September 2007 Economic Digest - Importing and Exporting

September 2007 Edition  

LOCATION


A new emerging-markets index says that the most attractive location for manufacturing is now Vietnam, not China. Also, the United Arab Emirates beats India as a location for service-sector activities. The index assesses 20 prominent emerging-market locations on the basis of "reward" factor, including production costs, size of market, taxes, transport costs and tariffs and "risk" factors. It finds that Russia, Brazil, India and China do not come top as locations for either manufacturing or services.

ELECTRONICS

The growing popularity of hi-tech devices in the UK, such as flat-screen TVs and digital radios is threatening to undermine efforts to save energy. UK consumers spend US$25-billion a year on electronics and by 2020 it is estimated that gadgets will account for about 45 per cent of electricity used in UK households. The equivalent of 14 power stations will be needed by 2020 just to power consumer electronics.

OIL

A U.S. based company has developed a way to turn oil-based plastics back into the oil from which they were made. By zapping such materials with a finely tuned microwave, they are reduced back to oil and combustible gas. Running 9.1 kilograms of ground-up tires through a machine produces 4 litres of diesel oil, one and a half cubic metres of combustible gas, one kilogram of steel and three kilograms of carbon black.

PLANES

The chairman of Emirates Airlines has grand ambitions and a bankroll to match. He has US $82-billion from his government, the airline and other financiers and has ordered 55 super jumbo A380s to create the largest fleet of these double-decker planes in the world. He wants to make Dubai, a sheikhdom by the sea, the busiest airline hub in the world, overtaking London, New York and Singapore. In 1985, starting with $10-million, Emirates was a two-plane operation. It now has 105 planes.

INDIA

Indian software and services exports are expected to earn about US$40-billion in the year to March 2008. It is estimated that this sector will achieve $60-billion in export revenue by 2009\2010. A large pool of English-speaking and well-educated workers have helped to win outsourcing contracts from firms in the U.S. and Europe. The industry contributes 5.2 per cent to the Indian economy.

SHIPS

Britain's merchant navy once ruled the waves. Since 1975, the number of UK-owned and registered vessels with a capacity of 500 gross tons or more has slumped from 1,600 to less than 300, while the number of British seamen serving on them has dropped from 90,000 to just 16,000. Some experts fear that the decline of the service will weaken Britain strategically and economically by forcing it to become dependent on foreign shipping. Britain's maritime industry is worth US$20-billion a year.

IMPORTS

According to Statistics Canada, the top foods in volume Canada imported from China in 2006 in millions of kilograms were: Mandarins, clementines and similar citrus hybrids, fresh and dried, (33.9); Frozen fish fillets, (24.4); Fresh pears and quinces, (13.6); Raw peanuts, (10.6); Frozen shrimp and prawns, (10.4); Pasta, (10.3); Mushrooms, (8.9); Other citrus fruits, (8.8) and Shrimps and prawns, prepared or preserved, (7.3).

TRAVEL

The U.S. has lost billions of dollars and an immeasurable amount of good will since the September 2001 terrorist attacks because of a decline in foreign tourists. Visits to the U.S. from countries outside Canada and Mexico totalled 21.7 million in 2006, down 17 per cent from a peak of 26 million in 2000. In the same period, cross-border travel around the world was up 20 per cent. Visits from Britain, Japan, Germany, France, South Korea and Australia have dropped 15 per cent while travel from those countries to other countries was up 39 per cent.

COPPER

South African copper exports are booming but there is little rejoicing. The trade is being fuelled by theft of copper cables that carry electricity, regularly plunging whole suburbs into darkness, stranding thousands of train passengers and wreaking havoc with the national economy. Nationally, it costs an estimated US$70-million to replace stolen cables every year and $350-million in further losses, including the impact of power outages. The Western Cape province which has no copper mines reported exports last year of $11-million.

CORN

U.S. farmers planted 92.9 million acres of corn in 2007, the largest amount of acreage since 1944 and 19 per cent more than was planted last year. Iowa continues to lead all states in total corn acres and state records were set in Illinois, Indiana, Minnisota and North Dakota. These increases are attributed to favourable prices, growing ethanol demand and strong export sales.

TRADE

The U.S. and South Korea have signed a free trade agreement, the biggest such deal for the U.S. in 15 years, though it is not certain that Congress will approve the deal. The pact eliminates nearly 95 per cent of tariffs on bilateral trade in consumer and industrial goods within three years and almost two-thirds of U.S. farm exports will be immediately duty free when the FTA is implemented. This is the biggest U.S. free trade deal since the NAFTA. However, some are concerned that the automobile provisions don't go far enough.

VENDING

Two Scottish entrepreneurs have come up with an invention that battles the humidity to keep hair straight during a night on the town. The coin-activated "Straight Up" vending machines will provide 90 seconds of hair straightening time for about the same price as a coat check at a night club. They launched the first machine in 2005 and now have more than 800 units in bars, clubs, gyms and offices.

GREEN

As part of an eco-initiative by one of Britain's largest retailers, they are now selling trousers made from 14 mineral water bottles. They are made in factories in Indonesia from recycled clear plastic bottles that have been spun into polyester in Taiwan. The trousers cost about C$40.00 and come in charcoal and navy and the crease-resistant trousers are machine washable. If they sell successfully the line could be extended to women's clothes.

COMMUTING

Seventy-seven per cent of workers in the U.S., more than 102-million people, drive alone to and from work, up from 1990. This has happened despite the fact that retail gasoline prices rose by 60 cents per gallon in the same 15-year period, adjusted for inflation. Biking is showing no gains and carpooling is also on a downward trend.

BRANDING

The Canadian Brand Index ranks the country's most recognizable brands by total value and overall strength. Topping the list is Cirque de Soleil with a brand value of C$880-million. Second is Ski-Doo, ($293-million); CBC, ($283-million); Roots, ($134-million); Toronto Maple Leafs, ($95-million) and Montreal Canadians, ($87-million).

TEENS

The market for products bought by and for the 25.6-million-member teen market in the U.S. will experience a growth spurt, increasing from US$189.7-billion in 2006 to $208.7-billion in 2011, despite an estimated three per cent decline in the 12-to 17-year-old population in the same period. Teen spending money, accumulated through paying jobs, allowances from parents and monetary gifts will increase an estimated 3.5 per cent annually.

POTASH

Global interest in biofuels has helped push prices for potash, a mineral-based fertilizer to record levels and those prices will increase further through the balance of the year. Worldwide, the three crops using the most potash per hectare planted are sugar cane, palm oil and corn. This has stepped up fertilizer use in Asia, Brazil and North America.

SEAFOOD

Overall seafood consumption in the U.S. was 16.5 pounds per person last year, up from 16.2 pounds in 2005 and 14.8 pounds in 2001. Shrimp continues to lead seafood consumption followed by Canned Tuna, Salmon and Pollock. Tilapia, a mild-tasting white fish, is now in fifth position replacing catfish which is sixth.

TEA

The hottest investment in China today is in the shape of a small, compressed cake that smells earthy and is wrapped in paper. Pu'er tea, a strong aromatic brew from Yunnan has long been prized in China for medicinal qualities. Now, instead of drinking it, millions of Chinese are hoarding it after the price jumped 50 per cent last year. Like fine wine, Pu'er tea is considered to improve with age and it is now six times more expensive than gold.

MATCHBOX

These miniature die-cast toys were a favourite of children in the 1950s and 1960s. The range of toys that flowed from it were sold in over 140 countries. At one point, Matchbox was selling two million models every week, outpacing rivals like Meccano's Dinky range by adding two new models each month. Eventually their popularity waned to be replaced by Mattel's models with friction wheels which meant they ran further and faster.

DOWNLOADS

Sales of CDs in the UK fell by 10 per cent in the first half of the year. The decline was much greater in the U.S., the world's largest music market, where sales dropped by 20 per cent. However, this decline was partially offset by the growth in digital downloads to two million units in the U.S. which left overall sales down by 9 per cent.

VACCINES

The dream of cheap, easy-to-store, needle-free vaccines is now closer to reality. Japanese researchers have created a strain of rice that protects against cholera. Edible rice vaccines could also be developed to protect against diseases such as HIV-AIDS, SARS and influenza. These rice-based mucosal vaccines offer a highly practical and cost effective strategy for orally vaccinating large populations.

TRENDS

London is to rip out more than 2,000 coin parking machines, as with rates of nearly $10.00 an hour, it is unreasonable to expect motorists to carry fistsfull of coins. Motorists will use credit or debit cards for parking. Those with a cell phone will be able to do so by text after setting up an account, with their card and car registration details. Drivers will have to text in the parking space number and the amount of time for which they wish to pay. They will be sent a text warning shortly before the time is up.

SPICES

Emerging ethnic cuisines are giving Americans a taste for bold spices from all over the globe. Spices are finding their way onto menus and specialty food products attracting new customers and even adding health promises. A key reason for the new interest in exotic spices is the shifting cultural makeup of the nation. Beyond salt and pepper, the spice market has now reached US$1.2-billion.

SPORRANS

Because of new EU regulations brought in to protect wild animals, anyone who has bought a sporran since 1994 may have to obtain a licence for them because otters and badgers, from which sporrans are made, are now protected.

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

August 2007 Economic Digest - Importing and Exporting

August 2007 Edition

POLLUTING

 
New research shows that computers generate an estimated 35 million tons of carbon dioxide each year. Globally the IT industry accounts for around two per cent of carbon dioxide emissions, much the same as aviation. It takes around 1.8 tons of chemicals, fossil fuels and water to produce a PC and its operation generates 0.1 tons of carbon dioxide in a typical year. They last, on average, three years and once junked most are buried in landfill where the soil can become polluted with cadmium and mercury.

WATER

The fastest growing bottled water brands are flavoured and enhanced waters, waters with a splash of fruit or vitamins or electrolytes. One new brand even contains fibre which claims to help maintain healthy intestinal regularity and glucose levels.

FRAUD

The online auction giant eBay is trying to clean up its site. It recently announced a significant shift in its philosophy towards protecting eBay members from fraud. The company has reported a 60 per cent decline in the number of complaints from luxury goods makers that counterfeits of their products are being sold on the site. It also claims that it has banished tens of thousands of sellers from its auction marketplace who do not meet new, elevated standards.

SAUCE

It was invented by the British from an Indian recipe over 175 years ago and has been exported across the world as a vital cooking ingredient. Now, Worcestershire Sauce has been named as the UK's most important contribution to world cuisine. In a major survey of food lovers, over 71 per cent named the sauce as the greatest culinary ingredient, beating the likes of Cheddar Cheese, Clotted Cream and English Mustard.

COGNAC

The cognac industry of south-west France is reporting record exports, thanks to an explosion of sales to Russia and China. Overseas sales grew by 9.7 per cent in the year to April, to reach 157 million bottles. This is the highest figure since 1990, before a long period of decline led to the destruction of 8 per cent of cognac vineyards. The biggest increases in sales were in Russia, up by 55 per cent, and China, up 49 per cent. The U.S. remains the biggest importer of cognac.

PIZZA

It is estimated that the pizza quick-service restaurant (QSR) segment in Canada generated sales in 2005 of about C$2.5-billion with around $1.2-billion made in Ontario. In 2004, the pizza QSR segment represented 18 per cent of the total QSR segment. Most of this segment is served by branded chains which account for two-thirds of sales. The top four chains by sales are: Boston Pizza, $513-million; Pizza Pizza, $341-million; Pizza Hut, $300-million and Domino's, $123-million.

SEEDS

Scientists are worried that many plant species will not be able to adjust to climate change. With more than 100 partners worldwide, the Millennium Seed Bank Project (MSBP) in Britain is acting as a repository for all the world's wild plant seeds. So far, MSBP has banked about 18,000 species from 126 countries. On track to meet its goal of banking 10 per cent of the world's flora by 2010, it hopes to bank another 45,000 by 2020.

STRESS

Mainland Chinese business leaders are the most stressed in the world, with 84 per cent reporting an increase in stress levels over last year, followed by Taiwan, 82 per cent, India, 79 per cent and Russia, 76 per cent. The report, covering the opinions of 7,200 privately owned companies in 32 countries, found that 56 per cent of business leaders worldwide feel their stress levels have increased in the past year. In contrast, business leaders in Europe are the least stressed.

COWS

It may soon be possible to produce skimmed milk straight from the cow in a development that could revolutionize the dairy industry. Scientists in New Zealand have discovered that some cows have genes which give them a natural ability to deliver skimmed milk. They plan to exploit their find to breed herds of cows to meet the rising demands of health conscious consumers.

TOYS

The Chinese consumer watchdog has warned that more than 20 per cent of Chinese-made toys and baby clothes are below standard. Industrial waste, including dirty carpet fluff, paper and used instant noodle packaging has been found in some toys. And some baby clothes contain harmful chemicals. China is the world's largest exporter of toys.

CHEMICALS

Legislation requiring the safety testing of tens of thousands of chemicals, many in everyday use, has come into effect in the European Union. For the first time, it will be up to the industry, rather than the regulatory authorities to prove that chemicals are safe. About 30,000 chemicals are covered by the new rules, from paints to flame retardants to fragrances in shampoos.

ART

Sotheby's set a record total for a contemporary art auction raising US$255-million in one night earlier this year, including the highest amounts ever paid for 15 individual artists. But within 24 hours, the figure was smashed by Christie's, its rival, with a $385-million buying spree, including 26 artist records.

EXPENDITURE

The U.S. Food Marketing Institute is always interested in how shoppers spend their money. Their research shows that on a $100 expenditure, roughly half the money spent by customers goes towards perishable items, such as meats, produce and dairy products.and about eight per cent is used for nonfood grocery products, such as soap, detergent, and paper goods.

REAL ESTATE

A 1,400 sq. ft., one -bedroom apartment in Eaton Place, London, one of the most desirable addresses in the world, which has a 125 year lease, is on the market for US$6-million. At least 10 other apartments in the same street are for sale for a similar price, but they have either two, three or four bedrooms.

AGING

Women looking for more natural alternatives are driving makeup sales in the U.S. which hit $6-billion in 2006. Recently, the anti-aging lines have expanded considerably tripling their sales, growing from $22-million to $61-million in the past two years. More than 200 new products in this segment have debuted in the U.S. in the past year. More than one fifth of global organic and natural new product launches have come from the U.S. alone.

OFFENSE

Civic officials in the Devon, UK, community of Totnes are considering re-covering all their furniture with plastic instead of leather in case leather offends vegetarians.

SCRAPBOOKS

A scrapbook is essentially a photograph album with decorations. Ribbons, stickers and stamps are the basic kit in the scrapbook arsenal. According to the Craft and Hobby Association, sales of decorations and other scrapbooking supplies reached US$2.6-billion in 2006 and they claim that it is the most popular craft in the U.S. with 12 per cent of homes having a scrapbooker on the premises, almost all of whom are women.

DEMAND

A growing demand for energy, coupled with an increase in prices, has led to consistent growth in Canada's oil and gas sector during the past ten years. In 2006, the contribution of the oil and gas sector to Canada's gross domestic product exceeded C$40-billion. Total employment in all oil and gas industries was about 298,000, a 22 per cent increase from 1997. Workers in this sector earned on average about C$30.36 an hour compared with $16.73 for the labour market as a whole.

GRAFFITI

In the U.S., the cleaning up of graffiti is estimated to cost about $10-billion a year. Now, a new hi-tech system is being used that analyses and tracks graffiti and its perpetrators. Rather than simply obliterate the graffiti, the system keeps a permanent record of it which allows police to compile a database of similar daubings. Keeping a database of known graffiti means offenders, when caught, can be charged with multiple counts of vandalism.

BAROMETERS

Britain's traditional barometer makers and restorers are facing closure after the EU voted to uphold a ban on the use of mercury. The decision effectively consigns more than 350 years of unique British tradition and craft to history. After a two-year phase-out period, production of thermometers and barometers containing mercury will be banned.

TECHNOLOGY

Eight gigabytes of data are produced after each race by one Formula One team. Each F1 car contains a minimum of 120 sensors to either transmit or collect During a race, engineers and technicians in Britain, Germany or France, along with people in the pits, are watching the endless streams of real-time data pouring in from the sensors.

PATENTS

The U.S. government wants to overhaul the U.S. patent system by requiring better information from inventors and allowing public scrutiny of applications. Improving the quality of patents should curb the rising wave of disputes and lawsuits.

TRADE

Canada recently signed its first free trade deal in six years. A number of other bilateral deals are in the works. The new agreement is with the European Free Trade Association, which includes Switzerland, Norway, Iceland, and Liechtenstein. The Swiss are the fifth-largest investor in Canada and together the four countries engage in C$11-billion in two-way trade each year. The last free trade deal Canada signed was with Costa Rica.

LOANS

More than 100,000 people in rural India have benefitted from a innovative loan scheme that helps families buy home solar power systems. The US$1.5-million project led by the UN Environment Programme, supports Indian bankers who offer finance to people who want to purchase a unit. The sunlight-powered systems are used to light homes and shops instead of expensive and polluting lamps. A system capable of powering two to four small appliances costs about $400.

ASPARAGUS

A new variety of purple asparagus that is so tender that it can be eaten raw without getting stuck in your teeth has been grown commercially in Britain for the first time. The Pacific Purple strain contains only tiny amounts of lignin, the fibre that makes normal green asparagus spears stringy.

INSPECTIONS

Last year, Food and Drug Administration officers in the U.S. sampled just 20,662 shipments out of more than 8.9 million that arrived at American ports. Last year, the FDA visually inspected over 115,000 shipments in addition to sending 20,000 shipments to a laboratory for inspection. China, which in one decade has become the third-largest exporter of food, by value, to the U.S. sent 199,000 shipments of which less than two per cent were sampled.

QUALIFICATIONS

A Chinese court has jailed two officials who allowed a blind contractor to build a bridge which collapsed during construction injuring 12 people.

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

July 2007 Economic Digest - Importing and Exporting

July 2007 Edition

ILLEGALS

 
European businesses caught employing illegal immigrants face jail sentences under new proposals from the EU to control immigration. As much as 16 per cent of Europe's business is done off the books. It is estimated that there are about five million illegal immigrants in the EU, a figure increasing by 500,000 every year because of easy access to illegal work.

MANUALS

Luxury-car makers are bulking up the guides that motorist are supposed to check if they wish to understand their new vehicles. The manual and two supplements for the Lexus hybrid runs to 1,097 pages and the manual for the Mercedes-Benz GL is 983 pages. The manual for the Cadillac Escalade is 574 pages. Land Rover instructions are only 265 pages and the BMW gets all the information into 253 pages.

UNIVERSITIES

Unless they improve quality and access, British, French and German universities will be overtaken by those in China and India within a decade. Britain is the second most popular destination for overseas students, second to the U.S., with Oxford and Cambridge in the top ten. Europe has 200 universities in the top 500 but the U.S. has 37 in the top 50. Indian technology is now the third best in the world and China aims to have several top universities by 2015.

OIL

The U.S., the world's largest oil consumer, imports 60 per cent of the oil it consumes, over 95 per cent of which arrives by sea. Japan, the world's third-largest oil consumer, is almost completely dependent on maritime imports. In 2005, China imported 46 per cent of the oil it consumed, India 68 per cent. By 2025, import figures are expected to balloon to 75 per cent of total consumption for China and about 85 per cent for India. Both bring in about 90 per cent of their imported oil by sea.

SERVICES

According to the World Trade Organization, trade in commercial services, measured by adding up exports, rose by 11 per cent in 2006. Trade in goods rose by 15 per cent. India enjoyed the biggest proportionate rise in services exports last year, by 34 per cent to US$73-billion and imports grew to $70-billion. The U.S. topped the imports league with $307-billion as well as that for exports of services, with $387-billion.

ONLINE

Consumers in the U.S. spent more money online for clothes than computers last year, the first time this has happened. A recent report shows that apparel, accessories and footwear sales hit US$18.3-billion in 2006 while computers were $17.2-billion. It is predicted that 10 per cent of all clothing sales will occur online this year. Autos and auto parts sales online were $16.7-billion and home furnishings were $10-billion.

SKILLS

A girl's school in Japan is refusing entry to students who are not expert with chopsticks. Entrants must be able to transfer marbles, beads and beans from one plate to another using chopsticks.

TANKERS

The size and the strength of the global tanker fleet have increased markedly over the last two decades. From 1980 to 2006, the number of tankers grew from 2,516 to more than 10,000, and the average capacity of each tanker increased by 400 per cent, with a disproportionate amount of the new tonnage having been added in recent years. Single-hulled tankers are being phased out in favour of more resilient double-hulled ones.

FACT

Filling the 25-gallon tank of an SUV with pure ethanol requires over 450 pounds of corn, which contains enough calories to feed one person for a year.

TRAINING

The Conference Board of Canada reports that Canadian organizations spend an average of around C$850 per employee on training and educational programs, an amount that has remained constant for a decade. Adjusted for inflation, the figure is 17 per cent less that a decade ago. Last year, the average employee received 25 hours of education and skills development training.

ANTARCTIC

An extraordinarily diverse array of marine life has recently been discovered in the deep, dark waters around Antarctica, Scientists have found more than 700 new species of marine creatures in seas once thought too hostile to sustain such rich biodiversity. Groups of carnivorous sponges, free-swimming worms, crustaceans and molluscs have been collected.

WOMEN

The popularity of chick lit and chick flicks--books and movies aimed at women, may have spawned the marketing world's latest trend: chick food. More than 1,000 new foods and drinks targeting women have hit the global market in the past four years. These are not just diet foods. There are energy bars for women, even one just for pregnant women. There's bread for women, and a tortilla and a tea for women.

IT

Canadian companies plan to boost their spending on information technology by 5.5 per cent this year to C$86.6-billion, led by purchases of computer servers, data storage equipment and software. By 2010, annual spending will reach $100-billion. Business services companies, financial institutions, governments and manufacturers will be the biggest spenders on IT.

WINES

Six American, Australian and European wine regions have joined forces in a growing U.S.-based movement to prevent wine makers from using misleading place labels on their products. The movement, which now includes 13 wine regions, was originally formed in 2005 after the California Supreme Court ruled that a U.S. wine with "Napa" on the label was required to use Napa valley grapes or cease using the name.

FAKE

After tainted Chinese pet food ingredients killed and sickened thousands of dogs and cats in the U.S., China is facing growing international pressure to prove its food exports are safe to eat. There is evidence that China also exported counterfeit drug ingredients that could undermine the credibility of another of its booming exports. At stake for China is more than US$30-billion a year in food and drug exports to Asia, North America and Europe. Recently, Wal-Mart Stores, the largest U.S. retailer, announced a recall of baby bibs made in China after some of them tested for high levels of lead.

LIBRARIES

The Library of Congress of the U.S. in Washington has almost twice as many volumes (29.6-million) as any other library, public or private. But there are impressive collections elsewhere with 85 having more than three million volumes each. The next largest are: Harvard University (15.2 million), Boston Public (14.9 million), Yale University (11.1 million).

ENERGY

The Altamont Pass in California is one of the largest wind-generating areas in the U.S. Oakland leads the country in using renewable energy and now draws 17 per cent of its electricity from renewable sources such as wind, solar and geothermal. California has mandated that by 2020, 20 per cent of utility purchases come from renewable resources. The next biggest renewable resource users are Sacremento, San Francisco and San Jose, followed by Portland, Oregon and Boston.

INDIA

This country currently has 8 per cent growth and a billion-person potential. Experts are assuming an average annual growth of 7.3 per cent over the next two decades and India may overtake Germany as the world's fifth-biggest consumer market by 2025. It is predicted that the middle class will expand from 50 million to 583 million, leaving only a fifth of Indians in the bottom income bracket.

FLIGHTS

The New Scientist reports that between May 1, 2005 and April 30, 2006, the world's airlines logged 3.2-million flights.

SERVICES

According to the World Trade Organization, trade in commercial services, measured by adding up exports, rose by 11 per cent in 2006. Trade in goods rose by 15 per cent. India enjoyed the biggest proportionate rise in services exports last year, by 34 per cent to US$73-billion and imports grew to $70-billion. The U.S. topped the imports league with $307-billion as well as that for exports of services, with $387-billion.

LIGHTING

The value of the global lighting market in 2006 was estimated to be US$102-billion. $30-billion is the estimated energy savings expected from solid-state lighting systems by 2027. Lighting's share of global electricity demand is 25 per cent.

DESIGNS

The value of the Canadian specialized design and landscape architecture industry was C$2.6-billion in 2005, up 5 per cent from the previous year. Operating revenues earned by firms in Western Canada grew at a much higher rate than those in the rest of the country

LAND

The U.S. Embassy in Britain is one of the most prestigious addresses and is about to go on sale with a price tag of around US$180-million. The 133,300 square foot building in Grosvenor Square has 939 years left on a 999 year lease. The sell-off is part of a move to provide staff with more secure premises overseas.

COUNTERFEIT

A new report by the OECD estimates that counterfeit products account for 2.4 per cent of global trade, about US$500-billion annually, more than the GDP of Switzerland.

RUSSIA

A huge appetite for autos has some Russians waiting months to drive a new vehicle off the lot, and when they do, it's likely to be a Ford or a Renault as the country's iconic Lada. Russian auto sales surged 20 per cent in 2006 from the year before, cracking two million for the first time. Strong growth is expected for the next four years with estimates of 3.4-million cars being sold in 2010. Last year, foreign cars made up 57 percent of the new car market.

TRENDS

Old vessels that once hauled cement and fuel to offshore oil rigs are being reborn as "shadow boats" to ferry jet skiis, helicopters and luxury cars for the super rich who do not want clutter on their yachts. The shadow boat conversion industry is one that is expected to grow as the number of new mega-yachts hitting the water increases. Shadow boats range in cost from US$7- to $13-million

CHIPS

A new process from IBM is copying nature's creation of seashells and snowflakes. Called airgap, it enables trillions of microscopic vacuum holes to be placed between the copper wire in chips to act as an insulator. This solves the problem of electrical energy leaking between wires, which creates unwanted heat. IBM says the chips will run 35 per cent faster and consume 15 per cent less energy.

CAFFEINE

A U.S. company is offering a soap that releases caffeine right through the user's skin and straight into the bloodstream. Called Shower Shock, soaping up with this product provides the same amount of caffeine as two cups of coffee. The soap is scented with peppermint oil.

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

The importance of Compliance

This morning, I was at the CSCB (Canadian Society of Customs Brokers) BC Regional Annual Conference.

CBSA (Canada Border Services Agency) - Customs - talked about the quality of trade data - or the data that Importers and Customs Brokers transmit to Canada Customs. They feel that there is a very low level of compliance with regards to origin, tariff classification, value for duty and end use of goods.

They have done some studies and found that there has been a 'high level' of non compliance.

This really disturbs me. We spend a great deal of time and effort to make sure that the information for our clients shipments is very accurate. Almost to a fault. Some of our clients complain about the amount of calls or information requests they get. On the other hand, some of our clients have been audited and have been very happy with the results.

Customs is working on audits for importers who are not compliant. I suppose our extra efforts are appreciated by some clients, and may never be truly appreciated until they are audited.

June 2007 Economic Digest - Importing and Exporting

June 2007 Edition

IMPORTS

 
The U.S. remained by far the world's leading importer of goods in 2006, with more than twice the share of Germany, ranked second in the global total. Third-place China's imports grew by 20 per cent last year, the fastest pace of any of the top 15 importers; its exports grew by 27 per cent. Hong Kong and Singapore owe their high positions in the list to imports for re-export. According to the WTO, global merchandise trade grew by 8 per cent last year, the fastest rate since 2000.

TUNNEL

Russian officials along with some Alaskan backers, are stepping up their long-dormant scheme to build a US$60-billion rail and tunnel link across the Bering Strait to connect Asia and North America. The sponsors insist the scheme, which would include 6,000 kilometres of transportation links over some of the world's most inhospitable terrain, makes perfect sense. The project would take 15 years to construct. The idea of a tunnel or bridge across the 85-kilometre Strait first emerged more than 100 year ago.

PURCHASING

A company called ShopText has introduced a system that lets people buy products instantly using text messages, a process that eliminates the need to go to a store or even visit a website. Someone seeing an advertisement in a magazine for instance, can order it on the spot simply by sending the text code found beside the item through their cellphone. CosmoGirl magazine will feature text-message codes throughout its June\July issue, both in the advertising and editorial pages.

TRAFFIC

The world's largest shopping centre in Dongguan, China looks almost deserted. Situated north of Hong Kong with a population of six million, the development stands as a symbol of China's failure to stimulate more spending by its 1.3-billion people. The mall's 220 palm-tree-lined acres has an indoor amusement park, replicas of seven cities including Venice, Milan, and Amsterdam, and a model of the Arc de Triomphe. There is retail space for 1,500 stores in the 85-hectare mall only a handful of which are leased. The developers expected to attract 100,000 visitors a day but get only 10,000 a day.

WIRELESS

The City of London has become Europe's biggest wireless hotspot. The network spans the entire Square Mile, giving its estimated 350,000 workers internet access via their laptop or mobile phones. Some 130 base stations are being used to cover the area and users will be charged about US$20.00 a month. There are 2,000 conventional internet hotspots around London However, they require users to log in every time. Users of the City's system will log in only once.

ARTS

The live performing arts industry in Canada, including both for-profit and not-for-profit companies generated operating revenues of C$1.2-billion in 2005, up 2.2 per cent from the previous year. Total industry operating revenue was split almost equally between the two sectors. Performing arts companies in Ontario and Quebec combined, continued to generate three-quarters of total industry revenues.

SAVINGS

The U.S. Department of Energy predicted energy savings of 0.4 per cent a day as a result of the earlier-than-usual daylight savings time. However, the data indicates U.S. electricity usage was virtually unchanged for the three weeks in question. It also appears to have driven up gasoline consumption as motorists took advantage of the evening daylight to hit the road. The increase in usage represents an additional 266,000 barrels of oil each day of crude oil imports.

MUSIC

Specializing in Latin music could be a life-saver for CD shops in the US, which have suffered a big fall in sales in recent years because of piracy and internet downloads. Album sales fell 4.9 per cent to 588-million units in 2006. By contrast, Latin music sales have increased by 5.2 per cent over the same period, notching up 37-million units. Demographic tendencies suggest that these figures will continue to grow.

POWER

Russia has started building the world's first floating nuclear plant, designed to provide power for remote areas. The plant, costing US$200-million is due to be launched in 2010 and is to be used by Sevmash, a shipbuilding firm that produces nuclear-powered submarines. However, Russia hopes that the technology will be of interest to Pacific island states and more than 12 countries have expressed interest in the project. Russia plans to build seven floating nuclear plants by 2015.

WASTE

US and European cities have wrestled with excess food waste for more than a decade, but Hong Kong's prosperity and shrinking landfill space are now pushing it to adopt a new consumption ethic. In the past five years, the amount of food wasted by Hong Kong's restaurants, hotels and food manufacturers has more than doubled. Food accounts for about one third of the 9,300 tons of waste deposited at landfills each day. One restaurant is now charging customers US$.64-cents an ounce for leftovers and many other restaurants are threatening to do so.

METERS

Every household in the UK will be able to request a free device that shows how much electricity is being used in the home at any one particular moment. It is hoped that the monitors will help to cut greenhouse gas emissions and the amount of energy wasted by appliances being left on standby. Households in the UK are responsible for about one third of the nations greenhouse gas emissions.

FORTUNE

General Electric tops the Fortune list of most admired companies in 2007. Second is Toyota followed by Proctor & Gamble, Johnson & Johnson, Apple, Berkshire Hathaway, FedEx Microsoft, BMW and PepsiCo.

NAVIGATION

Millions of drivers use satellite navigation systems. Now scientists believe that they have discovered why such space-age technology seems to fail for no good reason. It is because of the sun. Bursts of radiation caused by solar flares interfere with the signal from the satellites orbiting the earth, causing the receivers in cars to lose track of their position.

CHAMPAGNE

France's champagne makers have agreed to harvest more grapes from 2007 and to plant new vines in the future to head off possible shortages amid growing demand from outside Europe. France's champagne makers sold an estimated 322-million bottles in 2006 and harvested enough grapes to produce 360-million bottles in two years' time once the wine has matured. Production in champagne is limited by an 80-year-old law to 34,000 hectares.

TRADE

A free-trade pact between the U.S and South Korea is putting pressure on Japan to move towards a similar agreement with Washington. While Tokyo has pursued free-trade deals with other Pacific Rim countries, the U.S.-South Korea accord has spurred fears that Japan might fall behind in the global race to cut trade barriers. Total trade between the U.S. and South Korea last year was US$74-billion while trade between the U.S. and Japan was $200-billion. Japan and the U.S. together account for 38 per cent of global gross domestic product.

BAGS

British Airways has been named as the carrier that has lost more bags than any of its European rivals. Last year, BA mislaid 23 bags per 1,000 passengers, two more than the carrier in second place, Air Portugal and nearly five more than Lufthansa. One consumer watchdog estimates that 5.6-million bags were "mishandled" last year by 24 European carriers.

ITALIAN

Increased consumption of pizza and pasta in the U.S. are expected to drive retail sales of Italian foods to more than US$13.8-billion by 2011, from nearly $12-billion in 2006. Pizza and pizza products account for more than 45 per cent of total Italian food sales at retail. Sales in this category topped $5.3-billion in 2006.

POLLUTION

The Port of Los Angeles and the nearby Port of Long Beach are being encouraged by a broad coalition of local activists to curb emissions related to the shipping industry. Their first action item is to try to streamline the trucking network that transports goods to and from the ports. Recently, the coalition unveiled a plan calling on the two ports to give trucking contracts only to companies that pledge to honour existing government standards for emissions. It is hoped that this plan, which would affect 16,000 truckers, could become a model for the rest of the nation's ports and its 85,000 truck drivers.

METALS

Shortages and strong demand continue to support metal prices. Nickel rose by 44 per cent earlier in the year with the price briefly reaching US$50,000 a tonne. Tin prices have passed $14,000 a tonne for the first time in 20 years. Copper prices are rising again because of strong demand from China. However, aluminum prices are only 13 per cent higher than they were a year ago.

PENCILS

More than half of all pencils come from China. In 2004, factories there turned out 10 billion pencils, enough to circle the earth more than forty times. The average pencil holds enough graphite to draw a line about 35 miles long or to write roughly 45,000 words. Most pencils sold in North America today have eraser tips, while those sold in Europe have none.

OIL

Britain became a net importer of oil and oil products last year for the first time since 1980. Net imports were 6.6 million tonnes in 2006, compared with 2.4 million tonnes the year before. Once a major producer of oil, Britain's aging North Sea oil fields are drying up and new ones are too small to compensate.

PUBLISHING

The Canadian publishing industry recorded total revenues of just over C$2.4 billion in 2005, up only 1.6 per cent from 2004. Total revenue gains were strong in the West with British Columbia up 19.9 per cent, Saskatchewan up 9 per cent and Alberta up 8 per cent. Companies in Ontario and Quebec accounted for the majority of book publishing industry profit. They earned C$270-million of the industry's $285-million profit.

WAITING

A recent survey in the U.S. showed that one in ten shoppers leaving a store without making a purchase cited wait-to- checkout as a factor in their decision not to buy. The study conducted from 3,500 in-store audits, as well as 17,000 shoppers, further found that when forced to wait in line for more than four minutes, customer satisfaction levels fell below 80 per cent.

MEASUREMENTS

M:Metrics of Seattle, which focuses on mobile analytics, is offering a new research service that measures mobile Web access trends. It is the first service that measures which services are actually being used, which games subscribers play, how many e-mail messages they send, music they download and other features they use. This could unleash the cellphone's advertising potential and will be of great interest to the advertising industry.

CHEESE

Italian supermarkets are now training their in-store cameras on Parmesan cheese which has become very popular with thieves.

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 2007 Economic Digest - Importing and Exporting

May 2007 Edition

 LAPTOPS

 

Analysts predict that laptops will overtake desktop PCs as the dominant form of computer by 2011. The demand for bulky machines will continue to grow slowly but at a declining rate as portable machines become quicker and more efficient. The report predicts the laptop market will grow by 16 per cent each year until 2011 compared to 3.8 per cent for desktop PCs. In 2006, more than 82 million portable computers and nearly 140 million desktop PCs were shipped around the world. The gradual shift away from fixed machines may reflect the needs of an increasingly mobile workforce.

BEES

Honeybees in the US are vanishing from their hives and experts are scrambling to find a cause before the insects and the crops they pollinate are wiped out. Nationwide, the value of honeybees to US agriculture is more than US$14-billion a year. Officials say that "colony collapse disorder," in which bees are not returning to their hives is being reported in 24 states.

FIGURES

* It is estimated that 10 to 20 per cent of all adults in the world take vitamin supplements.
* The U.S alone uses 500 million tonnes of cement each year. The cement industry is responsible for 7 per cent of the world's carbon dioxide emissions. After water, concrete is the product most consumed by humans on earth.
* Greece, with a population of 11 million, expects to draw more than 15 million tourists this year.

SIZE

Twenty years ago, there were only about 300 yachts measuring 100 feet (30 metres) or more. Today, there are believed to be more than 5,000. Last month, construction began in Italy on "Hull 6154" which is expected to be the world's most expensive privately owned yacht. The vessel, 133 metres long, will have seven decks, two helicopter pads and storage space for a submarine. The crew of 60 will entertain guests in 15 staterooms fitted with the latest entertainment systems, gold and marble bathroom fittings and jacuzzis.

PERFUME

Archaeologists have found the world's oldest perfumes in the south of Cyprus. They are scented with extracts of lavender, bay, rosemary, pine or coriander and kept in translucent alabaster bottles and are more than 4,000 years old. The scientists have found what they believe was an enormous 43,000 sq. ft. perfume-making factory. At least 60 distilling stills, mixing bowls, funnels and perfume bottles were found perfectly preserved at the site which had been blanketed in earth after a violent earthquake around 1850 BC.

POLLS

The majority of Britons believe that life was better before joining the European Union. But the EU has rejected a new poll that finds that lives for 52 per cent of Britons have got worse since the UK joined in 1973. Citing increased economic prosperity and longer life expectancy, officials also dismissed survey results showing dissatisfaction among more than 44 per cent of citizens in Germany, France and Italy, founder members of the EU 50 year ago.

PARKING

Based on 2006 data, it cost just $6 to park all day in an unreserved spot in Memphis and $6.50 in Bakersfield, California. However, the cost in midtown New York is $40 a day, Boston, $31, Honolulu, $30 and Chicago, $25 a day.

NICHE

Functional foods and beverages, products that provide a positive pharmaceutical benefit beyond basic nutrition by virtue of their inclusion of medically beneficial ingredients, are growing into a huge niche market estimated at nearly US$25-billion in 2006 and destined to touch $39-billion by 2011. The largest increase in nutraceutical ingredient demand are expected to be for glucosamine, probiotics, whey protein, omega-3 fatty acids and Co-Q10, all key drivers in the nutraceutical market.

RESPONSE

Sixty-four per cent of Hispanic adults in the U.S. who read direct mail responded to the advertising medium over a 30 day period, versus 46 per cent of the general U.S. population. A study further revealed that 72 per cent of Hispanic adults read direct mail advertisements. With more Hispanics reading direct mail advertising than non-Hispanics, this indicates a need for marketers to continue creating more bilingual marketing pieces. When Hispanics see bilingual pieces, the urge to respond is significantly higher.

ACIDS

Scientists are claiming that the fatty acid content in children's diets can boost their mental abilities. Some overweight children aged between eight and 13 given capsules containing omega-3 and omega-6 were said to have undergone three years' worth of development in just three months. They were also said to have made remarkable improvements in reading and problem solving. The children were also encouraged to cut down on carbonated drinks and do more exercise.

FLIGHTS

Canada and the U.S. have officially unveiled a new deal that will help open up North America's skies. The deal, which is seen as the biggest step in a decade towards free trade in the airline sector, will provide so-called fifth freedom rights, a move that should lead to better prices and more choice for airline passengers on both sides of the border. The key to the deal is that a Canadian airline transporting passengers or cargo to a U.S. city will now be able to pick up more business in that U.S. city, and then fly the people or goods to a third country. The reverse will also hold true for U.S. airlines.

MOLYBDENUM

This rare metal is set to join a growing list of commodities, including gold, silver and more recently, uranium, with a new fund that will give investors direct exposure to the price of the metal. The offering, which will attempt to raise roughly $75 million, will buy and sell molybdenum and invest in companies that explore for, mine and process the silvery white material that is used in furnaces, pipelines and aircraft engine parts. The metal is often found alongside copper and is used to make high-grade stainless steel.

RICHES

Forbes magazine has counted a record 946 billionaires around the world, with a combined net worth of US$3.5 trillion. Seven of the world's ten richest people are citizens of countries other than the U.S. Newcomers to the club include 19 Russians, 14 Indians, 13 Chinese and 10 Spaniards. The billionaire boom reflects the big rise in global wealth thanks to strong equity and property markets and buoyant commodity prices.

STORES

U.S. coffee shop giant Starbucks plans to open at least 40,000 more stores over the medium term, half of them outside the U.S. The company currently has more than 13,000 shops, 9,000 of them in the U.S., with operations in 39 countries employing 130,000 people. The chain is currently expanding at a rate of six stores and 350 new employees a day. The coffee giant is planning to launch its own record label and there is talk of Starbucks putting kiosks in its shops so that customers can shop for music while waiting for their coffee.

FABRIC

Military Special Forces could soon be wearing smart fabrics that monitor how they cope in combat situations. The fabric gathers information on heart beat, skin temperature, posture, activity and breathing rate when against the skin. The fabric could also be used by athletes to hone their performance by measuring how they react during training. It can either record a week's worth of data or transmit data as it is gathered to a nearby laptop.

SEAFOOD

The consumption of seafood in the U.S was 16.2 pounds per capita in 2005, down slightly from the previous year. However, overall consumption has risen 9.5 per cent from 14.8 pounds in 2001. Overall, seafood consumption totalled 4.78 billion pounds (edible weight) for the year. Shrimp continued to lead in types of seafood with canned tuna in second place and salmon in third place.

ADVERTISING

Despite the fact that advertising spending in the U.S. was US$285-billion last year, up from $271-billion in 2005, 81 per cent of American consumers could not name one of the top 50 new products launched in 2006. This was a record high for lack of recognition and up from 57 per cent the previous year. There were a total of 32,624 new products unveiled in 2006.

SERVICES

The food services and drinking place industry edged ahead in Canada in 2005 as operating revenue reached C$38.9 billion, up four per cent from 2004. The majority of revenue in the industry was generated by sales of food and non-alcoholic beverages at 84 per cent followed by sales of alcoholic beverages at 14 per cent. The majority of expenses came from the cost of goods, 37 per cent and labour costs, 32 per cent. Rental and leasing costs were third.

MORTGAGES

Late mortgage payments in the U.S. shot up to a 3 1\2-year high in the last quarter of 2006 and new foreclosures surged to record levels as borrowers with tarnished credit histories had trouble keeping up with monthly payments. A banking association that surveys 43.5 million loans reported that the percentage of payments that were 30 days or more past due jumped to 4.97 per cent.

ZONES

India's plans to emulate China's economic success with huge low-cost economic zones have been put on hold after protests by farmers' groups. The Government had hoped that the zones would form the backbone of a manufacturing industry employing millions of farmers left behind by the country's economic boom. India plans about 600 economic zones to lure foreign investors with tax perks and modern infrastructure .

APPAREL

Customers bought US$9.6 billion worth of apparel online in the U.S. last year. But online purchases of clothing represent a paltry five per cent of overall apparel sales. Customers return 30 per cent of clothes they buy online.

GOLD

Sales of gold for jewellery reached a new high of US$44-billion last year, helping total demand climb to $65-billion. However, the volume of jewellery demand slipped by 16 per cent to 2,267 tonnes. According to the World Gold Council, volatile prices hurt jewellery sales in the first eight months of the year but sales surged later when prices settled under $600 an ounce. Purchases of gold for industrial purposes also set new records in terms of both value and volume.

LIGHTING

Street lights in Britain will be fitted with "dimmer switches" in a bid to cut light pollution. The Highways Agency is to begin tests later this year on lights that will automatically dim when there are fewer cars or trucks on the roads. The new lights could eventually be fitted on all highways. Safety groups are worried they may lead to more accidents.

MEDICINE

Researchers are close to creating an artificial tooth which automatically releases medicine. The device is small enough to fit inside two artificial molars. It could benefit patients with diabetes and high blood pressure.

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 2007 Economic Digest - Importing and Exporting

April 2007 Edition

TRENDS

 
Mobile phones are becoming an increasingly popular way to make all sorts of payments. In the U.S., fans of the Atlanta Hawks have been testing specially adapted phones linked to their Visa cards to enter the local stadium and to buy refreshments. In Japan, thousands of transactions, from buying railway tickets to picking up groceries, take place every day using mobile phones. It is estimated that worldwide payments using mobile phones will climb from just US$3.2-billion in 2003 to more than $37-billion by 2008.

TOLLS

It now costs motorist a $16.00 fee to drive in central London and at nearly 16 square miles, the zone is now almost double the original size. It is claimed that congestion in the original zone has been reduced by 20 per cent and that harmful emissions have been cut by 15 per cent. Tolls have raised more than US$234 million for investment, primarily in public transport. Nationwide, more than 1.5 million people have signed a petition against plans to introduce in the next decade a "pay-as-you-go" road-pricing system where cars are tracked and charged automatically.

DRIVING

The Health Ministry in Japan has found that almost two per cent of the population are alcoholics and drunk driving is a serious problem. Toyota will introduce a new car next year that will shut down the engine if its driver is drunk, using sensors on the steering wheel to measure the alcohol level in the driver's sweat. If the driver is wearing gloves, a camera on the dashboard will check for dilated pupils and the car will detect erratic steering. Nissan is experimenting with a breathalyser-like device into which the driver must blow before starting the car.

GERMS

A University of Arizona team has found that the average office desktop harbours 400 times more bacteria than the average office toilet seat. They also found that on average women have three to four times the amount of germs in, on and around their work area. Women are more likely to keep snacks in their drawers and make-up and lotions help to transfer bacteria. However, men's wallets provide the most fertile bug breeding ground of all. The Arizona team took samples from 100 offices at the university and in offices in New York, Los Angeles, San Francisco, Oregon and Washington.

MAGAZINES

U.S. circulation figures continue to decline among many magazines. Reader's Digest sales tumbled 12 per cent in the second half of last year to 10.1 million. Woman's Day was off by 20 per cent to 4 million, Redbook down 28.6 per cent to 2.4 million and Vogue was off six per cent to 1.3 million. Cosmopolitan has fallen below the two million mark in newsstand sales for the first time in years, dropping 5.9 per cent to 1.9 million. Time and Newsweek are also down. Going against the trend, Better Homes and Gardens rose 6.8 per cent, BusinessWeek was up 25 per cent and CondeNast rose 19.9 per cent.

STUDENTS

German families are increasingly looking to Britain's best public schools to provide the well-rounded disciplined education they fear is being eroded in their own country. Census figures reveal significant numbers of German students are enroled in British boarding schools where fees average $40,000 a year. Last year, 1,097 pupils from Germany obtained places at British schools compared with 868 in 2005, an increase of 20 per cent. Agencies which help German parents find places have reported record numbers of enquiries this year.

PEPPERS

Inhabitants of the New World had chili peppers and the making of taco chips over 6,000 years ago according to new research that examined the bowl-scrapings of people throughout Central America and the Amazon basin. This makes the chili pepper the oldest spice used in the Americas, and one of the oldest in the world. Within decades of European contact, the New World plant was carried across Europe and into Africa and Asia. In all seven New World sites where chili peppers residue was found, the researchers also detected remnants of corn.

GLASSES

A Japanese company has developed glasses that prevent the wearer from falling asleep. If the head drops below certain level, a little motor kicks in to vibrate a earpiece until the head returns to an upright position.

SAFETY

Legislation has been introduced in the U.S. that would create a Food Safety Administration similar to the Environmental Protection Agency. It would take over responsibility for food safety and labelling from the U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA) which currently split the duty. Currently, food safety monitoring, inspection and labelling functions are spread across 12 federal agencies. The Safe Food Act would also modernize the 100-year-old food safety laws.

OPPORTUNITY

It is estimated that India will be spending US$400-billion on consumer goods by 2010. In 2005, two-way trade between India and Canada was worth about $3-billion with a balance of about $711-million in India's favour. In the first 11 months of last year, Canada's exports grew by over 51 per cent over the same period in 2005 still leaving a lot of room to expand. India is only Canada's 18th largest export market. Two-way direct investment is equally modest hovering around $250 million in 2005.

COUNTERFEIT

Intellectual property rights seizures in the U.S. rose 72 per cent between 2005 and 2006, and the value of seized apparel rose from US$8 million to 10 million in that time. Seizures of footwear were up by $3.6 million last year, with 89 per cent of those goods coming from China. According to a survey of 48 multinational firms across 27 product categories by the International Chamber of Commerce, enforcing laws against counterfeit goods is the number one priority.

BRANDS

Private label or store brand food and beverage sales continue to climb steadily. A recent report puts 2006 sales at over US$48 billion with the forecast that sales will pass $56 billion by 2011. Dairy and grain foods are leading the private label charge, with 2006 retail sales topping $7 billion and $5 billion respectively. Forty-one per cent of shoppers in the U.S. now think of themselves as frequent buyers of store brands.

RESERVES

The Energy Information Administration estimates that the global reserves of natural gas are 6,112 trillion cubic feet (TCF). The biggest holders of these reserves are: Russia, 1,680 TCF; Iran, 971 TCF; Qatar, 911 TCF; Saudi Arabia, 241 TCF and the United Arab Emirates 214 TCF. The U.S. has reserves of 193 TCF and Canada, 57 TCF. Leaders of natural-gas rich Russia and Qatar have said they will explore the creation of a natural gas cartel to represent the interests of producer countries to influence the global market.

ADVERTISING

Russian advertising sales surged 29 per cent to a record US$6.5 billion last year as an eighth straight year of economic growth pushed up incomes and spending on consumer goods and services. Spending on Internet advertisements climbed 67 per cent to $100 million.

DNA

An American company has developed DNA based testing for brown, pink and white domestic shrimp varieties. The test, the first of its kind for shrimp, allows for authentic verification that a product sold as a domestic shrimp product is indeed domestic. Within the seafood industry, specifically with fish and crab, there is a practice of replacing, or mixing in, cheaper, inferior, sometimes farmed seafood.

FINES

The European Union has fined five elevator makers US$1.3 billion for operating a cartel for the installation and maintenance of elevators and escalators in Germany, Belgium, Luxembourg and the Netherlands. The fines represent the largest ever for price fixing in the EU.

TAX

The British Treasury is to lose over US$50 million in taxes as a result of Ebay moving its tax base from Britain to Luxembourg. The company is taking advantage of a loophole in the EU tax regime that allows online retailers to shop around for the lowest tax rates. British Ebay users will now pay tax on their selling price to the Luxembourg government rather than to the UK Treasury. Other EU countries such as Germany will also lose tax revenue and Luxembourg will benefit from the windfall of $200 million a year, more than $400 for every man, woman and child in its 450,000 population.

BULBS

The Australian government has announced plans to phase out incandescent light bulbs and replace them with more energy efficient compact fluorescent bulbs across the country. The legislation to gradually restrict the sale of the old-style bulbs could reduce Australia's greenhouse gas emissions by four million tonnes by 2012 and cut household power bills by up to 66 per cent.

LAND

Farmland from Iowa to Argentina is rising faster in price than apartments in Manhattan and London for the first time in 30 years. Demand for corn used in ethanol increased the value of cropland 16 per cent in Indiana and 35 per cent in Idaho in 2006. The price of a New York loft appreciated only 12 per cent and an apartment in London, England, by 11 per cent. Farmland prices are expected to take a quantum leap over the next 18 months after corn prices surged to a ten-year high earlier this year.

ORGANIC

The Organic Trade Association is looking for ways to encourage producers to fill the increasing demand for organic products, particularly as shortages are becoming more evident in North America. A German trade group has found that nearly 31 million hectares globally are currently certified as organic, with the global market for organic products reaching more than US$50-billion in 2005. The leading markets for organic products are North America and Europe.

SCENTS

Some electronic manufacturers, airlines and banks are commissioning unique fragrances for use in their stores and on their products. This marketing ploy has emerged from an Oxford University study which shows that it is possible to train people to associate smells with particular experiences or objects. British Airways releases a faint smell of freshly cut grass into its lounges to create a pleasant atmosphere. Sony has run trials of a unique combination of vanilla and orange in some US stores.

BENEFITS

A new Harvard study reveals that the U.S. lags behind virtually all wealthy countries with regard to family-oriented workplace policies such as maternity leave, paid sick days and support for breast feeding. The U.S. is one of only five countries out of 173 in the survey that does not guarantee some form of paid maternity leave, the others are Lesotho, Liberia, Swaziland and Papua New Guinea. At least 145 countries provide paid sick days.

GAS

A farmer in England has converted his Jaguar to run on rotting apple fumes. He packs two underground tanks full of apples and collects the methane gas produced as they rot. He claims his XJ6 gains 10 per cent in power by running on compressed methane and still returns about 28 miles per gallon.

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 2007 Economic Digest - Importing and Exporting

March 2007 Edition

DIET

 
Low-glycemic foods and beverages have carved out their own niche in the mainstream U.S. market, with year-end sales reaching US$350-million in 2006. Sales are expected to keep growing at a compound annual growth of over 45 per cent from 2007 to 2011, with sales projected to hit $1.8-billion in 2011. Low-glycemic products target the over 20 million diabetics in the U.S. in addition to consumers concerned about boosting their energy level and losing weight.

CARS

Rolling off the production lines in India this year will be a budget car for around US$2200 which will be within the reach of tens of millions of Indians who until now could only afford a motor scooter. This is alarming environmentalists who argue that the last thing India's choked roads and notoriously polluted cities need is yet more cars. The vehicle will be available in four or five-seat versions with an engine of just 30 horsepower.

LOSS

It is estimated that over US$80-billion was spent in the U.S. on gift cards last year, an increase of 20 per cent over 2005. However, over $8-billion will go unredeemed, a windfall to retailers, due to expiration, or loss of cards. This is more than twice the amount of loss to credit or debit card loss in the U.S. in 2006.

FRUIT

A tangerine was introduced into the U.K last Christmas about the size of a cherry tomato. It is one of the smallest and oldest varieties of tangerine in existence. While it has been grown in China for over 1300 years, it is virtually unknown in Europe. It was so popular among the upper classes in China that most of the production was reserved for the Chinese royal family and the fruit was dubbed The Emperor's Delicacy.

SAFETY

The National Park Service has agreed to experiment with using wristwatch-size radio transmitters being provided by a non-profit search and rescue group. The equipment will be tried out on Alaska's Mount McKinley. Although some argue transmitters can provide a false sense of security, others believe their use will save valuable time and money in wilderness searches.

CHOCOLATE

A French chocolatier is attempting to help his country's struggling Bordeaux winemakers by using their surplus stocks to make chocolate wine. Vino Cacao is technically a fortified wine made by combining dark chocolate and red or white wine with a splash of extra alcohol, sugar and cocoa butter. It is hoped to sell 40,000 bottles in the first year.

RICH

A three-day "camp" for the offspring of families that have a fortune of over US$50-million or more was held last month. The agenda, for rich kids between 25 and 35 included sessions on the psychology of money, building an investment portfolio and issues surrounding inheritance.

ALLERGIES

A leading industry group has given scientists the go-ahead to build genetically engineered peanuts that could be safer, more nutritious and easier to grow than conventional ones. The work could also lead to peanuts that yield more oil for biofuel production, need less rainfall and grow more efficiently, with built-in herbicide and pest resistance, traits that have already been engineered into major crops such as cotton, corn, soybeans and canola.

MORSE

Amateur radio enthusiasts are fighting to save Morse Code. The language of dots and dashes has always been popular with the amateur radio community who have provided a communications lifeline in emergencies and disasters. But now the U.S. government will no longer require Morse Code proficiency as a condition for an amateur licence. There are about 660,000 licensed "ham" radio operators in the U.S.

PHONES

Four countries in Europe have more cellphones than people: Luxembourg (120 phones per 100 people), Sweden (108), Italy (107) and the Czech Republic (103).

PAPER

A major Canadian producer of paper is tapping into a heightened concern over nasty workplace germs with the introduction of what it claims is North America's first antimicrobial office paper. The paper is treated with a patented, silver-based compound that kills most bacteria that comes into contact with it. Silver has been shown to be highly effective in inhibiting the growth of micro-organisms

INNOVATION

A British company has introduced a traditional AA battery that recharges itself while plugged into a personal computer USB port. Until now, rechargeable batteries have never been all that portable because they have to travel with a charger.

CHARITY

Americans donate more than twice as much as Canadians in money and time to charitable causes. They give US$900 per person, Canadians give $400. Voluntary donations in the U.S. now exceed $250-billion a year. Seventy-five per cent of these donations are made by families and 25 per cent by corporations, foundations and bequests.

PORK

Producers of pork in the U.S. are preparing for fluctuating prices in light of increased demand for corn, a staple in hog feed, to make ethanol fuel. Nearly 2.15 million bushels of corn will be used to produce ethanol during the 2006-07 crop year, a half million bushel increase over the previous year. The recent increase in corn prices has increased hog production by roughly US$20 for each 250-pound hog.

FLAVOURS

The annual Flavour Forecast is meant to highlight combinations that will influence foods prepared at restaurants as well as at home. In 2007, the top five flavour pairings are: clove and green apple; thyme and tangerine; telicherry black pepper and berries; sea salt and smoked tea and lavender and honey.

RIDES

According to a recent survey, rides are the No. 1 reason that Americans visit approximately 600 U.S. amusement parks. The most popular types of rides are: Roller coaster (46%), Bumper cars (13%); Log flume (10%) Ferris Wheel (9%) and Carousel (7%). The most popular foods consumed at amusement parks are: Funnel cake (28%); Ice cream (17%); Pizza (14%) Hot dogs (13%) and Cotton Candy (12%).

COAL

The great coal rush underway in China is on a scale not seen anywhere since the 19th century. The Chinese plan to build no fewer than 500 new coal-fired power stations, adding to some 2,000 of them, most of them unmodernised, that spew smoke, carbon dioxide and sulphur dioxide into the atmosphere. The consequences have been detected half a world away in toxic clouds so big they can be seen from space drifting across the Pacific to California laden with microscopic particles of chemicals that cause cancer and lung and heart diseases.

TOURISM

Every year, according to the World Tourism Organization, some 700-million people leave for foreign lands. They spend more than US$575-billion, making tourism the world's leading item of foreign trade.

PROGRESS

The last ceremonial bucket of cement was recently poured as India completed construction of the massive and controversial US$7.7-billion Sarder Sarover dam in Gujarat State which was begun in 1987. The dam is designed as a centrepiece of a series of dams, reservoirs and canals that will utilize the Narmada, India's fifth-largest river, to irrigate crops, provide power and drinking water, and control floods.

METERS

For most, electricity meters are mundane devices. In the eyes of utility companies they are bursting with untapped potential. Newer designs will transmit instant readings back to the power company, doing away with expensive visits to each customer. Also, they could allow utilities to charge different rates at different times of the day. Enel, the Italian utility company has provided smart meters to nearly all of its 30-million customers.

APPLIANCES

Driven by such factors as an upsurge in home remodelling and renewed interest in home coffee and tea brewing, small kitchen appliances have enjoyed steady growth. This market is expected to reach US$2.7-billion annually by 2010. The market relies mainly on low-priced imports. Electromechanical appliances, among them blenders, mixers, food processors and juice extractors accounted for almost two-thirds of the value of small kitchen appliance imports in 2005.

CHIPS

A British electronics company is to spend US$100-million to build the first factory that will make semiconductors out of plastic instead of silicon for use in displays in electronic reading devices. The devices allow users to download newspapers or books and read them in a form closer to paper than any other electronic product.

VEHICLES

Honda is expecting to sell hydrogen fuel-cell cars to the general public by 2018. Fuel-cell cars produce electricity through a chemical reaction between hydrogen and oxygen. Since the fuel-cells leave only harmless water vapour as a byproduct, they are considered a cleaner alternative to internal combustion than using fossil fuels. Finding an effective method of storing the hydrogen is one of the current challenges in fuel-cell design.

JETS

Deliveries of business jets hit a record last year, spurred by a surge in corporate earnings, the emergence of a new class of super-wealthy individuals and a boom in transnational takeovers. Aviation sources say that the business-jet industry recorded its first 1,000-plane year in 2006. About 14,000 business jets are in service worldwide, 1,670 of which are based in Europe.

DEALS

Global corporate mergers and buyout activity reached a value of US$4-trillion in 2006, surpassing record levels reached in 2000 just before a bear market and recession of 2001. Some financial experts predict another record year in 2007.

ACCIDENTS

A contractor's worker accidentally tripped a shutoff switch while working at an Ontario plastics plant, causing a two-week shutdown that reduced profits by $11-million.

ENERGY

A licence to build the world's largest offshore windfarm in the Thames estuary has been granted by the U.K government. Sited 12 miles off Kent and Essex, it should eventually consist of 341 turbines and occupy an area of 90 square miles and generate enough power for a third of London's homes. It is claimed that the windfarm will produce an amount of energy that, if generated by conventional means, would result in 1.9-million tonnes of carbon dioxide emissions every year.

SANDWICHES

Americans' fondness for sandwiches resulted in a market worth more than US$121-billion last year. It is predicted that the market for prepared sandwiches will keep growing exponentially, attributable in part to the popularity of sandwich chains such as Quizno's and Subway.

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 2007 Economic Digest - Importing and Exporting

February 2007 Edition

GEOGRAPHY

 
A new British science textbook for schools claims that polar bears eat penguins, even though they live in separate hemispheres.

ADVERTISING

Internet advertising is booming. The industry has gone from US$9.6-billion in revenue in 2001 to $27-billion in 2006. While the Internet accounts for only 5-per cent of total spending on advertising, that figure is expected to reach at least 20-per cent in the next few years.

AFGHANISTAN

This country has about 200 mines, some of which are under the control of local warlords. A joint British-Afghan survey has found significant deposits of natural gas, petroleum and coal; copper, chromite, talc, bartyes, sulphur, gold, lead, zinc, iron ore, and salt. Also, precious and semi-precious stones including high-quality rubies, emeralds and much of the world's supply of lapis lazuli.

ILLNESS

In a recent survey, 32-per cent of U.S. workers polled admitted to calling in sick when they felt well at least once a year and 10 per cent said they do it three or more times a year. The most popular motivator for missing work was the need to relax cited by 48-per cent of workers. For another 24-per cent it was a chance to catch up on sleep.

PASSPORTS

Fake European Union passports are now so easy to obtain that false passports for 20 EU countries can be delivered in 24 hours. A fake EU passport is valuable as it not only ensures entry to Britain but also access to benefits, bank accounts and health care.

TOYS

It is estimated that last Christmas, parents spent a small fortune on high-technology toys that claim to lift the intelligence of their young. The world-wide market for "edutainment" toys reached US$1.7-billion in 2005 and could total $5.5-billion by 2010. Other studies say that more than 50-per cent of all money lavished on toys during the holiday season was spent on preschool products that purport to enhance specific motor skills.

WEB SITES

Russian companies have the worst corporate Web sites in Europe and make the least amount of information available to investors, analysts and other people seeking data to make investment decisions, according to a survey of 16 countries. Germany topped the charts with the Nordic countries (Finland, Sweden, Norway and Denmark) second. Switzerland and the Netherlands were next and France was fourth from the bottom.

BROADBAND

A third of British Internet users watch less television once they have broadband, while 27-per cent read fewer national newspapers and almost a fifth switch off their radios according to new research. The picture is similar across France, Germany, Italy, Japan and the U.S., highlighting the threat posed by the web to traditional media. This same survey shows that Britons pay less for mobile phone, TV and internet services than their counterparts in Europe and the U.S.

MAGNETS

Experts are now warning that newer types of fridge magnets could be a killer of those with weak hearts. A stronger type of magnet used in many new commercial products can interfere with pacemakers and implanted heart devices with deadly consequences. The culprits are very strong magnets made from neodymium-boron which have only recently become available and are being used in computer hard drives, headphones and hi-fi speakers, as well as toys and jewellery.

FILM

Camera film peaked in popularity in 1999 when 800-million rolls of reloadable film were sold. Today, the figure has declined to a projected 211-million rolls sold in 2006 as the number of film cameras sold has also fallen.

OIL

The world's oil supply won't begin to run out for at least another 24 years, contrary to some theories that suggest production has already peaked and supply is now in a terminal decline. The Cambridge Energy Research Associates estimates remaining global supply at 3.74-trillion barrels compared with 1.2-trillion estimates by other theorists.

CAPS

The Stevin wine screw cap, manufactured by Montreal's Alcan Inc., is the dominant player worldwide with about 65-per cent of the market, worth about US$120-million annually. Many of the adopters of the screw-top seal are producers from New World places such as New Zealand, Australia, California and Oregon. About 80-per cent of New Zealand wines now come with screw tops.

SCREENS

With 42-inch flat-panel TVs flying off US retailers' shelves now that prices have dropped below US$1,000, experts predict that the 72-inch TV will be the norm by 2009 at a cost of around $3,000. An old 34-inch tube TV used to weigh around 90 kilograms: a 57-inch flat-panel LCD TV weighs only 55 kilograms.

COMMERCIALS

Junk food advertisements during television shows popular with children in the U.K. have been banned. The crackdown affects commercials for all food and drink products high in fat, salt and sugar, such as burgers, chips and candies.

TRENDS

In a poll of over 106,000 consumers in the U.S. who were asked about what method of payment they typically use for purchasing groceries, 54.3-per cent said they use a debit card. The second highest method was cash at 19.6-per cent followed by a major credit card at 14-per cent. Cheques were the least frequently used form of payment, cited by 10.5-per cent.

DRINKING

A 12-year-old boy in Britain has become the youngest person in the country to get the qualifications needed to run a pub. As soon as he turns 18, he will finally be allowed to have a drink himself.

CROPS

A global network of agricultural research centres is warning that famines lie ahead unless new crop strains adapted to a warmer future are developed. New forecasts say warming will shrink South Asia's wheat area by half and there are now plans to accelerate efforts aimed at developing new strains of staple crops including maize, wheat, rice and sorghum. The most significant impact of climate change on agriculture is changes in rainfall. Increasing temperatures can also affect crops. Photosynthesis slows down as the thermometer rises, which also slows the plants' growth and capacity to reproduce.

GAS

Russia now accounts for 44 per cent of European Union gas imports, a proportion that will probably rise significantly after Russia builds a northern gas corridor directly to Germany, under the Baltic Sea. The EU wants to break Russia's grip on gas imports and recently signed a memorandum of understanding with Kazakhstan on energy aimed at binding Europe closer to this vast country which stretches from the Caspian Sea to the Baltic. It is hoped that a gas pipeline will be constructed that would connect the gas-rich countries of Central Asia directly to Europe.

SHIPS

The strong global economy has stimulated a boom in maritime trade, which in turn has caused an upsurge in shipbuilding. New ships delivered in 2005 had a capacity of 70.5 million tonnes, the highest on record and up from 49.4 million tonnes a year earlier. There was a particularly big increase in dry-bulk carriers, which carry commodities like iron ore and grain. Taking into account ships broken up and lost, the world's merchant fleet grew by over seven per cent.

CONSTRUCTION

In another first for the Gulf emirate of Dubai where the world's tallest skyscraper is now being built, plans have been unveiled to construct a 30-floor building that moves with the power of the sun to become the only rotating residential structure on the planet. Solar energy will be stored and used to drive the rotation mechanism to provide 360-degree views to every resident moving 52-degrees in 24 hours. A Dubai developer has also announced plans to build a new Russian city on 17,800 hectares near Moscow at a cost of US$11-billion.

MARINAS

The world's marinas are booming, driven by a surge in yacht sales. Boat builders are sitting on plenty of orders with luxury super-yachts showing the biggest gains. Sales of these giants--some now stretch to 400 feet--are up 80-per cent in the past six years, with Russian buyers especially visible. New Zealand, known for building luxury yachts, predicts that its boat sales will double by 2020 to US$3.2-billion. In Finland, another boat-making hub, sales rose 35-per cent last year. In the U.S., recreational sailors spent about $37.3-billion last year, up 13-per cent from 2004.

PARTS

Canada's auto parts makers are getting battered in their largest and most important export market as Mexico and China grab an increasingly larger share of sales to U.S. customers. Exports to the U.S. market by Canadian auto parts companies slid six-per cent in the first nine months of 2006 while U.S. imports from Mexico grew seven-per cent and those from China soared 29-per cent. The U.S. Census Bureau data show that Mexico displaced Canada as the largest supplier of auto parts to the U.S. market back in 2000 and sold US$26.7-billion worth to the U.S. in 2006.

HEALTH

A U.S. health care company has won approval to offer Chinese citizens a comprehensive medical insurance plan, the first of its kind in China. The move represents a breakthrough in a country where two-thirds of the population has no health insurance and where existing private health care policies are so limited that even those insured can sometimes face crippling extra expenses.

RVs

The U.S. sales of motor homes have fallen for 20 consecutive months as higher interest rates and gas prices and a slowdown in housing have affected consumer confidence. Further deterioration is seen for this year with shipments of motor homes and campers expected to drop more than 11-per cent. However, the industry is optimistic. Every day, more than 12,000 Americans turn 50 and the 50 and older crowd are the prime market. Over the next decade, that market is projected to double to 80-million from 40-million.

GREEN

The British government is planning to spend over US$2-billion replacing 78,000 ministerial and civil service vehicles under a programme to cut costs and reduce carbon emissions from its fleet by 15-per cent. The government has recruited 15 manufacturers from Europe, Asia and North America to supply cheaper, greener cars over the next four years. The costs will be shared by 38 government departments and agencies which have agreed to "green" their fleets in exchange for large discounts on available cars.

ARCTIC

Russian trawlers are being built to exploit the Arctic seas opened up as the sea ice shrinks as a result of global warming. Industrial trawlers are already mopping up new fisheries stimulated by the lack of summer ice. Inuit communities on the east side of Greenland have banned all outside fishing for shrimp stocks that are growing in the absence of summer ice and have decided to exploit them themselves.

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