October 2001 Economic Digest - Importing and Exporting

October 2001 Edition

 RUSTLING

Beef prices are at a 10-year high in Canada and that has triggered a run on cattle. In Alberta, the demand for meat has created a serious problem in cattle rustling. About 6,000 head of cattle disappear in Alberta every year costing ranchers $6 million. Livestock detectives say the problem is getting worse. Some ranches have lost more cattle in the last three years than in the previous forty. One ranch lost 11 head of cattle in one day worth $1,900 each.

WATER

Mexico has missed a deadline for the payment of water to the U.S. under an international treaty governing the Rio Grande, a critical source of water for farmers along the river's valley in South Texas. Mexico has owed the U.S. about 1.3 million acre-feet of water since 1992 under the agreement and was supposed to pay about 600,000 acre-feet to the U.S. by the end of July 2001.

ONLINE

Canadian women are among the world's most eager surfers in cyberspace, while Germany has the lowest percentage of women Internet users among 26 countries in Europe, North America and Asia. Of the 26 countries surveyed, only Canada and the U.S. had female majorities in cyberspace, with 51 per cent and 52 per cent respectively. The study showed that only 37 per cent of German on-line users were women.

HOURS

Roughly one in six workers in developed countries is a part-timer (less than 30 hours a week). In the past few years the incidence of part-time work has risen sharply in some European countries, notably the Netherlands and Belgium, but has fallen in the U.S. Women dominate the part-time workforce, but in some countries, such as Britain, the share of men has been rising, from 15 per cent in 1990 to 20 per cent in 2000.

TRENDS

The former Soviet republic of Azerbaijan has abandoned the Cyrillic alphabet in favour of Latin letters. A government decree has ordered that all official documents and commercial signs, along with Azeri-language magazines, books and newspapers, be written in the Latin script. The Latin alphabet was the official script for the Azeri language for almost two decades before Stalin imposed the Cyrillic alphabet in 1939. Further back still, Arabic script was also used.

LATIN AMERICA

Competition between Japan and South Korea for the South American market has intensified, especially in the automobile and naval sectors. In 2000, South Korea exported US$9.36 billion worth of goods to Latin America, while Japan's exports to the region totalled US$19.54 billion during the same period. South Korea was at a disadvantage with respect to the number of companies it operated in Latin America, only 116 compared with Japan's 753. Japanese companies have diversified from manufacturing to service sectors, such as finance and investment.

MOODS

A day after the Hong Kong Mood Disorders Centre opened in May of this year, 1,000 people jammed its telephone hotline asking for help. The flood of calls was unexpected. Asians typically don't see mood problems like depression as an illness requiring medical attention. They don't think it's appropriate to tell their doctor they're anxious or depressed. Instead they complain about chronic fatigue, insomnia, headaches, chest discomfort or poor memory.

RUSSIA

The Russian foreign trade protection commission has announced its intention to reduce, by five percentage points, the import duties on 400 items of industrial equipment. The current duty on industrial equipment ranges between 10 to 15 per cent. The decree will apply to iron and steel, automobiles, light and textile industries, machine tool construction and food industries.

BACTERIA

British scientists say cooking with copper pots instead of stainless steel may lower the risk of infection from food bugs. Researchers from the University of Southampton released a study on E.coli 0157 which can survive for more than a month on stainless steel. The researchers are hoping to develop the bacteria-killing properties of copper. They found that the bug was able to survive up to 35 days and sometimes as long as three months on stainless steel surfaces, whereas it was only able to live on copper for four hours.

AGING

The world's elderly population (those over age 60) will be one billion by 2020, or 13.3 per cent of an expected total population of 7.5 billion. This is up from 8.5 per cent of the population in 1980 and 11 per cent now. Almost three-quarters of seniors will live in developing countries.

OATS

Months of below-normal rainfall in Saskatchewan and Alberta have threatened this crop and sent prices surging to a three year high. The two provinces supply half the oats consumed in the United States. The grain is of such high quality that it is used in breakfast cereals and animal feed going to breeders of Kentucky racehorses. More than two-thirds of all oats in the U.S are consumed by livestock.

PORTS

According to StatsCan, Canada's major container ports have competed successfully against their U.S. counterparts for overseas container traffic. The keys to the success of Canadian container ports have been a combination of natural endowments, investments in intermodal facilities and competitive pricing. These factors are likely to continue into the future; however, the competition among container ports is likely to intensify as industry consolidation continues and as publicly funded U.S. intermodal terminal and corridor projects come to fruition.

APPRENTICES

In 1999, the number of registered apprentices in Canada increased 6 per cent to 188,776. Since 1994, the number of such apprentices has grown 14 per cent ? almost returning to the peak reached in the early 1990s. Registrations have increased by 15 per cent or more since 1994 in all but two of the major trade groups. The two exceptions are building construction and electrical and electronics trades, where increases over the last year raised registrations to about the same level as in 1994.

SOLAR POWER

Newly installed solar-powered parking meters have fallen victim to Britain's notoriously gloomy weather. This is allowing hundreds of motorists to escape paying for tickets. The City of Nottingham spent US$2.25 million on 215 high-tech meters earlier this year. More than a quarter of the machines have stopped working due to the lack of sunshine.

PETS

Americans are the most pet-fond people in the world. In the year 2000, Americans spent more than US $27 billion on their small companions which is more than India's annual defence budget. 17 per cent of U.S. citizens keep a picture of their pet in their wallet or purse.

FASHION

A Japanese company has invented T-shirts that automatically dispense vitamin C to wearers. Each shirt is made of fibres impregnated with as much vitamin C as contained in two lemons. The vitamin-dispensing power fades only after 30 washes.

ENERGY

Canada is a big supplier of energy to the U.S. to the tune of US$20.2 billion last year. We provide our neighbour with 9 per cent of its oil needs and 15 per cent of its natural gas. Some claim that the Alberta tar sands contain 300 billion barrels of oil, far more than Saudi Arabia's proven reserves.

SPORTS

In 1937, when Gallup began asking Americans to name their favourite sport, baseball was the runaway winner with 34 per cent, peaking at 38 per cent in 1948. This year, baseball polled just 12 per cent, an all-time low, and a distant third behind football and basketball

FISH

Aquaculture sales soared past C$600 million in 1999 in the wake of increases in both production and prices of fish products. The industry generated revenues of C$611.4 million, a 17.6 per cent gain from 1998. Finfish, mostly salmon, accounted for C$560.2 million in sales, 91.6 per cent of the total, while molluscs accounted for C$44.8 million, or 7.3 per cent. Aquaculture exports increased 5.2 per cent to C$385.5 million in 1999. About 96.5 per cent of finfish exports go to the U.S. each year; France, Japan and Taiwan take the remainder.

REGULATIONS

A survey by the Canadian Federation of Independent Business concludes that provincial regulations have the greatest impact on the development of small and mid-sized enterprises. It also appears that the policies of the two wealthiest provinces, Ontario and Alberta, are the most popular among business. The survey of almost 8,100 entrepreneurs found that 39 per cent said policies set by provincial governments had the greatest impact. About 26 per cent said municipal decisions were the most important.

CORN MAZES

In recent years, spurred by a need to generate new revenue, farmers across North America are turning to agritourism. Some farmers claim that corn mazes can generate more revenue in five days as a maze then they would in a year as a crop. But mazes are not cheap. On average, farmers pay between C$10,000 and C$15,000 for the maze design which usually represents a theme.

BRITAIN

A new government study suggests that British companies conduct very little business over the Internet with online sales accounting for only two per cent of total sales of the sectors covered. Internet business in Britain could be worth US$83 billion annually. About 40 per cent of those questioned said that the cost of developing systems and uncertainties with contracts were barriers to making sales using e-commerce.

REFORM

Canada and 17 other top food-exporting countries are warning that attempts to launch a new round of trade liberalizing talks in Qatar could fail unless these include agricultural reforms. The 18-member Cairns group has said that agriculture is a significant enough issue that new negotiations on freer trade in products and services may not get off the ground if eliminating farm and exports subsidies is not on the table.

ADVERTISING

As U.S. retailers are gearing up for autumn, some are cutting their advertising budgets in favour of special events and better pay for sales-clerks. Instead of pulling out all stops to woo customers with typical newspaper inserts and local television and radio spots, many U.S. merchants are taking the axe to their ad budgets. Overall, national magazine advertising by retailers fell by 22 per cent in July with retailers spending US$9.2 million less then they did in July, 2001.

FILMS

The Screen Actors Guild in the U.S. is calling for an investigation into what it says are unfair trade practices in Canada. The actors union says Canadian tax incentives to American film studios are illegal. Earlier this year, an American government estimated that the U.S. was losing more than $15 billion a year because of so-called runaway film production outside the country. Canadian officials dispute that figure.

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.

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September 2001 Economic Digest - Importing and Exporting

September 2001 Edition

 EUROPE

Plans for the European Union to liberalise trade with the world's poorest countries are on hold. Following complaints from farm lobbies, Europe's trade commissioner has pushed back a proposed transition period for an "everything but arms" market-opening to 2006-08. The original plan was to eliminate tariffs on most goods by 2004.

PUBLIC SERVICE

Employment in the Canadian public sector has rebounded to the levels of the mid-1990s after several years of tight budgetary control and government restructuring. The public sector employed an average of just under 2.9 million people in the first quarter of 2001. This is an increase of 1.1%, or 31,100 people, from the first three months of 2000, and is the eighth straight quarterly increase. There are now as many people working in the public sector as there were in the first quarter of 1996.

PHONES

Nearly 50 per cent of children in Britain aged between 7 and 16 own a mobile phone. A study by the NOP Research Group revealed that 52 per cent of girls and 44 per cent of boys have their own mobile phones.

ICELAND

Global warming is giving Iceland an unexpected headache. Its roads--recently freed of much of their ice cover--are being ground to dust by cars fitted with studded winter tires. Plumes of asphalt are drifting across the island, raising cancer fears among health experts and environmentalists, while roads are breaking apart under the strain.

RADIO

Revenues of private Canadian radio broadcasters surpassed $1.0 billion for the first time in 2000, advancing 5.2 per cent from 1999. This increase was largely the result of the good performance of FM broadcasters, whose revenues grew 7.9 per cent; AM broadcasters' revenue grew 0.8 per cent. FM stations, as a group, have generated profit margins exceeding 16.0 per cent in the last four years, reaching a high of 22.5 per cent in 2000. During that period, AM stations recorded losses every year.

DANGER

A British 1999 study found that far more people were injured by magazines (4,371) than chainsaws (1,207); accidents involving tea cosies jumped to 37 from 20 the previous year.

FARES

The average Canadian domestic air fare in the second quarter of 1999 was a record $208, up 5.6% from the second quarter of 1998 and 2.1% above the previous record level of $204 reached in the second quarter of 1995. This was the ninth consecutive quarterly increase in average fares in the domestic sector, erasing the effect of seven consecutive quarterly decreases in 1995 and 1996. The average international air fare in the second quarter of 1999 was $364, 13.1% lower than the record average international fare of $419 reached in the third quarter of 1994.

TRAFFIC

The Mayor of London, England, has announced a plan that would see all vehicles entering the heart of London paying a $10.00, one-day, congestion fee starting in 2003. It is hoped that the plan will raise half a billion dollars a year to be ploughed into the public transport system and reduce traffic jams by 15 per cent. It is estimated that 750,000 vehicles pass in and out of the congestion zone each day. More than 100 digital cameras, both static and mobile, will enforce the new law. The pass will last the whole day and allow unlimited entries and exits.

CHINA

Swarms of newly affluent Chinese are helping to bolster the tourist-hungry economies of their Asian neighbours. More than ten million Chinese went abroad last year, up from just three million less than a decade ago. The Chinese list foreign travel as their No. 3 desire, after housing and education. Those that go abroad currently spend $2,000 to $3,000 (U.S.) each per trip. In Thailand and South Korea, for example, they are becoming an important source of revenue, particularly as arrivals from Western countries slow along with their economies.

FRANCE

The French government has announced a US$1.5 billion project to make high-speed Internet access available throughout France within five years. As part of a far-reaching technology initiative, government and industry will pool another US$180 million to bring mobile-phone service to the 8 percent of France that does not have it. The Internet services will be developed using cable, satellite and high-speed modem technologies.

CONTROL

The majority of Canadians are against letting control of the country's media and communications companies fall into foreign hands, fearing it could lead to a loss of national identity and sovereignty. A survey found that seven out of 10 Canadians oppose raising the current limits on foreign investment in the industry. 41 per cent said they strongly oppose changes that would allow foreign majority ownership. Just 5 per cent said they strongly favoured it.

PIRACY

The first pirate-proof compact discs which cannot be copied have gone on sale in California. CDs recorded on the new system play normally on a CD player or computer, but the digital code holding the sound is corrupted if anyone tries to copy it.

ONTARIO

Ontario's exports to Europe jumped 8.9 per cent in the first four months of 2001 relative to the same period last year. In 2000, Ontario's exports to Europe increased 9.7 per cent over 1999. According to the government, this year's increase has led to 2,000 new jobs in Ontario. In 2000, Ontario's exports to Europe totalled C$7 billion. Aircraft, computer parts, optical devices and precious metals led Ontario's export gains. Key markets were the U.K., France, Germany, Russia and Norway.

MEAT

The European Union, whose beef market collapsed in the wake of the mad cow epidemic, is to spend US$10 million promoting beef consumption. The 12 month scheme is to win back some of the estimated 1.5 million tons of consumption lost due to the collapse of public confidence in the safety of beef and beef products. The main emphasis of the campaign will be to reassure consumers that beef is safe to eat as well as emphasizing the nutritional benefits of eating beef.

ORGANIC

The Canadian government has created a national centre for organic agriculture based out of Nova Scotia's Agricultural College. The new facility will carry out research and education. Organic food accounted for C$1 billion in sales last year and has a 20 per cent annual growth rate. The centre will help Canadian producers eat into markets in Europe, Japan and the U.S. Key to the centre's mandate will be the development of four web-based courses in organic agriculture available to students and farmers across Canada.

DOGFISH

Marine biologists used to condemn these fish as an enemy of the fishing industry. Now, the spiny dogfish is creating a small Maritime industry. Landings of the small shark have shot up over the last four years. Meanwhile, markets have grown with a steady demand for their thick white meat in fish and chips in British pubs, in Chinese shark-fin soup and as snacks in German beer gardens. There are about 40 boats in Nova Scotia catching dogfish compared to eight four years ago. Fishermen caught about 2,400 tonnes last year, six times the catch in 1996.

PAY PHONES

It is predicted that pay phones and telephone booths will disappear in Canada within a few years due to the popularity of increasingly sophisticated and relatively cheap cell phones. Already, the explosive growth of cell phone use--20-to 30-per cent annually--is causing many Canadian pay phones to be permanently disconnected. About 9.1 million Canadians now carry cell phones.

TIME

Researchers have developed an atomic clock that keeps even better time than the microwave atomic clocks currently in use. The newer clock uses optical (visible) light and is accurate to one second in the lifetime of the universe--about 15 billion years. Until now, the best atomic clocks were only accurate to one second every 15 million years!

CHANGE

Tupperware Corp. is to begin selling its products in SuperTarget stores in the U.S in October. The stores will be staffed with Tupperware consultants who will explain and demonstrate the products like they do at Tupperware parties. The partnership with Target is only the latest step the company has taken recently to expand the distribution of Tupperware products beyond the parties. In the last three years, Tupperware has sold its kitchen utensils and plastic storage containers at 148 shopping mall kiosks, online and on television

FLOTSAM

The amount of buoyant, indestructible rubbish that floats in the world's oceans has exploded since the 1950s and 1960s. Before that, most marine garbage was organic, so it eventually rotted or sank. As many as 1,000 or more boxcar-size shipping containers fall off ships annually, releasing fleets of floatable goods. Autopsied sea animals have been found with items like cigarette lighters, plastic bags and toy soldiers.

OLYMPICS

In recent years, the Olympics have become a great commercial success. The TV rights alone have shot up from US$101 million for the 1980 Summer games to US$1.33 billion in 2000. By 2008, the IOC forecasts its TV rights for the Summer games will be worth US$1.72 billion. Revenue from its top 10 advertisers program will grow from US$96 million for the 1988 Calgary Winter and Seoul Summer games to an estimated US$600 million for the combined 2002 Salt Lake City Winter and 2004 Athens Summer Olympics.

BRIBES

Foreign companies bribed their way into obtaining US$37 billion in overseas commercial contracts over the past year, according to a Department of Commerce report. In the period from May 1, 2000 to April 30, 2001, the competition for 61 contracts may have been affected by bribery of foreign individuals, and of these contracts, US firms are believed to have lost nine, worth approximately $4 billion. Aided by eavesdropping and other intelligence, the US also found that over the past 15 years, firms from 53 countries have offered bribes and officials from 112 countries have taken them.

SIZE

Of the 100 largest economies in the world, forty-nine are countries and fifty-one are corporations. (Wal-Mart's $167 billion in sales for 1999, for example, is bigger than the GDP of Norway). Canada's GDP of about $1 trillion has yet to be surpassed by any corporation. With $45 billion in sales last year, Nortel was Canada's largest corporation. Larger, financially speaking, than every province except Ontario (provincial revenue last year $67 billion) and Quebec (revenue last year $56 billion).

MIMICS

The electronic tweeting of mobile phones is so widespread in Australia that some birds are mimicking the sound as part of their mating and territorial songs. Australia has six so-called mimic birds that commonly imitate sounds in nature.

MONEY

Australia's 'paper' currency is made from plastic. The special polymer is virtually uncounterfeitable and is recyclable.

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.

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August 2001 Economic Digest - Importing and Exporting

August 2001 Edition

GARAGE SALES

Health Canada is warning that dangerous products are ending up in garage sales where neither the seller nor buyer know the merchandise is defective. The department publishes a list of dangerous products which is periodically updated, but it only has 35 inspectors for the entire country to make sure these goods never make it to market. Some baby cribs, walkers, car seats and hockey gear are on the list. It's estimated that garage sales earn $100 million annually.

WINE

Canadians are drinking more red wine than all other kinds put together. Vintners are building dozens of new wineries across the country, planting new vineyards and converting production to fill the demand for the more sophisticated--and profitable--red wines. Sales of reds passed whites for the first time in fiscal 2000 which ended March 31st and passed all other wines in the next 12 months accounting for 53 per cent of all wine sales in Canada. They are still growing by 13 per cent a year, far outpacing the growth of whites and beer at about one percent each.

CALLS

Indiana has recently introduced the most stringent legislation restricting telemarketers. Under the new measure, consumers can put their name on a "do not call" list. Once a person is on the "no call" list, telemarketers are forbidden to call. The only exceptions are charities, newspapers, insurance agents and real estate agents, providing they don't use telemarketing firms. Companies that ignore the new rule risk penalties of up to $25,000 after January 1st, 2002.

PRODUCTIVITY

Four Canadian assembly plants and one Canadian truck factory ranked among the most productive of North American auto plants last year according to a recent report. The report measures how many hours it takes, on average, to assemble a vehicle in most of the assembly plants in North America.

CAVIAR

Canadian fishermen are trying to fill the world shortage of Russian caviar which sells in Canada for $90 a tiny jar. Canada has the fish, the lakes and the technical knowledge to produce caviar that is just as good as the exotic Russian variety; all that is needed is patience. A successful caviar operation is a long-term project. Some species of sturgeon live for 120 years and weigh 1.2 tonnes.

FTAA

The draft negotiating text for the Free Trade Area of the Americas (FTAA) has been released. An FTAA would create the world's largest free trade area with 800 million people in 34 countries and a combined gross domestic product of nearly $17 trillion. Despite a commitment to establish a free-trade zone by 2005, the draft shows that after more than seven years of consultation, little consensus has been agreed. Most of the 430-page text is in brackets meaning that at least one of the 34 countries objected to the wording of almost every paragraph.

SEEDS

In a move to cope with soaring vegetable imports, Japanese seed makers have begun curbing exports of seeds that are used overseas to grow vegetables for shipment to Japan. Domestic seed producers sell about 69 million tons of vegetable seeds a year. While 94 per cent of them are sold in Japan, the remaining six per cent are exported overseas for production of vegetables, such as green peppers, eggplants and watermelons for shipment to Japan.

HOLES

The U.S. Department of Agriculture is trying to determine how big the holes in Swiss cheese should be. The USDA has released a 15 page regulation that would require the holes in Swiss cheese to be reduced from an average of eleven-sixteenths to three-eights of an inch in diameter. The USDA claims it is considering the change because of lobbying from the cheese industry which wants the popular cheese to qualify for a federal Grade A rating rather than the present Grade B rating which reduces the price.

LEGO

It was invented in Denmark in 1916. Today the LEGO company has over 9,000 employees. In Latin, the term "Lego" means "I put together" or "I assemble." The product has enjoyed a boom in sales lately. U.S sales are up eight per cent from 1998 and one in ten Lego buyers is now an adult. The passion runs so strong among some in the high-tech sector that one recent recruit to a Seattle web company asked for, and received, a desk built entirely of Lego. The bricks alone cost US$2,975 and the desk took three solid weeks to build and glue.

CULTURE

Canada's trade deficit in cultural goods and services declined for the first time in five years in 2000, as the growth rate in exports far exceeded the growth in imports. The nation sold almost $4.5 billion worth of cultural products to the world last year, up 8.1% from 1999. However, imports rose only 1.7% to $7.5 billion resulting in a trade deficit of just over $3.0 billion. The U.S. is Canada's foremost trading partner, for imports and exports. In 2000, the U.S. received 94% of Canada's culture commodity exports and accounted for 83% of Canada's cultural commodity imports, worth $3.9 billion.

SWITZERLAND

The Swiss Senate has voted unanimously in favour of forging a free trade agreement with Mexico which is Switzerland's fourth most important trade partner in the Americas. The U.S. is first, followed by Canada and Brazil. Current Mexican exports to Switzerland total US$2.25 billion. Switzerland estimates that it will be able to save US$56 million in duty payments alone. Mexico will benefit from the waiving of duty payments on products such as coffee, bananas and honey.

EQUITIES

In the first four months of the year, Canadians bought $17.8 billion of international equities. The investments have gone 70 per cent to U.S. equities and the remainder to overseas shares. The investments have been driven by the Canadian mutual and pension fund sectors.

SHIPPING

Canada has unveiled a new policy framework that will boost the country's shipbuilding and industrial marine sector. The framework is comprised of more than 20 measures and it is expected that the new initiatives will support new business of C$200 and C$300 million annually which will almost double the current production of about C$230 million.

BARCODES

In 1974, a pack of chewing gum with a barcode became the first supermarket item to be scanned at a checkout counter. New two-dimensional designs will let manufacturers incorporate more information and security features into product packaging. A new code, based on a grid of tiny squares, can carry up to 7,000 pieces of information that can be read by a scanner. They can store photos, signatures and fingerprints, offering a multitude of security and anti-fraud applications.

EDUCATION

Children from both ends of the income distribution attend private schools in Canada; 29 per cent of children who attend private schools are from families with incomes below $50,000, while 26 per cent are from families with at least twice as much income. In 1998/99, 1 out of every 18 children, or 5.6 per cent, attended a private school for elementary or secondary education. In total, 298,000 were enroled in private schools; just under 5 million went to public schools.

EUROPE

Canada and the European Union continue trying to improve trade and economic relations though the EU's importance as a trading partner continues to decline. Europe's imports of goods and services from Canada have dropped to six per cent from 10 per cent a decade ago. EU officials have shown little enthusiasm for a bilateral pact even though eliminating tariffs could raise EU sales in Canada by 34 per cent or $7 billion a year. Canada's exports to Europe would jump by 11 per cent, or 16 per cent and if EU duties on agri-business were removed.

REPUTATION

Canadian business leaders are more likely than their international counterparts to fret about information on the Internet damaging their company's reputation. The study, which polled leaders in eight countries in North America and Europe, found that one-third of the 50 Canadian senior executives were "very concerned" about negative information about their company. At the same time, just over 20 per cent said that they periodically monitored what was said about their company on the Internet. In the U.S., 41 per cent said their firms made periodic checks and one quarter were concerned about negative comments.

ACKEE

Ever since the U.S. agreed last year to lift a decades-old ban on the importation of Jamaica's national fruit, sales have soared. Thousands of acres of new ackee trees have been planted and diplomats and farmers have used the fruit as an example of how greater free trade can benefit small countries such as Jamaica

ALBERTA

A recent Fraser Institute survey indicates that Alberta has established a clear lead over Ontario and other provinces as the best place for doing business in Canada. However, recent tax cuts introduced in British Columbia should allow it to move up quickly from its current status as the province with the least friendly business climate. Canadian investment fund managers responsible for $282 billion in pension assets rank Alberta No.1 because of its low tax and business-friendly regulatory environment.

AIRPORTS

In a survey of 90,000 international passengers to rank their satisfaction with 48 airports, Singapore's Changi airport ranked tops with the world's business and leisure travellers. Measured categories included: convenience, services offered such as restaurants, signposting, as well as for courtesy and helpfulness of their ground staff. Sydney and Helsinki were the next. Vancouver, the only Canadian airport on the list, was rated tenth.

LABELLING

Food producers will soon be able to label and advertise their products in Canada as helpful in the fight against specific illnesses, such as heart disease, osteoporosis, tooth decay, high blood pressure and some types of cancer. Such advertising has been legal in the U.S. since the mid-1990's and will be allowed in Canada as part of a revamping of the country's food labelling rules. Nutrition experts and food manufacturers applaud the move but warn that consumers will need to be educated on complicated nutritional information if they are to benefit from the changes.

INVESTMENT

China's largest investment in Canada is taking shape with the completion of the first phase of a textile company. Being built in Drummondville, Quebec, the new textile mill is expected to create 380 jobs in two years. The total investment will be US$30 million. The federal and Quebec governments have pledged a total of US$8.5 million in loans or subsidies to support the project. Canada hopes the project will encourage more Chinese firms to use Canada as a gateway into North America.

SIZE

A chip of silicon a quarter inch square has the capacity of the original 1949 ENIAC computer which occupied a full city block.

COMMUNICATIONS

Recently, 30 top British police officers were given training as magicians. The course, called the Magic of Networking, is aimed at improving communication skills.

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.

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July 2001 Economic Digest - Importing and Exporting

July 2001 Edition

 KETCHUP

Sweden is the biggest user of ketchup spending $4 a year per person on it. Australia comes in second with $2.50 spent on ketchup each year. Third place goes to the United States and Canada who spend $2.20 a year on ketchup. How do other countries stack up? Germany $1.70, U.K. $1.60, Poland and Japan $1.40, France $1.20, and Russia $0.90.

BLUBBER

Prices for whale blubber soared by nearly 60,000 per cent after Norway's controversial announcement that it would resume exports of whale products to Japan later this year despite a ban under the Convention on International Whaling Commission. This is the first time whale exports have occurred since the mid-1980s

PRUNES

Despite a US$10 million marketing campaign to kick off the trendy new name "dried plums," prunes are suffering from soaring natural gas bills and flat sales. To become a prune, a plum must spend 18 hours in a large concrete drying tunnel.

LANGUAGE

Oakland will soon become the first city in California, and possibly the U.S.,to mandate bilingual hiring in government agencies. Laws require agencies to make programmes and services accessible to people with limited English. Most limited-English speakers in Oakland converse in Spanish or Chinese. The ordinance would require departments such as fire, police and senior citizens centres to identify positions that deal with the public and determine whether they are bilingual employees.

McCHANGE

A McSnack burger kiosk being tested at a Midwestern mall, a McTreat dessert center operating at another mall and a proposal for french fries packaged to fit in a car's cupholder were among the new concepts for growth discussed at a McDonald's Corp.'s shareholders meeting. In the suburbs, McDonald's restaurants are testing at their drive-through SpeedPass instant-payment systems and digital menu boards that can be quickly updated with special offerings and displays.

MUSIC

The world trade in recorded music was worth US$36.9 billion in 2000. The number of units sold dropped by 1.2 per cent as falling sales of cassettes and singles outweighed growth in compact discs. The U.S. is the single biggest market, with 38 per cent of world turnover, but Icelanders continued to be the keenest listeners, ranked by sales per head. Norway was second followed by Japan. The U.S. was fourth and Canada fifteenth.

COMPUTERS

According to Statistics Canada, more than one-half of all workers in Canada now use a computer on the job. Data show that an estimated 8.3 million workers, or 57 per cent of the total employed, used a computer at their main job in 2000, compared with 33 per cent in 1989. The vast majority, some 6.4 million, or almost 80 per cent worked at their computer every day. Last year, about 60 per cent of women used a computer at work, compared with 38 per cent a decade earlier. 54 per cent of men did so last year, up from 32 per cent.

COFFEE

Millions of coffee growers are facing ruin because of soaring production and a massive worldwide oversupply. The collapse of the price of coffee beans, though not apparent in the price charged by coffee shops, has been dramatic. The price of robusta, used in blended and instant coffee, slumped to a 30-year low earlier this year. This is despite attempts by the Association of Coffee Producing Countries (ACPC) to create a cartel similar to OPEC. Many coffee growers are not wealthy plantation owners but poor farmers who face destitution if their businesses fail.

RETIREMENT

While most Americans over age 50 are financially better off than their counterparts 20 years ago, the gap between rich and poor is widening. An American Association of Retired Persons report says only 25 per cent of people in their 50s are secure for retirement. Those in the top quarter have a median income of $100,000 annually and are more likely to have health insurance. In the lowest quarter, the median income is $10,000 and sixty per cent are women. The number of 50- to 64- year olds without health insurance continues to climb, from 11 per cent in 1988 to 14 per cent in 2000.

FARMING

Canadian Prairie grain farmers have been warned by the Minister of Natural Resources to shift to raising livestock, potatoes, soybeans, and other specialty crops because Canada can no longer compete with "market-distorting subsidies" granted to European and American farmers. Since 1985, the federal government has provided more than C$32-billion in passive income support to farmers, with almost one-third going to Saskatchewan grain and oilseed farmers. Despite these payments, grain farmers have been unable to compete with their European and American counterparts,

UNDERWEAR

Jockey International, celebrating 125 years in business, has unveiled two lines of Jockey underwear sheets. Borrowed from the Jockey Classic Brief, the company adapts the patented Y-front design to the corners of fitted sheets.

CHINA

The country's efforts to meet WTO requirements are shaking up its legal system and cutting red tape for foreign business. Many laws have to be rewritten; legal concepts such as judicial independence are alien to many officials; and bureaucrats resist curbs on their power. The bid for WTO membership has been one of the most daunting challenges in its shift from central planning to a market economy. In the past year, the Shanghai WTO Consulting and Service Centre has trained some 2,000 local civil servants in how to cut red tape to smooth the way for freer trade.

WEALTH

A recent report by Cap Gemini Ernst & Young states that the wealth of dollar millionaires--those with over $1-million to invest--rose by 6 per cent to $27-trillion in 2000 despite crumbling stockmarkets around the world. The number of millionaires grew by 2.7 per cent to 7.2 million, but 80,000 "minute millionaires" appeared and then disappeared with the dotcom boom and bust.

ACCESS

A major U.K. retailer has launched an online service that will allow blind people to shop over the Internet without using special equipment. The system, developed with the assistance of the Royal National Institute for the Blind (RNIB), uses technology that converts text to speech, describing products on the company's website and guiding consumers through the buying process. This site is the first of its kind.

JAPAN

Business leaders in Canada have proposed setting up a joint panel with their Japanese counterparts to discuss ways to conclude a free-trade agreement between the two countries. However, it is reported that those in farming, forestry and fishing industries are likely to oppose the idea as 60 per cent of Canada's exports are agricultural, forestry and fisheries products. Japan is negotiating a bilateral FTA with Singapore, while Mexico is expected to propose a FTA pact with Japan soon.

IT

Statistics Canada reports that Canadian companies were hobbled last year by a shortage of information technology (IT) workers. Canadian industry was operating at only 75 to 80 per cent capacity within the IT sector because of a severe shortage of qualified workers.

INVESTMENT

Foreign direct investors' spending to acquire or establish U.S. businesses increased 17 percent to $321 billion in 2000, according to the U.S. Bureau of Economic Analysis. Spending increased 28 percent to $275.0 billion in 1999 after more than tripling in 1998. Investors from Europe accounted for 75 percent of total investment spending during 1998-2000; up from 64 percent in 1995- 97. Spending by British investors, which accounted for over a third of total investment spending, was more than three times larger than spending by Netherlands investors, who spent the second largest amount.

MEAT

Demand in Europe for ostrich meat is soaring. The recent outbreak of foot and mouth and mad cow diseases, has forced consumers' taste to turn to ostrich which costs $15 per kilogram compared to $8 per kilogram for beef. Some of the top export markets for ostrich are Germany, Belgium and Switzerland.

DOCTORS

A survey by the American Medical Association indicates that doctors who use the Internet to interact with patients and administer medical records remain in the minority. Only 17 per cent of doctors said they use the Web for obtaining or transferring medical records and eight per cent use it for health insurance claim processing. However, 70 per cent of doctors said they were Web users, up from 20 per cent in 1997.

PIRACY

The Business Software Alliance reports that one-third of all business software is pirated. The group estimates that piracy cost software makers almost US$12 billion last year. The global piracy rate rose from 36 per cent in 1999 to 37 per cent in 2000, largely because of fast growth in computer usage in countries with high piracy rates, such as China and Japan.

TRANSPORTATION

In accordance with the NAFTA, the U.S. Department of Transport will now process applications from Mexican carriers for authority to fully own and operate companies in the U.S. that transport international cargo between points in the U.S. and provide bus services between points in the U.S. Mexican-owned companies established in the U.S. under this NAFTA provision will operate like any U.S. motor carrier and be subject to the same laws, regulations and procedures that apply to U.S. and Canadian motor carrier companies operating in the U.S.

PIGEONS

At the end of the Second World War, 31 Allied homing pigeons were honoured with a medal for gallantry and devotion to duty. Even today, a hospital in Plymouth, England, uses pigeons to transport blood samples to its laboratory across town, saving money and beating traffic.

MONEY

Sony, the Japanese electronics giant, is moving its currency and fundraising activities to the City of London. The move will bring an additional $50 billion in annual trading to London's foreign exchange and it is believed to be the first time that a large international corporation has moved its treasury and foreign currency operation to a different country from its headquarters. The move to London is expected to save Sony around $75 million annually.

WORK

The average Canadian workweek for full-time employees is 42.2 hours, just below the U.S. average of 42.4 but ahead of Britain at 41.9 hours, Italy at 40.5 and France at 40.3. Employees in 28 other countries were ahead of Canada led by South Korea at 55.1 hours, Turkey at 54.1 and Argentina at 53.5 hours.

HEDGEHOGS

Britain's wild hedgehogs are getting drunk on dishes of beer gardeners leave out at night to trap slugs. The creatures have been found asleep, forgetting to roll into a protective ball. When they wake-up they wobble from side to side and zig-zag as they walk.

Thank you for reading the A & A Economic News Digest. For more information visit our website www.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.

Past issues of the A&A Economic News Digest can be found at http://www.aacb.com/publications/ed/index.asp

June 2001 Economic Digest - Importing and Exporting

June 2001 Edition

GREENHOUSES

The Canadian greenhouse industry showed continued growth as 255 more acres were added to production in 2000. Total greenhouse area has now reached 3,886 acres. Most of greenhouse production is under plastic rather than glass due to the relative lower cost of production. Area under plastic was 2,653 acres, and area under glass was 1,232 acres. Sales from greenhouse products, (flowers, plants and vegetables) were $1.7 billion in 2000, up 18 per cent over 1999.

RESPONSE

A new U.S report says that while 53 percent of retail companies respond to e-mail customer inquiries within six hours, most businesses in other industries are failing to meet consumer expectations. The research reveals that although more than half of consumers expect to resolve their customer service inquiry within six hours, only 38 percent of companies are meeting this expectation and 33 percent are taking three days or longer to do so or are not responding at all. According to the survey, 19 percent of companies did not respond to inquiries, but the most recent survey finds that this number has increased to 24 percent.

SPACE

Commercial hogs, kept eight or more to a pen, grow at an average rate of 1.6 pounds a week. However, if only two or three pigs are kept in a pen, there's less crowding and aggression from dominant hogs and the pigs grow at a rate of 2.3 pounds a day.

HEALTH

Compared with Canadian men, women take better care of themselves, and live longer. However, a higher percentage of women have chronic illnesses, and women use health care services more often, according to a special report. Some findings are paradoxical. For example, women experience more illness, more years of disability and more stress than men do. But they also live longer. Even after being diagnosed with a fatal disease, women survive longer than men.

DESERT

Deserts already smother 27 per cent of China's landmass and are expanding by more than 2,460 square kilometres every year. The danger of desertification is greatest in the northern part of the country and has prompted concerns that China's capital must retreat from Beijing to a safer location.

MEAT

American consumer misconceptions about Bovine Spongiform Encephalopathy (BSE), or mad cow disease, and foot-and-mouth disease (FMD) are beginning to impact purchase of beef and other animal products, according to a survey by Porter Novelli. 14 per cent of those surveyed said they already changed their food purchase or eating habits based on reports they had recently seen or heard regarding BSE and FMD. The survey underscores the need for more public education to help consumers understand distinctions between the two conditions.

ADVENTURE

The Canadian adventure travel industry boomed during the 1990s, as adventure-seekers signed up to do everything from whale-watching to hot-air ballooning, rafting and sea kayaking. Between 1993, when the Survey of Adventure Travel Operators was last conducted by Statistics Canada, and 1999, the number of adventure travel operations doubled from 669 to 1,336, and their sales more than doubled. Revenues in 1999 reached an estimated $362 million, up 119 per cent over 1993.

DUMPING

The worldwide steel and metals industry was the subject of the biggest number of anti-dumping investigations initiated by members of the World Trade Organization last year. There were 95 cases involving steel and metals--more than a third of the year's total. Of these, 32 were started by the U.S. in an attempt to protect its ailing steel industry from foreign competition. Steel accounted for 80 per cent of U.S. anti-dumping investigations in 2000. The paper and wood industries showed the biggest drop in dumping investigations, followed by textiles and related products.

SHIPPING

The World Shipping Council has issued a paper refuting the conclusions of a controversial World Bank report which claims that shipping conferences result in excess costs to U.S. shippers amounting to US$2 billion. The authors claim that repealing anti-trust immunity could save shippers some 25 per cent on freight rates.

PROPS

The economic slowdown is affecting the many companies that provide costumes and props to TV networks and movie studios. The companies, many of which are located in the San Fernando Valley, rent items such as spacesuits, vintage ballgowns, art deco lamps and disco balls. Because of rising rents, energy and runaway productions, owners are finding it difficult to stay in business. In the last eight months the merchandise of six Hollywood rental services has been liquidated.

NOSTALGIA

Dunlop of Britain has created a customized line of grubby tennis shoes, Dirty Flash, that cost around $100--about twice the cost of a regular, clean pair. The shoes, stained with tea, coffee and oil, have been designed for people in their late twenties and thirties who are nostalgic about school physical education.

CHINA

Private home ownership is finally taking off in China, with far-reaching implications for the economy and society. For decades, urban Chinese depended on their employers to provide cramped, no-frills, state-owned housing and couples often had to wait years for an apartment. Now, however, the market is seeing the effect of incentives introduced over the past two years such as easy mortgage terms, generous tax credits and employer subsidies which pushed private home purchases up 52 per cent in 2000 to US$34.6 billion.

TOURISM

A recent report by the World Travel & Tourism Council concludes that the Canadian tourism industry is the eighth-biggest tourism sector in the world valued at about US$36- billion. This is less than one-tenth the size of the U.S. tourism sector but much bigger than ninth-ranked China (US$32.8 billion) and 10th ranked Brazil (US$21.2 billion). The WTTC studied 160 countries as part of its 2001 forecast. A total of US$2.1-trillion will be spent on travel and tourism this year, including US$454 billion on business travel.

WEIGHT

"Smart Bath" is a Japanese electronic device that attaches to the wall of your bathroom and features a nozzle that dips into the bath water. As you lower yourself into the water, it calculates the water displacement and compares it with data already entered about you. Your body-fat level then appears on a screen. The device will sell for US$3,800.

WEATHER

According to NASA, The United States has the world's most violent weather. In a typical year, the U.S. can expect some 10,000 violent thunderstorms, 5,000 floods, 1,000 tornadoes, and several hurricanes.

HOOKAHS

These waterpipes for those who like water cooled smoking are now finding their way into the US at the rate of around 5,000 a month from Egypt. Besides the standard smoking gear--hollow glass bases, stainless steel "hearts", hoses and clay pipes, the importer also sells over a tonne of sticky hookah tobacco each month in flavours ranging from strawberry to mango. One Egyptian wholesaler estimates the country is exporting 200,000 hookahs a year.

LEATHER

Leather furniture is one of the fastest growing categories in the industry, accounting for about 25 per cent of the U.S. upholstery business: 20 years ago it was only about 4 per cent of the market. However, the industry is watching nervously as foot and mouth disease is severely affecting the global supply and price of animal hides.

LUXURY

In high-end motor-homes, which can cost up to US$1-million, it is standard to find granite floor inlaid with mother-of-pearl. The gold standard for luxury in these vehicles is $400 gold-plated toilet paper holders and $700 towel rings.

CARS

Luxembourg wins the race for the numbers of cars owned per head of population. Its ownership rate is 576 cars per 1,000 people. European countries dominate the rankings with Italy second and Iceland third, followed by Germany. The U.S. comes seventh with 486 cars per 1,000 people. That ranking is expected to fall in the next two years as U.S. car sales are forecast to drop by as much as 20 per cent. Japan is seventeenth with only 394 cars per 1,000 population. In Canada, there are 460 cars per 1,000 of population.

TAXES

While laws in 45 U.S. states say Internet taxes are owed, they rarely are collected. Congress must soon decide whether to keep the Internet a largely tax-free shopping zone or pave the way for states to collect taxes on online purchases. The General Accounting Office estimates the uncollected sales taxes on Internet purchases could cost the States $12.5 billion in 2003.

MINING

An industry report claims that B.C.'s mining industry posted losses of $8 million last year after losses of $133 million in 1999. The industry claims that if a new B.C. government acts to encourage exploration, it could lead to $4.2 billion in direct investment in B.C.. Compared to the rest of Canada, B.C.has lost about three-quarters of a billion dollars in mineral exploration spending since 1992.

ORGANIC

Scientists planted three new apple orchards in the Yakima Valley region of Washington. One was farmed conventionally, using the normal range of chemical pesticides and fertilizers; one was grown organically using naturally occurring sprays; and one used an integrated method combining organic and conventional methods. After five years, the orchards showed no significant difference in fruit yield or tree growth. However, there was evidence that organic farming is kinder to the environment than conventional farming. It also produced sweeter fruit that is more profitable for the farmers.

MAQUILADORAS

The President of Mexico has defended the use of maquiladoras saying that the average worker in these export-processing factories earns almost four times Mexico's minimum wage. Maquiladoras are bonded factories along Mexico's U.S. border that can export goods duty-free. They have been a target of anti-free-trade groups who say the U.S. and Canadian firms operating the factories exploit workers and flout environmental and labour laws.

PARLIAMENT

Sweden retains its position as the country with the biggest proportion of women in parliament, with 43 per cent. In Denmark, the Netherlands and Germany, more than 30 per cent of parliamentarians are women. The figure for Canada is 20 per cent and 14 per cent in the U.S. and 11 per cent in France and Germany. In Japan the figure is 7 per cent.

COWS

The Austrian province of Vorarlberg is banning the practice of blowing up dead cows with explosives on its picture-postcard meadows. The province lives off tourism and authorities are worried tourists may be put off by exploding cadavers. The remains of about 20 head of cattle die annually and have to be destroyed. They are either struck by lightening or fall down precipices.

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 2001 Economic Digest - Importing and Exporting

May 2001 Edition

 DEBT

A 1999 survey found that Canadians had on average an estimated $16 in debts for every $100 in assets. The debt burden was much higher for some types of families such as lone-parent families, most of which are headed by women. Canadians had debts estimated at $458 billion, three-quarters of which took the form of mortgages. Loans on owned vehicles amounted to about $29 billion, or 6 per cent of the total, while student loans (3 per cent) and credit card debts (3 per cent) each exceeded $14 billion.

MONEY

Until recently, salt bars were the standard currency of Ethiopia and cakes of salt, stamped to show their value, could be used as money in countries as far apart as Tibet and Borneo.

MILK

Ireland consumes more milk than any other country in the world. On average, each person drinks over 164 quarts of milk a year. Finland is second in milk consumption with 162 quarts consumed a year, next is Iceland with 160 quarts, then Norway with 158 quarts, and the Ukraine with 141 quarts of milk consumed each year.

SHOES

A Japanese company has invented a shoe with tail-lights for people who like to go for walks at night. The walking shoes have flashing red lights built into their heels. They also have built-in sensors that can tell night from day and detect car headlights. If a wearer strolls into an ill-lit area and a car approaches, the shoe lights start working automatically. They come in blue, beige and black, and cost US$157.

PRIVACY

The U.S. Senate has approved a bill that toughens rules on when bankrupt companies can sell customers' personal information. The legislation forbids companies, including brick-and-mortar and e-commerce dot-coms, from selling customers' personal information at the time of bankruptcy if they had previously promised they wouldn't. A sale, or lease of the data, can go through if it is consistent with pre-existing company policy or upon court consideration.

MEXICO

Retail sales in Mexico rose 10 per cent in 2000 over 1999 figures, supported by a strong rise in grocery and general merchandise sales, according to figures released by the National Association of Supermarkets and Department Stores (Antad). Grocery sales increased 6.8 per cent in 2000 from the previous year, general merchandise sales rose 14.1 per cent and clothing sales grew 11.6 per cent the industry group reported.

FEED

Two major British food retailers have announced they will provide a range of meat products from animals not fed with genetically modified (GM) feed. The decision is further evidence that food companies and retailers are reacting to a consumer backlash against GM food, amid concerns over its safety. One store commissioned a poll which revealed that of over 1,000 people surveyed, 64 percent said they would prefer to buy products from animals reared on a non-GM diet and 66 percent said it would be unfair to ask them to pay more.

TRENDS

The World is a 644-foot ship launched in February and now being fitted out. It is no ordinary cruise ship and sells an atmosphere of a private club rather than a cruise ship. Instead of carrying thousands of passengers for a week or two at a time, it will be home to around 200 residents who have paid between $2- and $7-million apiece for one of its 110 apartments. So far, 89 of the apartments have been sold. Residents pay an annual service charge of around 6 per cent of the cost of their apartments.

RETAIL

Where they experience bad customer service, more than 20 percent of customers walk out of retail stores without making a purchase, an equal number stop shopping at a store altogether, and 26 percent tell their friends and urge them not to shop at a store, according to a recent U.S. survey. The more affluent a customer, the more likely he/she is to walk out without making a purchase. Men are more likely than women to walk out without making a purchase, while women are more likely to complain to a manager.

HOLLYWOOD

A strike by the Writers Guild and the Screen Actors Guild would have a significant impact in Hollywood. In Los Angeles County alone, approximately 467,000 people, including limo drivers, stylists, florists, waiters, caterers, and bartenders, base their livelihood on the entertainment industry, according to the Los Angeles County Economic Development Corporation (LAEDC). That's roughly the population of the state of Wyoming. The potential economic impact on Los Angeles is US$1.8 billion per month.

OXFORD

More than 20 of Oxford's dons are now multimillionaires, the highest of any British university. Oxford has a share in over 32 companies which were founded to profit from ideas by academics. Their value has reached $5 billion. In the past three years alone, its academics have set up 20 companies worth $20 million. Cambridge has a share in eight companies worth around $10 million. Both institutions are dwarfed by American universities such as Massachusetts Institute of Technology which has shares in more than 4,000 companies.

WORK

The rise in the number of jobs requiring brains not brawn may be behind a rise in IQ levels in many Western countries. Research suggests that small changes in the environment experienced by a group of people, such as changes in the type of jobs people do, can bring about much bigger changes in society at large. Psychologists have long puzzled that IQ levels have risen over several generations in 20 nations.

CROCODILES

During the recent outbreaks of mad cow and foot and mouth disease, that have spread international fear and harmed farming in Europe, demand for alternative meat has risen sharply. Crocodile is one of the new tastes vying for international palates. Global demand for crocodile meat, which had averaged about 20 tons a month, has now doubled. In Germany and Netherlands, consumers prefer the meat for steaks while China and Hong Kong are keener on entrails, feet and blood for dishes such as crocodile satay, deep-fried crocodile with sour sauce, fried crocodile Chinese style and crocodile soup.

SNACKS

A new study indicates that consumers do not make snack food purchase decisions based solely on our traditional view of snacking categories (i.e., candy, cookies, salty snacks), but rather on product attributes such as better-for-you, private label, or salty vs. sweet. For example, consumers looking for a healthy snack alternative make their purchase decisions based on the health-related attributes of seemingly unrelated categories (i.e., pretzels, dried fruit, sugar free candy), not limiting themselves to one category.

E-TAILING

The U.S. e-retailing market grew by 120 percent to $33 billion last year, and is predicted to grow by 85 percent to $61 billion this year. While the costs of attracting new customers to online retail sites increased by 15 percent to $38 per customer last year, the survey found that multi-channel retailers' costs dropped to $11 per customer while pure-play sites spent $82 on each new account.

FISH

Americans could soon be eating sushi made from Arctic char reared in water pumped from closed Appalachian coal mines. The water that caused such headaches when the mines were operational, requiring continuous pumping to keep it out of miners' way, is perfect for raising coldwater fish. The mines act as natural cisterns, as clean mountain water continually seeps in. Millions of gallons of 55-degree water flow from hundreds of miles of former mine tunnels and drain into nearby streams. Fish farming is one of the fastest-growing sectors in U.S. agriculture, increasing to a $1 billion industry by 1998.

SURPLUS

The U.S. corn surplus has climbed toward its highest level in eight years, a mammoth 1.936 billion bushels, with spring planting expected to show growers cutting back on corn in favour of soybeans. In a monthly look at crop output and food demand worldwide, the Agriculture Department said the U.S. soybean stockpile would be stable with an estimated 310 million bushels in storage. Prices for corn and soybeans were at 15- to 25-year lows. At 829 million bushels, the wheat stockpile would be 12 percent, or 121 million bushels, smaller than a year ago.

METRIC

A fruit-and-vegetable vendor dubbed the "Metric Martyr'' was found guilty of selling his wares in pounds and ounces, in the first such prosecution in Britain. The vendor had attracted a groundswell of public support in his fight against using metric weights, as mandated by the European Union. The ruling went against him and he faces a maximum fine of $1,500 and could be liable for court costs as well. Under European legislation that took effect in January 2000, goods with the exception of draft beer are to be sold using metric as well as imperial measures.

FURNITURE

Last year, China became the leading exporter of household furniture into the United States, supplanting Canada. Chinese manufacturers shipped $1.65 billion in furniture to the U.S. compared to $1.37 billion from Canada. Chinese exports were up 40 per cent in January from January 2000, while Canadian exports increased just four per cent over the same period. China is also the fourth largest trading partner for the U.S. exporting $100 billion in 2000. This is more than six times its imports of American products.

MAIL

The average U.S. mailperson carries 17.8 tons of junk mail a year, the equivalent of four elephants. The amount of bulk mail thrown away unopened is 44 per cent.

POACHING

Russia loses between $1.5 and $2 billion dollars every year because of illicit fishing in its waters. One in every four boats, according to the Russian government, breaks the rules for fishing and sells its catch abroad. During 2000, Russian border guards imposed fines on 1,500 Russian and 120 foreign fishing vessels.

GREEN

In a recent study of environmental indicators by the University of Victoria which compared 29 countries in the Organization for Economic Co-operation and Development, Canada ended up second to last. The United States ranked last. However, in an international study, Canada was ranked third best out of 122 countries on environmental issues.

WINE

The U.S., Canada, Australia and New Zealand have signed an agreement to cement new guidelines for wine imports. The countries will accept wine imports from each other as long as the wines are made in accordance with each country's domestic laws and requirements. Argentina, Chile and South Africa participated in negotiations and have until 2002 to become signatories.

ART

The Custard Factory arts centre in Birmingham, England, has taken what constitutes art to a new extreme--by putting on an exhibition of absolutely nothing. There are no paintings or sculptures. Visitors are just confronted by the whitewashed walls of the 2,500 square foot hall.

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 2001 Economic Digest - Importing and Exporting

April 2001 Edition

 FRAUD

The U.S. Federal Trade Commission (FTC) has announced the launch of a Web site at which consumers, reporters, students, researchers, law enforcers and others will be able to tap into a wealth of statistics about fraud, fraud on the Internet, and identity theft, and information on how to spot and avoid fraud and deception online and off. The site, www.consumer.gov/sentinel, contains aggregated complaint information culled from a database of more than 300,000 consumer complaints lodged with the FTC and shared with more than 250 law enforcement partners in the U.S. and abroad, including Canada.

MEXICO

Retail sales in Mexico rose 10 per cent in 2000 over 1999 figures, supported by a strong rise in grocery and general merchandise sales. Grocery sales increased 6.8 per cent in 2000 from the previous year, general merchandise sales rose 14.1 per cent and clothing sales grew 11.6 per cent. Retail sales grew 9.7 per cent in the fourth quarter of 2000, growth for the second half of the year was 10.1 per cent.

PRICE FIXING

The European Commission said that it was investigating price fixing by the five big music companies--Vivendi Universal, Sony, EMI, AOL Time Warner and Bertelsmann--and some big retailers. The companies settled a similar case in America last year. The companies control 77.5% of music sales

SURPLUS

Canada registered a record international merchandise trade surplus of $54.5 billion in 2000, as exports to its largest trading partner, the U.S. rose at more than twice the pace of imports. Canadian companies exported a total of $417.7 billion worth of goods to the world in 2000, up 15.8 per cent from 1999. At the same time, their imports rose 11.1 per cent to $363.2 billion. About 86 per cent of Canada's exports flowed to the U.S. in 2000, while 74 per cent of imports came north from the U.S. Exports to the U.S. rose 16.2 per cent in 2000, while imports from there were up just 7.3 per cent.

WRINKLES

Anti-aging skin care, which grew in sales nearly 25 per cent from 1999 to 2000, is the fastest growing segment of the U.S. cosmetics business. This year, it is estimated that Americans will spend $950 million (U.S.) for anti-wrinkle cream alone.

FOOD

Prices in the U.S. will rise by a modest 2 to 2.5 percent this year, according to the Agriculture Department (USDA). Americans spent a total of about $842.7 billion on groceries, restaurant meals and other food purchases in 2000. Food prices went up by 2.3 percent last year and 2.1 percent the year before. The largest increase in food prices for 2001 was forecast for fresh vegetables, up 4 to 6 percent. Most foods were forecast to see price rises of 1 to 3 percent. Farmers get about 20 cents from every $1 spent on food by Americans. The rest goes to handlers, processors and retailers.

EDUCATION

In 1999, for the first time in 14 years, the number of doctorates awarded by research universities in the U.S. declined. The biggest drops came in engineering and the physical sciences.

GRANTS

Tesco is the U.K.'s leading supermarket chain. Recently the government announced a grant of $1.45 million U.S. to Tesco for in-store Internet Web surfing facilities. The grant is part of the U.K. government's plan to attract more people onto the information super highway. Tesco has firm plans to install public computers in "internet cafes" at 10 of its sites, and is likely to extend the move to all 400 of its retail outlets.

TOPS

According to a survey by the high-profile international consultancy firm William M. Mercer, Vancouver has been ranked as one of the top two cities in the world to live. After rating 215 cities around the world in terms of quality of life, Vancouver and Zurich were deadlocked at number one. Montreal and Toronto were tied for 19th place. The ratings are based on such measures as personal safety, entertainment and economic and social factors.

TASTE

Beef now outsells chicken in U.S. restaurants. 7.2 billion servings to 5.2 billion.

FASHION

Fashion consultants Kurt Salmon Associates claim that fashion trends now have an average lifespan of just eight to 12 weeks, instead of five months two years ago.

POPULATION

Canada's population will continue growing in the next quarter century, but it will age considerably and the proportion of young people will shrink significantly, according to new population projections. On July 1, 2000, Canada's population was an estimated 30,750,000. In 25 years, it is expected to be between 34 million and 39 million. The growth rate will continue to decelerate. From 1996 to 2000, the population grew at an average annual rate of 0.9%. This growth rate is projected to slow to 0.5% by 2026. From 2046 to 2051, the population could eventually decline at an average rate of 0.1% a year.

GLASS

British glass manufacturer Pilkington PLC says it has invented the world's first self-cleaning glass. The product is undergoing trials in Europe and North America. The product reacts chemically with sunlight to break down unwanted dirt and causes water to form a sheet on the surface that allows grime to wash away.

HACKING

The FBI reports that organized hacking groups, primarily from former Soviet countries, are responsible for recent increases in credit card thefts. It said e-commerce companies should be more vigilant in protecting their customers' credit card numbers. Last December, a Russian hacker stole more than 55,000 credit cards from one site. More than 40 companies in 20 U.S. states have been identified as targets.

OUTSOURCING

An International Data Corporation study concludes that companies in the U.S., faced with a persistent shortage of technology staff, will dramatically increase the amount of work outsourced in other countries. The value of overseas outsourcing by U.S. companies will grow from about US$5.5 billion in 2000 to more than US $17.6 billion in 2005. India is seen as capturing the lion's share, but companies will also turn to Canada, Mexico, South Africa, Israel, Ireland, the Caribbean and Eastern Europe.

TRENDS

In the London subway system, the first vending machines to sell fiction to commuters have just been introduced. Each Travelman Publishing story, which costs US$2.00, is printed on a pamphlet that opens like an accordion and offers enough reading to keep a person occupied for 40 minutes. Selections include classics and new works written for the venture.

NUTRITION

A study published recently in a British medical journal suggested that an extra soft drink a day increases the likelihood of children ending up obese. Now, Coca-Cola Co., under fire for aggressively marketing sugar-sweetened soft drinks to kids has said it will begin selling juices, water and other nutritional drinks to students as part of a makeover of its controversial school marketing strategy. The U.S. Agriculture Department has asked Congress for authority to regulate what foods and beverages can be sold to schoolchildren.

BUYING

A new survey suggests that two million more Canadians will buy on-line this year, increasing the total of Internet shoppers to seven million, just under half of the total on-line adult population. A growing proportion of Web shoppers will buy from Canadian e-tailers. Sixty-three per cent of respondents said their most recent on-line purchase was made at a Canadian Web site, up from 30 per cent two years ago.

SAFFRON

The world's most expensive food is saffron, which sells for a whopping US$2,000 per ounce! The price is due to the tedious process of harvesting it. Saffron comes from the inside of purple crocuses. To make a pound of saffron 70,000 to 250,000 crocus stigmas must be hand collected.

ART

A US$1.5 million sculpted mirror in England will have to be shielded from the sun when it is put outside a Nottingham theatre. If not, it will barbecue birds in mid flight. Experts have found that the highly polished steel mirror measuring 19 feet across will act like a giant magnifying glass during high summer, reflecting a beam of light packing the equivalent of 40 kilowatts, enough to blind people or start fires. Any pigeons which flew close to it could be barbecued in mid-air.

STAMPS

The Royal mail is taking a lighthearted look at Britain's often gloomy weather by creating heat-sensitive postage stamps that change grey skies to blue with a rub of the finger.

SHOES

China-made shoes currently account for approximately 43 per cent of the world's total and they make up 60 per cent of U.S. shoe imports. Amid sluggish domestic demand, shoe production in Mexico reached 270 million pairs for 2000, only 20,000 pairs more than in 1999. However, approximately 54 million pairs of China-made shoes also made their way into the Mexican market. Mexico has been battling imports of shoes from China for several years.

ICEWINES

The European Union has at last said it will open its borders to Canadian icewines, something that Canada has been negotiating for years. Canada has become a major producer of icewines, so named because they are made from grapes left on the vine to freeze before being harvested to make a sweet dessert wine. The Canadian wine industry played an important role in developing standards to meet EU quality requirements

RUSSIA

A food revolution is sweeping through Russia's supermarket shelves. Long dominated by Western brands that flooded into the country to exploit the post-Soviet collapse, grocery shops are now switching to dozens of aggressively marketed Russian products. It is a crucial sign of diversification in an economy still heavily dependent on oil and other commodities. Breweries and confectionaries are among the fastest growing domestic industries.

GENOMICS

Canada is making efforts to become a major player in genomics setting the goal of second to the U.S. within five years. Having missed out on the crucial mapping stage, the government has announced extra funds for research additional to the $160 million announced last year. Genome Canada is setting up five regional research centres and will shortly announce its first research grants.

MOVIES

For the third consecutive year, British Columbia has beaten Ontario as the Canadian province enjoying the biggest dollar value of film and TV activity in the country. In 2000, a total of $1.18 billion was spent on 192 productions in B.C., up 10 per cent from the total in 1999.

SACRIFICE

An Egyptian sheep destined for sacrificial slaughter forestalled its owner's plans by pushing him to his death off a three story building. Many Egyptian city-dwellers keep livestock on rooftops and balconies.

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.

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March 2001 Economic Digest - Importing and Exporting

March 2001 Edition

PHONES

Forty million people in the United Kingdom--about two-thirds of the population--now have a mobile phone. In Japan, the figure is 63.8 million--about 50 per cent of the population. About 9 million Canadians, 29.3 per cent, have mobiles.

JAPAN

English has become a key step for climbing the promotion ladder in Japan. An increasing number of companies are looking at scores in English proficiency tests such as TOEIC (Test of English for International Communication) when deciding promotions and pay rises. Many are also making English their official in-house language. English has become increasingly important to Japanese companies amid the globalization of corporate activities, particularly the increase in international mergers and acquisitions and the spread of the Internet. The government is considering a national debate on whether English should become an official second language.

TIME

A British magazine suggest that by the time you get to 70 years of age, you have wasted about four years suffering from colds and flu. The average person gets about 200 upper respiratory infections in their lifetime.

HANDS

According to the Grocery Manufacturers of America, 2000 was the year of "one-handed foods." There is a great premium placed on anything that can be prepared or eaten conveniently while holding a baby or driving a car.

CLAIMS

Companies that spike foods with herbal medicines claiming to do such things as boost brain power or fight infections are getting a government warning: they may be breaking the law. The U.S. Food and Drug Administration has written to more than 80 companies warning them to examine novel ingredients used in food products to make sure they are considered safe food additives by the government. The letter also warns companies to cease making illegal - and scientifically unproven - health claims, such as falsely claiming that adding certain herbs makes foods act like antibiotics.

VIEWING

T.V. viewing reached a two-decade low in the fall of 1999. Canadians watched television for an average of 21.6 hours per week, almost one hour less than in 1998, and well below the peak of 23.5 hours set in 1988. Viewing declined in all provinces except Newfoundland and B.C. Some of these declines may be attributed to the fact that attendance at movies hit a 38-year high of 112.8 million visits, a 12% increase from the previous year. Canadians are also logging onto the Internet in growing numbers. In 1999, about 42% of households contained at least one regular user, up from 36% in 1998.

GROCERIES

The U.K. online grocery market will be worth more than $9 billion (U.S.) by 2005, but the U.S. will remain by far the largest market at $32 billion, according to a new report. The U.K. has the most developed online retail market of any of the countries analyzed, including the U.S. This is due, in part, to British consumers being used to giving credit card details over the telephone and so easily adapting to online ordering.

CULTURE

The estimated total government spending on culture in Canada increased in the fiscal year 1998/99, halting four consecutive years of decline. The three levels of government spent an estimated total of $5.7 billion on everything from libraries and museums to nature parks and broadcasting. The federal government spent $2.8 billion on culture in 1998/99, up 5.9% in current dollars. The provinces and territories spent $1.9 billion, a 9.0% increase. Municipal spending fell 7.9% to $1.4 billion.

SAINTS

Pope John Paul is considering naming Saint Isidore of Seville the patron saint of Internet users and computer programmers. Saint Isidore, who lived in the seventh century, was believed to have written the world's first encyclopedia, the Etymologies, which included entries on medicine, mathematics, history and theology. The Vatican first went online in 1996 with its Web site www.vatican.va which it has used to publish thousands of Catholic Church documents and Papal speeches.

AGREEMENTS

In the last ten years, the governments of Mexico, Canada and the United States have made more than 50 trilateral agreements and treaties on such varied subjects as trade, higher education, the environment, labour affairs, science and technology and cultural promotion.

SAFETY

The Canadian government, in an effort to make roads safer and operations smoother for motor carriers hauling between provinces and national borders, is preparing to set up national safety standards and certification for commercial trucking. A national performance regime would end the requirement that carriers be certified as safe in each of the 10 provinces and three territories through which they may operate.

E-TAILING

An Anderson Consulting European study placed a total of 445 orders with 162 dot-com companies and monitored each company's ability to fulfil the orders, process payments and handle returns. Almost two-thirds provided a confirmation of the order, and 27 percent confirmed when the order was shipped. Under 25 percent offered information about whether the product was in stock. Only half the sites had a clear process for handling returned products. 20 percent of orders arrived within five days of the expected delivery date. Where a delivery date had not been provided, 59 percent of goods were never delivered.

DRUGS

It was an amazing year for medicine in 2000. 21 new drugs--an unparalleled number--were marketed by U.S. pharmaceutical companies. This record number of treatments--for heart disease, multiple sclerosis, hepatitis, Alzheimer's, epilepsy and cancers--poured out of the U.S. biotechnology giants.

BUDGETS

A survey of 50 chief information officers from major companies and government agencies in the U.S. found that e-commerce budgets are expected to increase 30 percent over last year, outpacing the anticipated 6 percent increase in overall IT spending. Companies' e-commerce budgets are expected to outstrip overall information technology spending this year as companies develop back-end systems that allow customers, suppliers and employees to interact with each other online, providing cost savings of millions of dollars.

NAMES

According to British advertising agency and brand consultancy Interbrand, four of the five most valuable brands in the world last year were technology names: Microsoft, IBM, Intel and Nokia. Coca-Cola managed to hang onto No.1, but just barely. Interbrand assessed its brand value as being down 13% to $72 billion from $83.8 billion a year earlier, inching ahead of Microsoft at $70 billion.

THINGS GO BETTER...

According to the Far East Economic Review, Coca-Cola is reformulating itself and Asia is Ground Zero for its new strategy. With its flagship brand beleaguered, the company is looking elsewhere for a boost. Setting aside the most valuable brand in the world, the soda-maker is moving into all things drinkable, trying to transform itself into a localized "total beverage company" tailoring drinks to individual countries. Instead of concentrating solely on fizzy soda, Coca-Cola is expanding its portfolio to include everything from oolong tea to New Age-style fruit blends, high-power energy drinks and even plain old water.

AVON

This company started out as the California Perfume Company when the founder discovered that the rose oil perfumes he was giving away were the reason people were buying his books. He named the company Avon in 1939 in tribute to his favourite playwright, William Shakespeare and Stratford on Avon.

LAND

Investors from Japan are buying up some of the richest land Argentina has to offer in the province of Buenos Aires to produce organic foods such as soy and wheat. Japanese technicians will certify the quality of the soy, sunflower, wheat and corn crops produced by Argentine farmers.

BIOTECHNOLOGY

According to Statistics Canada, there were 361 Canadian biotechnology firms in 1999; just over 40 per cent of them were concentrated in the human health sector, 25 per cent were in the agriculture sector and 10 per cent were in the environment sector. Biotechnology revenues exceeded $1.9 billion in 1999, an increase of almost $400 million, or 25 per cent, over 1998 revenues. Firms expect their revenues to exceed $5 billion in 2002. In 1999, Ontario firms had $635 million in biotechnology revenues, followed by Quebec ($554 million). 75 per cent of firms surveyed were small (50 or fewer employees), 14 per cent were medium-sized (51 to 150 employees) and 11 per cent were large (151 or more employees).

CHINA

In 1994, combined trade between China and Canada was $2.4 billion with Canada having a deficit of $18 million. In 1999, combined trade was $11.6 billion with Canada having a deficit of $6.3 billion. Top exports to China are: wood and other pulp, oil seeds and other fruits and grains, fertilizers, mechanical appliances and cereals. Top imports from China include: electrical machinery and parts, toys, games, sporting goods footwear and clothing. Saskatchewan, B.C. and Alberta are the top exporting provinces to China. B.C. Ontario and Quebec are the top importers.

COPYRIGHT

The European Parliament has passed a law making it illegal to circumvent copyright-protection technologies in consumer electronics. It is claimed that the law will make copyright protection stronger in the EU than in the U.S.

POWER

Taiwan's industries lose billions of dollars in production because of energy problems each year, while the completion of a fourth nuclear plant was held hostage by a political war. Last year, 40 power failures or voltage drops hit Hsinchu Park, Taiwan's Silicon Valley. For the semiconductor industry, any power failure, even for a few seconds or a power drop, results in huge manufacturing loses. Taipei is worried about the growing number of computer and chip makers moving abroad--many to mainland China--lured by tax incentives and cheap labour.

RECYCLING

Volkswagen, Germany's biggest car maker, is reported to be setting aside US$470 million to pay for compliance with a European directive that will come into force in 2007 forcing car makers to pay for recycling their vehicles. New cars will be required to be 85 per cent recyclable.

MONKEY BUSINESS

Thousands of monkeys are creating havoc in the corridors of power in the Indian capital, barging into government offices, stealing food, threatening bureaucrats, and even ripping apart valuable documents. The increasingly aggressive animals swing effortlessly between the offices of the defense, finance and external affairs ministries, and have even been spotted in the prime minister's office. There are at least 10,000 monkeys in and around the stately red sandstone buildings Killing the animals is not an option because monkeys have a sacred status in India's main religion.

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