July 2004 Economic Digest - Importing and Exporting

July 2004 Edition

 SIZE

On May 1st, eight former Soviet client states, plus Malta and Cyprus, joined the European Union. The so-called EU-25 has a population of 450 million people, and a gross domestic product of US$15.5 trillion.

STATIONS

There are approximately 50,000 legitimate radio stations worldwide. More than 14,000 are in the United States, and 5,000 in Brazil alone. Europe has about 3,000 stations.

ENTRAILS

Though animal brains, intestines, hearts and other "variety meats" as they are known have generally been assigned to the scrap heap in American butchers shops, there is a tradition of dining on them in Europe. In the last few years they have become more fashionable in North America. It is Fergus Henderson, author of The Whole Beast, who is responsible for bringing entrails out of the abattoir and onto white table cloths. He is a London chef whose prosletytzing has earned him cult status among chefs on both sides of the Atlantic.

SOUND

A British student recently invented a digital music player that works underwater allowing swimmers to listen to their favourite music. Called Soundwaves, the device is a bit bigger than an eraser and clips on to a pair of regular goggles. Once the goggles are in place, a swimmer can hear the music inside his or her head.

HEALTH

According to a new survey, Canadian employees value their health benefits so much they wouldn't trade them for cash. Seventy-two per cent of the 1,503 Canadians polled, all members of employee benefit plans, said they would choose their plan over annual payments of up to $8,0000.

CONTROL

About 20 per cent of mineral wealth of the American West is owned by foreign companies, most of them Canadian. A report produced by the Environmental Working Group also shows that of all the uses of federal lands, hard-rock mining returns the least to the federal Treasury: 2.3 per cent of sales, compared with 13.2 per cent for oil and gas development, 14 per cent for grazing and 66 per cent for timber sales. For as little as $0.84 an acre, 28,000 companies and individuals have gained control of precious metals and minerals on 25.6 million acres of public land.

ONLINE

Canadian spending on-line rose 20 per cent in the final quarter of 2003 from a year earlier, driven almost entirely by people booking holidays and getaways. On-line consumption patterns remained relatively flat elsewhere while spending at travel related sites grew by more than 50 per cent. Travel spending totalled $349-million for the three months. Non-travel spendi or the period was $408-million.

SATISFACTION

In a study of 571 working men and women in the United States, the three primary concerns were money, time and staffing. Nearly 48 per cent of the respondents said what they desired at work was more pay, 24 per cent said they wanted more time off and 17 per cent said they wanted their firms to hire additional workers to help shoulder increased workloads.

OFFSHORING

While the issue of exporting jobs abroad is becoming an election issue in the U.S., a new study finds that American companies are favouring Canada. The study also suggests that cost was not a major factor when companies consider exporting business processes, but the availability of qualified professionals.When asked to rank 10 factors for selecting a service provider, more than 46 per cent of respondents said the most important was the availability of experienced professionals, followed by specific technical skills and a high quality of English competence. A shared business culture was also considered to be important.

SKILLS

According to the Washington-based National Science Board, there is a troubling decline in the number of U.S. students training to be scientists. The number of 18- to 24-year- olds who receive science degrees has fallen to 17th in the world, whereas it ranked third three decades ago. The trend could result in a shortage of trained scientists and engineers to meet rising demand for such skills and ultimately threaten the economic welfare and security of the U.S.

LOGS

The B.C. Supreme Court has rejected a bid by a coalition of unions and conservation groups to stop the export of raw logs. The coalition says the logs being sent out of the province to the U.S., Japan and China represent lost jobs in B.C. The provincial government has allowed forest companies to export the equivalent of 28,000 truckloads of raw logs from Crown land in northern B.C.

WALL STREET

It was a good year for the stock market, but it was a very, very good year for the executives of Wall Street financial houses. Combined pay for 10 top executives at New York City's brokerage and financial firms was up a striking 68.3 per cent in 2003 over the previous year as the leading men--yes, they are all men--took home more than US$231-million. This comes as Wall Street continues to limit hiring and pursue layoffs. Wall Street employs about 158,000 people in New York.

BOYS

China faces a major threat from a growing gender imbalance that could leave millions of men without wives. This highlights concern about the impact of the one-child policy that led to rampant female infanticide. China has about 117 boys for every 100 girls, with nearly 13 million more boys that girls under the age of nine. If that trend continues, by 2020 China could have as many as 40 million men who cannot find a spouse. Officials say that the one-child-per-couple rule has resulted in 300 million fewer births over the last decade.

NORWAY

This country has one of the world's strongest currencies and no national debt, yet it remains outside the European Union. Norwegians have twice turned down the chance to become members of the EU. Like the Swiss, another of Europe's richest nations, they have doubts about the usefulness in joining. For the past four or five years, Norway has been running a budget surplus of around US$15-billion with a population of only four and a half million.

PIZZA

Vending machines that deliver hot pizzas are to be placed in workplaces, rail stations and other public places around Britain. For about seven dollars, the machine selects a customer's choice of topping on a vacuum-packed nine-inch pizza, unwraps it, cooks it and dispatches it on a cardboard plate. When the first one was tested, it sold 200 pizzas in four days. The machines were launched in the U.S. last year.

MALARIA

After years of hesitation, world health agencies are racing to acquire 100 million doses of a Chinese herbal drug that has proved strikingly effective against malaria, one of the leading killers of the poor. The drug, artemisinin, is a compound based on qinghaosu, or sweet wormwood. First isolated by Chinese military researchers, it cut the death rate by 97 per cent in a malaria epidemic in Vietnam in the early 1990s.

GAP

Apparel retailer Gap Inc has issued a report listing work-force violations at many factories worldwide that make clothing for its Gap, Old Navy and Banana Republic chains. The 2003 social responsibility report, Gap's first, attempts to highlight the company's efforts to improve garment factory conditions and labour standards. Gap uses 3,000 factories in 50 countries. In 2003, Gap terminated business with 136 factories for serious or excessive breaches of the code. Greater China and southeast Asia each had 42 of those terminated factories. The Indian subcontinent had 31 and Europe, including Russia, had nine.

MILK

Some landlocked Canadian cows are enjoying a little seafood with their hay and grain so they can produce a new kind of milk being touted for its benefits for the brain, eyes and nerves. The milk, which does not taste fishy, is produced by herring-fed cows in Ontario and provides a fatty acid also common in salmon, trout and mackerel to diets of people who don't eat enough fish.

FUNERALS

Women make up more than half the students at mortuary colleges in the U.S. today compared with five per cent in 1970. While the funeral industry is often believed to be a family business, that is not always the case. Two- thirds of 2003 graduates had no prior family relationship with funeral homes.

INSURANCE

Canada's insurance companies are coming off a record year, with C$2.63-billion in profit in 2003, a significant increase over the previous year. The profits were spread across more than 200 companies and result from fire, home, life, auto and other policies sold. The previous profit record of C$2-billion was set in 1997.

CARDBOARD

In Japan, China's insatiable demand for raw materials is now endangering the most vital commodity in retailing: the cardboard box. Once blamed for exporting deflation to Japan, China is now charged with causing the recent surge in the prices of nickel, plywood and other commodities. The cardboard-box industry now finds used cardboard is in short supply. Recyclers, who go around collecting used cardboard are doing a fine business. Waste-paper merchants now offer 15 times more for the stuff than two years ago yet are currently exporting a third more than in 2001

STUDENTS

Last year, the number of international students in U.S. colleges and universities did not grow. It remained at 586,000. The U.S. is losing its central role as the preferred destination for students and scholars from all over the world. The number of Graduate Record Examinations taken are down 50 per cent in China, 37 per cent in India, 15 per cent in South Korea and 43 per cent in Taiwan. These countries traditionally send the largest number of students to the U.S. About two million students worldwide study outside their home countries.

PACKAGING

When milk in boxes first showed up on supermarket shelves 20 years ago American shoppers were suspicious. Unlike Europeans, they were slow to embrace aseptically packaged food which keep fresh without refrigeration for at least six months. Now, buying liquid foods in a box is common. Today, there are aseptic soups and broths; soy, grain and nut beverages; sports and nutrition drinks; tomato sauces and much more. Puddings, syrups, flavoured milks and savory sauces, even liquid eggs, now come in boxes.

BIRDS

An English supermarket manager who wrote a bedtime story for his sons has sold the film rights to Disney Corp. for US$1-million. His novel, "One for Sorrow, Two for Joy" concerns a robin's fight to save a world called Birddom from evil magpies. The author has been writing for over 11 years and has had more than 30 rejection slips from publishers.

WALKING

A major fast-foot chain in England is to include pedometers with its meals later this year. The devices, which measure the number of steps a wearer has taken are to shake the company's image as providers of unhealthy food. However, experts say the fat and sugar content of some food is so great, it will take five hours of walking to burn off a meal.

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 2004 Economic Digest - Importing and Exporting

June 2004 Edition

KIDS

U.S.corporations spend US$-15 billion a year on advertising and marketing to children, twice what they spent 10 years ago. The average child watches 40 hours of television a week, sees 40,000 commercials each year and influences $500-billion in annual spending--on toys, fast food, electronics and more.

AID

The rich-country members of the OECD's Development Assistance Committee increased their foreign aid by 3.9 per cent in real terms in 2003, to US$68.5 billion. That represents 0.25 per cent of their combined GDP, an increase from 0.23 per cent in 2002, but still well below the 0.7 per cent target set by the United Nations. In the dollar terms, America is the world's largest donor (US$15.8 billion in 2003), but as a share of GDP, its aid budget is the smallest.

DOLLS

In the doll aisle of toy stores, it is mostly the small ones, 2.5 to five inches tall that dominate. Mini-dolls are one of the best performing categories right now in the toy industry. While U.S. toys over all saw a three per cent jump in 2003 sales, the mini-doll category for dolls under nine inches jumped 60 per cent from February 2003 to January 2004.

WORK

According to a new book, Australians now work more hours than Americans or Japanese and rank as the hardest-working people in the developed world. Australia was measured against 18 developed countries including the U.S., Japan, Britain, Ireland, Canada and 11 European countries. Australians now spend on average 1,855 hours in the workplace each year just topping Americans who work an average of 1,835 hours and beating Japanese workers' 1,821 hours.

POLLUTION

The journal Science reports that tiny pieces of plastic and man-made fibres are causing contamination of the world's oceans and beaches. Even remote and apparently pristine layers of sand and mud are now composed partly of this microscopic rubbish, broken down from discarded waste. They also found that when creatures such as lugworms and barnacles fed on the sediments, the plastics turned up in their bodies within a few days.

BBQ's

Canadian BBQ manufacturers are protesting the low prices of Chinese imports which are undercutting Canadian products by up to 47 per cent. Some manufacturers have lost half their workforce because of low-priced imports. In 2000, Chinese BBQs accounted for one per cent of sales in Canada, around 4,000 units. Last year the figure was 21 per cent, or 200,000 units. Canadian companies believe the Chinese manufacturers are heavily subsidized by their government.

WEIGHT

The average new car or light-duty truck sold in the U.S. in 2003 topped the scales at 4,021 pounds, the heaviest since 1976 when they averaged 4,079 pounds. Just five years later, after the oil shocks of the 1970,s the average had fallen by more than 20 per cent to 3,202 pounds. The average fuel economy peaked at 22.1 miles to the gallon in the late 1980's but has eroded since then to 20.7 miles for the 2003 model year. 2004 model year vehicles are expected to have an average weight of 4,066 pounds.

BOOMING

Vietnam raked in foreign direct investment last year worth more than eight per cent of GDP, even more, proportionally, than China. It also boasts Asia's best-performing economy which has grown by an average of 7.4 per cent a year over the past decade. The boom has lifted many Vietnamese out of poverty. As recently as 1993, the World Bank considered 58 per cent of the population poor. By 2002, that figure had dropped to 29 per cent.

FRAUD

The number of cases of fraud uncovered within the European Union's accounts has almost doubled according to the National Audit Office. Around 10,000 cases of suspected fraud or irregularity were reported in 2002 costing EU taxpayers around US$1.5 billion. In 2001 there were 5,482 cases costing US$725 million.

PORK

Pork-belly futures recently touched a record high as fad dieters became the hog farmer's new friends. Fast food restaurants are now putting bacon on almost everything. The price of US$1.19 a pound is almost triple the lowest price of the 1990s despite rising production. Not only North American dieters are contributing to the trend, Japanese fast-food operators are seeking alternatives to U.S. and Canadian beef, both barred from Japan because of mad-cow disease.

PROGRESS

It has taken 500 years to get from the drawing board to the showroom, but the first working model of the "car" designed by Leonardo da Vinci is soon to go on display in Italy. Eight months' work by computer designers, engineers and joiners has proved something that had been doubted for centuries: the machine sketched by history's most versatile genius in or around 1478 actually moves. Several attempts were made in the last century to construct the vehicle. None worked.

TONES

Downloading a special ringtone onto a mobile phone, so that it plays a tinny rendition of a pop song instead of ringing, is a booming market. Last year, ringtone sales were estimated to be US$3.5 billion worldwide, up by 40 per cent from 2002. Sales of ringtones, costing up to $4.00 each, have now overtaken those of CD singles.

RANKINGS

Newfoundland and Labrador is no longer Canada's poorest province; it took ninth place from Prince Edward Island last year by a whisker. And British Columbia is no longer Canada's third-richest province, but fourth, its lowest ranking going back to 1981. Alberta is first in personal income ($33,670) with Ontario second ($31,130), both of them beating the national average of $29,340.

CLEANLINESS

Singapore, the city-state of four million is publishing maps pinpointing its 500 cleanest public toilets. The toilet maps will indicate the cleanest and best-equipped restrooms for the benefit of tourists and shoppers. The maps will be available free at the international airport and information counters by August. Singapore started its "Happy Toilet" campaign last year using a five- star system similar to the used to grade hotels. A "Happy Toilet" is one that's rated three-stars or more.

E-COMMERCE

Denmark is the global leader in e-commerce use, according to an international survey. The study, by the Economist Intelligence Unit, ranked Britain second with the top five rounded out by Sweden, Finland and Norway.

TRENDS

To remain competitive, reports the Christian Science Monitor, supermarkets are having to rev up their technological engines. Eventually shoppers will not need wallets or scanners. With Pay by Touch systems and microchips embedded in each product, shopping will be as easy as grab, bag and get out. Sensors will ring up sales within seconds, and fingerprint-reading devices will enable shoppers to access their accounts without using plastic. Within a decade, grocery analysts say, the industry will be completely transformed.

NOISE

A doubling in the noise level is reflected by a rise of three decibels. Therefore, 68 decibels is twice as loud as 65 decibels. Experts agree that continuous exposure to noise above 85 decibels will cause hearing loss. 85 decibels is the noise of heavy traffic or a noisy restaurant.

SHOES

Adidas has created the world's first "smart shoe" my mating it with a computer chip that adapts its cushioning level to a runner's size and stride. The microprocessor is located in the arch of the shoe, and drives a tiny screw and cable system that adjusts the heel cushion depending on the signals sent back by an electric sensor coupled to a magnet. It is powered by a battery that conserves power by adjusting the shoe while it is in the air during a runner's stride.

GREEN

A Swedish company which makes eco-friendly PCs has complained that business is slow. Swedx made its first wooden computers in 2003, but a wooden monitor, mouse or keyboard cost about 30 per cent higher than the cost of a metal or plastic version. The company is touting its green image and the kit has a nice woody smell when the computer is fired up. There may be more interest when the EU passes new laws forbidding usage of some chemicals when producing PCs and vendors will be required to recycle waste.

BEES

In the 1980s, wild bees in the U.S. were devastated by an invading parasite. Since then, the bee population has been steadily dropping, mainly because of the parasite, but also because of pesticides and predator birds. With virtually no wild honeybees left, U.S. farmers rely on commercial bee colonies. This year, farmers of the 90 or so crops depending on bee pollination are feeling the pinch. This year there are only about 2.6 million bee colonies, down from 3.2 million in 1990.

EXERCISE

Customers at a supermarket chain in England can now exercise as they shop. The shopping cart features a large wheel between the two rear wheels on the cart that provides resistance. Customers can make their shopping workout harder by increasing the resistance. A monitor shows the shoppers heart rate, picked up through sensors on the bar, as well as calories burned.

DIVERSIFICATION

Some Idaho farmers are experimenting with the production of sturgeon for both their meat and caviar. With wholesale prices ranging from US$30-$55.00 an ounce the sturgeon eggs could represent Idaho's most expensive agricultural product. The white sturgeon does not start producing eggs until it is at least eight years old. The standard for caviar is measured by the Caspian Sea sturgeons which are now on the edge of extinction.

PRESCRIPTIONS

The U.S. government has activated a website at www.Medicare.gov documenting a wide variation in prices for scores of prescription drugs at thousands of pharmacies around the country. In many cases, the prices offered to Medicare beneficiaries, with the help of the new drug discount cards, appear similar to the prices available to any consumer using online pharmacies. By entering a ZIP code and the names of specific drugs, consumers can learn the prices charges at local pharmacies or through the mail.

AGING

Faced with a population aging at an unprecedented rate, China has been warned it may grow old before it has a chance of reaching widespread prosperity. The proportion of over-60s in the population will rise from the current 11 per cent to 28 per cent, and possibly 32 per cent, by 2040, the year when communist leaders are confident that fast growth will have bought China close to challenging the economic power and strategic size of the United States.

WARNINGS

The first place winner of the 2004 Wacky Warning Label Contest sponsored by the Michigan Lawsuit Abuse Watch is a warning on a bottle of drain cleaner which states: "If you do not understand, or cannot read, all directions, cautions and warnings, do not use this product."

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 2004 Economic Digest - Importing and Exporting

May 2004 Edition

TRADE

 
Global trade grew by 4.5 per cent in 2003 and could expand by up to 7.5 per cent this year according to the World Trade Organization. Trade grew rapidly in the second half of 2003 after the effects of the war in Iraq and SARS wore off and the results of the recovering world economy began to show. The WTO called China's performance "remarkable"---imports grew by 40 per cent and exports by 35 per cent.

NAFTA

Last year, the U.S. exported US$8-billion in agricultural products to Mexico. This is now the third largest market for U.S. agricultural products. Mexico, is the United States' second-largest trading partner. About 89 per cent of Mexico's exports go to the U.S. and 62 per cent of Mexico's imported goods come from the U.S. Trade between the two countries has grown significantly in the past decade from US$81-billion in 1993 to US$235-billion in 2003, an 11 per cent increase each year.

WHEAT

The World Trade Organization has upheld the legality of the Canadian Wheat Board in a ruling that Ottawa feels undermines U.S. attempts to dismantle Canada's state-owned grain-trading enterprise. The U.S. had complained that the Board undercut foreign rival pricing to sell grain. However, the WTO has called on Ottawa to reform grain-handling and transportation rules.

TRANSPORT

A three-wheeled car that measures just one metre across and carries two people is being touted as the answer to city traffic problems in Europe. The Clever (Compact Low Emission Vehicle for Urban Transport) car has been developed by nine European countries and is funded by the EU. If produced, the 50mph could sell after 2005 for US$15,000. The novel tilting vehicle aims to combine the safety of a traditional car with the flexibility of a motorbike

WALKER

Canada has become the first country to ban the sale, resale, advertising and importation of baby walkers. They have long been viewed as highly dangerous with children falling down flights of stairs. There has been a voluntary industry ban on the items since 1989 but Health Canada says that in recent years, increasing numbers have found their way onto the Canadian market.

SOYBEANS

A domestic shortage in the U.S. has pushed soybean prices above $10 a bushel, twice the level of only seven months ago. The effects are already being felt among food producers and at the grocery store cash register. Soybeans are an essential ingredient in thousands of products from cooking oil to pet food. The shortage is blamed on dry weather in the U.S. reducing the harvest by 15 per cent in 2003 and China launching a record buying spree of U.S. soybeans which it needs for feeding livestock for its population's growing demand for meat.

TASTE

A new vodka flavoured ice cream launched in Australia has provoked an outcry from groups worried it will give children a taste for alcohol. A few months ago, an Australian biscuit-maker introduced Tia Marie and Kahlua flavoured cookies

SOCKS

Datang is a city in China that turns out eight billion pairs of socks each year from 8,000 factories, one-third of all socks sold worldwide.

INTERNET

Canada's internet pharmacy industry more than doubled its sales to the U.S. last year. Sales were worth around C$556-million for wholesalers in 2003, up from C$251-million in 2002. A cluster of on-line retailers in Manitoba account for almost half of the cross-border trade. The top pharmaceuticals sold on-line to the U.S. are cholesterol reducers and heart medications, followed by heartburn and ulcer medications.

TRAFFIC

Road traffic crashes of all sorts are an enormous, largely overlooked, world health problem, second only to childhood infections and AIDS as the killers of people between the ages of 5 and 30 according to the World Health Organization. Each year, about 1.2 million drivers, passengers, cyclists and pedestrians of all ages are killed, that is about one in every 50 deaths worldwide about the same as the mortality from malaria.

PLAGIARISM

White-collar copycats may be less inclined to pilfer the well-chosen words of others now that software designed to ferret out plagiarism is moving out of academia and into the business world. For years, educators at colleges and universities have monitored plagiarism. Now, tainted by scandals or the Internet's copy-enabling power, a growing number of newspapers, law firms and other businesses are using data-sifting tools that can cross-check billions of digital documents and swiftly recognize patterns in just seconds.

SERVICE

On April 6, 1925, a movie was used for the first time as in-flight entertainment. The black-and-white silent, The Lost World, was screened in a converted Handley-Page bomber that flew from London to Paris. The carrier, Imperial Airways, had previously begun offering in-flight meals (box lunches) in 1919.

TRENDS

Chinese studies are booming throughout Asia. At the largest chain of private language schools in Japan, enrolment in Chinese in 2003 was double that in 2002--displacing French as the second most popular language after English.

SUSHI

Because of health concerns and growing demand, 50 to 60 per cent of sushi in the United States is frozen at some point in its journey from the ocean. In fact, some sushi may have been frozen for as long as two years. Most diners would be surprised to learn that if sushi has not been frozen, it is illegal to serve it in the U.S. Food and Drug regulations stipulate that all fish to be eaten raw, except for Tuna,--whether as sushi, sashimi, seviche or tartare--must be frozen first to kill parasites.

TAXES

More than 60 per cent of U.S. corporations didn't pay any federal taxes for 1996 through 2000, years when the economy boomed and corporate profits soared. Corporate tax receipts have shrunk markedly as a share of overall revenue in recent years, and were particularly depressed when the economy soured. By 2003, they had fallen to just 7.4 per cent of overall federal receipts, the lowest rate since 1983, and the second lowest since 1934.

RUSTLING

The late diet guru Dr. Robert Atkins has been blamed for many food calamities--including the slump of the potato and bakery industries. Now, San Joaquin Valley police in California say that the popularity of the high-protein diet is to blame for a spate of cattle rustling in California. Beef prices have increased in recent months as the number of Americans using diets such as the Atkins diet has increased. In turn this has led to a new generation of rustlers who are stealing unbranded cattle and selling them on the black market.

GARBAGE

Rubbish bins in Berlin will soon talk and sing to people who deposit their waste. In an attempt by the German capital to encourage citizens to keep it tidy, a number of Berlin's 20,0000 bins are to be fitted with solar cell devices which will react with a "thank you" when something is thrown into them. The bins' voices will be replaced with flashing green lights to avoid scaring night-time rubbish disposers. City officials say the volume of litter on the streets has risen in line with the growth in poverty.

OFFSHORING

An industry-sponsored study has concluded that U.S. companies sending computer systems work abroad yielded higher productivity that actually boosted domestic employment by 90,000 across the economy last year. The study was conducted for a coalition of business groups working to combat a growing backlash against the loss of U.S. jobs.

WEEDS

Exotic weeds are choking Australia's prized farmland inch by inch and costing the nation US$3.5-billion a year in lost agricultural output. The sprawling plants, most of which were introduced as ornamental garden species, have encroached on huge areas of farming land. The economic impact of introduced weeds amounts to 0.5 per cent of Australia's gross domestic product.

MAGAZINES

Canada's magazines showed an overall increase in readership last year, with the best growth in "niche" titles that cater to readers' nesting instincts. Average readership rose about five per cent for English-language publications and seven per cent for French-language publications. Reader's Digest remained Canada's most read magazine with readership of 7.7 million, followed by Canadian Living and Chatelaine.

CHEAP

A cheap handheld computer designed by Indian scientists has been launched after a three-year delay. It was developed at the Indian Institute of Science as a way of taking the internet revolution to India's rural masses. Only nine in every 1,000 Indians own a computer, because the machines are just too expensive. The Simputer was designed to provide cheap and accessible computing on the go. The basic model costs around US$240. It is hoped to sell 50,000 units in the first year.

POPULATION

Germany saw a net drop of 143,000 people in 2003 when the number of deaths rose while the number of births dropped. Deaths were 858,000 while births were 715,000. There were also fewer marriages with 383,000 last year compared with 388,000 in 2002. At the end of 2002, Germany's population was 82.5 million. Immigration advocates say that Germany will have to open its doors more to foreigners of which there are now 7.3 million in Germany.

UGANDA

Where many flower growers lost their farms in Uganda during the 1990s, new ones are now profiting from the sale of sweetheart roses. The original flower growers were badly advised when they were told to grow large roses like the ones in Kenya. Because of the climatic differences between the two countries, they failed to grow as big in Uganda. However, the smaller sweetheart roses are thriving in Uganda and the country expects to earn US$30-million this year in flower exports.

CONTAINERS

In a wasteland of old wharves, warehouses and burnt-out buildings in London's docklands, a strange new phenomenon has arisen which is attracting the attention of architects and regeneration experts from around the world. It is called Container City and comprises old sea containers which provide cheap studio space for artists and small businesses. Now, Container City II has been added, 33 containers painted bright red, yellow and orange and stacked asymmetrically. With their balconies and porthole windows, they are being rented for up to $900 a month, including service charges, to tenants who are happy to live in them.

SCALE

Violinists in a German orchestra are suing for a pay rise on the grounds that they play many more notes per concert than their colleagues. German musicians earn basic monthly wages that are about twice that of their British counterparts.

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 2004 Economic Digest - Importing and Exporting

April 2004 Edition

CREDIT

 
With China rushing in ever greater numbers to buy on credit, banks and businesses are making a dash into the credit reporting industry. Growth in consumer lending has been about 50 per cent in each of the past two years. In 2003 personal credit lending totalled US$189-billion. China recently gave initial approval for General Motors and two other multinationals to offer auto financing, while credit card giants such as Visa and MasterCard are eyeing the market

WINE

Californian wine makers are following in the footstep of their Australian counterparts by conquering the British market. For the first time, Britons bought more wine from North America than from Italy. Last year, sales soared by 20 per cent to US$1-billion. Australia is by far the biggest seller with sales up nine per cent to more than US$1.7-billion.

COMFORT

Ryanair, a European airline famous for its no-frill service is about to get even leaner. The Dublin-based airline is taking the knife to a number of "non-essentials"--such as reclining seats, head rests, seat pockets and window blinds. It hopes the changes will speed aircraft turnaround times and save more than US$1.9- million annually. At the same time, Ryanair wants to encourage passengers to carry only hand luggage to cut baggage-handling costs.

AGE

Americans aged 50 and up control US$7-trillion, or 70 per cent, of all U.S. wealth, bring in US$2-trillion of annual income and account for 50 per cent of all discretionary spending. Yet they are the target of only about five per cent of advertising dollars.

SILVER

Long before money made the world go round, Yemeni silver reigned supreme as a sign of wealth and power in ancient times. Assyrian texts from the seventh century BC extol the virtues of Yemeni silver, while Roman descriptions of the country mention an abundance of the metal. In modern Yemen, with its alleged terrorist connections, only 20 families still work in silver and only a handful of stores offer silver-coated daggers, chunky necklaces and inlaid trunks to a trickle of buyers.

WOOL

Two Australian sheep farmers have produced the world's finest wool, a mere 11.9 microns thick or about one-fifth the diameter of human hair, with a bale of the super fine wool now under armed guard inside a bank vault. The bale of wool is valued at more than US$752,000 when sold and is probably destined for a fashion house in Paris, Milan, New York or Tokyo. One micron is a thousandth of a millimetre and 14-16 micron wool is normally used for cashmere clothing.

STEALING

Amsterdam police will use bicycles equipped with hidden GPS transmitters to bait thieves and track them down. Cycling is a way of life in the pancake-flat Netherlands which boasts more bikes than its 16 million inhabitants. In Amsterdam alone, an estimated 120,000 bikes, over a tenth of the total, are stolen every year.

TAXES

California and New York have now joined the 43 other states which require residents voluntarily to pay sales taxes if they order books, clothing, computers and other items by mail or online from businesses based elsewhere. The National Governors Association estimates state and local governments will lose at least US$35-billion this year from Internet sales.

PIRACY

The impact of online piracy on the US music business has been described by one industry spokesperson as "devastating." There has been a 31 per cent decline in music sales between 1999 and 2002 due primarily to piracy. More music is being consumed than at any time in history, but less is being paid for. The film industry is also being threatened. In 2003, Hollywood lost US$3.5 billion from movie piracy.

RUBBER

China's growing car culture has boosted rubber prices to levels of a decade ago cutting into profits at tire makers and pushing them to raise prices. Surging prices for natural rubber have hurt many industries from surgical glove makers to producers of hoses and conveyor belts. Tire makers use up more than 70 per cent of the world's natural rubber. Ballooning rubber prices are part of a broader worldwide surge in commodity prices. Everything from steel to palm oil has risen as the global economy has revived and growth accelerated in places such as China and India.

SMELLS

A supermarket poll has revealed Britain's top 10 favourite smells. They are: Fresh bread, frying bacon, coffee, ironing, cut grass, babies, the sea, Christmas trees, perfume and fish and chips.

SMART

The Star City Bridge, being built over the Monongahela River in West Virginia, will be loaded with 770 sensors, 28 data-collection boxes and a central "brain" that will report on cracks and strains. It will be the smartest bridge in the world.

SHIPS

Ground breaking for the largest shipyard in the world has taken place on an island at the mouth of China's Yangtze River. Once the shipyard is completed in 2015 it will have the capacity to produce a total of 12 million deadweight tons of ships per year. South Korea currently operates the world's largest shipyard in the city of Ulsan. Ports in China have been open to overseas investment since 2002 with total port investment in 2003 reaching US$2.2-billion.

RIPE

A sticker that detects ripeness is being tested on pears in grocery stores in Oregon. If successful, the concept could be expanded to include melons, avocados and kiwi fruit. The "ripeSense" labels change colour as the fruit emits greater concentrations of aroma compounds. Developed and first tested in New Zealand, the sensor allows customers to select pears without squeezing and damaging them.

PETS

Britain's obesity epidemic has spread to the country's pets. Four out of five vets now describe obesity as a significant problem, with two-thirds saying that they are treating record numbers of overweight cats and dogs. Figures show that the number of pet insurance claims related to obesity in 2003 was double the total made in 2000.

ACCESS

Shipping experts say that as the polar ice recedes, the notorious North-East Passage which winds its way along Russia's frigid and barren northern coastline past Siberia could come to rival the Suez Canal as a global trade route. The arctic icecap has been thawing rapidly and the ice is half as thick as it was 50 years ago. On present calculations, the Passage could be open to year-round commercial shipping within a decade.

TASTE

For centuries, iguana has been consumed throughout Central America. Now, it is showing up in a small but growing number of North American restaurants. The budding market is also improving life in El Salvador. Raising iguanas on farms for export provides much-needed jobs. The meat is said to have a taste similar to chicken and sells for US$14 a pound.

CLIMATE

The world's second-largest reinsurer has warned that the costs of natural disasters, aggravated by global warming, are threatening to spiral out of control and will force the human race into a catastrophe of its own making. Swiss Re warns that the economic costs of such disaster threaten to double to US$150-billion a year in 10 years, hitting insurers with US$30-40- billion in claims annually. Losses to insurers from environmental events have risen exponentially over the past 30 years.

PENSIONS

Canadian companies with defined-contribution pension plans are growing concerned that they will soon face legal action from employees who are dissatisfied with their retirement plans. Close to one-quarter of the 120 firms studied said they expect to face litigation over their plans in the next two years. When the time comes, 40 per cent said they expect their employees to win.

NILE

Delegates from ten African countries that share the water of the Nile River are to meet to negotiate how to share the resources. Uganda, Kenya and Tanzania are among those calling for the water to be shared more equally. Ethiopia and Tanzania are planning projects that could reduce the volume of water reaching Egypt.

GREEN

Ten years ago, Ecuador had 10 companies that offered trips and activities geared towards enjoying and conserving the environment, today there are 300. Foreign tourism revenues to Ecuador in 2002 were US$447-million, a jump of 30 per cent from 1999. That's more cash than any of the country's exports provide, except for crude oil and bananas. The number of visitors to the country soared 28 per cent to 654,000 in 2002 from 1999 and could reach one million by 2007.

SANCTIONS

For the first time, the European Union has hit U.S. firms with sanctions as part of a trade dispute. The EU is imposing a five per cent increase in duty on a range of goods, from honey to roller skates to nuclear reactors. The aim is to force the U.S. Congress to change a law that gives an unfair tax advantage to U.S. exporters. The EU sanctions will increase by a further one per cent each month until they effect U.S. exports worth US$666-million a year.

FISHING

Angling is worth US$250-million a year to the Scottish economy. The sport supports 2,800 jobs and generates almost US$100-million in wages and self-employment income. The lure of rainbow trout saw central Scotland record the most angler days each year, accounting for more than a third of the 1.4 million total.

DIAMONDS

Hefty taxes are driving a huge part of Canada's billion-dollar diamond industry underground according to a recent study. The study found that 75 per cent of diamonds are sold underground through a parallel network of jewellers. There is a 10 per cent excise tax on jewellery in Canada that the industry has been lobbying against for decades. Federal and provincial taxes add more than 25 per cent to the price of diamonds in Canada compared with an extra six per cent in the U.S.

ACCOMMODATION

The two largest pet supply chains in the U.S. are planning to expand into the pet hospitality industry, taking a bigger bite out of the fragmented business. Petsmart Inc will add 14 more pet hotels in 2004 for a total of 23 and eventually plans to have a pet hotel in every five or six of its 640 stores. Petco Inc, which has 654 U.S. stores plans a similar expansion.

DIRECTIONS

Britain's biggest-selling hiking magazine has apologized after a recent issue contained a route that would lead climbers off the edge of a cliff on Britain's tallest peak. The magazine gives advice on making a safe descent for hikers caught in bad weather on Ben Nevis in Scotland. But the magazine's directions would instead lead readers off the north face of the 4,406 foot mountain which is notorious for its changeable weather and has claimed the lives of several climbers.

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 2004 Economic Digest - Importing and Exporting

March 2004 Edition

CARBS

 
The Grocery Manufacturers of America (GMA) has petitioned the U.S. Food and Drug Administration to establish new rules for carbohydrate nutrient content claims.GMA contends the ability of food and beverage companies to provide consumers with the best information about carbohydrate content is limited, as there are no regulations allowing carbohydrate nutrient content claims.

PROSPECTING

Companies have laid claims to record tracts in the Canadian Arctic, snapping up permits for more than 70-million acres in the Northwest Territories and Nunavat, drawn by hoped-for diamond riches. Nunavat issued a record 1,518 prospecting permits covering 64-million acres--a huge jump from last year when just 190 permits were issued covering about nine million acres.

SUPPORT

Across the United States, about 42 per cent of the approximately 6-million immigrants, legal and illegal, from Latin America and the Caribbean dispatch remittances home on a regular basis. As a source of capital, these remittances eclipse all investment by foreigners and foreign firms for most of the recipient countries. and count for six per cent of the gross domestic product in six of the countries. In 2002, these funds amounted to about US$30-billion.

CARDS

Banking or debit cards are the ultimate in convenience. More than 34 million banking cards are in circulation among an adult population of 21.8 million. Canadians love their banking cards using them more than 2.4 billion times in 2002. That's an average of 76 times a second for every hour of the day.

FANTASY

The Disney Co. is pulling out of Celebration, the squeaky-clean central Florida town it created from scratch as a planning experiment known as " new urbanism." However, the company that has purchased the town has promised it will still put machines on the streetlamps in December to spray fake snow on Celebration's streets and it will continue to ship in perfectly coloured leaves in the autumn to decorate the pavement.

AUSTRALIA

Investors in Australia, a country with a population slightly larger than New York State, acquired US$2.4-billion worth of U.S. real estate last year, more than foreign investors from any country but Germany. While this was only a fraction of the US$114-billion worth of American real estate that changed hands last year, it represents a threefold increase from 2002. German investors bought US$3.6 billion in American property last year, down from US$4.4-billion in 2002.

BEAUTY

In the highly competitive world of beauty, the fight is on to capitalize on the growing male appetite for beauty products. In the last three years, the men's treatment sector of the beauty industry has seen major activity in terms of mergers and acquisitions and through product launches. Driving it all is a market that has grown some 70 per cent over the last five years and that boasts an estimated worldwide retail sales volume of US$600-million. This figure excludes toiletry items such as shaving cream or aftershave.

MINES

Danish scientists say they have developed a genetically modified plant that will detect unexploded landmines of which there are estimated to be about 100 million around the world. The plants are said to turn from green to red three to six weeks after they have been planted when their roots come in contact with nitrogen dioxide evaporating from the explosives in the soil. At least 26,000 people are killed or injured by mines every year.

CONCERN

A PricewaterhouseCoopers survey has asked 1,400 CEO's worldwide about the major concerns that they face. Their biggest concern is increased competition with 63 per cent considering it a threat. The next worry is overregulation (59 per cent), followed by fears of currency fluctuation (48 per cent). Global terrorism was ranked fifth at 40 per cent after anxiety over the loss of key talent, 45 per cent.

CARS

Toyota has now surpassed Ford of the United States as the world's No 2 automaker. Toyota has confirmed worldwide sales for 2003 of 6.78 million vehicles, up 9.9 per cent from 6.17 million the previous year. Ford says its 2003 sales slipped to 6.72 million vehicles, down 3.6 per cent from 6.97 the year before. The largest automaker is General Motors which sold 8.6 million vehicles in 2003.

SUCCESS

Companies with more women in senior management positions do better financially than those with less gender diversity in their upper ranks. A study by Catalyst Inc for the Bank of Montreal reviewed the performance of the 353 companies remaining in the Fortune 500 for four of five years between 1996 and 2000. Using two measures of financial performance, the study found that those with more women in their upper ranks tended to see superior performance.

TRENDS

A cash-strapped hospital in Lisbon, Portugal, has asked the local zoo to lend X-ray equipment usually used on elephants so it can treat overweight patients. As in many other countries, obesity has been rising in Portugal as dietary habits have changed.

COOPERATION

Mining and tourism interests in British Columbia have signed an historic agreement improving the often-poisonous relations between the two groups and encouraging investment in both sectors. The memorandum of agreement calls for the groups to work together on land use issues, recognizes a two-zone system for mining and mineral exploration and outlines a conflict resolution process. Under a two-zone system, mining and exploration would be prohibited in parks and some other protected areas but allowed, subject to applicable legislation in the rest of the province.

BOOKS

Mexico City's subway has begun lending books to riders in a new program aimed at reducing crime and fostering a more hospitable atmosphere for millions of commuters. The city plans to distribute seven million paperbacks in the next two years trusting commuters to return the books but not making it a requirement. Tokyo has dozens of tiny paperback borrowing libraries at subway stations

SOURCING

With sales of more than US$245-billion a year, Wal-Mart is the biggest retailer in the U.S. More than 80 per cent of the 6,000 factories in Wal-Mart's worldwide database of suppliers are in China. Wal-Mart estimates it spent US$15-billion on Chinese-made products last year, accounting for nearly one-eighth of all Chinese exports to the United States. If Wal-Mart was a separate nation, it would rank as China's fifth-largest export market, ahead of Germany and Britain,

AUSTRALIA

The U.S. and Australia have reached a broad trade agreement, opening up some U.S. agricultural markets but leaving in place existing U.S. restrictions on sugar that had threatened to derail the deal. Two-thirds of agricultural tariffs between the two will drop to zero after the deal is approved. The proposed deal will also eliminate trade barriers and increase market access for both sides in the manufacturing and service sectors. Many Australian farmers are against the deal as it leaves key tariffs on Australian farm goods untouched while giving U.S. farmers free access.

HERBS

The World Health Organization has issued a 72-page document with advice to governments around the world on how to ensure that the US$60-billion herbal medicine business is safe and sustainable. The document covers cultivating, collecting and classifying plants with recommendations on quality control, storage, labelling and distribution. WHO looked at the guidelines used in China, Japan and the European Union as a base for developing its own recommendations.

SOUTH KOREA

After years looking east towards Japan and the U.S., South Korea is now looking west to China. Last year half of its foreign investment went to China and its exports increased 50 per cent. South Korean businesses invested US$2.5 billion in China in 2003 compared with only $50-million in Japan. South Korean companies signed deals in China at the rate of 12 a day, 22,0000 of them now have investments in China employing about one million Chinese workers.

HOME ENTERTAINMENT

In 1997, U.S. sales and rentals of DVDs represented one per cent of film studio revenues, last year it represented two-fifths of revenues. In 2003, Americans spent $22.5-billion on DVDs and videocassettes compared with $9.2-billion at the box office where receipts fell slightly for the first time in a decade. Particularly exciting for the movie industry is the fact that people are choosing to buy rather than rent DVDs as they mostly did with videos. Half the homes in the U.S. own DVD players. In 2002, only one-fifth did in Europe.

SCRAP

The U.S. exported an estimated 12-million tons of scrap steel last year, a 21-per cent increase from 9.9 million tons in 2002. Now, a growing coalition of steel producers and consumers are talking to the U.S. Commerce Department and considering whether to petition for a limit on U.S. exports of scrap steel. Experts claim that the growth in exports to Asia and elsewhere have sent scrap prices soaring to 30-year highs. If granted, the restriction on scrap exports would be the first in three decades.

CHICKENS

Mexico expects to start exporting chicken meat to the U.S. in the next few months. Canada is the only other country that exports chicken to the U.S. where consumers chew up 25.6-billion pounds of meat each year. Mexico produced 2.1 million tons of chicken meat in 2003 and 1.9-million tons of eggs, making it the world's 4th-largest chicken producer and 6th-biggest egg producer.

RETURNS

According to the International Mass Retail Association consumers return about US$200-billion worth of merchandise annually in the U.S. The cost of handling and disposing of these items comes to about $35-billion. Between five per cent and 30 per cent of a merchant's sales ends up being returned. On-line retailers have a much higher return rate.

Visa Canada cardholder returns peak in the December to January period when they represent about three per cent of overall sales.

TEA

Tea growers in India's north-eastern Assam state have warned that pests could cut output by between 10- and 15 per cent this year. The culprit is a breed of mosquito known as helpoletis which has attacked more than 25 per cent of Assam's plantations. Assam is India's biggest tea-growing region accounting for 55 per cent of the country's annual crop, The infestation comes at a time when India's $1.5-billion tea industry has been hit hard by overproduction and stiff competition from Sri Lanka and Kenya. In 2003, the country's tea exports fell to 190 million kilograms from 220 million the previous year

KNOWLEDGE

Thailand is to send up to 300,000 civil servants for monastic training, during which time they will be forced to shave their heads, don saffron robes and meditate, in order to improve their performance. The initiative will last up to eight days annually at temples throughout Thailand

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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February 2004 Economic Digest - Importing and Exporting

February 2004 Edition

 TAXES

India has slashed or abolished taxes on popular consumer goods, a key move in the country's programme to overhaul the economy. The tax changes, effective immediately, are expected to give a major boost to India's information-technology and telecommunications industries, as tariffs come down on computers, electronic goods, pharmaceuticals and cellular phones, as well as domestic air travel. The announcement is also expected to create a greater opening for foreign companies targeting India's rapidly growing middle class.

AUDIO

According to the Association of American Publishers, the U.S. audio-book market has grown an average of 11.5 per cent annually since 1997, while consumer book sales grew 2.7 per cent annually in the same period.

LEAVE

British career women are being offered maternity leave of up to five years by some of that country's biggest employers. So desperate are employers to retain skilled staff that they are promoting the career breaks as an enticement to retain female executives who have children. After years of steady growth, the number of working mothers with dependent children appears to have reached a plateau at about 65 per cent, and experts fear that British women will follow their American counterparts who are leaving work in ever greater numbers.

IPOs

There were a total of 53 offerings in Canada last year, by comparison there were 69 IPOs in 2002. Overall, last year's IPOs were worth a total of $4.6-billion, down from $5.8-billion in 2002. Technology and media ranked first in terms of total value of IPOs last year, with eight offerings totalling $1.5-billion.

SHRIMP

The U.S. is the world's largest shrimp consumer and is the biggest market for both Thailand and Vietnam. It imports around 120,000 tonnes of the Thai shrimps, worth some $1-billion, or about half of Thailand's annual exports of the seafood. Shrimp exports from Vietnam to the U.S. rose seven-fold between 1998 and 2002, when shipments reached $470-million. Now, the U.S. Southern Shrimp Alliance, which is battling a halving of shrimp prices and job losses, is seeking anti-dumping duties of up to 200 per cent on China, Vietnam, India, Thailand, Brazil and Ecuador.

COSTS

Statistics Canada reports that on average, Canadian households spent C$60,090 in 2002, a 2.2 per cent increase from 2001 after adjusting for inflation. Personal taxes accounted for a estimated 20 per cent: transportation claimed 14 per cent while food represented 11 per cent and shelter 19 per cent. Two provinces, Alberta and Ontario, reported average levels of household spending above the national average while Newfoundland and Labrador continued to have the lowest provincial average, C$47,900.

TRENDS

Some U.S. banks, such as Bank of America, are opting for more branches with human tellers. They claim the rapid expansion in branching comes after the industry for years attempted to prod Americans out of teller lines and into cheaper ways of using services, such as ATMs and the Internet. But the public remains resolutely attached to the bank branch.

TASTE

In recent decades, a commercial buffalo, also known as bison, meat industry has developed in the U.S. which may attract new consumers looking for an alternative to beef since the advent of mad-cow disease. Buffalo are fed grass then corn or potatoes for 90 to 120 days before they are slaughtered when they weigh around 2,000 ponds (907kg). They are not fed antibiotics, growth hormones or animal byproducts.

AFRICA

The Economist Intelligence Unit forecasts that Africa will likely be the home of many of the both the world's fastest-growing and slowest-growing economies in 2004. Chad's economy is tipped to grow at an impressive 54 per cent this year while Equatorial Guinea should grow at 23 per cent, both due to rising oil output. Yet, other petro-states are not so lucky. Saudi Arabia can expect growth of only 0.5 per cent, and Kuwait 1.1 per cent in 2004. Zimbabwe remains at the bottom. Its economy is expected to shrink by nearly 9 per cent this year.

FAKE

Wine fakers who pass off cheap plonk dressed up with the labels of expensive vintages are forcing genuine producers to consider bringing in microchip technology to identify their bottles. The makers of one of the world's greatest Italian wines have been forced to redesign their bottles and introduce new security measures after 12 people were arrested for producing 20,000 bogus bottles of a renowned wine. Another six million bottles of bogus Chianti have also been discovered.

GROWTH

The global semiconductor industry is expected to grow by 18 per cent this year amid double-digit growth in personal computer and mobile phone shipments. It is also predicted that the market will grow at a compound annual rate of 12.5 per cent through 2008, with revenue rising from US$160-billion in 2004 to US$282-billion in 2008. China, the world's largest consumer of mobile phones and second-largest consumer of PCs, is expected to drive this growth.

SMUGGLING

Chinese customs authorities are on the alert for smugglers attempting to use the new free-trade agreement with Hong Kong and Macau to avoid import duties. As part of a two-stage plan, China has identified 273 items made in Hong Kong and Macau that are now able to enter the mainland market duty free. By January 1st, 2006 all Hong Kong and Macau sourced products will enter China duty free.

DIAMONDS

Canada has become the third largest producer of diamonds in the world behind Botswana and Russia. From 1998 to 2002, companies have mined about 13.8 million carats of these precious stones worth about C$2.8-billion and amounting to about 15 per cent of the world's supply. The diamonds are also of high quality. In 2001, the average price per carat for a Canadian-mined diamond was $228. This was the third highest in the world behind prices for diamonds mined in Namibia and Angola.

ONIONS

Researchers are scrambling to identify a mystery disease that has emerged for the first time as a threat to Georgia's US$75-million crop of Vidalia sweet onions. Tests are being conducted on lesions that have started appearing on the leaves of onion plants in seed beds. Scientists want to know whether they have a unique cause, or are related to the Tomato Spotted Wilt Virus which has plagued Georgia peanuts and tobacco. Georgia's 134 registered Vidalia growers harvested 12,500 acres of onions last year.

HOURS

The European Commission has expressed concern that British workers are being unfairly forced to work long hours due to abuse of an "opt-out" clause secured by London from EU employment rules. Britain is the only country in the EU where working hours have increased over the last decade. New figures show that about 16 per cent of Britains currently work more than 48 hours a week.

TRENDS

Fly-in communities are springing up across the United States "Pecan Plantation" in Texas, has 125 homes, all served by taxiways. Planes can land, taxi home and be parked in the drive. Teen pilots can bring aircraft to the door to pick up their dates. Many houses do not have garages, they have hangers for two cars and two planes.

TRADE

Iraq is beginning free-trade talks with its Arab neighbours in the Persian Gulf region after signing agreements to dismantle trade barriers with Iran and Turkey. In six months, Iranian trade with Iraq has nearly doubled from the same period the previous year to US$400-million. Iran and Turkey are probably the largest suppliers of consumer goods to the Iraqi economy, while the Gulf states supply cars.

SAFETY

According to a New Zealand study, silver cars are much less likely to be involved in a serious crash. People driving silver cars were 50 per cent less likely to suffer serious injury compared with drivers of white cars.

SCANNERS

Around a fifth of people in Britain are unable to read small print on food and medicine labels. Now, a new "speaking" barcode has been developed that can read out food ingredients to blind and partially-sighted shoppers and warn of allergy-inducing ingredients. The product has attracted a good response in tests.

GECKOS

Lizards climb walls using the mechanical adhesive force of millions of tiny hairs on their feet. A synthetic version of those microscopic hairs allows Gecko tape, developed by a British university, to stick to almost any surface without glue. Applications include gloves that allow a person to climb a glass wall, the ability to move computer chips in a vacuum and new bandages.

GIRLS

According to UNICEF, girls are falling behind boys in school attendance. An estimated 121 million children worldwide are missing out on formal education; 54 per cent of them are girls. In many countries, this gap grows with age because girls are less likely to move on to secondary school. Educating girls not only improves their prospects, but also those of their future children. UNICEF estimates it would cost $60-billion in external aid by 2015 to ensure universal access to primary education for both girls and boys.

INSURANCE

In a recent Canadian survey, 55 per cent of small businesses said they were negatively affected by rising insurance premium costs. They have had a bigger impact than domestic events like the SARS outbreak, the mad-cow scare or the rising Canadian dollar. International challenges--like the war in Iraq--had a negative impact on revenue for 28 per cent of respondents, while 67 per cent reported no real impact. In terms of future challenges, 11 per cent said taxes were the most crucial issue facing small businesses in the next five years.

WOOD

Every year there are about 10 million housing starts in China, but less than one per cent are built of wood. In 1997, British Columbia grabbed a 2.2 per cent share of China's wood-product imports. By 2001, that share dropped to 1.4 per cent, though the value of B.C.'s wood exports to China is rising. B.C. exported $29-million in wood products to China and Hong Kong in 1997, or 30 per cent of Canada's total of $97-million. In 2002, B.C.'s exports to China hit $47-million , or 61 per cent of Canada's $76-million.

CAMERAS

Kodak, which launched the world's first popular camera more than a century ago, will stop selling traditional 35-millimetre film cameras in the United States, Canada and Europe by year's end. Kodak hasn't made money selling film cameras in the U.S. for some time, but had continued selling them to drive film sales. Film camera sales fell 15 per cent to 12.1 million units last year. Digital cameras, which store images on microchips, outsold film cameras for the first time in 2003.

STRESS

Last month, 385 Swiss postal workers were given blues-harmonica lessons to help them relieve stress.

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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January 2004 Economic Digest - Importing and Exporting

January 2004 Edition

 TIME

A recent survey shows that the average American adult spends 16.17 hours on the phone each month, listens to 90 hours of radio and watches 131 hours of TV. The 53 per cent of the U.S. population that uses the Internet, spends more than 25 hours online a month at home and more than 74 hours on the net at work.

OIL

China's fast-growing economy has reached such levels that the country has emerged as the largest force driving the world's growing demand for oil. Faster-than-expected growth in the U.S. and Europe is also resulting in more oil use. But the latest data and forecasts by a Paris-based global energy watchdog show China alone accounting for about a third of the world's rise in the use of oil in 2003 and in 2004 when China is expected to displace Japan to become the second-largest consumer of oil after the U.S.

MEXICO

According to World Trade, Mexico's competitiveness is taking a hit, especially in the electronics, textiles and automobile sectors, as manufacturers of these goods are turning to other countries for low-cost production. Roughly 90 per cent of Mexico's exports are sent to the U.S. For example, for the first eight months of 2003, Mexico's exports of TV receivers to the U.S., including video monitors and projectors, fell by 9.6 per cent while overall U.S. imports of these items grew by 2.1 per cent. Certain apparel exports were down 5.5 per cent while U.S. imports rose 11.8 per cent.

BISCUITS

China has built a biscuit factory to cater exclusively to its captive giant pandas, giving them a more healthy choice than the usual steamed bread which loses much of its nutritional value in cooking, resulting in malnutrition for many pandas. The cream-coloured biscuit, made of bamboo, is rich in vitamins and trace elements and the fibre content is up to 30 per cent.

NAMES

Americans are increasingly turning to the world of popular culture to name their children. Children have been named after big brands as diverse as beauty company L'Oreal, car firm Chevrolet and designer clothes company Armani. There are even two little boys, one in Michigan and one in Texas called ESPN after the sports channel.

JOBS

Canada was one of the few countries that actually saw an increase in factory jobs in recent years, despite a decline in many other countries around the world, including the U.S. A number of countries are losing jobs because of improvements in technology and increasing global competition. From 1995 to 2002, about 2 million U.S. manufacturing jobs were lost, an 11 per cent drop. Brazil had a 20 per cent drop and Japan was off 16 per cent. Even China experienced a 15 per cent decline.

SPEED

The Battelle Memorial Institute has announced that it is building the world's fastest supercomputer. The machine is expected to be capable of 1000 trillion operations a second when completed in 2005 and will cost US$500-million.The machine will be used for biomedical research, modelling world weather patterns and researching black holes.

HUNGER

After declining for years, the number of people in the world who are going hungry is on the rise according to the United Nations. It is estimated that 842 million people were undernourished in 1999-2001, the most recent years for which data are available. This is not the famine-type hunger, it's a diet that routinely supplies 1,400 to 1,700 calories daily when the U.N. says 2,300 calories a day is the minimum needed for a healthy life.

WATER

Statistics Canada reports that even in a country as rich in water resources as Canada, there are growing signs of water scarcity. According to a new report, some of the country's main glaciers have shrunk to close to their smallest size in 10,000 years. The report says Canadians are among the most profligate water users in the world with an average annual use of 1,471 cubic metres, when the total supplied to residents and industry is considered. This ranks second only to the U.S.

LABELS

Nearly nine out of 10 Canadians want Ottawa to force companies to disclose whether any food they sell contains genetically modified ingredients. The survey results show Ottawa, which has refused to make labelling of genetically engineered foods mandatory, is out of step with Canadians according to consumer groups.

VOLCANOES

Some half a billion people worldwide live within 60 miles of historically active volcanoes.

VACANCIES

Canada's hurting office market will have to wait another year for relief and even then there will be no quick fixes for the high vacancy rates. National vacancy rates are expected to inch up to 13.8 per cent in 2004 from 13.6 in 2003 per cent before starting to decline in 2005. National rental rates dropped to $14.68 square foot in 2003 from $20.00 the previous year.

SMOKING

While smoking may be declining in the West, it is still growing in developing nations, especially China, which accounts for a third of all cigarettes smoked in the world. Two out of three Chinese men smoke and they are being joined by rising numbers of teenage and woman smokers. According to some estimates, smoking claims one million lives a year in China, a figure forecast to hit three million when today's population of young men hits middle age.

ADVERTISING

Spending on advertising in Canada is expected to rise by 3.4 per cent in 2004, slightly better than the 3.3 per cent for 2003. It is estimated that Canadian spending on major media, newspapers, magazines, television, radio, cinema, outdoor and Internet, will reach US$5.57 billion in 2004, up from US$5.39 billion in 2003. Canadian advertising spending is forecast to continue rising to US$5.75 billion in 2005 and US$5.9 billion in 2006.

CELLS

Cell phone customers in the U.S. can now start switching companies without having to change numbers. After more than a six year delay, customers in the U.S.' 100 largest metropolitan areas are getting what the telecom industry calls "number portability." Customers in other parts of the country have to wait until May, 2004. The ability to switch and keep their numbers is expected to lead to a wave of low-price, feature-rich packages to try to keep existing customers and attract new ones. Portable cell phone numbers are not available in Canada.

FEES

By Enron's own reckoning, the legal and accounting costs of its bankruptcy will exceed $1-billion in 2006. Typically, legal fees in a bankruptcy drop off dramatically after a company gains approval for a plan of reorganization. But the company's budget through 2006 estimates more than $300-million will be spent after Enron confirms its plans, more than any company has ever spent confirming a Chapter 11 bankruptcy plan.

MARMALADE

An Austrian farmer has become the unlikely star of "a marmalade rebellion" against Brussels bureaucracy. He was fined and threatened with jail after trading standards inspectors found him selling apricot marmalade using his grandmother's recipe. According to a European ruling, marmalade can only contain citrus fruits such as lemons, limes and oranges, not apricots or other soft fruits. Such mixtures have to be labelled as jams.

ECONOMY

Canada's economy measures over C$1.2-trillion a year and export sales are more than $430-billion. But there is another economy, Canadian interests operating abroad. Canadians now own $381-billion in fixed assets abroad, foreign affiliates that generate close to $400-billion in annual sales. Even allowing for the possibility that some Canadian foreign affiliates are double-counted as Canadian exports, these sales are significant. Some 1- million people are employed in Canada's foreign affiliates.

GINSENG

A major ginseng producer is leaving B.C. and moving its operation to Ontario. A continuing problem with root rust, which affects the appearance of ginseng, and lower-than-average prices paid for B.C.'s crop are the reasons for the decision. Meanwhile, the world's largest supplier of North American-grown ginseng, another B.C. company, is expanding its B.C. operation.

BEEF

U.S beef exporters moved quickly to fill the void created in world markets when countries closed their borders to Canadian meat following the discovery of a single case of mad cow disease in Alberta last year. U.S exports of beef jumped by 17 per cent following the ban on Canadian beef exports.

CABS

Less than a year after the New York Taxi Commission agreed to run a pilot program allowing seven entertainment companies to offer some form of television service in the back seats of yellow cabs, officials have decided that the program does not work and have ordered sets to be removed. Surveys indicate that those who experienced the units showed either indifference or negativity.

TRENDS

This last Christmas, the Salvation Army went high-tech adding debit machines to its annual kettle drive in parts of Western Canada. According to Interac Inc. Canada has the highest per capita debit-card use in the world. In 2002, Canadians spent $105-billion with debit cards spread over 2.4 billion transactions.

PRESCRIPTIONS

Boston has added its name to the growing list of U.S. cities and states clamouring to buy cheap prescription drugs from Canada, renewing fears of shortages in Canadian pharmacies. Boston councillors approved a plan that calls for the city's 15,000 insured workers to get their prescriptions from Canada by July, 2004. The city hoped to cut $1-million a year from its $61-million drug budget.

TRADE

A recent merchandise trade reconciliation study shows that in 2001, two-way trade between Canada and Mexico was close to $19-billion. Mexico accounted for 3.6 per cent of Canada's imports in 2002, up from 2.4 per cent in 1995. Canada ranked as Mexico's second most important export market in 2001, after the U.S., and Mexico as Canada's fourth most important export market.

CAMERAS

A British company claims to have invented a "smart" changing room that tells shoppers whether or not an outfit suits them. A defence research firm, said to be the inspiration for Q division in James Bond films, has converted weapons technology for the machine. The system uses 3D digital cameras which can take pictures and record measurements from more than 1,000 points on a body. Six cameras scan the shopper and the new outfit, and feed the data to a computer with that can match styles to body shapes.

CONFIDENCE

A new European Commision report on the current expansion which will add 10 new countries to the Union has concluded that the newcomers as still mostly corrupt, disorganized and alarmingly ill-prepared for the cold blast of merket competition.

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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December 2003 Economic Digest - Importing and Exporting

December 2003 Edition

ORGANIC

 
As consumers in the West grow increasingly hungry for organic food, Chinese farmers see a niche market worth cultivating. Sales of organic food in the U.S. alone reached US$11-billion in 2002, are projected at US$13-billion in 2003 and may reach US$20-billion by 2005. In rural China, the word is out that more and more people abroad are willing to pay extra for a healthier and more environmentally friendly diet. Foreign buyers are paying from 30 to 50 per cent more for organic foods. Organic farmers work without the aid of chemical agents to control insect and weeds or to fertilize fields.

MORE ORGANIC

Sales of organic food in the UK have topped US$2-billion for the first time. Demand for organic products is growing by more than 10 per cent a year, faster than any other food and drink sector. One of the biggest rises was in sales of organic baby food, up 20 per cent over the past year. The supermarket share of the organic market has fallen slightly for the first time in five years. Part of the reason is the growing popularity of farmers' markets, farm shops and direct delivery.

MICROBES

Steel and appliance makers are joining the battle against bacteria with antimicrobial doorknobs and coffee makers. There is even a gleaming 11,000-square-foot, bug-free house in Los Angeles filled with stainless steel and appliances covered with an antimicrobial compound called Agnol. The compound contains ions of silver that interact with humidity in the air to continually suppress the growth of bacteria, mould, mildew, fungi and other microbes. Agnol can be combined with other materials for use on clothing, air and water filters or paints.

CITIES

By 2005, there will be 16 mega-cities on the planet. The largest of them will be Tokyo with 27 million people. Urban dwellers, it is predicted, will outnumber the world's rural population for the first time by 2007.

VODKA

This famous Russian drink is celebrating 500 years since it was first distilled by monks. The clear liquid, these days drunk by people around the world, is thought to have been invented in 1503 by Kremlin monks who used it as an antiseptic before they started drinking it. Studies show Russians drink more hard liquor than any other nation in the world.

GRANTS

A witch has received a US$9,000 grant from the Norwegian Industrial and Regional Development Fund to make and sell potions door to door. Her specialty elixirs include night creams for vivid dreams, a day cream to combat indecisiveness and a foot cream to change a user's bad habits. A government official said her business plan was "pretty reasonable and well thought out".

TRADE

The leaders of Canada and China have agreed to continue boosting trade between the two countries. Canada did C$20-billion in trade with China last year. Canada-China trade tripled over 10 years and is expected to double again by 2010. China exported a staggering C$16-billion of the overall sum exchanged between the countries last year. The remaining C$4-billion flowed into the coffers of the 400 companies doing business in China.

TRENDS

Some of Britain's biggest companies are using postal codes to single out customers who telephone call centres on the basis of their wealth. Sophisticated technology recognizes consumers when they call and divert their inquiry to specially trained workers authorized to give better deals to wealthier clients. Poorer customers are made to wait and may have their calls answered by automated computer systems.

FISH

More than 600 new species of fish have been discovered by a major ocean census and thousands more may be lurking undetected. Some 300 scientists from 53 countries are creating a record of all known maritime life. The 10-year Census of Marine Life project will form an open database of raw material available to everyone. So far, 15,304 species of fish have been logged. Between 2,000 and 3,000 are expected to join the list before 2010 and many will be previously unknown species.

WINE

Last year, the United States sold 74 million gallons of wine around the world. Almost all of it was varietal, or identified by the grape it is made from: cabernet, chardonnay, zinfandel or syrah. Australia, Chile and South Africa, all aggressive wine exporters, also identify most of their wines by the grapes from which they are made. Europe, France in particular, has responded by slowly moving to varietal names as well. Europe has traditionally named wines after the region in which they are produced.

ACCIDENTS

11,449 people were killed in the first nine months of this year in China's mines and factories, a jump of nearly nine per cent over the same period last year. This was despite a nationwide safety crackdown. Fatalities were down slightly in accident-plagued Chinese coal mines but the number of deaths in non-mining industries rose by 19 per cent to 5,203. Some experts blame the rise on China's shift to a market-style economy with private employers pushing workers harder and skimping on safety measures.

RICE

Scientists have found the oldest known domesticated rice. The handful of 15,000-year-old burnt grains was found by archaeologists in Korea. Their age challenges the accepted view that rice cultivation originated about 12,000 years ago in China. The rice is genetically different from modern crops which will allow researchers to trace its evolution. Today's rice is the primary food for over half the world's population, with 576,280,000 tonnes produced in 2002. In Asia, rice is responsible for almost a third of all calorific intake.

MUSIC

Research has discovered that music played in restaurants has a direct impact on the amount spent by diners. Classical music will make customers pay more, bland music is likely to have the opposite effect. Classical music increases spending owing to its "connotations of affluence, sophistication and wealth." When people feel more "cultured and sophisticated" they are more likely to spend money on items they think cultured and sophisticated people would order.

CHICKENS

Never before have chickens been so big, in fact, they are about 20 per cent heavier than 50 years ago. To keep pace with demand, the poultry industry has changed its breeding and raising techniques. The average chicken now has a thicker breast, fatter wings and chubbier drumsticks.

FURNITURE

A group of U.S. furniture manufacturers has asked the U.S. government to impose trade duties on Chinese-made bedroom furniture. The petition states that Chinese bedroom furniture is priced so low that the imports should carry duties that could be more than twice the wholesale price of the furniture.

TRUFFLES

A century ago, France produced 1,500 tonnes a year of this delicacy, but the business is in radical decline. Now, even in a good year, only 35 tonnes are produced. Despite advances in the science of truffle production, the cultivation of the fungus is extremely precarious and labour intensive. Truffle farmers are now warning that the summer heatwave has destroyed half their crop. It is likely that by Christmas, the price is likely to reach double its normal level, reaching the record-breaking sum of US$2,000 a kilogram.

SAND

Saudi Arabia has reportedly imposed strict border checks to enforce a ban on the export of sand. There are fears that the growing demand of the construction industry could lead to a shortage in the desert kingdom. Neighbouring Bahrain needs to import large quantities of sand for reclaiming land from the sea. Though sand remains plentiful in Saudi Arabia, the high costs of bagging and transporting make exploiting it difficult.

MISSISSIPPI

This politically conservative state is cultivating a small but burgeoning trade relationship with Cuba's communist-run government. Ships laden with a growing list of U.S. food and agricultural products such as beef, chicken, rice, and cheese sail regularly from Gulfport to Havana. The exports are legal under an exemption to the U.S.' four-decade trade embargo of Cuba and have spurred hopes that Mississippi will get a healthy share of U.S.-Cuban trade if relations are normalized as expected.

ECUADOR

This country is the most biodiverse in relation to its area. Its forests are home to bears, jaguars, a profusion of birds and many rare plants. Yet Ecuador is losing its trees faster than anywhere else in South America. According to official figures, 370,000 acres of primary forest are felled each year; unofficial sources put the figures twice as high. This means that half of the forests have been lost in the past three decades, much of them to illegal logging.

GRAFFITI

Even the Romans had to put up with slogans scratched on the walls of their fine new buildings by ungrateful locals. Now, researchers in Mexico have invented a new type of anti-graffiti paint. Called Deletum 5000, the product will be released in the new year. Its special ingredient are particles of silica. These particles have had both oil-repellant and water-repellant molecules attached to their surfaces. Deletum 5000 can be painted on to concrete, brick, metal, plastic and wood. and will last for ten years.

INFORMATION

Growing net, computer and phone use is driving a huge rise in the amount of information people use and generate. Researchers estimate that every year 800 megabytes of information is produced for every person on the planet. The study found that information stored on paper, film, magnetic and optical disks has doubled since 1999.

CANDY

This year, confectioners in the U.S. are expected to have generated Halloween sales of US$2-billion. Last year, the country's total confectionary sales were US$24-billion, the highest anywhere. Worldwide sales of confectionary and chewing gum are estimated to reach US$112-billion. Chewing gum sales rose by about 18 per cent in Britain last year and gum and mints have shown blistering growth in emerging markets such as China.

GRASS

Cogon grass, a fast-growing Asian weed that initially hitch-hiked to the U.S. as a packing material, is becoming a worse plant scourge than the infamous kudzu vine in many parts of the U.S. South. Cogon, considered one of the world's 10 worst weeds, kills pine seedlings and is a hot-burning fire hazard that squeezes out native plants and ruins habitats for threatened species such as the gopher, tortoise and the indigo snake. It has invaded every continent except Antarctica.

WEDDINGS

Singapore has begun its latest behaviour modification campaign, a "wedding punctuality" drive to encourage guests to turn up on time for a couples big day. The government is providing 400,000 cards for couples to insert into their invitations. Previous programs have included efforts to encourage citizens to smile more, wave at fellow motorists and switch off mobile phones in cinemas.

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