DECEMBER 1996 Edition
CHILE-CANADA
A free trade agreement has now been signed between the
two countries which gives Canada momentum in developing closer political and
economic ties with Latin America. The agreement is modelled on the NAFTA and
will give duty-free access to 75 per cent of Canadian exports and elimination
of Chile's 11 per cent import duty on almost all remaining industrial and
resource based goods over five years. Canada will have better access for agricultural
goods, protection for Canadian investments and there will be mutual elimination
of anti-dumping duties within a six year period. There are side agreements on
labour and the environment.
STATISTICS
The range of high‑tech equipment on the market is rapidly
changing the face of communications and entertainment for the average Canadian.
Every third household
now has a home computer,
while new data show that one in seven has a cellular phone. In 1996, 3.6
million households, or 31.6%, have a home computer, up 365,000 from last year
and triple the proportion of a decade ago. Data collected for the first time
this year show that 1.6 million households, or 14.1%, have cellular phones. In
terms of home entertainment, 53.4% of households have a compact disc (CD)
player, more than double the proportion of just five years ago.
MICROBREWERS
The changing tastes and loyalties of thousands of B.C.
beer drinkers have shifted away from the major brewers. Microbrewers are now
increasing their market share at the expense of the industry's giants and now
account for between six and 10 per cent of B.C.'s annual 2.95 hectolitre
market. This is the highest penetration rate of any Canadian province, about
double the national average and rivals the 10 per cent market share that
microbrewers now command in Washington and Oregon. In the U.S as a whole, upwards
of 1000 microbrewers account for 2.5 per cent of total beer consumption. This
industry is worth about $52 billion (U.S.) annually.
DAEWOO
This giant South Korean auto maker has postponed
indefinitely its planned 1997 entry into Canada but still expects a spring 1998
launch in the U.S. market. This is the second South Korean auto maker to
reassess its plans for Canada. Earlier this year, Kia Motors Corp. closed a
research and sales office in Toronto. Consultants have been assessing if the
unique method Daewoo uses to sell cars in Britain would work in Canada. That
system involves 18 big show rooms of at least 20,000 square feet where the company
sells only new cars and does no service. The show rooms are complemented by
another 30 or so dealerships which offer new and used cars and service. The
major problem in duplicating the British strategy is Canada's vast size and
thinly spread population. It is estimated that a serious effort to sell cars
would require initial costs of $10 to $20 million.
DOING BUSINESS
When it comes to business competition with the U.S.,
Canada wins, hands down. A business cost analysis prepared by the Royal Bank
and KPMG Canada for the federal government, states that for every industry
examined, all costs are lower in Canada and this will remain while the Canadian
dollar stays under 87 cents against the U.S. dollar. Costs related to locations
are on average 15.7 per cent lower in Canada. The advantage varies from
industry to industry and ranges from 5.5 per cent for telecommunications to
10.5 per cent for software production. The survey show that even expensive
cities, such as Vancouver, are less costly than their U.S. counterparts.
FAX ADVERTISING
Rules governing facsimile advertising have been toughened
in B.C., Ontario and Quebec following consumer complaints. Unsolicited
advertising by fax will be allowed from 9.00am to 9.30pm Monday to Friday and
1.00am to 6.00pm Saturday and Sunday. Advertisers will also have to comply
within seven days with a consumer's request not to be faxed again, down from
the present 30 days. Exceptions to the new rules are emergency and public
service information, account information, market or survey research and calls
to businesses responding to messages or requests by subscribers.
OPPORTUNITIES
Invitations to tender from GATT\WTO countries around the
globe are now available on-line. Tenders Electronic Daily (TED), is a database
developed by the European Commission. It is said to be the best available
source of information on current worldwide purchasing and includes all areas
subject to government spending, including supply, service and public works
contracts above a certain monetary value. With an average of 30,000 documents
in TED each day, there is a good chance that most companies will find one in
their particular field. For a free document search and sample invitation to
tender or contract award registration and subscription fees, contact Advanced
Information Databases Inc, the official gateway in North America for the
European Union at 1-800-890-1692.
SERVICE
His wife thought he was mad when Mr. Simpson of Florida
sent in a Jones Dairy Farm coupon for a pancake breakfast that he found in a
1935 issue of Fortune in an antique store. Four days later, a delivery truck
pulled up to their home and dropped off a package containing breakfast sausage,
pancake mix and a jug of pure maple syrup. The value of the breakfast package:
$29.95, plus shipping.
CREDIT
Credit cards are far more popular in America than
anywhere else, with each person carrying an average of 1.4 cards. Canadians
average one card each. By contrast, there is only one card for every two people
in Britain and one card for every ten Germans. Only seven per cent of the
French have credit cards, but those who do make the most of it, spending an
average of $6,192 per card. That is more than four times the amount spent per
card in America.
DEBT
The biggest group of people behind B.C.'s personal
bankruptcy numbers are between 23 and 26 and the rate is increasing faster than
anywhere else in the country. The young have gone to a community college,
university or technical school, though many didn't complete their programs.
They ran up student loans from $3,000 to $20,000 and when they left school, the
few who found jobs didn't find well-paying ones. With low or no earnings and
student loan payments, many abused credit cards, further swelling their debt.
SOUTH AFRICA
The Canadian High Commission in South Africa has launched
an Internet homepage which may be found at http://www.canada.co.za.
It enables visitors to access information on a wide range of topics relating to
Canada and South Africa. These include political-economic and trade and tourist
information. It also has links to a variety of other African sites and should
be useful to any company considering trade in Africa.
REAL ESTATE
According to a survey by AFIRE, a U.S. real estate
organization, American real estate
remains the investment choice of foreign property investors. 81 per cent of
AFIRE respondents said U.S. real estate was a better investment than in Europe,
while 77 per cent picked the U.S. over South East Asia. 83 per cent of the
155-member group said they would increase their level of investment in the U.S.
next year. AFIRE members have about $15 billion (U.S.) in capital invested in
the U.S., about half of all foreign investment.
TRENDS
A majority of people living within Vancouver's city
limits speak a language other than English at home according to the city's
social planning department. In the past five years, many Asian immigrants have
moved into Vancouver and English speaking residents have sold their high-priced
city homes and moved to the suburbs. Now, only 43.96 per cent of the children
in Vancouver schools report English as the language they speak at home.
POLAND
Canada wants Poland to become its foothold for trade
expansion in Central and Eastern Europe and will likely double investment there
next year. Poland is already Canada's No 1 market in the region. Six years
after the fall of the Berlin Wall, there were 3-4 million non-agricultural
businesses in the region, most of which were set up from scratch after
communism's collapse. In some countries, such as Poland and Hungary, around 20
per cent of them existed before 1990 and Poland had over a million registered
businesses in 1995.
SATELLITES
Industry Canada is warning that hundreds of thousands of
Canadians using satellite-receiving equipment to obtain U.S. services may be
breaking the law and could face criminal charges. In a recent brochure on
direct-to-home TV, the government made it clear for the first time that it
regards the so called grey-market to be illegal. Industry watchers estimate as
many as 200,000 Canadians are receiving grey market TV services. A black market
also exists in the form of cards with embedded microprocessors that enable
people to pull in satellite programming without paying anyone. However, the
legality of DTH remains uncertain and police agencies are confused and
frustrated as they try to enforce laws that are under attack in the courts. A
New Brunswick court ruled recently that a search and seizure of satellite
equipment by the RCMP was a violation of the Charter of Rights and Freedoms and
ordered the equipment returned.
THE FUTURE
A laboratory experiment In Wisconsin has shown that a
gene in bacteria can be inserted into the cotton plant creating a
polyester-like substance which may allow farmers to grow a fibre that is
wrinkle-free and as warm as wool. The concept may allow the industry to come up
with new and novel fibres for the textile industry. Different genes may be used
to make cotton resistant to wrinkles and shrinkage and others could cause
cotton fibres to lock in dyes, allowing production of more brightly coloured,
fade resistant fabrics.
GAS
Almost half of all Canadian natural gas production is
exported to the United States via an extensive network of pipeline systems.
Over the past decade, natural gas exports have been growing rapidly to meet the
demand from U.S. utilities and residential users. In recent years, pipelines
transporting gas to Canadian and U.S. customers have been operating near full
capacity, especially during the peak winter months.
FILMS AND VIDEOS
In 1994/95 there were 706 film, video and audio‑visual
production companies and 154 motion picture laboratories and post‑production
companies in the Canadian film and video industry. Almost 16,000 people were
employed, including 3,600 full‑time, 2,300 part‑time and 10,000 freelancers.
Canadian films showed increased popularity on the international market with
another record performance by the film and video industry. Production revenues
reached $797 million, up 8.7% from the previous year and up 37.2% from 1990/91.
A factor in the expansion was growth in foreign sales, which reached $163
million, a 9.6% increase from the previous year. Exports, which accounted for a
fifth of total revenues, have more than doubled over the past five years. Made‑for‑television
productions accounted for most foreign sales.
CHRISTMAS
Three is the maximum number of courses of a Christmas
dinner that may be eaten in Britain without violating a 1646 law still on the
books from Oliver Cromwell's Long Parliament.
Thousands of Christmas cards depicting stolen artwork
will go on sale in Britain this year. Police hope that some card recipients
will recognize the masterpieces and tip them off.
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