July 2003 Economic Digest - Importing and Exporting

July 2003 Edition

BEER

Heineken, the first foreign beer drunk by Americans after the end of Prohibition, is trying to regain its cachet as America's favourite international brew. The Dutch brewer, which grew to become the No. 1 U.S. import after the first crate arrived in New York Harbour in 1894, has slipped to second place behind Corona of Mexico. Heineken has been trying to catch up spending on average US$51-million annually on marketing. Corona spends about US$35-million annually to promote Corona in the U.S. and has 29 per cent of the market compared to 19 per cent for Heineken.

OLYMPICS

Moscow has officially entered the battle to host the 2012 Olympics, joining Paris, London, New York, Madrid, Havana and Leipzig. Brazil is considering nominating Rio de Janeiro or San Paulo. It is estimated that these games will cost US$7-billion to stage. The 2004 games are in Athens and Beijing will host the event in 2008.

DIAMONDS

Canada's burgeoning diamond industry is suffering from a lack of labour. Diamond mines across the country are scrambling to find everything from skilled mine operators to trained diamond cutters and polishers. Without tradespeople to turn the diamonds into jewellery, the industry stands to lose a lot of money. Immigrants from Armenia, the Ukraine and Mauritius are bailing the industry out for now. But with the certification program for sorting, cutting and polishing in Yellowknife taking three years to complete, the shortage is going to linger on.

RAIN

President Putin ordered fine weather for the St Petersburg summit and its 300th anniversary festivities recently. Ten aircraft took to the skies, equipped with cloud-seeding agents in an attempt to induce rain away from the city allowing tourists and visiting heads of state to enjoy dry weather below.

GM

The United States (with Argentina, Canada and Egypt) is to challenge the European Union's moratorium on genetically modified food at the World Trade Organisation. It contends that blocking imports of American crops has no scientific basis. The move came soon after the EU said that it would impose trade sanctions over America's tax treatment of exporting firms.

NOISE

Restaurants have become a new battlefield in the noise wars. In San Francisco, restaurant critics carrying meters that measure decibels and noise ratings are getting a very positive feedback. Would-be diners are avoiding places where you have to raise your voice to talk.

BEAUTY

It is estimated that the global beauty industry, encompassing make-up, skin and hair care, fragrances, cosmetic surgery and diet pills, is worth US$160-billion annually. Analysts estimate that skin care is worth US$24 billion annually; make-up, $18-billion; $38 billion of hair care products; and $15-billion of perfumes and that the market is growing at 7 per cent a year. This growth is being driven by richer, aging baby-boomers, increased discretionary income in the West and by the growing middle-classes in developing countries.

WATER

India's ruling party has launched a campaign to gather public support for one of India's most ambitious projects, the linking of rivers across the country. The project aims to connect nearly 30 rivers in the country and it is estimated that it will cost over US$100-billion. It envisages diverting water from surplus river basins to water deficient areas.

CALL CENTRES

North American businesses have long outsourced some operations to cut costs. Recently, the technology industry has increasingly outsourced tasks, call-centres included. Low-wage workers are the key draw. An entry-level programmer in China cost 30 to 50 per cent less than one in Tokyo, London or Chicago. Experts estimate that the number of computer jobs moving overseas will grow from just over 27,000 in 2000 to a cumulative total of 473,000 by 2015.

CANADIAN FARMS

Net cash income, the difference between a farmer's cash receipts and operating expenses, tumbled 10.6 per cent to C$7.7-billion in 2002 after setting a record high in 2001. Cash receipts fell for the first time since 1998 in the wake of back to back droughts, while higher feed grain costs drove up operating expenses. Western farmers experienced one of the poorest growing seasons in the past quarter century in 2002. The situation for some growers in Alberta and Saskatchewan was worse than in the depression of the 1930s.

TRIVIA

According to a U.S. menswear industry observer, the average man changes his suit size every three years.

TEXTILES

China Daily reports China's exports of textiles are being "torn to shreds" as foreign buyers concerned about the SARS epidemic shift their orders to Pakistan, India, and Turkey. Face to face contact is required to finalize most orders, but visits from American and European buyers have dropped significantly. Recent travel warnings issued by the US State Department have resulted in a decrease in travel to Southeast Asia, especially to Mainland China and Hong Kong.

DRONES

Pilotless planes, more commonly known as drones, which the U.S. used in Iraq, will be tested in Ohio to see whether they can battle a more down-to-earth hazard: traffic jams. Transportation officials believe that they hold promise as a way of keeping an eye on traffic, route trucks and fix stoplights so traffic flows better. Data on traffic flow now comes from detectors embedded in the pavement or the black pneumatic tubes stretched across roads. Another possibility includes the use of cameras in tethered balloons.

LONGEVITY

The Kongo family knows a thing or two about running a business. The family's construction company in western Japan has been going strong for more than 14 centuries, spanning 40 generations. The company has survived everything from feudal wars to the more recent collapse of the nations's economic bubble. The company began building temples for the Japanese emperor in 578.

INFLUENCE

Children in the U.S. hold massive consumer power in the food and beverage industry. According to the U.S. Market for Kids Foods and Beverages study, children between the ages of 5 and 14 will directly control $10-billion in food and beverage spending this year and will influence the vast majority of purchases made in this category.

LUXURY

The new Rolls-Royce Phantom includes two custom-made umbrellas that stow inside the rear doors. When the car owner (or chauffeur) pushes a silver button, the unbrellas' handles slide out. When one of the full-sized umbrellas is returned to its door compartment, a channel drains the moisture away.

SELF-DESTRUCT

In August, the Disney company will introduce a DVD for rental which will self-destruct in 48 hours. After two days the disc will become unplayable and does not have to be returned. The discs stop working when a process similar to rusting makes them unreadable after exposure to oxygen.

DIRECTIONS

It used to be that only high-priced luxury cars came with satellite navigation systems to help drivers in unfamiliar places. Now, more car makers, including Honda, Nissan and Toyota, are offering optional in-dash navigation systems for around $2,000. The systems are available in more than 60 car models today, up from just seven in 1998. It is estimated that 300,000 cars were sold in the U.S. last year with navigation systems.

FORGERY

Cheap inkjet printers, often given away with personal computers, are being used to forge banknotes that pass for the real thing in pubs and night clubs. Banks and governments have been briefed by De La Rue, a world leader in security printing. Fierce competition in the inkjet market has made digital colour printers so cheap and the print quality so high that a $200 printer can produce fake banknotes that are easily mistaken for genuine currency in dim light.

PEOPLE

The Russian Government has announced plans to resettle up to 600,000 people from the country's remote far north. Inhabitants from such regions as Kamchatka, Yakutia, Chukoyka and Evenkia will be moved to south or central Russia. Many town and villages in the remote regions are based on failing single industries and there is no point in developing infrastructure in the areas. The World Bank is contributing a US$50-million loan to the project.

CLOTHES

For years, department stores' bread and butter was clothes. But now, many retailers are finding that foot traffic is driven by other goods---groceries, furnishings and automotive products are increasing their presence, shoving aside apparel. Apparel sales, including footwear and accessories, fell by two per cent in 2002 to US$220-billion, the second consecutive year of decline. Meanwhile, food sales jumped 8 per cent and electronics rose two per cent. Many stores rely on apparel for nearly 80 per cent of their sales.

IRRADIATION

Banks, insurance companies and other institutional lenders are starting to weigh the cost-benefits of irradiating ground beef, poultry and other foods as part of their due diligence on loans to restaurant chains, food service providers, food processors and food retailers. In 2002, there were 66 recalls in the U.S. for listeria or E.coli-contaminated beef, pork and poultry. The largest recall involved 22 million pounds of product and cost US$81-million, not including litigation costs. It is estimated that irradiation costs 7 cents a pound for ground beef.

MARRIAGE

The number of couples who got married in Canada hit the highest level in five years in 2000. In Quebec, where the trend to common law unions has traditionally been strongest, the number of marriages increased for the first time in 12 years. A total of 24,912 couples went to the altar in Quebec in 2000, up 8.7 per cent from 1999, the strongest gain among the provinces. Nationally, a total of 157,395 couples tied the knot in 2000, up 1.1 per cent from 155,742 in 1999. This was still well below the most recent high of 160,251 in 1995.

AUDITS

Canada's Auditor General is to face an audit by a team of global experts. Canada's spending watchdog employs 575 people and has a budget of C$66-million a year. A Global Working Group, an organization composed of public auditors from 15 countries, met and agreed a plan under which teams made up of their own members would audit each other's operations. Canada will be audited by British, Dutch and Norwegian auditors. The results will be published in 2004. The General Accounting Office of the U.S. will be audited next year.

SENSITIVITY

More than 2,000 employees of a British company were recently fired, not by the usual pink-slip method, but by text messages sent to their cell phones. The messages sent were, "Don't contact the office. Salaries will not be paid," and "If you have not been spoken to, you are therefore being made redundant, with immediate effect."

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 2003 Economic Digest - Importing and Exporting

June 2003 Edition

PEARLS

 
The SARS epidemic has had a profound impact on the pearl industry. Foreign buyers have been frightened away from Hong Kong and China's Guangdong province, which supply around 38 per cent of the world's pearls. Also, Chinese vendors have been barred from several major exhibitions, resulting in a 40 per cent drop in the world's pearl distribution and sales. Hong Kong has become the most important pearl manufacturing base because of its quality products and low labour costs, which are less than one 10th of that in the U.S.

SUV's

42,850 people died in U.S. traffic-related accidents in 2002, the highest number since 1990. Rollovers of SUVs and pickups accounted for more than half of the increase from 2001 to 2002. Rollovers now account for 32 per cent of automobile fatalities, more than 10,000 annually. Rollover deaths are increasing along with sales of light trucks--SUV's, pickups and minivans. Since 1980, light trucks have grown from a fifth of the nation's sales to more than half.

FISH

Several U.S. retailers are to begin adding the words "color added" to the labels of all farm-raised fish from the Salmonid family, including salmon and trout. Many suppliers add supplements to the food given to their farm-raised salmon and trout. These additives enhance the pigmentation of the farm-raised fish but do not affect the taste or nutritional value of the fish.

GROWTH

The Conference Board of Canada predicts that the Alberta cities of Calgary and Edmonton will lead growth among Canadian metropolitan areas in 2003. Ontario cities are also pegged for strong performance over the next four years due largely to strong domestic growth and a recovery in the U.S. Victoria, B.C. is predicted to have the lowest growth. However, Export Development Canada expects B.C.'s export sales to increase seven percent this year.

PROGRESS

Some dishwashers have advanced sensors to determine how dirty the dishes are by analyzing the water that is being circulated. The sensor will then decide how many fill-and-drain cycles the dishwasher will execute.

ICELAND

When the Vikings settled Iceland more than 1,000 years ago, the selection of the country's name was a bit of a misnomer. The island in the middle of the North Atlantic wasn't really an island of ice and snow. It boasted extensive forests composed entirely of stands of birch trees which covered 30 per cent of the area. Glaciers, by contrast, covered less than 10 per cent. Within three centuries of their arrival in 874, the Vikings had obliterated the forests. Scientists estimate that Iceland's deforestation and soil erosion have released six billion tonnes of carbon since settlement.

DRINK

The French drank 101 bottles of wine each in 2001, according to a wine-trade survey. Russians drink some 15 litres of pure alcohol per year, one of the highest rates in the world. By some estimates, one in seven Russians are alcoholics.

BLACK

Britain's National Physical Laboratory has formulated a super-black coating that is up to 25 times blacker than traditional paint. The material absorbs nearly 99.7 per cent of light making it the darkest and least reflective surface ever formulated.

LAKES

One out of every three Canadians and one out of seven Americans rely on the Great Lakes for their fresh water. Scientists report that we have now constructed one of the world's largest zoos in the Great Lakes containing some 145 alien species, largely as a result of inadequate regulations to control the discharge of ballast water from other continents.

SINGAPORE

The U.S. has signed an historic trade agreement with Singapore which will wipe out tariffs on around US$33-billion of trade between the two countries annually. It will also give US banks and companies more access to one of Asia's main financial centres. If approved by Congress, Singapore will be the first Asian country to have such an agreement with the U.S. Singapore is America's 11th largest trading partner.

FRANCE

According to the EU, France is at the head of their rule breakers, facing 220 legal actions for failing to comply with the single market. Italy, with 200 infringement cases pending is second. Between them, the two countries account for more than 25 per cent of the 1,598 actions launched by the commission against the 15 member states. The UK is cited in 121 alleged breaches of the single market rules, which oblige EU governments to comply with around 1,500 pieces of legislation on the free movement of people, goods and services.

SURGERY

6.6 million Americans had a nip, tuck and lift with cosmetic plastic surgery in 2002. Surgical cosmetic procedures remain stable with a one per cent increase in 2002. The top five surgical procedures in 2002 for women were nose reshaping, liposuction, breast augmentation, eyelid surgery and facelift. For men they were nose reshaping, liposuction, eyelid surgery. hair transplantation and ear surgery.

MOTHERS

Canada tied with the Netherlands as the sixth-best country in the world for mothers. A humanitarian aid group compared the social and physical health of mothers and their children in 117 countries. Sweden topped the list, followed by Denmark, Norway, Switzerland, Finland, Canada and the Netherlands. Rounding out the top ten were Australia, Austria and Britain with the U.S. ranked 11th.

MEXICO

Last month we reported on the growth of call centres in Mexico. This growth is due to reality television shows which have recently become popular in Mexico. The call centres are required to handle the huge volume of calls from viewers who call in to place electronic votes on who should be thrown off shows.

HEAT

Forget those bulky cardboard shades propped in the windshield to keep a parked car from heating up like an oven. 3M has come up with the Solar Reflecting Film, an invisible ultra thin sheet of clear plastic built into the windshield. It deflects the sun's heat and ultimately increases fuel efficiency. It doesn't just keep the car cooler in the sun, but also works while the car is moving. reducing the burden on air-conditioners.

EUROPE

The EU has announced a proposal for an enhanced trade agreement with Canada that will focus on removing regulatory barriers to boost commerce between the two countries. As a bloc, the 15-member EU states rank as Canada's second-biggest trading partner after the U.S. In 2002, Canadian exports to the EU were C$21.2-billion and imports from the EU into Canada were C$36.1-billion. In a recent government poll, 76 per cent of Canadians polled believe there should be free trade between the EU and Canada.

SHOES

Thousands of pairs of Nike basketball shoes are washing up on beaches from Washington State to Alaska after spilling from a container ship in Northern California. The ship lost cargo during a storm, including three 40-foot containers each carrying an estimated 5,500 pairs of shoes. All 33,000 are wearable. Unfortunately, Nike didn't tie the laces together so the chances of finding a matching pair are remote.

OUTLETS

U.S. factory outlet malls sold US$3.5- billion worth of apparel in 2002, down 2.2 per cent from the previous year. Apparel sales overall fell 6.8 per cent to US$163-billion in 2002. When all products are counted, outlet sales hit about US$16.5 billion last year. The number of centres nationwide is down 20 per cent to about 260 since the heydays of the mid-1990s.

CCC

China has created regulations for new compulsory product certification mark called the China Compulsory Certification (CCC). The new regulations are to be fully implemented in August 2003 and cover a total of 132 products. The new mark replaces the old CCEE mark (quality assurance symbol for China-made products) and the CCIB mark (quality assurance symbol for imported products). The CCC scheme will standardize technical regulations, certification marks and fee schedules for both domestic and imported products. These changes result from China's commitment to conform to the WTO Agreement on Technical Barriers to Trade.

SCHOOL

The number of students from the United States attending school in Canada, whether high school or university, doubled to slightly more than 12,000 in 2001 from 6,500 in 1990. The low Canadian dollar and cheaper tuition fees were the main reason. Canada has experienced unprecedented growth in the number of foreign students in recent year. At the end of 2001, there were more than 130,000 foreign students in Canada, more than double the nearly 57,000 in 1990.

WIPES

Each specialty formulated disposable wipe is part of a US$-2-billion industry projected to reach US$-4.5-billion by 2010. About 57 per cent of U.S.households have bought a product designed to help tidy up. Research shows women today spend 22 per cent less time cleaning than their mothers did in 1965. The industry introduced 110 different kinds of wipes in 2001 and 130 last year.

GRAIN

Thanks to Chinese beer drinkers, malt barley is expected to be the biggest growth story over the next decade in the world grain trade. China is overtaking the U.S. as the world's largest beer producer. The latest forecast suggests that beer production in China is expected to reach 300-million hectolitres by 2011, up from the current 235-million hectolitres, which is about what the U.S. produces annually. A hectolitre is 100 litres.

OIL

Nicaragua has said it plans to award bids to foreign companies for oil exploration near the San Andres archipelago in the southwestern Caribbean. Colombia has said that it is prepared to intervene militarily if Nicaragua explores for oil in the island chain which is claimed by both nations.

FILMS

The Governor of Illinois has launched a tax incentive scheme to lure film shoots to his state and away from Canada. Since 2001, 18 movies that were set in Chicago were actually filmed in Canada. He hopes to restore what was a US$124-million industry in the late 1990's, but sank to US$17.6-million in 2002.

TECHNOLOGY

Two Irish schools are testing a new scheme using mobile-phone technology to take the temptation out of playing truant. Under the scheme, a database records the names of absent students each day and automatically sends out a text message to parents notifying then if their child missed roll-call. If the absenteeism is legitimate, parents can ignore the message. If not, they can contact the school.

INSURANCE

Families will not be able to watch locomotives steam around the 1.5 acres of a Miniature Railway Village in England. The opening has been delayed because insurers would not provide coverage "because of a heightened threat from terrorism".

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 2003 Economic Digest - Importing and Exporting

May 2003 Edition

 JUNK

U.S. exports to China are booming in an unlikely area: junk. Every year, tons of metal from discarded cars and household appliances, paper from empty cardboard boxes and crumpled newspapers and plastic from dumped soda bottles are processed, piled on to ships and sent across the ocean. They become the raw material for paper mills, steel mills and other factories, feeding China's fast-growing, export-oriented industrial economy. Last year the U.S. exported $1.2-billion of waste and scrap to China, up from $194-million five years earlier. Scrap is now the U.S.'s third-largest export to China.

APPLIANCES

In 1964, 37 Canadian companies manufactured washing machines, stoves and refrigerators. Today there are four and next year there will be three. Workers in the industry used to total 10,000. Now there are 2,500. Cheap Chinese imports are not the only problem. Competition is so intense in this low-margin business that North American, European and Asian manufacturers are abandoning their regional plants in favour of global operations that serve an entire continent.

CALL CENTRES

One of the brightest spots in Mexico's slowing telecommunications industry are call centres. There are 350 call centres in Mexico with growth projected at 25 per cent this year. This is small compared with 80,000 call centres in the U.S., the biggest player in a US$38-billion world industry. Mexican wages for operators in call centres are 70 to 80 per cent less than in the U.S. Income from Mexican call centres for 2001 was US$163-million and it is forecast to grow to US$236-million by 2005.

MUSIC

A new marketing campaign has been launched in Canada to get young people to start buying CDs and stop downloading music from the Internet. The campaign is aimed at people aged 9 to 17 and includes a website at www.keepmusiccoming.com. Music executives say CD sales have dropped 20 per cent in three years, representing a loss of C$250-million.

CLEAN

A coalition of Canada's largest coal-fired power producers has received almost half a million dollars from energy research agencies to help develop a $1-billion, 10-year clean-coal research project.

POLITICS

The tension between Russia and the U.S. over Iraq stems in part from the fact that the previous Iraqi regime owes Russia over US$-8-billion. Lukoil, Russia's largest oil company, had a US$3.5-billion deal to develop Iraq's massive Western Kurna oilfield. Both the debt and the oil contracts are now in doubt. Also, Russia's fragile economy needs the price of oil to remain high (it is estimated that a $1 per barrel decline in the price of oil costs Russia's budget a billion dollars). Meanwhile, the U.S needs the price of oil to decline to avert a recession.

CONSOLIDATION

The Chinese government plans to merge the parent companies of its largest retailers to meet growing competition from foreign retail giants that are rapidly expanding in China. Assets of the four major merged companies will be reorganized into hypermarket, supermarket, convenience store and department store units, preventing the local players from competing against each other and helping them deal with competition from Wal-Mart, Carrefour and other international retailers.

EYES

Eye diseases such as glaucoma could one day be treated by pharmaceuticals delivered through contact lenses. Chemical engineers have been able to make soft contact lenses containing tiny embedded particles that slowly release drugs directly where they are needed. One of the biggest problems with using eye drops to deliver medication to the eyes is that about 95 per cent of the medication goes where it is not needed.

RETAIL

According to Statistics Canada, retail sales of all major commodity groups were up in 2002 over 2001. Consumers spent a total of $307.5 billion in retail stores in 2002, up 6.0 per cent over 2001. The increase in sales of health and personal care products outstripped all other categories. This includes everything from prescription drugs, over the counter drugs and vitamins to eyewear, cosmetics and other toiletries. Sales increased 9.2 per cent to $23.1 billion in 2002. About 45 per cent of this was on prescription drugs, which registered growth of 12.2 per cent. Sales of non prescription drugs and vitamins rose 8.3 per cent to $3.9 billion.

LEAVE

About 10 per cent or 30,000 of Canada's 300,000 new fathers in 2001 took parental leave. This is up sharply from the three per cent or 9,000 new fathers that took leave a year earlier. Canada now ranks fourth in terms of the participation level of fathers who take parental leave. The top country is Norway, where almost 80 per cent of fathers elect to take time off to spend time with children.

TICKETS

In a growing number of Canadian cities, parking tickets can now be paid on-line. As web-payments gain acceptance, some communities are seeing 20 per cent of tickets paid on-line. Speed and ease of service are the factors cited in the acceptance of the process.

SIZE

The size of a average new house in Britain has shrunk by about a third in the past 80 years. The traditional high ceilings and spacious rooms are making room for compact homes crammed on to tiny plots of land. The average five bedroomed home built in 1920 would have four reception rooms and occupy 3,440sq ft. A newly-built house today has three reception rooms and just 2,409sq ft. Ceiling height has dropped from 11 feet to 8ft 9in.

LOANS

For the first time in its 59- year history, The Business Development Bank of Canada (BDC) has exceeded the $2-billion mark in net authorizations in one year. These results were achieved by granting some 6,300 loans through its network of 82 branches across the country. This represents a 17 per cent growth over the previous fiscal year. It took 54 years -from 1944 to 1998 - for the Bank to reach $1-billion in authorizations.

TIRES

Michelin has announced that it will use electronic tags on tires to help drivers monitor tire pressure. The tire maker plans to use embedded technology that will wirelessly link the tire to the car it 1s mounted on. The system consists of an antenna and a circuit the size of a match head. The circuit, or tag, will store, send and receive data through radio signals to track the condition of the tire.

SURPLUS

OPEC kingpin Saudi Arabia, which budgeted a US$10.4-billion shortfall for 2003, is now set to post a huge surplus of more than US$13-billion on soaring oil prices and high output. Saudi oil production stood at around 7.6-million barrels a day when the budget was announced late last year but the kingdom is currently believed to be producing more than 9.5-million barrels since the war began. Government wages consume more than half of the Saudi budget.

POLICY

Canada's trade policy objectives for 2003 include the following: resolution of the Canada\U.S. softwood lumber dispute; smooth flow of goods to the U.S.; progress at the WTO and Free Trade of the Americas negotiations and concluding free trade agreements with Central America and Singapore.

LOCATION

A survey by Ericsson Canada shows that Canadians want emergency-location services and safety alerts on their mobile phones far more than they desire wireless Internet and camera phones. When a caller uses the traditional fixed telephone to call 911, their precise location is known immediately. With mobile phones, a 911 call on a cell phone can only be narrowed to about a 100-metre radius in urban areas.

TRENDS

Honda in England is attempting to raise the retirement age for workers at its British plant from 60 to 62 in an effort to stave off a financial crisis in its stricken pension fund which has a deficit of $100-million.

FOUND

Long-lost blueprints for an invention that could have revolutionized the auto industry have been found in an old tool box. The so-called Pogue carburetor, invented in Winnipeg, caused an uproar in the 1930s when its inventor reportedly drove 200 miles in his Ford V8 on one gallon of fuel. A lawnmower engine purred for seven days on a single quart of gas. At the time, it rattled oil companies and panicked the Toronto Stock Exchange. The documents have been authenticated by a chartered patent lawyer and are genuine.

TECHNOLOGY

The U.S. technology sector which has been battered by a downturn in corporate spending, lost about 560,000 jobs in 2001 and 2002. The sector's work force fell by 10 per cent last year to 5.15 million. The majority of the decline was in manufacturing which lost 412,000 jobs, a 20 percent decrease.

JUICE

Scientists have found that freshly-squeezed orange juice is no healthier than the long-life pasteurised variety. Although fresh orange juice sold in chilled cabinets may taste better than the cheaper carton juice, it has the same antioxidant and nutritional content. Antioxidants are substances like vitamin C or beta carotene that mop up free radicals in the body and prevent cells from being damages.

SARS

According to the Hong Kong Retail Management Association, Retail sales in Hong Kong have dropped 50 per cent since the outbreak of severe acute respiratory syndrome (SARS) the deadly pneumonia-like virus. The group states it will take months for consumer confidence to recover and has asked landlords and utilities to cut rents and fees for three months to help merchants stay afloat during the outbreak which has also kept tourists away and residents out of shops, restaurants and other crowded places.

SYRUP

Canada accounts for 80 per cent of the world's production of maple syrup, and 90 per cent of Canada's production takes place in Quebec.

BOTTLES

Investors are turning to old handmade bottles, some of which are now worth their weight in gold. A rare bottle made in San Francisco in 1858 recently sold for US$69,000 At a recent auction which ended in March, 249 bottles sold for US$150,000. Some old whisky flasks are selling at around US$40,000 each while ink bottles dating from the American Revolution can go for as much as US$20,000.

WATER

A new United Nations body to help avoid possible water wars in the future has been announced. The Water Co-operation Facility will be based in Paris at the headquarters of the cultural organization Unesco. It will mediate in disputes between countries which share a single river basin. It follows publication of a report identifying 17 basins which have the potential for conflict.

TRIVIA

A Dutchman who has eaten pigeon food three times a day for the last 11 years claims it could be the answer to world famine. He says his meals are nutritious, filling and cost next to nothing. He soaks the seeds overnight to soften them and cooks them the next day.

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 2003 Economic Digest - Importing and Exporting

April 2003 Edition

BEER

Boasting nearly 30 brewery locations, Nigeria has emerged as the largest beer producing country in Africa. The continent's 8,000 year brewing history began with ancient Egyptian commercial brewing dynasties and still includes handmade tribal beers.

EDUCATION

Canadians now hold the highest percentage of university degrees and college diplomas among the 30 countries of the Organization for Economic Co-operation and Development. 41 per cent of the working-age population hold a degree or diploma. That is followed by 37 per cent in the U.S. and 36 per cent in Ireland.

JAPAN

Canadian exporters of building products to Japan should be aware of new regulations to take effect on July 1, 2003, that impose new testing and certification requirements for volatile organic compounds (VOCs). The new regulations will cover indoor panels, as well as built-in cabinets but not interior trim such as moulding, hand-rails and door jams. Laminate and composite flooring are also regulated.

NUPTIALS

Unemployment and substantial tax rises have transformed Germany into a frugal nation. Now, cash-strapped German couples are being offered bargain "package marriages" by a discount supermarket chain. For $3,000, the deal includes the service, at a choice of locations, with 18 guests, a champagne reception and hotel accommodation for the bride and groom. A mass produced dress and honeymoon are available for a modest additional fee. 400,00 couples marry in Germany each year.

CHINA

According to the Far Eastern Economic Review, China is moving slowly but surely to extend its influence in East Asia, armed with a vibrant economy and a new stealth weapon in the shape of concessionary trade. The core strategy is to build closer ties with developing regional economies by exploiting agreements such as that between China and the Association of Southeast Asian Nations or ASEAN, to set up a free-trade area by 2010, as well as older preferential tariff pacts and even old-fashioned counter trade with countries such as Indonesia.

AGE

Over the past 50 years, the median age of the world's population has increased by a mere three years, from 23.6 in 1950 to 26.4 in 2000. (The median marks the point where half the population is older than that age and half is younger). But over the next 50 years, the median age will jump to 37, according to United Nations projections. By 2050, 17 developed countries are expected to have a median age of 50 or more.

PRICES

Reflecting continuing concerns over the direction of the U.S. economy, consumers are twice as likely to consider price as a reason for purchasing a brand-name product as they were a year ago, according to a survey by the Grocery Manufacturers of America. However, quality is still the number one reason people purchase their favourite brands (26 per cent) followed by the familiarity factor (23 per cent).

COLD

Thompson, Manitoba, a small community 780 kilometres north of Winnipeg has become one of North America's biggest centres for cold weather vehicle testing. Manufacturers of trucks, cars, and ski-doos have been flocking to Thompson drawn by the frigid temperatures that regularly fall below minus 30 C --a crucial threshold for vehicle testing. Several mild winters in recent years have driven millions of dollars' worth of vehicle-testing business from traditional locations in Minnesota and Northern Michigan.

JOJOBA

This nut oil, widely used in shampoos, beauty creams and cosmetics, powers engines just as well as diesel fuel, but with far less pollution, according to scientists. The jojoba matches diesel for torque and power over engine speeds between 1,000 and 2,000 revolutions per minute and the engine ran more quietly. Jojoba contains less carbon than fossil fuels and unlike diesel it contains no sulphur.

REMITTANCES

One segment of the economy which has been surprisingly robust over the last few years is that of remittances by Latin American "guest workers." The Inter-American Development Bank reports that remittance payments to Latin America and the Caribbean topped US$32-billion during 2002, up from US$23-billion for 2001 and a 60 per cent increase since 2000. Mexico is the leading recipient followed by Brazil and Colombia.

STRENGTH

A researcher at the University of British Columbia has developed a spray to strengthen bridges. He has synthesized a mixture of fibres and plastics that absorb stress better and last longer than traditional reinforcements. The coating doubles the load-carrying capacity of overpasses and triples their resistance to earthquakes. The technology is applied quickly with a high-pressure hose so traffic disruptions and labour costs are kept to a minimum.

E-MAIL

Every day, 10-billion spam e-mails are sent. This is expected to grow 30-billion a day by 2005. There is 25 times more spam now than at the start of 2002. In a recent experiment, it took just 540 seconds for a new e-mail account to receive its first spam. In the US, spam now accounts for 37 per cent of all e-mail. Up to 90 per cent of all junk mail is sent by 150 spammers. One Detroit spammer has 190 e-mail servers in his basement that can spew out 650,000 spams an hour.

SURVEYS

The U.S.-Canada Partnership for Growth has released the results of a survey which shows a lack of awareness among Americans about the importance of the trading relationship with Canada. Only 12 per cent knew that Canada was the largest buyer of American goods and services. Only one per cent of Americans surveyed knew that Canada is the leading source of oil and natural gas for the U.S market. The U.S. and Canada form the largest trading relationship in the world generating almost US$500-billion in two-way trade annually.

COLDS

New research shows that the common cold costs the Canadian economy roughly US$6-billion a year. The study suggests that the cold is a bigger economic burden than far more serious medical conditions such as asthma, emphysema or heart failure. In the U.S. the price tag came to almost US$40-billion, including US$17-billion in direct costs and US$22.5-billion in indirect costs. It is estimated that there are 500-million colds each year in the U.S., about 1.5 per person.

TIME

In a bizarre mass-malfunction, Venezuela's clocks are ticking too slowly due to a power shortage weakening the electric current nationwide. By the end of each day, the sluggish time pieces are behind by another 150 seconds. The meltdown has taken a total of 14 hours and 36 minutes from Venezuela's clocks over the past 13 months.

TOURISM

Bermuda, the picturesque Atlantic island famous for its pink beaches, has admitted using pictures shot in other locales in tourism advertisements. Three photographs in the advertising campaign were stock images that were shot in Hawaii, the Seychelles and Florida. Stock shots are often used in advertising campaigns to save money.

TRADE

The U.S. recorded a US$435-billion trade deficit for 2002, the largest imbalance in history. This was up 21.5 per cent over 2001. Even in agricultural products, normally a U.S. bulwark, Americans bought more imported wine, cheese and other foods than American farmers were able to sell abroad, resulting in only the second U.S. trade deficit in agricultural products on record. For the third year running, the US ran up its largest trade gap with China, a deficit of over US$103-billion.

FUR

Fur garments are back, according to The Fur Information Council of America which represents fur retailers and makers. They claim that close to 400 fashion designers now use fur in their collections. A decade ago, fewer than 50 designers worked with fur.

SHOPPING

The debate over which entrance grocery shoppers prefer is still open, but a new study by an in-store market research firm suggests that right-entry stores actually promotes longer shopping trips. An audit of 100 stores in six major areas in the U.S. revealed that shoppers have a definite preference to travel counter-clockwise around the store's perimeter. In stores with an entrance on the left side, shoppers were forced to move clockwise opposite to their natural inclination, and as a result, abandoned their trips sooner than in right entry stores.

EXCISE

The Canadian jewellery industry is upset that the federal government failed, in the last budget, to remove a hidden 10-per cent excise tax on jewellery. It is estimated that Ottawa collects $70- to $80- million a year from consumers who must pay the tax when they purchase jewellery.

CONTROL

U.S. experts in heating, ventilation and air-conditioning (HVAC) acknowledge what millions of workers have suspected all along. A lot of office thermostats are fake, meant to dupe you into thinking you've altered the office weather conditions. HVAC technicians sometimes install dummy thermostats to give workers the illusion of control. In some leased buildings, even the corporate tenants don't know the thermostats are useless.

LUNCH

As recently as 1978, lunch in France lasted on average one hour and 22 minutes. But the weekday lunch is dying. Now it is down to only 38 minutes and the French have become the second biggest sandwich eaters in Europe after the British. The 35-hour week, although slowly being relaxed by the government, has forced people to do more in the fewer hours they are at work.

INNOVATION

According to Statistics Canada, Canada's 30-year experiment with innovative and flexible work practices has not improved employee loyalty in the manufacturing sector. However, the story changes in the service sector where the study found that companies with highly skilled workers experienced less turnover when alternative work conditions were offered.

CRIME

According to Ernst & Young more than two-thirds of companies around the world admit to being victimized by corporate crime. 85-per cent were perpetrated by employees.

GARDENING

Gardening has recently been described as the "ultimate danger sport" in Britain with injuries increasing by almost half in five years. Most involved the use of ladders or power tools. According to the latest data, one in five of all domestic fatalities, and one in five of all accidents, now occur in or around the garden. Last year, 62,500 adults needed hospital treatment following a gardening mishap.

HEARTBREAKING

A Japanese woman's automatic rice cooker changed the settings on her pacemaker. Doctors doing a routine check up were baffled to find that the hi tech pumping device they had implanted in the woman, 60, had been remotely adjusted. They contacted the manufacturer, who visited her home and found that a rogue rice cooker had somehow beamed signals to the device.

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

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

March 2003 Economic Digest - Importing and Exporting

March 2003 Edition

 JOBS

Recent Canadian census data shows that truck-driving is the country's most common occupation, employing more than 263,000 people at last count. That is almost 30 per cent more than the total in 1991, representing 4.4 per cent of the growth in the national job market. 97 per cent of those drivers are men.

WATER

Scientists have discovered a massive underground lake in China's arid northwest, giving hope for the reduction of poverty in one of the country's most remote and sparsely populated regions. The lake beneath the Taklamakan desert in the Xinjiang region has a capacity about the same as the 631-square kilometre reservoir being filled behind China's massive Three Gorges Dam. A study found that about 911 million cubic metres of underground water could be used annually.

CENSUS

The recent U.S. census tells us that more American homes have dogs than cats. The average cell phone call in 2001 lasted just under three minutes and the average monthly phone bill was $47.37. 44 per cent of Americans did volunteer work in 2000, averaging around 15 hours per month. U.S residents spent over $38-billion on lottery tickets in 2001.

TAXES

Several major retailers in the U.S. have voluntarily expanded the number of states in which they will collect sales tax from web customers. The change represents another step in a movement by bricks-and-mortar retailers to persuade states and Congress to impose sales tax on companies that operate only on-line.

CASH

France is leaping toward a cashless society with a nation-wide launch this year of computerized "smart cards," a concept that has so far failed to entice many American, British and German consumers. The chief idea behind this new breed of microchip-embedded plastic is to dispense with pocket change and speed smaller transactions. Introduced two years ago, some 850,000 French consumers now regularly use these cards at 80,000 grocery shops, parking lots and vending machines. Each card has a $107 storage limit.

MEAT

According to the U.S. Agriculture Department, about 60 per cent of the largest U.S. meat plants fail to meet federal food safety regulations for preventing the E coli bacteria in their products. This strain of bacteria causes an estimated 73,000 infections and 61 deaths in the U.S. each year. It is destroyed when meat is cooked to at least 160 degrees Fahrenheit, The White House has proposed a US$ 900-million budget for food safety.

THERMAL RECONDITIONING

This is a hair-styling process that uses chemical thioglycolates and a flat iron heated to 180 C to banish curls for up to six months. The treatment, which is also known as Japanese straightening or thermal retexturing, takes up from six to eight hours and costs up to C$1500.

ONLINE

Farmers in Britain are turning to the internet in increasing numbers to challenge the domination of supermarkets. More than C$750-million worth of farm products were sold online last year. Farm trade on the 'net was unheard of five years ago. Last year, one in 10 of Britain's 300,000 farms marketed produce on the internet. The average value of internet sales per farm topped C$31,000. Besides traditional farm products and supplies, farmers also promoted holiday cottages and bed and breakfast accommodation.

SPACE

Almost half the Earth is still wilderness according to a study by Conservation International. It found that 37 wilderness areas make up 46 per cent of the planet's surface, but contain just 2.4 per cent of the world's population. A "wilderness" is defined as being an area with 70 per cent or more of its original vegetation covering at least 10,000 square kilometres and containing fewer that five people per square kilometre.

AGING

A child-like robot that combines the roles of nurse and companion and security guard is to go on the market to help the growing ranks of elderly Japanese with no one to look after them. The Wakamaru robot can patrol a house 24 hours a day, alerting family, hospitals and security firms if it perceives a problem. Cameras implanted in the "eyebrows" of the robot allows it to "see" as it trundles around an apartment. The robots costs around C$14,000 and speak with either a male or female voice and can be set to remind people when to take medicine, eat and sleep.

LOST

U.S. airports are overrun with the usual forgotten possessions: coats, sweaters and scarves. Now, with increased security, a new category is showing up; men's belts. Forgetful passengers are stripping off their belts for screening, then walking away without them.

BLIMPS

A Canadian firm has developed a spherical airship that could revolutionize the telecommunications industry, as well as the practice of military surveillance. It can act as a high-altitude antenna for wireless networks and an intelligence-gathering platform. These ships outperform traditional cigar-shaped blimps, which barely reach a 5,000 foot altitude. It is expected they will reach 75,000 feet by the end of this year, well above airplane altitudes. They can manoeuvre like a helicopter, have the ability to ascend and descend and can turn 360 degrees on their axis.

SHORTAGES

As Canada's greying workforce creeps towards retirement age, the country could face worker shortages in the next decade, especially in health care, education and construction. By 2011, almost one-fifth of baby boomers, those born between 1946 and 1964, will be at least 61 years of age and pushing ever closer to retirement age. Immigrants have made major strides in the Canadian labour force and will play an even greater role in the years ahead.

OVERTIME

A Bush administration overhaul of decades-old labour legislation could force many Americans to work longer hours without overtime pay. The administration argues that the pillars of U.S. labour law, which established the 40-hour work week, a minimum wage and overtime pay, are antiquated. According to the Labour Department, the changes would make more lower-income workers eligible for overtime. Unions fear the changes will severely restrict who is legally required to be paid for overtime.

ADVERTISING

Total advertising spending in the U.S. grew by 4 per cent in 2002 but advertising in newspapers fell for the first time since the early 1990s. The overall decrease of 0.6 per cent in 2002 versus 2001 is attributable to a severe fall-off in recruitment advertising. Advertising in radio was up 8.2 per cent; cable-TV was up by 5.9 per cent and broadcast TV grew by 5.2 per cent.

VEGETARIANS

One in four American teens now considers vegetarianism "cool," according to a new study from Teenage Research Unlimited. The study indicates a rise in vegetarianism, particularly among teenage girls. To try and counter the trend, beef marketers are gearing up for promotions to renew beef's image with teens. Other groups are concerned about the nutritional shortfalls of vegetarianism.

CHEAP

By its nature, the extent of counterfeiting is hard to measure precisely, but a study by the International Chamber of Commerce reckoned that it grew from perhaps 3 per cent of world trade in 1990 to 5 per cent in 1995. It may now be between 7 and 9 per cent, or over US$450 billion a year.

TRENDS

London marketing whiz kids have come up with a new advertising medium: the human forehead. A company is about to start renting space on the foreheads of university students. They will have logos semi-permanently tattooed on their foreheads and will be paid about US$7.00 an hour for three hours, the amount of time they are reckoned to be "out and about" and thereby promoting the product.

BEAUTY

Scientists say that ingredients in beauty products may be causing cancer. Canadians buy $4 billion worth of beauty products annually, including shampoos and moisturisers. European countries have banned some 400 chemicals suspected of causing cancer, but most are still permitted in Canada. As well, Europe and the U.S. require cosmetic companies to list their ingredients but Health Canada does not.

BLIND

Feed additives that heighten the colour of salmon, trout and egg yolks can damage the retina and raise the risk of long-term blindness. The European Union has cut the maximum allowable levels of canthaxanthin, a pigment that is widely fed to farmed salmon, trout, and laying hens after studies found that it leads to blurred vision from crystalline deposits in the retina.

OPPORTUNITIES

Disillusioned British dairy farmers are being offered a fresh start in the U.S. Farmers who have been forced to sell their milk at a loss are being urged to move to the cowboy state of South Dakota which is in desperate need of experienced hands to take on 65,000 cattle. The South Dakota International Business Institute is to tour some of the areas hardest hit by the foot and mouth crisis to entice farmers to cut their losses and emigrate.

COCONUTS

The DaimlerChrysler company has embarked on a project in Brazil to use coconut fibre for vehicle components. Simple technical processes are used to extract fibre from coconut shell, turn it into rope and send it to a factory to be used in seats, sun visors, and upholstery. The material is environmentally friendly, can be recycled and slightly cheaper than synthetic materials.

VEHICLES

The Dodge Caravan was the top-selling vehicle in Canada for the third year in a row in 2002. More than 83,500 were sold. The top selling car, also for the third year running, was the Honda Civic with 69,000 sold.

OIL

Late last year, Russia overtook Saudi Arabia as the world's largest oil producer. In the last quarter, Russia pumped an average of 7.97m barrels a day, against 7.86m barrels from Saudi Arabia. Analysts believe that Russia could increase its production by two or three million more barrels a day. Russia was helped by Opec cutting back its output.

PORTS

Canadian ports handled 393.0 million metric tonnes of cargo in 2001; down 2.4 per cent from 402.8 million tonnes in 2000. International activity showed a strong 6.0 per cent growth in cargoes arriving from foreign origins and totalled 112.3 million tonnes. Cargo departing to foreign destinations dropped 7.2 per cent to 174.3 million tonnes in 2001. Vancouver, Saint John and Port Hawkesbury were the top three ports in total tonnage handled in 2001.

PIGS

Farmers throughout the British Isles have 90 days to put a toy in every pigsty or face up to three months in jail. The new ruling, from the European Union, is designed to keep pigs happy and prevent them chewing each other. Official instructions are to give pigs "environmental enrichment" by providing "manipulable material," which is being interpreted as balls of different colours.

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

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

February 2003 Economic Digest - Importing and Exporting

February 2003 Edition

 PRODUCTS

Marketers launched a near-record 31,785 new packaged goods items in Canada and the U.S. in 2002, but half of them will not be around a few years from now. The number of new product introductions in North America slipped by 0.7 per cent from 2001's record total of 32,025. A typical supermarket can accommodate 30,000 to 40,000 different items. Virtually all would have to be moved out just to make room for the new foods, beverages, household goods, pet products and miscellaneous items launched each year.

AIRLINES

Business for the world's airlines improved little in 2002. The International Air Transport Association reports that losses added up to US$13-billion, compared with US$18- billion in 2001. However, passenger numbers are forecast to rise this year.

SMELL

A new study shows that the distinctive smell inside a new car, often a source of satisfaction to owners, comes from the same form of pollution that causes sick building syndrome. The new car smell could contain up to 35 times the health limit set for volatile organic chemicals in cars in Japan. The chemicals found included ethyl benzene, xylene, formaldehyde and toluene used in paints and adhesives. In high densities, these cause sick building syndrome: headaches, dizziness and respiratory problems.

GM

A British study shows that creative use of genetically-modified crops could bring back declining farmland birds. The study is to be used in a government assessment of whether to give the go-ahead to GM crops. The three-year study found that there was more food for birds in the GM plots, together with a saving in labour for the farmer, because the weeds could be left unsprayed until after some birds' breeding season.

TRADE

Canada and the European Union are going to forge new bilateral trading opportunities but are not planning a free-trade agreement. Canada has long looked for a chance to broker a free-trade deal with the EU but the Europeans don't see it as a panacea for trade. Canada and the EU do about US$25-billion in trade each year making the EU Canada's second largest trading partner. Canada-U.S trade runs at US$1-billion a day.

MEXICO

In another down year for the global acquisitions and mergers market, Mexican firms have quietly increased their buying in 2002. In deals transacted both within the country and abroad, Mexican companies spent more than US$12-billion buying up new assets, more than triple the activity in 2001. Top Mexican exporters are now used to operating far from home, however some countries remain closed to Mexican goods. Brazil which recently relinquished its claim to being Latin America's largest economy to Mexico, remains a difficult market for Mexico.

BURGERS

A New York restaurant has introduced the world's most expensive burger costing US$41.00, before tax and a tip. It weighs in at 1lb. 4oz. and comes with fries. The burger is made from the finest Kobe beef imported from Japan where the cows are raised on beer and given daily massages to make sure they are truly succulent.

CHINA

They are laying track to Tibet. In Shanghai, they have constructed a commercial train with no wheels that races along on a magnetic cushion. Next, railway builders want to link the country's commercial capital to Beijing by bullet train. These are all part of a railway binge in China. Officials plan to lay 13,700 kilometres of track country-wide in the five years ending 2005. This will not just boost trade, but will develop areas left out of China's two-decade-old economic boom.

HOUSING

Despite a dip in December, Canadian housing starts finished 2002 at their highest level since 1989. Total housing starts for 2002 were estimated to be 204,857, representing a growth rate of 25.9 per cent compared to 2001, the highest annual growth rate since 1983. It is felt that low mortgage rates, growing employment and increasing incomes were responsible for the strong growth.

PHONES

The proportion of central and eastern Europeans with mobile phones is rising fast. Annual growth in Russia, Belarus and Albania exceeded 100 per cent last year, compared to a mere seven per cent in western Europe, where the market is nearing saturation. Russia accounts for over 20 per cent of subscribers in the region and one-third of the growth over the past year.

INSURANCE

Rich countries account for 90 per cent of global life and non-life insurance premiums. Yet insurance cover varies widely across the rich world. The Swiss buy the most insurance, while many Greeks lack adequate coverage. Among citizens of the European Union, Britons buy the most insurance, thanks in part to their fondness for using life insurance as part of their old-age savings.

SPACE

U.S. office vacancies reached 16 per cent in the third quarter of 2002, while rents fell and are expected to come under continued pressure, setting up a tough 2003 for landlords. The vacancy increase caps a two-year swing that saw the balance of power in U.S. office markets shift from landlords to tenants, who now can find bargain-basement rates for premium space and command generous concessions on interior construction costs.

HEIGHT

The world's tallest man-made structure could soon be towering over the Australian outback as part of a plan to capitalize on the global push for greater use of renewable energy. By 2006, an Australian power company hopes to build a 3,300-foot solar tower which would be more than twice the height of Malaysia's Petronas Towers.

Currently, the world's tallest free-standing structure is the Canadian National Tower in Toronto at 1,814 feet. The tower will generate enough electricity to supply 200,000 homes.

POLLS

According to a recent poll, 47 per cent of Canadians say their country has been a loser since the NAFTA was introduced, while 52 per cent of Mexicans felt the same way. Only 37 per cent of Americans said they believed they lost in the deal that was to open the borders of the three countries to freer trade. 48 per cent of Americans polled believed their country had been a winner as a result of the agreement.

TUNING

The first piano that tunes itself at the press of a switch goes on sale next year. An American inventor has devised an electronic system that tunes the piano in 40 seconds. When the piano leaves the factory its strings are tuned nearly a third of a semitone sharp. Then, using magnetic coils, the piano warms the strings to release tension and flatten the note to the correct pitch which is checked by a computer.

STEEL

China has eclipsed the U.S as the world's largest importer of steel. During the first nine months of 2002, China imported about 23-million tonnes, topping the 2-million tonnes imported into the U.S. in the same period. This year the gap is likely to widen with China expected to consume 10 per cent more steel, most of it imported.

TECHNOLOGY

Conmen in Austria won hundreds of thousands of dollars by planting a remote-controlled magnetic roulette ball on a table. They didn't win on every spin but improved the odds significantly. The group was only discovered when a croupier reached across the table to pick up the ball and it stuck to his cufflink. The gang was made up of one gambler, two people controlling the ball and two more keeping watch and trying to distract attention from their associates.

BIKES

It is estimated that 800-million bicycles are in use throughout the world--twice the number of cars in existence.

PLANTS

The Missouri Botanical Garden has launched a $100-million, decade-long effort to build a database that will include every tree, grass, flower, fern and moss known to humanity. Its creators hope the World Plant Checklist will offer scientists comprehensive information about the nature, range and conservation status of every plant species. There are approximately 400,000 plant species in the world, a quarter to a half of which are considered to be threatened by extinction.

REPAIRS

Homeowners in Canada spent an average of $2,580 repairing or renovating their homes in 2001, a 37 per cent increase from 1999. Roughly two-thirds of this amount was devoted to work contracted out and one-third to materials purchased separately by the homeowner. About 76 per cent of the 7.9 million homeowner households in Canada indicated that they had made at least one repair or renovation. A total of C$20-billion was spent.

ROYALTIES

The Supreme Court in Finland has ruled that taxi drivers must pay royalty fees if they play music in their car while a customer is in the backseat. The order even applies to the radio. Recently, two Finnish churches refused to pay royalties to the country's copyright society for the performance of Christmas hymns.

VISITS

Statistics Canada reports that museums, historic sites, nature parks, zoos, botanical gardens and planetariums had a good year in 1999, the most recent year for which figures are available. Attendance reached over 118 million visits, a record, and operating revenues hit almost $1.5-billion, up four per cent from the previous year.

BANANAS

This 10,000-year-old fruit has been traded for ivory, slaves, even fleets of buses and is one of the most popular fruits in the world. Now it is reported that fungi are threatening plantations globally. Because the fruit carries no seeds, it lacks the genetic diversity to adapt in the face of disease. Even genetic engineering is a near-impossible task. The first written record of the banana was in the 6th century BC in India. Today, the banana industry is worth US$10-billion annually.

CANADA POST

Each year the post office is left with literally tons of undeliverable goods, everything from digital cameras to leather coats. Under federal regulations, Canada Post must hold on to these items for seven months--in the case of jewellery for one year. After successful tests generated healthy sales, Canada Post plans to launch a large scale on-line auction of its undeliverable merchandise on e-Bay. It expects to raise over $1-million annually, part of which will be donated to charity.

VITAMINS

A U.S. nutritional supplement company is seeking Health Canada approval for a vitamin gumball. Each gumball provides the U.S. recommended daily allowance of 11 vitamins in five to ten minutes of chewing. In the U.S., vitamins do not require Food and Drug Administration approval. The gumballs retail for between US$6 and US$9 for containers of 36 and about US$13 for a canister of 100 in warehouse club chains.

LUXURY

China's only privately owned automaker is about to roll out the first car equipped for karaoke. The Beauty Leopard, scheduled to go on sale in April, will be equipped with a phone, navigation gear and a karaoke machine.

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

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

January 2003 Economic Digest - Importing and Exporting

January 2003 Edition

 ONLINE

The Internet was supposed to make the world smaller, helping businesses in rural areas find a niche in the global market. But a study in 11 communities in Quebec and the Atlantic provinces has found that the ease of ordering products or services online has caused some companies in rural areas to lose business to firms in urban centres. Also, it found that the Information Technology field spawned by the Internet is largely a city-based industry. This means that people in rural areas who want to work in the IT field are leaving home, further hurting small communities.

COMPETITIVENESS

Canada lost its high ranking in an annual survey of the world's most competitive economies, slipping to eighth spot from third. Despite Canada's stellar economic performance last year, the slide was caused by a fall in this country's technology ranking. The United States was first followed by Finland, the United Kingdom, Germany, Switzerland and Sweden.

TAXES

Unable to collect more than US$200 billion in back taxes, the Internal Revenue Service is considering using private collection agencies to get taxpayers to pay the government. The IRS has circulated a detailed document asking some of the same firms that track down credit card deadbeats to help it design a plan for private collectors to go after taxpayers. The IRS is still deciding whether bill collectors should be paid a flat fee, or keep a percentage of the taxes collected.

BLOOD

A powder made from potatoes can clot blood instantly and could be useful in surgeries and on the battlefield for stopping life-threatening bleeding. The powder, made of purified potato starch, essentially acts like a sponge soaking up water in the blood. Tests on volunteers found that powder plus pressure on the wound reduced clotting time by five minutes compared with pressure alone.

DRUGS

Over the past two decades, taking drugs to treat depression has increased significantly. Researchers in Toronto analyzed prescription habits in Canada between 1981 and 2000. During that period, the total number of prescriptions for anti-depressants jumped to 14.5 million a year from 3.2 million. This 353 per cent increase occurred while the Canadian population increased one per cent annually. The total amount spent on these drugs grew to $543 million in 2000 from $31.4 million in 1981.

MUD

Mud homes are to be built in Britain for the first time in centuries. A housing association is to construct bungalows and then cover their flat roofs and three of their four walls with a two-foot layer of earth in an attempt to cut heating bills. The walls and roofs of the two-bedroom homes will be planted with flowers and shrubs to make them look nice. Rooms will have ceiling-to-floor, south-facing windows to provide light and to absorb heat.

ACCOUNTING

The Economist reports that a worldwide accounting standard has come closer after U.S. and European regulators agreed to harmonize rules by 2005. The U.S. had insisted that any global agreement would have to follow its own accounting principals, but in the wake of Enron and other accounting scandals, it was forced to soften its attitude to European practices.

CRYING

A Spanish electronic engineer spent three years visiting nurseries and analyzing the frequencies and patterns of babies' cries. Now he has invented a gadget, about the size of a calculator, that takes 20 seconds to analyze the volume, pattern and interval of a child's crying. It then interprets the wails as one of five emotional states: uncomfortable, stressed, hungry, tired or simply bored. Manufactured by Sharp, the electronics giant, it claimed a 98 per cent reliability rate in clinical tests.

ROTTEN

A simple plastic disc designed to sit inside food packaging changes colour when exposed to the noxious vapours given off by rotting food. Its developers hope it will provide a simple way for consumers to tell whether food has gone off. The first disc to be launched will be an indicator for fish and shrimps. Frozen vegetable will be next.

JOBS

An inexplicable surge in farm jobs has played an important part in keeping the U.S.unemployment rate down in recent months. Since last June, some 415,000 jobs have been created in agriculture--a rise of 13 per cent and the fastest growth in decades. The strength baffles analysts and statisticians alike and could reinforce financial market scepticism on the unemployment figures as a reliable indicator of the economy.

OPEN SKIES

Europe's highest court has ruled that eight EU countries acted illegally when they signed bilateral air deals with the U.S. offering advantages to their national flag carriers. The ruling gives the EU the opportunity to try to negotiate new transatlantic airline treaties with the U.S. on behalf of all of Europe. For consumers, greater competition could lead to lower ticket prices and more choices.

QUALITY

Supermarkets in Britain are being accused of driving British fruit growers out of business by insisting on cosmetically perfect apples and pears at the expense of quality and other consumer demands, such as lower pesticide levels. A survey of 100 growers found that although supermarkets make a show of supporting and promoting British fruit, they routinely reject produce for reasons that have nothing to do with the quality of the fruit.

NAMES

Chilean sea bass has become such a popular menu item that the species is on the brink of being fished out of existence. The fish is prized because its flaky, snow-white flesh has a high oil content, making it hard to overcook. Until recently, it was called the Patagonia toothfish.

GROANS

Australian scientists have produced garments they hope will prevent injuries. An "intelligent fabric," to be used in a range of clothing, emits a groaning sound to warn sportspeople of a body movement or stretch too far that could prove harmful.

BULBS

A new generation of "bulbs" now being tested in traffic lights and a handful of designer homes will last almost 70 years. The new light-emitting diodes burn for 100,000 hours, 100 times longer than a domestic light bulb. Light bulb manufacturers are now spending millions of dollars on research and development to prepare the technology for domestic use.

STANDARDS

Developing countries face significant standardization challenges. Many are not able to participate adequately in international standards development and lack the basic infrastructure for conformity assessment activities. Canada is to provide technical assistance aimed at strengthening the institutional capacities of developing countries to enable them to effectively participate in global trading activities, to become signatories to international agreements and develop a strong base.

AFRICA

Canada has just completed a trade mission to Sub-Saharan Africa considered by the government to be an area of unrealized potential for the Canadian trade community. In 2001, Canada-Sub-Saharan Africa bilateral trade in merchandise totalled $1.69 billion; merchandise exports to the region grew to $690-million and imports totalled $1-billion. For the year 2000, sales of services added $629- million to Canadian exports.

SIGHT

Eye specialists the world over are just beginning to recognize the gender issue in blindness. Whether in Asia, Africa or North America, women constitute two of every three patients who have lost much of their eyesight. Researchers say the difference in vision loss cannot be fully explained by the fact that women live longer.

LABOUR

Radical vegens, who don't eat any animal products, are calling for an end to the oppression of honeybees; they claim the production of honey involves forced labour.

CAMERAS

These are good times for the five Japanese manufacturers of digital cameras. It's estimated that digital camera sales will have reached 22 million in 2002, up 49 per cent from 2001, and will approach 35 million units this year. In value, digital cameras now make up 87 per cent of total camera shipments in Japan and 75 per cent elsewhere.

CARTS

Safeway is testing a shopping cart that uses a wireless device to monitor customers as they move through the aisles. The carts allow supermarkets to make pitches to customers as they're choosing what to buy. After emitting a soft chime, the cart computer displays an item--along with its discount offer--that's located in the aisle. A panel attached to the shelf points out where the product is located. The screen also includes news, weather, recipes and a list of where the product is located.

GIVING

Canadian taxfilers gave more to charity in 2001, continuing a decade long trend of growth in charitable donations. In 2001, 5,521,800 taxfilers reported donations of $5.51 billion, compared with 5,516,400 taxfilers giving almost $5.44 billion in 2000. The median donation nationally in 2001 was $200. This means that half of the donations by taxfilers were above $200, and half were below. Nunavut taxfilers had the highest median at $360, followed by Prince Edward Island at $320 and Newfoundland and Labrador at $300.

OUTLOOK

In its latest Economic Outlook, the OECD forecasts that growth in the rich industrialized countries will remain muted in early 2003, but pick up in the second half of the year. In both 2003 and 2004, it expects the U.S. economy to continue to outpace the economies of Japan and the Euro area.

FAKES

Nokia mobile phones and Nintendo game consoles were the runaway favourites of smugglers caught bringing fake goods into the European Union in 2001. Customs officers seized about 530,000 counterfeit Nokia products in 2001, or 52 per cent of electrical items intercepted. Fake Nintendo products made up 48 per cent of all toys and games seized, or about 750,000 items.

LOST

Despite searching with helicopters, land rover patrols, and foot soldiers, they have failed to find an inflatable tank lost during recent gales in Britain. The rubber, life size decoy tank, officially a "pneumatic deception device," is the size of three cars and costs about $25,000. In 1992, after a war games exercise involving 88 inflatable tanks, three went missing and have never been recovered.

SAFETY

German scientists reported recently that instead of snuggling up to their mothers for warmth in their cold pigsties and running the risk of being crushed--a common cause of early porcine death--waterbeds could be a safer alternative. Comparing the number of injuries while scrambling for a feeding position, piglets on waterbeds had fewer injuries and gained more weight than piglets kept on concrete.

FINES

In Finland, speeding fines are based on income. Recently a Nokia executive, with earnings of $5.2 million, was fined $103,000 for speeding, later reduced to $5,245.

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

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

December 2002 Economic Digest - Importing and Exporting

December 2002 Edition

McFACTS

According to the London Observer, there are more than 30,000 McDonalds restaurants in 121 countries with, on average, 4.2 new ones opening each day. Worldwide, one in 200 people visit Mcdonalds daily. The company is the largest toy distributor in the world. One in three of all cattle in the U.S. bred for meat is destined for use by McDonalds. However, McDonalds have just announced they will shortly close about 175 restaurants worldwide.

NEWS

A 2000 poll found that more than one third of Americans under 30 now get their news primarily from late-night comedians and that 79 per cent of this age group (and half of the adult population generally) say they sometimes or regularly get political information from comedy programmes or non-traditional outlets such as MTV.

COMPENSATION

A new draft law passed by the European Parliament will require airlines to pay heavy compensation to customers unable to travel because of overbooking, cancellation or delay. The law calls for compensation of up to $750.00 for delayed or stranded air passengers. Also, catering and accommodation must be provided where necessary. Bigger carriers, which already have compensation schemes, have welcomed the news.

DROUGHT

The summer drought in many parts of the continent is now hitting consumers as they face substantial price hikes for bread and other baked goods because flour and other ingredients are more expensive. Prices of these baked products--and packaged flour-- are rising as much as 10 per cent. Other wheat-based items, such as cereal and pet foods, may follow suit before too long.

PLANES

Boeing Co. expects China to buy 1,912 new aircraft during the next 20 years. The aircraft purchases in the 2001-2020 period will be worth a total of US$165-billion. Boeing now has 392 jets in service in China giving it a 65-per cent share of the country's 605-passenger airliner fleet. China's domestic air travel market is growing at a rate of 7.6 per cent annually.

ANIMALS

The European Union is set to ban animal testing in cosmetics and will stop imports that do so. Companies use animals for tests on skin corrosion and absorbtion, eye irritancy and whether there is a lethal dose of the cosmetic. Animals used in research include rabbits, cats, hamsters, mice and monkeys. The deal must be ratified by the 15 nations that make up the EU and the law is slated to go into effect in 2009.

FASHION

The Mount Fuji Spinning Co. of Japan has been working on a range of garments--including knee-length sports pants, two types of girdle and men's boxer shorts--that make people thinner. Each WonderSlim garment is impregnated with a mixture of seaweed and caffeine, which is massaged into the skin by movements of the wearer. After 30 days of wear, half the people in a test said they had lost a few millimetres.

TRIVIA

The microwave was invented after a researcher walked by a radar tube and a chocolate bar melted in his pocket. The first microwave was as large and heavy as a refrigerator.

COMPARISONS

Recently, two information-technology firms on opposite sides of the world announced quarterly results. One large Texas-based computer sciences giant announced that sales were down by three per cent, new business down more than 50 per cent and job cuts for 5,000 employees. But for an equivalent Indian software firm the opposite was true. Revenues were up 35 per cent, profits increased 12 per cent and new hires hit nearly 2,000.

TRADE

China and the countries of South-East Asia, which agreed last year to give their economies a lift by removing tariffs on commerce, have moved closer to their goal by adopting a framework for conducting trade negotiations. Under the agreement, duties on China's trade with Singapore, Malaysia, Thailand, Indonesia, Brunei and the Philippines will fall to zero by 2010. The China-ASEAN free-trade area, which will combine 1.7 billion people, will be the biggest in the world by size of its population. Its combined gross domestic product stands at $3.56 trillion.

CREDIBILITY

An international consumers organization is warning Web users about the credibility of some Internet sites. Consumers International, a federation of 250 organizations around the world, has released a study of more than 450 Web sites. Researchers examined health, financial and price-comparison sites and found misleading, inaccurate and incomplete information. The organization reports that the results of the study are alarming as the majority of consumers using the Web are relying on it for credible information they can trust.

FOR RENT

Cow Placard Co. of Switzerland paints logos and slogans on the sides of animals, transforming them into living billboards. One of the first branded cows featured the logo of a Swiss clothing company. Cost per cow: About $375. Animal rights groups are not amused.

GIZMOS

A new device is being used to cram even more ads into TV hit programs. Called a Time Machine, the device strips out about 3 per cent of the video frames from a show shortening its length. The station fills the extra time with advertising, padding its bottom line. The devices appear to be legal but might contravene network agreements that prevent affiliates from altering programmes. Unlike US broadcasters, Canadian stations face limits on how much advertising they can run.

BUGLES

In the face of a serious shortage of military buglers to play at funerals, the Pentagon is to test a British inventor's electronic version, which can be played by non-musicians. There are fewer than 500 buglers in the U.S. military and the number of military funerals has risen to some 100,000 a year. Honour guards now attend thousands of funerals equipped with a portable stereo and a CD recording of a bugle which the Pentagon feels lacks the "dignified visual" of a real bugler.

WIND

The Canadian province which is leading the fight against the Kyoto will soon be home to the country's largest wind farm. The plan is to build a wind farm in southern Alberta with 114 wind turbines which is expected to produce enough electricity to power 32,500 homes. The project will cost C$100-million and should be fully operational by the end of 2003.

SCREENS

Two British companies have joined forces to become a world leader in the technology of glowing plastics. By 2005, this should yield the first roll-up computer screens and TVs. Hopes for this technology are high because polymers that emit light do not require a backlight used in the current generation of flat screen liquid crystal displays (LCDs). It makes them energy efficient and much thinner--so thin that they can be folded.

SOAP

According to a new study, anti-bacterial soap does not work. A team followed 238 housewives in New York City. Half of them got anti-microbial soap for daily hand washing, the other half was given plain soap. The soap was not labelled. Researchers discovered that both groups had fewer germs on their hands after washing, but there was no difference between the two groups.

WINE

The market for Washington State wine is being expanded in British Columbia. B.C., which has its own winemaking industry in the Okanagan region, is opening its borders to wines from eight more Washington wineries, bringing to 32 the total that may sell in B.C. Washington has about 210 wineries and ranks as the second-largest wine producer in the U.S., making about 42 million litres a year. California, the number one producer, makes about two billion litres a year.

BORDERS

In a distant frontier of commerce, just across the Russian border in Southern Siberia, China's World Trade Organization agreement is being put to the test. Suifenhe is an obscure spot on the global trade map. It is mainly a transit point for small-time traders where Russians import Chinese made clothes and electrical appliances and the Chinese import Russian food and timber. Now, the U.S. and Canadian governments have expressed concern about cheap Russian exports slipping into China, squeezing their companies out of a lucrative market and possibly violating WTO rules.

DRILLS

The tell-tale noise of a DIY enthusiast at work, the whine of the electric drill, may soon be a thing of the past. A silent, steady and dust-free way to drill holes in walls has been found. It could also replace the dentists drill one day. The drill's key component comes from a domestic microwave oven and it works by focusing microwave radiation at a spot just beneath the surface of any hard material. As the temperature increases, the surrounding material's ability to absorb radiation increases, starting a runaway reaction so that a molten hotspot evolves. The drill tip is pushed into the softened material to form a hole.

GREAT LAKES

Scientists who study the Great Lakes ecosystem are concerned about the growing concentration of pharmaceuticals in the water. Tests of water samples taken near sewage-treatment plants in 14 different cities as well as in open water at various points along the Great Lakes found traces of a number of drugs. The flow of pharmaceuticals such as painkillers and birth-control pills into the water is becoming of increasing concern.

LABELS

The Grocery Manufacturers of America have endorsed The U.S. Department of Agriculture's national organic programme as a way to provide consumers with accurate labelling information about organic foods and ingredients. The new standards provide food manufacturers with four labelling options: 100 per cent organic, 95-100 per cent organic, at least 70 per cent organic or that contain only specific organic ingredients.

WATER

Russians are up in arms over a plan to sell water from the world's largest freshwater lake, Lake Baikal. The lake fills a crevice that runs 1,600 meters in depth and more than 600 kilometres long. It contains more volume of fresh water than the Canadian Great Lakes combined. With more than 2,500 species of plants and animals in its waters and along its shores it is as diverse a place as can be found in Siberia. The lake is around 25 million years old. Free-market enthusiasts want to build a pipeline, several thousand kilometres long, to the parched lands of China.

SALES

More Canadians work at selling than any other job. According to the last available census figures, 554,000 men and women work in retail sales. Secretaries were the second-most common job, with 317,000, but if you add the first, third and fourth most-popular jobs--retail trade managers, and cashiers, then retail truly dominates, employing 1.1 million in Canada. The least-common job recorded was meteorological technicians with 910 counted.

SCORES

A soccer team in Madagascar lost by a record 149 goals to nil. To protest against allegedly biased refereeing, they kicked shot after shot into their own net.

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