August 2001 Economic Digest - Importing and Exporting

August 2001 Edition

GARAGE SALES

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

WINE

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

CALLS

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

PRODUCTIVITY

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

CAVIAR

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

FTAA

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

SEEDS

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

HOLES

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

LEGO

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

CULTURE

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

SWITZERLAND

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

EQUITIES

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

SHIPPING

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

BARCODES

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

EDUCATION

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

EUROPE

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

REPUTATION

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

ACKEE

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

ALBERTA

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

AIRPORTS

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

LABELLING

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

INVESTMENT

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

SIZE

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

COMMUNICATIONS

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

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

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

July 2001 Economic Digest - Importing and Exporting

July 2001 Edition

 KETCHUP

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

BLUBBER

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

PRUNES

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

LANGUAGE

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

McCHANGE

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

MUSIC

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

COMPUTERS

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

COFFEE

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

RETIREMENT

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

FARMING

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

UNDERWEAR

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

CHINA

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

WEALTH

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

ACCESS

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

JAPAN

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

IT

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

INVESTMENT

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

MEAT

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

DOCTORS

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

PIRACY

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

TRANSPORTATION

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

PIGEONS

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

MONEY

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

WORK

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

HEDGEHOGS

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

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

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

June 2001 Economic Digest - Importing and Exporting

June 2001 Edition

GREENHOUSES

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

RESPONSE

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

SPACE

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

HEALTH

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

DESERT

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

MEAT

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

ADVENTURE

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

DUMPING

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

SHIPPING

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

PROPS

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

NOSTALGIA

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

CHINA

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

TOURISM

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

WEIGHT

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

WEATHER

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

HOOKAHS

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

LEATHER

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

LUXURY

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

CARS

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

TAXES

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

MINING

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

ORGANIC

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

MAQUILADORAS

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

PARLIAMENT

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

COWS

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

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

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

May 2001 Economic Digest - Importing and Exporting

May 2001 Edition

 DEBT

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

MONEY

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

MILK

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

SHOES

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

PRIVACY

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

MEXICO

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

FEED

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

TRENDS

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

RETAIL

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

HOLLYWOOD

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

OXFORD

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

WORK

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

CROCODILES

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

SNACKS

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

E-TAILING

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

FISH

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

SURPLUS

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

METRIC

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

FURNITURE

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

MAIL

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

POACHING

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

GREEN

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

WINE

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

ART

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

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

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

April 2001 Economic Digest - Importing and Exporting

April 2001 Edition

 FRAUD

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

MEXICO

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

PRICE FIXING

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

SURPLUS

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

WRINKLES

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

FOOD

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

EDUCATION

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

GRANTS

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

TOPS

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

TASTE

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

FASHION

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

POPULATION

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

GLASS

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

HACKING

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

OUTSOURCING

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

TRENDS

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

NUTRITION

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

BUYING

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

SAFFRON

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

ART

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

STAMPS

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

SHOES

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

ICEWINES

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

RUSSIA

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

GENOMICS

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

MOVIES

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

SACRIFICE

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

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

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March 2001 Economic Digest - Importing and Exporting

March 2001 Edition

PHONES

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

JAPAN

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

TIME

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

HANDS

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

CLAIMS

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

VIEWING

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

GROCERIES

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

CULTURE

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

SAINTS

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

AGREEMENTS

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

SAFETY

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

E-TAILING

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

DRUGS

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

BUDGETS

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

NAMES

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

THINGS GO BETTER...

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

AVON

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

LAND

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

BIOTECHNOLOGY

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

CHINA

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

COPYRIGHT

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

POWER

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

RECYCLING

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

MONKEY BUSINESS

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

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

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

February 2001 Economic Digest - Importing and Exporting

February 2001 Edition

CARDS

 
A recent study conducted for the Interac Association found that 42 per cent of Canadians used debit cards most often as a means of payment, compared to 35 per cent of respondents who used cash.

GLASS

Recycled glass uses only two-thirds the energy needed to manufacture glass from scratch. This means for every soft drink bottle that is recycled, enough energy is saved to run a TV set for an hour and a half.

TOURISM

North America's first "ice hotel" opened in Quebec in January. Entrepreneurs are mimicking the Swedish concept. It is 10,760 square feet and built out of 4,750 tons of snow and ice. Although the cost is more than $100 a night, about 1,000 people have already made reservations.

ACQUISITIONS

Britain led the world in cross-border acquisitions accounting for 30% of the total of $767 billion in 1999, according to figures from the Organization for Economic Co-operation and Development. America remained top of the league for cash flowing in, with purchasers spending $293 billion. Regionally, Europe accounted for 73 per cent of all merger and acquisition activity.

POLICE

Twice as many women were police officers as of June 2000 compared with a decade previously, according to a new report. In 1990, there were 3,573 female police officers, representing just over 6 per cent of all officers. By June last year, there were 7,658 female police officers, accounting for almost 14 per cent of the total. B.C. had the highest proportion of female police officers at almost 18 per cent, followed by Ontario at almost 15 per cent. The Atlantic provinces continued to have the lowest proportion of female officers at around 10 per cent.

POTATOES

Potatoes remained the vegetable of choice for consumers in 1999. Each individual ate on average 77.0 kg of potatoes either in fresh form or as processed products such as french fries, potato chips, instant or frozen mashed potatoes. This sharp 18.5% jump in consumption from 1990 was due in large part to the expanding popularity of french fries

CHARTERS

More than 1.7 million passengers travelled on domestic and international air charter flights in the first quarter of 2000, up 6% from the first quarter of 1999. Domestic charter passengers increased by 11% in the first quarter; just over 270,000 passengers travelled on charter flights within Canada. The number of international charter passengers reached 1.5 million, up 5% compared with the first quarter of 1999.

TRADE

Canada is moving to expand trade ties with Central American countries, including El Salvador, Guatemala, Honduras and Nicaragua. Canada exported goods worth C$212-million to the four countries while importing commodities worth C$251-million in 1999. There is significant potential for Canadian companies in several priority export sectors, including telecommunications equipment, environmental equipment and services, foodstuffs, automotive parts and construction materials.

DISASTERS

Major catastrophes, including widespread flooding and the mass killing of a doomsday cult, claimed 17,000 lives in 2000 and caused losses totalling US$57-billion. The biggest single loss of life came from flooding in India and Bangladesh when 1,200 people died. Flooding was responsible for four of the top five disasters. The number of fatalities from manmade disasters was almost 9,000. Of the US$57-billion in damages, insurers will have to pay out US$16.5-billion. In 1999, disasters were responsible for the deaths of 105,000 people at a cost of US$150-billion.

TRENDS

Increasingly, campaigners are demanding that countries impose restrictions on advertising aimed at children. In Europe, legislation to curb marketing to children is spreading. In Greece, toy advertising on TV is banned between 7am and 10pm. Italy, Poland, Belgium and Ireland are all debating the issue. Sweden, where TV advertising aimed at children under 12 has been illegal since 1991, aims to use it's six months as President of the EU to make Europe's rules even more stringent. In the U.S., Senator Hilary Clinton plans to introduce a bill to stop "unfair" advertising to children, especially those under five.

HATS

China is going to help the U.S. army with the 3.7 million berets it needs. One U.S. company can only provide one third of the $24 million order. China is supplying 309,000; the rest come from South Africa, Romania, Sri Lanka, India, and Canada.

GROWTH

According to The Economist, world output grew by an estimated 4.9 per cent in 2000, its fastest pace for 16 years. America led the way: its GDP surged by more than 5 per cent, well ahead of growth in Japan and the Euro area. As the year ended, there were increasing fears about a "hard landing" for the American economy. It is estimated that growth will slow in 2001 to around 3.4 per cent. Growth will be fastest in the Middle East and North Africa.

LIBRARIES

A group of libraries around the world is developing a free online reference service to answer research questions from the public. A web site, expected to be available by June, will help direct a query to the appropriate library. That could produce answers, for example, from a library in Australia if the question concerns the history of Aborigines.

PUMPKINS

They have been grown in the U.S. for over 5,000 years. Pumpkins are indigenous to the Western Hemisphere and were completely unknown in Europe before the time of Columbus. The nutritional value of pumpkin seeds improves with age. The seeds are among the few foods that increase in nutritional value as they decompose.

WATER

In an unclassified report called Global Trends 2015, the U.S. intelligence community concludes that, by 2015, nearly half of the world's population--more than three billion people--will be in countries lacking sufficient water, and that even more genetically modified crops or projects to desalt sea water will not substantially help.

BANKRUPTCIES

A San Francisco-based Webmergers study indicates that at least 210 Internet companies shut their doors during the year 2000, taking down with them some $1.5 billion in investment money. 60 per cent of the closures occurred in the fourth quarter. Most of the companies that failed were e-commerce businesses, which accounted for 109 of the shutdowns. Online content sites made up another 30 of the total, while infrastructure and other online service companies made up the remainder. Webmergers estimates that as many as 15,000 employees lost their jobs as a result of the closings.

KINDNESS

In a final act of corporate kindness, Pets.com tossed a lifeline to Alaska dog mushers faced with the harsh choice of killing their dogs or watching them starve. The San Francisco-based online retailer, which pulled the plug November 7 donated more than 21 tons of dog food to help mushers in Alaska's Interior. The collapse of salmon runs this year left mushers with too little food for their dogs this winter. Villagers use sled dogs to check trap lines, haul water and firewood, and travel between villages.

BIO-FOODS

According to Progressive Grocer, more U.S. foodmakers will likely begin voluntarily labelling products with gene-spliced ingredients to give consumers more information. Labelling is one of the key issues in the battle between U.S. environmentalists and agribusiness over regulation of bio-foods. Many European and Asian nations already require labels on foods containing genetically modified corn, soybeans, tomatoes and other crops. But American industry groups oppose mandatory labelling in the U. S. because of the cost and the worry that consumers may interpret it as a warning that a food is less safe.

Y2K

The Y2K glitch hit Norway's national railroad company a year later than expected. The bug was discovered when none of the company's 16 new airport express trains or 13 high speed Signatur trains would start. The problem was quickly resolved for the moment: The computers were reset to December 1, 2000, and the trains started immediately.

THE ARGENTINE

Argentine supermarket sales rose to $1.134 billion in November 2000, a 1.1 per cent increase over the same month a year ago, according to the Economy Ministry. Compared with October 2000, during which revised figures showed sales at $1.191 billion, November sales slipped 4.8 percent. The Argentine economy contracted 3.2 percent last year and growth - expected below 0.5 percent this year - has so far been sluggish.

FILMS

Film and video distributors and videocassette wholesalers made more sales in Canada and abroad in 1998/99 than ever before, surpassing the $2-billion mark in total revenue. Strong sales of foreign film and video productions in Canada and the continued growth in overseas exports of Canadian productions led to record revenues of $2.1 billion, up 16 per cent from 1997/98. Sales to foreign clients accounted for 56 per cent of all the distribution revenues from Canadian content productions in 1998/99. This compares with only about one-third at the beginning of the 1990s.

MAURITIUS

The government of Mauritius plans to turn the country into a free trade zone for information technology. The country already enjoys the status of a manufacturing free trade zone and has earned the reputation as the Singapore of Africa, attracting more than 9,000 offshore entities aimed in the main at commerce in India and South Africa.

WATERING

Scientists in Scotland have pioneered a genetically modified "super-potato" that glows when it needs water. Plants are injected with a fluorescence gene borrowed from a luminous jellyfish which causes their leaves to glow green when dehydrated. The glow is barely visible to the naked eye but can be detected by using a small hand-held device. The technology could be extended to other varieties of fruit and vegetables.

INDONESIA

The government has decided to reduce import tariffs between zero and 25 per cent on over 1,000 items. The reduction affects a wide range of products including paints, varnish, cosmetics, woven cotton clothes, gold (not coin), platinum, cooking wares, screws, gloves, bed covers, toys, synthetic flowers, watches, electrical devices and many other products. At the same time, the government has imposed new import tariffs of between 20 per cent and 25 per cent on door frames made of steel and several other steel products such as barbed wire.

WALKING

A group of store owners in busy Oxford Street, London, are so fed up with the congestion caused by slow walkers that they have proposed the world's first pedestrian fast lane. One-way fast lanes would be painted on the sidewalk which would have a minimum speed limit of 3 m.p.h., and would be monitored by speed cameras. Anyone caught dawdling would be subject to on-the-spot fines.

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January 2001 Economic Digest - Importing and Exporting

January 2001 Edition

 FRUIT

Each Canadian ate just over 124 kg of fruit in 1999, up from 110.7 kg at the beginning of the decade. Consumers clearly preferred fresh fruit; bananas, apples and oranges topped the list. They also increasingly turned to melons such as watermelons and cantaloupes. In 1999, the consumption of all melons totalled 8.6 kg per person, more than double the level at the start of the decade. In addition, tropical fruits such as guavas, mangoes, kiwis and papayas have become increasingly popular.

LOGISTICS

China is calling for more overseas investment in its logistics sector. As a newly emerging domestic sector, e-commerce application in industry still lags behind foreign counterparts. Logistics accounts for almost 90 per cent of the production cycle time and 40 per cent of general production costs. Expenditure on logistics is equivalent to 20 per cent of Gross Domestic Product, against less than 11 per cent in the U.S. China's total commodity warehouse capacity is the greatest in the world. It is estimated that the use of e-commerce could slash business costs by 40 per cent.

EFTA

The European Free Trade Association (EFTA) has agreed to a trade deal with Mexico. It will come into force in July 2001 and abolish all tariffs on trade between Mexico and the EFTA countries by 2007 and will ensure that no tariff is higher than 5 per cent by 2003. The four EFTA countries are Norway, Iceland, Switzerland and Liechtenstein. About 60 per cent of exports from EFTA will have duty free access to Mexico as soon as the agreement takes effect.

FREE TRADE

A free trade agreement has been signed between New Zealand and Singapore. It is a comprehensive agreement covering trade in goods, services, investment and government procurement, among others.

FISH

Fish consumption rebounded in recent years, after dropping to below 8 kg per person in 1995. By the end of the decade each Canadian had consumed 10 kg per person of fish, up from 9 kg per person in 1990. These increases are due in part to a demand for other sources of protein, marketing and promotional campaigns, the availability of convenient and easy to prepare products for busy consumers and the dietary preferences of a growing Asiatic population in Canada.

PASTA

Two Japanese companies have jointly developed what they say is the world's fastest thawing frozen spaghetti. The new noodle promises to thaw in eight seconds once dipped in boiling water, compared to the 30 seconds it takes typical spaghetti to do the same. The developers have forecast sales of millions of cases the first year, mostly to restaurants looking to make more pasta faster.

RESTRICTIONS

As of last November, 22 nations had imposed restrictions on 106 kinds of Korean imports. The U.S. enforced import restraints on Korean products 20 times, followed by Central and South America with 17 times, India 16 times, the European Union 14 times and South Africa 10 times. Of the restricted Korean imports, 33 cases were related to steel, 26 in petrochemicals, 19 in fabrics and 12 in electronic goods.

HERBS

Japanese and Nepalese scientists have called for the conservation and commercial exploitation of medicinal herbs in Nepal which would bring great economic benefits to the Nepalese people. Scientists say that the Himalayan region has one third of the 30,000 species of plants around the world having medicinal properties. Nepal, which shares the Himalayan region with Tibet and India, reportedly accounts for 70 per cent of the Himalayan medicinal resources.

IT

The demand for telecommunications services and technology in Europe is growing faster than expected. The IT market in Europe grew by 11 per cent in 2000, with an output of US$440 billion. It is expected to grow by 9.5 per cent in 2001 reaching US$484 billion in output. There are now 14.5 million IT and e-business specialists in Europe and the number is expected to grow to 22 million by 2003. The IT growth rate in 2000 for the U.S., Japan and the world was eight per cent, six per cent and 10 per cent respectively.

SECURITY

A new survey indicates that the world is becoming an increasingly dangerous place in which to do business. Control Risk Group says the number of countries, wholly or partially rated as extremely high-risk areas, has more than doubled since 1997 and continues to rise. Increasing instability in Africa has seen the number of high-risk countries jump from 39 to 47. Besides political instability, technology and disease have opened up new risks for business.

TRENDS

McDonald Corp. has announced it will open two hotels and introduce its coffee cafes in Switzerland as it expands beyond the hamburger business. McDonalds, which has about 27,000 company-owned and franchised restaurants, is expanding abroad and beyond its namesake chain as the U.S. market for hamburgers becomes saturated. The Golden Arch hotels will open in the spring and will target families and business travellers.

RED TAPE

A new study by the World Bank and Harvard University indicates that Canada has the least regulatory red tape for new businesses. The U.S., often seen by Canadians as the height of efficiency, ranked fourth out of the 75 developed and developing countries surveyed. Canada ranked first for its generally low level of red tape, with new small businesses typically facing just two procedural steps. These involve filling out tax forms as well as a licensing application or some other form of regulatory paperwork.

CHINA

Trade between China and Latin America increased 63 per cent between January and September 2000 to a total of US$9.5 billion. China sold goods valued at US$5.3 billion to Latin America, an increase of 45 per cent over the same period in 1999. Chinese imports from Latin America were US$4.1 billion, a nine per cent increase. China's main trading partners in the region were Brazil, Chile and Mexico followed by Argentina and Panama.

ENTREPRENEURS

Canada ranks sixth out of 21 countries in a global study of entrepreneurial activity. About one in 16 adults in Canada tried to start a new business in 2000. However, the Global Entrepreneurship Monitor survey found that only one in 45 adults in Canada had operated a new business that was less that 42 months old. In 1999, Canada was second behind the U.S. but only 10 countries were surveyed. In 2000, with 21 countries surveyed, Brazil ranked first, followed by South Korea and then the U.S.

TOURISM

Mimicking the Swedish concept, Canada's first "ice hotel" opens in Quebec this month. It is 10,760 square feet and built out of 4,750 tons of snow and ice. Although the cost is more than $100 a night, about 1,000 people have already made reservations. Ice-bed suites will be complemented with a bar, movie theatre and art galleries.

DIABETES

The International Diabetes Federation estimates that 151 million adults in the 130 countries it profiles now suffer from diabetes. Fourth-fifths of these are "non-insulin dependent". That type of diabetes tends to afflict ageing, sedentary and obese populations; it is most common in industrialized countries and is a growing problem in developing countries such as Pakistan and Mexico. The number of diabetes sufferers worldwide is expected to double in the next two decades. Paying for long-term treatment of diabetes is a heavy burden on health-care systems. In the U.S. it is estimated to cost more than US$44 billion a year.

INVESTMENT

In 1999, global inflows of foreign capital reached US$865 billion, a new record and a 27 per cent rise over 1998. According to the United Nations, the U.S. was the biggest recipient, with US$276 billion worth of inflows. Funds moving into the EU increased by 23 per cent to US$305 billion. Britain, with US$82 billion was the world's second-largest recipient. Sweden topped the OECD for foreign investment received as a share of GDP; its US$60 billion amounted to one-quarter of the economy's total size.

PENSIONS

Aging populations in most industrialized countries will set off a pensions "time-bomb" as the ranks of retirees swell over the next 50 years. Over the next 25 years, the number of people over 65 in the industrialized world will swell by 70 million, while the working age population will grow by just over 5 million. In Europe the number of workers will actually decline. Adverse demographics threaten to cheat youth, impoverish the elderly, bankrupt governments and wreak macroeconomic havoc, ultimately affecting financial markets, exchange rates and the balance of payments.

BULK

About 80 per cent of bulk supply chain participants in the U.S. are dissatisfied with the state of logistics, yet have not made maximum use of the Internet to address their concerns. More than 140 producers, traders and distributors in the chemical, steel, forest products, liquid bulk and related industries were surveyed regarding use of the Internet in bulk material supply chains. Poor communications, documentation problems, paper intensity and low quality of customer service are the key sources of their dissatisfaction. The main reasons for not using the Web more include security, desire for one-stop shopping and quality of e-logistics offerings.

OFFICES

Vacancy rates across Canada have plunged to their lowest level in 15 years, leading to a jump in rental rates and a surge of new downtown construction. Construction crews have broken ground on six million square feet of office space--equivalent to 15 25-storey towers-- for occupancy in 2001.

FORESTRY

The B.C. government is moving to help forestry companies that could be shut out of a $1-billion-a-year market for hemlock wood in Japan if their wood does not meet new construction standards there. The government is putting up $4.2 million for a marketing and research initiative designed to address Japanese concerns about the stability and quality of coastal hemlock. Japan's post-and-beam housing sector is favouring kiln-dried wood needed to meet new 10-year construction guarantees. Several B.C. companies are scrambling to find drying techniques that will remove moisture from large hemlock logs.

ANIMALS

Blood shortages and costly medical procedures are as much a concern for animals these days as they are for humans. The four national animal blood banks operating in the U.S. are currently back-ordered for dog and cat blood and plasma. Most animal blood banks rely on donations from cat and dog volunteers. Most dogs can give blood once every two months but only about five per cent meet the criteria to give blood.

MEMORIALS

South Hatfield in Yorkshire has commemorated Thomas Crapper, the Victorian plumber whose name is synonymous with the flush toilet, in a $90,000 stained-glass window in the local church. The window incorporates a tastefully rendered silhouette of a toilet as part of a celebration of local achievements

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