influenza in the U.S. at a cost to employers of around US$8-billion in sick leave. A new survey shows that a company loses $110 for each paid sick day an employee takes.

GREAT LAKES

A new database shows rare species and lands around the Great Lakes which will help scientists and government to decide which areas most need to be conserved. The Great Lakes region is the world's largest freshwater ecosystem. It is home to the highest diversity of plants and species in Canada, but also to cities, industry and agriculture. The database highlights imperilled species found only in the Great Lakes basin including the aurora trout and dwarf lake iris, as well as healthy ecosystems such as sugar maple forests and coastal wetlands.

MANAGERS

A new survey shows that Chinese salaries for senior managers and professional jobs are as much as double the levels in India, although such disparities are harder to find outside China's white-hot coastal corridor. Human Resource managers, for example, earn average salaries of US$32,000 in China compared with $15,000 in India. Also, project managers earn a whopping 133 per cent more in China than in India. China is at a more advanced stage of industrial development than India and attracts 10 times the level of foreign investment which fuels higher economic growth.

PETS

The municipal government of Rome has passed a 59-point statute ordering better treatment for pets. Among its provisions: Dogs must be walked every day or their owners face a $740 fine. Choke collars are forbidden as are declawing and cosmetic ear and tail clipping for dogs and cats. A goldfish is entitled to a proper, full-sized aquarium and can no longer be given out as a prize.

OVERSUPPLY

Chinese industrial production continues to grow strongly but some government sources have started to warn of growing domestic overcapacity. Chinese steel demand exceeded 300 million tons in 2005 with production above 400 million tons. Demand is predicted to rise only marginally to 320 million tons by 2010 but output capacity is estimated to hit 530 million tons by 2008. Another official report warns that Chinese car production could be double that of domestic demand by 2010.

WINE

The palates of British drinkers are becoming more sophisticated according to recent figures which show the sales of fine wines are soaring. One major distributor reports a 43 per cent rise in sales of wines costing more than $50.00. The interest appears to have been stimulated by greater confidence and wine education among shoppers and more disposable income. The exorbitant prices changed by restaurants, where mark-ups of 300 per cent are common, has also persuaded drinkers to invest more in wines for the home. Sales have grown by 25 per cent since 1999.

CAPITAL

Britain has the best financial environment for entrepreneurs, according to the latest Capital Access Index produced by the Milkin Institute. Since 1998 the Institute has ranked countries according to the breadth, depth and vitality of their capital markets. This year's index covers 121 countries which between them represents 92 per cent of global GDP. Hong Kong and Singapore beat the U.S. into fourth place.

SUCCESS

Last month, the humble cardboard box was inducted into the U.S. National Toy Hall of Fame because of the joy that young children derive from playing with them.

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

December 2005 Economic Digest - Importing and Exporting

December 2005 Edition

TRADE

This month sees important world trade negotiations in Hong Kong. America currently spends over US$19-billion on farm production subsidies which heavily distorts trade. The EU spends up to $75-billion. The US has offered to cut their limit by 60 per cent if the EU will cut its permitted subsidies by 80 per cent. The US has also suggested limiting other subsidies which do not distort trade as heavily to 2.5 per cent of the value of agricultural production.

MUSIC

Global sales of music CDs fell by 6.3 per cent in the first half of 2005. But sales of digital music more than tripled to US$790-million. Music downloads and mobile-phone ringtones now account for six per cent of retail revenues. Of the countries with the most music sales, the British bought the most per person, thanks to their specialist music shops.

DETECTION

Scientists say they can train wasps to detect hidden explosives, plant diseases, illegal drugs, cancer and even buried bodies. Researchers have produced the Wasp Hound, a device that sounds an alarm when the insects encounter a target odour. They have trained a species of tiny parasitic wasp, incapable of stinging people, to detect target odours by associating them with food.

HAZARDS

Forget drunken driving, when cruising along Namibia's long and empty roads, unsuspecting drivers face a no less dangerous hazard: sleeping donkeys. At night the warm tarmac provides a more comfortable bed than the vast expanse of land only a few yards away. Invisible in the dark, the dormant asses, which help plough Namibia's land and pull its carts, have become the cause of many car crashes.

MAGAZINES

Thirty-five new magazines, mostly niche publications, were launched in the US in the third quarter of 2005. The publications range in editorial focus and type, from magazines serving policemen and law enforcement professionals to titles dedicated to music, archery and travel. The newest titles include nine new lifestyle magazines, six magazines for women, five titles serving African Americans and four magazines focusing on the arts and special hobbies.

CHEAP

The world's least sophisticated laptop computer has just been announced...and it will run by clockwork. The machine will cost less than $100 and is not aimed at the cutting edge of the corporate world but is destined for the poor of the planet. The laptop will have a basic processor, flash memory instead of a hard disk, will be powered by batteries or a hand-crank, and will run open-source software. The computer also puts all the many components behind the screen, not under the keyboard, doing away with the need for an expensive hinge.

ARMS

The International Peace Research Institute in Stockholm reports that global military expenditures hit US$1.04-trillion in 2004, nearing the historic peak of 1987-88. Governments spent an average of $1,262 per person on weapons and soldiers.

HOUSING

Last year, American households borrowed almost $600-billion against the value of their homes to spend on other things. Also, the purchase of a second home, perhaps for speculative purposes, is playing an ever bigger role in the housing market. Meanwhile, in August of this year, the median price of an existing home rose to $220,000, up by 15.8 per cent from a year before. This was the biggest annual price jump since 1979.

AQUACULTURE

Revenues generated by Canada's aquaculture industry fell for a second year in a row in 2004, in the wake of a decline in production and exports. The industry reported revenues of C$669-million in 2004, down 9.3 per cent over 2003. Finfish sales, which accounted for 87 per cent of total revenues fell 10.4 per cent. Aquaculture exports plunged 14.4 per cent to C$425-million. The most significant contributor to this decline was a 28 per cent drop in the value of Atlantic salmon fillets exported to the U.S.

ECONOMY

Brazilians are the beneficiaries of an automotive revolution: "flex-fuel" cars that run as readily on ethanol as on regular gasoline were introduced in 2003, and have grabbed nearly two-thirds of the market. Right now, ethanol in Brazil is up to 55 per cent less than regular gasoline. In the U.S., 4.5 million vehicles can run on blends of up to 85 per cent ethanol, but the fuel is scarce. In Brazil, ethanol is available everywhere thanks to a 30-year-old policy of promoting fuel derived from home-grown sugar cane.

SHOPPERS

The number of certified mystery shoppers in the U.S. has now surpassed 40,000, according to the Mystery Shopping Providers Association (MSPA) which has been offering a certification program since 2002 as a way to improve the quality of mystery shoppers in North America. There are currently two levels of certification, Silver and Gold which require taking special courses. According to MSPA, there are about one million mystery shoppers in North America and 250,000 in other countries.

RUSSIA

With revenues from Russia's oil exports pulsing through the economy, foreign auto makers are rushing to oil-rich Russia. Hyundai, the South Korean automaker, barely known there a few years ago, has seen a hundred-fold increase in cars sold this year and leads a pack of Asian car makers who are aggressively moving into Russia. In the first eight months of this year, purchases of imported cars rose 64 per cent to 348,459. By the end of the year, foreign brands could account for one-third of car purchases, up from five per cent in 2000.

EGGS

Large supercentres in Florida have begun to carry pasteurized-shell eggs. The manufacturer claims to produce the only shell eggs to undergo a patented pasteurization process that destroys harmful bacteria including Salmonella enteritidis (SE), the main egg-related salmonella virus. Each year, more than 118,000 egg related salmonella cases are confirmed, and many more are underreported or misdiagnosed in Florida. The FDA estimates 2.3 million eggs contaminated with SE were sold last year in the USA exposing a large number of people to risk of illness.

HEALTH

In 2004, for the first time, there were more ex-smokers in the U.S., 47 million, than smokers, 46 million. The percentage of American adults who smoke, about 22 per cent, is about half of what it was before the 1964 Surgeon General's report on the dangers of smoking.

RETAIL

The French company of Carrefour is the world's second-largest retailer after Wal-Mart. Carrefour brought hypermarkets, huge stores that sell a wide variety of goods in addition to food, to France in the 1960s. For two decades it has forged ahead with international expansion, with particularly big investments in Latin America and China. It is now the world's most international retail chain with hypermarkets, supermarkets and deep-discount stores in 28 countries. Last year its annual post-tax sales hit US$90-billion.

SIZE

The cube is an underused shape in the gadget world. However, the mobiBLU-DAH-1500, a tiny new MP3 player, embraces the form. Barely one inch high and wide, it resembles a sugar cube. It is available in six colours and holds eight to 10 hours of music in its single gigabyte of memory. It sells for US$129 for the one-gigabyte version and less than $100 for the 512-megabyte version.

VEGGIES

The Land Spring Garden restaurant near Beijing is China's first specialty restaurant serving what the government hopes will one day feed its enormous population: nuclear fruit and vegetables. The food is literally out of this world having been cooked using mutant giant vegetables from space. Since 1987, China has regularly sent seeds on their rockets into space where those exposed to the galaxy's radiation in zero gravity showed a variety of mutations. The vegetables showing the most promise have been aubergines, green peppers and tomatoes. The vitamin content of vegetables grown from space seeds is 281 per cent of ordinary vegetables.

DISEASE

A deadly new citrus disease is spreading through southeast Florida creating a fresh threat to the citrus industry. Citrus greening, a bacterial disease carried by an Asian insect, stunts growth, leads to bitter misshapen oranges and grapefruits, and eventually kills the tree. The disease could pose a greater threat than citrus canker, still widespread despite a US$500-million campaign to eradicate it.

TRADE

Canada wants to double trade with Russia as part of a drive to diversify beyond the U.S. market. Bilateral trade has nearly tripled in the past three years to US$1.7-billion, the bulk of it in Russia's favour. Canada's main exports to Russia include food products and construction materials while Russia sells Canada steel and other metals. Canada hopes to double its exports to Russia within three years.

GADGETS

Scientists in Finland have developed a new gadget to prevent cellphone and laptop theft. The device enables such equipment to detect changes in their owner's walking style, and to freeze if they detect unauthorized use. The first time it is used, the gadget's sensors measure characteristics of the owner's gait and store them in memory.

MONEY

For two years, card issuers and merchants in Canada have been building and installing new transaction systems that can handle credit and debit cards that store information on a computer chip. So-called smart cards will begin replacing magnetic strip cards late next year and the industry hopes to have the conversion completed by 2010. The cards contain chips with memory, software and their own operating system.

SPUDS

Researchers say that the first cultivated potato was grown in what is now Peru. Their genetic study shows the first potato known to have been farmed is genetically closest to a species now found only in southern Peru. The study did not address when the first potato would have been cultivated, but other research suggests it would have been between 7,000 and 10,000 years ago.

CLAIMS

In 2004, damage to insured property around the world from natural disasters totalled US$49-billion. That figure does not include last year's tsunami. Some calculations suggest that the majority of claims came from just four of Florida's hurricanes.

BANANAS

Even though it is America's No.1 fruit, bananas play a small part in the U.S. diet. But for hundreds of millions of people in developing countries, bananas are a dietary staple., the least expensive source of nutritious calories. The banana ranks fourth after rice, wheat and corn among the world's most economically important food crops. A typical person in Uganda, Rwanda or Burundi consumes more than 550 pounds of bananas a year.

HAPPY

In a recent British study of "happy" professions, hairdressers topped the list. Next happiest were clergy, chefs, beauticians, plumbers and mechanics.

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 2005 Economic Digest - Importing and Exporting

November 2005 Edition

 AGE

According to a new OECD study, Canada is in better shape than most to deal with an aging population, but the country still needs a major overhaul of its retirement practices if it wants to pre-empt weaker economic growth. Governments and companies have many rules and incentives that are skewed towards encouraging early retirement. Older people offer tremendous potential value to businesses, the economy and retirement. The study recommends that all provinces should ban mandatory retirement.

CONCRETE

A cement specialist with the United States Geological Survey claims that concrete is probably used more widely than any other substance. More than a ton of concrete is produced each year for every man, woman and child on Earth.

COLDS

A nasal spray that is claimed to be the first clinically proven treatment to stop a common cold from fully developing goes on sale in the UK this month.The spray, which contains no drugs, can both reduce the chance of developing a full-blown cold and the severity of symptoms. Research shows that the incubation period, which can last two days before full-blown symptoms develop, offers an opportunity to inhibit the virus before it takes hold.

EXPECTING

More than two-thirds of expectant mothers today willingly make changes to their eating habits after becoming pregnant. The altered habits that top the list: Taking vitamins (82 per cent); Consuming less or no caffeine (80 per cent); Avoiding artificial sweeteners (49 per cent). 78 per cent of women having their first child are likely to change the types of food they eat, while 63 per cent of women who have given birth previously are likely to do so. 42 per cent of all expectant and new mothers deemed eating natural or organic products important.

STARING

Nine out of ten British computer users suffer fatigue from staring at screens according to a new survey. Brits spend an average of 128,780 hours of their working life, or three and a half months a year, in front of computers or TVs. About 63 per cent of the 2,750 workers surveyed regularly leave work at the end of the day with headaches, and 53 per cent of them suffer from strained eyes.

HIGH-TECH

Wind propulsion is coming back in a new form: kites not sails. Next year a German company will begin outfitting cargo ships with massive kites designed to tug vessels and reduce their diesel consumption. It is estimated that these kites will reduce fuel consumption by about one-third--a big saving given that fuel accounts for about 60 per cent of shipping costs. This concept was tried in the 1970s in Japan and Denmark with little success. The insurmountable problem in each case was the mast.

CO2

Major players in the oil sand of northern Alberta are in talks to form a consortium to turn carbon dioxide emissions from hot air into cold cash. The group is examining options to create the infrastructure to ship carbon dioxide southward and find customers. For years CO2 has been regarded as a cost but now there is increasing interest in capturing it and storing it underground. It could then be shipped south in a special pipeline and used to boost the production of aging conventional oil wells. It can be injected underground and used to push more crude to the surface.

COAL

Canada is the No. 2 supplier behind Australia of coking coal. Chinese steel mills are gobbling up coal to feed booming demand for cars, appliances and infrastructure. Global demand for coking coal is expected to rise 10 per cent this year and by five per cent in 2006. This is prompting Canadian coal producers to boost output and bring closed mines back into production. Many of these mines, located in northern British Columbia, were closed because of soft demand and prices in the past decade.

HEMP

Sales of hemp foods in the U.S. have increased by 47 per cent in the past year to a total of US 4.75 million annually. Right now, the U.S. marketplace is supplied by hemp seed grown and processed in Canada and Europe. According to the Hemp Industries Association, hemp seed is nutritious and contains more essential fatty acids than any other source, and is second only to soybeans in complete protein, is high in B-vitamins and is a good source of dietary fibre. Hemp seed is not psychoactive and cannot be used as a drug.

GAS

Italy has almost 22,500 gas stations. By comparison, Germany has 15,400, France 14,200 and Britain just 10,500. Around 1.6 million litres are sold at a typical Italian gas station each year, compared with just over 3 million litres in Germany and France and 3.5 million litres in Britain.

SMOG

The fermentation process that turns grape sugars to alcohol releases ethanol, methanol and other organic compounds into the atmosphere, where they react with sunlight to form ozone, one of the components of smog, say California air regulators. The 109 vineyards in San Joaquin Valley help make that region's air one of the dirtiest in the U.S.

RIGS

Kuwait and Qatar, whose combined output accounts for 11 per cent of OPECs crude, say a shortage of drilling rigs made worse by damage from hurricane Katrina is likely to delay the development of new oil and gas fields. The rig shortage is the biggest in more than two decades. Saudi Arabia, the world's largest exporter, recently leased five offshore rigs currently in the Gulf of Mexico. The costs of shipping the rigs may exceed US $50-million. Oil and gas industries in the U.K and Norway are also facing a shortage of drilling rigs.

BENEFITS

Health insurance became the most expensive employee benefit for the first time last year in the U.S., surpassing paid leave, because costs have risen 70 per cent since 2000. Medical costs accounted for 33 per cent of the cost of employee benefits, compared with 32 per cent for vacation time, holidays and sick leave.

SPYING

Researchers have figured out a reasonably accurate way to eavesdrop on computers simply by listening to the clicks and clacks of the keyboard. Those seemingly random noises, when processed by a computer, can be translated with up to 96 per cent accuracy. This study build on a previous IBM one in which 80 per cent of text was recovered by the sound of keyboard strokes.

MOBILES

There is now almost one mobile phone for every person in much of the developed world. In Luxembourg, phones outnumber people, since many people who live in neighbouring countries have a second handset for use within its borders. Despite their enthusiasm for PCs and broadband links, Canada and the U.S. have been slower to adopt mobile phones than other rich countries.

INDIA

Global warming will push temperatures in India up by three to four degrees by the turn of the century, hitting agriculture and infrastructure. Rainfall will increase substantially in many areas resulting in problems with food supply, and affecting the livelihoods of much of the population as well as spreading diseases such as malaria. A new report also warns that rising sea levels due to global warming could damage India's vast coastal railway network.

SUGAR

Europe's former colonies are warning of social upheaval and a surge in trafficking in drugs in their countries if radical plans to overhaul European sugar policy are agreed later this year. The EU is recommending slashing minimum prices for beet and sugar, as well as output. Europe's traditional sugar suppliers in the African, Caribbean and Pacific are incensed over the plan saying it would rip apart their societies and economies.

ROMANCE

According to Avon Books, romance fiction has annual sales of US$1.41-billion worldwide annually. Half of all paperbacks sold internationally are romance titles and a third of all popular fiction sales are romance titles. There are 64.6-million readers of romance fiction in the United States and 22 per cent of them are men.

INFORMATION

Research suggests that three quarters of consumers are more likely to read the back of cereal packets than information sent to them by their financial service providers. 60 per cent of those surveyed do not regularly read their mortgage, pension or bank statements with 75 per cent saying they would rather read anything other than their financial mail. Women were more financially estranged than men with 90 per cent admitting they would rather read their horoscopes than their bank statements.

BALLPOINTS

It started as an answer to leaky pens carried by U.S. soldiers during the Second World War, was perfected and made popular by an Italian-born baron and has written its way into history as the world's biggest selling pen. More than half a century after honing a cheap version of the ballpoint pen, the French firm of Bic SA which built an empire out of making things meant to be thrown away has announced it recently sold its 100 billionth pen.

GOLD

Rampant economic growth in China and India has propelled consumer demand for gold jewellery to US$38-billion. The World Gold Council says the record figure for the last twelve months was driven by favourable conditions in key markets and promotion of the metal. Less than two years ago, the sales of gold for jewellery were stagnant as metals such as platinum enjoyed increased popularity.

SENIORS

A new cellphone has been launched in Japan which includes all the usual features of a mobile phone but with one crucial difference: It slows the callers voice down thus making it easier to understand for seniors. By toggling a switch on the side of the phone, it instantly converts all incoming voices to 70 per cent of their actual speed.

BUYER BEWARE

Italy is having a major crackdown on the sellers--and buyers--of counterfeit goods. Dozens, if not hundreds, of Italians and foreign tourists have faced stiff fines for purchasing fake sunglasses, handbags, belts and compact discs under one of the toughest counterfeit laws in the world. The fine may exceed the cost of the genuine article. Italy hopes the measures will dent a multi-billion -euro trade in phoney goods that has taken its toll on home-grown luxury labels like Prada and Gucci.

HEALTH

Coffee may soon be considered a health drink following a study showing it is a surprisingly rich source of anti-cancer agents. Coffee contributes more antioxidants, which have been linked with fighting heart disease and cancer, to the diet than cranberries, apples or tomatoes. This is the first time that coffee has been shown to be such a rich source of the agents.

BURGLARS

A UK survey of convicted burglars shows that twice as many burglars as ordinary householders use an alarm system when they go on holiday. Nearly a third of the burglars were so concerned about security that they fitted closed-circuit television in their homes, compared to four per cent of law-abiding householders.

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