The importance of Compliance

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

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

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

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

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

June 2007 Economic Digest - Importing and Exporting

June 2007 Edition

IMPORTS

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

TUNNEL

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

PURCHASING

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

TRAFFIC

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

WIRELESS

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

ARTS

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

SAVINGS

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

MUSIC

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

POWER

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

WASTE

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

METERS

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

FORTUNE

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

NAVIGATION

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

CHAMPAGNE

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

TRADE

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

BAGS

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

ITALIAN

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

POLLUTION

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

METALS

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

PENCILS

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

OIL

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

PUBLISHING

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

WAITING

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

MEASUREMENTS

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

CHEESE

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

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

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

May 2007 Economic Digest - Importing and Exporting

May 2007 Edition

 LAPTOPS

 

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

BEES

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

FIGURES

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

SIZE

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

PERFUME

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

POLLS

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

PARKING

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

NICHE

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

RESPONSE

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

ACIDS

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

FLIGHTS

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

MOLYBDENUM

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

RICHES

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

STORES

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

FABRIC

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

SEAFOOD

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

ADVERTISING

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

SERVICES

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

MORTGAGES

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

ZONES

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

APPAREL

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

GOLD

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

LIGHTING

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

MEDICINE

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

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

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

April 2007 Economic Digest - Importing and Exporting

April 2007 Edition

TRENDS

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

TOLLS

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

DRIVING

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

GERMS

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

MAGAZINES

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

STUDENTS

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

PEPPERS

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

GLASSES

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

SAFETY

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

OPPORTUNITY

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

COUNTERFEIT

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

BRANDS

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

RESERVES

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

ADVERTISING

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

DNA

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

FINES

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

TAX

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

BULBS

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

LAND

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

ORGANIC

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

SCENTS

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

BENEFITS

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

GAS

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

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

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

March 2007 Economic Digest - Importing and Exporting

March 2007 Edition

DIET

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

CARS

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

LOSS

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

FRUIT

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

SAFETY

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

CHOCOLATE

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

RICH

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

ALLERGIES

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

MORSE

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

PHONES

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

PAPER

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

INNOVATION

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

CHARITY

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

PORK

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

FLAVOURS

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

RIDES

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

COAL

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

TOURISM

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

PROGRESS

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

METERS

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

APPLIANCES

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

CHIPS

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

VEHICLES

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

JETS

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

DEALS

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

ACCIDENTS

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

ENERGY

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

SANDWICHES

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

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

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

February 2007 Economic Digest - Importing and Exporting

February 2007 Edition

GEOGRAPHY

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

ADVERTISING

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

AFGHANISTAN

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

ILLNESS

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

PASSPORTS

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

TOYS

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

WEB SITES

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

BROADBAND

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

MAGNETS

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

FILM

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

OIL

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

CAPS

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

SCREENS

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

COMMERCIALS

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

TRENDS

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

DRINKING

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

CROPS

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

GAS

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

SHIPS

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

CONSTRUCTION

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

MARINAS

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

PARTS

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

HEALTH

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

RVs

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

GREEN

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

ARCTIC

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

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

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

January 2007 Economic Digest - Importing and Exporting

January 2007 Edition

PARKING

 
A new service has started in Paris designed to make life easier for harried drivers by allowing them to find out, in real time, whether there are parking spaces available nearby by using their cellphones or GPS navigation devices. The system will monitor the status of about 120 public parking garages across the French capital. It is reckoned that at certain times of the day, 20 to 25 per cent of vehicles are in search of a parking space. This system should improve the traffic flow. There will be no charge for customers to access the parking database.

TERMINOLOGY

The U.S. government will now refer to the approximately 11 million Americans who face a constant struggle with hunger as people with "very low food security." According to a U.S. Department of Agriculture report, roughly 35 million Americans had difficulty feeding themselves in 2005 and of those some 10.8 million went hungry. The change in terminology has angered groups that are fighting hunger.

CARS

Defying worries about pollution, oil consumption and economic over-heating, China's automotive boom is accelerating as international auto giants and scores of Chinese automotive companies scramble to stake claims. Industry experts say the market will be the world's second largest this year and No 1 within 15 years. The U.S. has sales of between 16.5-million and 17-million vehicles each year. By 2020, vehicle sales in China could hit 20- million. This, and the potential growth in the Indian market are driving a significant shift in investment strategies.

COUNTERFEIT

The Bank of Canada expects dangerous levels of currency counterfeiting to continue for up to three years. Since 2001, counterfeiting in Canada has exploded, breaking historical records and making the country one of the worst in the world for the circulation of phoney bills. The current threshold is 120 phoney bills for every million banknotes in circulation. In 2004, the worst counterfeiting year in Canadian history, there were 470 phoney bills for every million genuine notes in circulation. The proliferation of inexpensive, high-tech copying equipment has made Canada a ripe target for counterfeiters.

OUTSOURCING

IBM is to triple its investment in India to US$6-billion by 2009. With more than 43,000 employees in India, it is the largest foreign employer in the country.

HAIR

Not since the big hairstyles of the 80s has gel and mousse been so popular. According to a recent study, such personal style enhancers have brought the market up to US$7.2-billion a year and is expected to grow to nearly $8.5-billion by 2010. Hair accessories, everything from clips and combs to wigs and weaves, bounced back from sagging sales in recent years posting the largest category gain in 2005 at 8.7 per cent.

DRUGS

More than 120-million people worldwide suffer from high blood pressure with estimates climbing to 210-million by 2015. The value of the hypertensive market in seven major countries, the U.S., Britain, France, Germany, Italy, Japan and Spain totalled about US$35-billion in 2005. Some pharmaceutical companies are now shifting research dollars away from this sector to diseases such as cancer which are more profitable as generic drugs start to invade the cardiovascular market.

COTTON

U.S. scientists have genetically modified the cotton plant's naturally toxic seeds to turn them into a potential food source for millions of people. Researchers have found a way of sufficiently reducing gossypol, a powerful toxin in the seeds to allow then to be consumed by humans. Enough cotton is planted worldwide to supply the protein needs of 500 million people.

BATTERIES

A university in Israel has developed and patented nano-battery technology suitable for military applications. The new battery has a thickness of a human hair, is safer and can recharge more quickly. This battery will eliminate the fire hazards of lithium-based batteries and could mark an alternative source of power for mobile devices.

WIND

Since 1990, the world's fastest- growing energy source has been wind, clocking an average annual growth rate of 26 per cent. According to the Global Wind Energy Council, the industry's worldwide revenues jumped to US$25-billion in 2005 from $11-billion in 2004. Wind turbines generate 59,000 megawatts globally, enough to power 18 million households. The most wind-friendly nations are Denmark, Spain and Germany.

KOREA

In less than 10 years, South Korea has become the 10th largest merchandise-trading nation in the world. Today, with a population of 48-million people and a $960-billion GDP, not only is Korea's domestic market strong, its prospects are growing with its prominence in the emerging North Asia regional economy. Last year, Canada's exports to South Korea totalled $2.8-billion made up of coal, grains, pulp, minerals and chemicals such as potash and aluminum. Also, telecom equipment, industrial machinery, computer technology and agrifood.

TIES

Both India and China are forging closer ties as their rapid development spawns similar problems, such as a thirst for energy and concerns about tens of millions of citizens missing out on rising prosperity. The two countries have agreed not to encroach on each other's oil exploration bids in third countries after India lost out to China on several overseas exploration deals. They are also looking to maximize their negotiating leverage at the World Trade Organization and find agreement on contentious issues such as farm subsidies.

FAKE

German customs officers recently seized what could be the world's largest haul of counterfeit goods, including nearly one million pairs of Nike Inc. sneakers. The customs department in Hamburg has confiscated a total of 117 shipping containers filled with fake goods in the last half of 2006. The equivalent amount of genuine branded goods would have been US$558-million. The goods were shipped from Asia and were destined for recipients at addresses, some of them fictitious, in Italy, Hungary and Austria. Also impounded were fake watches and toys.

WOODLAND

A surprise report out of London says that a wave of reforestation could reverse the global decline in woodlands within 30 years. Analysis of the world's forests shows that many countries that presided over losses in the past are now expanding their forests. The figures reveal that amid widespread concerns over deforestation, the density of mature trees has risen over the past 15 years in 22 of the world's most forested countries. All the gains were found in countries that are relatively rich.

PERU

Canada has signed a foreign investor protection agreement with Peru that safeguards the rights of business in both countries. It's Canada's first such deal in eight years and the first significant deal since Ottawa signed a free-trade deal with Costa Rica in 2001. The Peruvian deal reflects the fact that Canadian investors have poured C$2.3-billion into the country. Ottawa is also talking to Peru, Colombia and Ecuador about launching full-fledged free-trade negotiations. Canada also hopes to resume the stalled talks on a bilateral deal with Singapore this year.

MILK

Kids love chocolate milk and drink plenty of it but at around 12 years of age, their views change. Compared with other soft drinks chocolate milk becomes too wholesome. It's a baby drink and definitely not cool! The Quebec dairy farmers knew they had an image problem and created a new campaign which involved an edgy website that allowed rebellious teenagers to "make" chocolate milk by crushing, chopping or melting chocolate animals. The campaign is credited with helping to boost chocolate milk sales by 17 per cent. That incremental volume represents 1.7-million litres, worth more than C$2.5-million in retail sales.

HIRING

The Canadian government plans to relax the rules on hiring temporary foreign workers to help Alberta and British Columbia cope with labour shortages in their booming economies. The government will allow employers in those provinces to conduct only minimum advertising for workers in Canada before being able to look abroad. The process under the existing Foreign Worker Program was much more extensive and included a long recruitment effort to ensure that no Canadians were available for the work.

AEROSPACE

The annual revenues of the Canadian aerospace industry are C$21.8-billion, which ranks fourth in the world after the U.S., U.K. and France. There are over 500 firms in the industry with 75,000 employees with an average annual salary of $60,000. Exports generated are worth $18.5-billion. Aerospace has an annual trade surplus of $3.5-billion, the only Canadian advanced technology sector with a consistent trade surplus.

WORTH

According to the U.S. government, the value of a university degree is about US$23,000 a year. This is the average gap in earnings between adults with bachelor's degrees and those with high school diplomas.

HOMES

If present trends in house prices and income growth continue, first-time house buyers in Britain will have to pay out $2.14-million to get a foothold on the property ladder in less than 20 years. The average salary in 2024 is projected to be over $300,000 Those in Greater London will see the average first-time buyer property soar above $1-million soonest, within 12 years, if house price inflation is maintained. Prices in Scotland would take the longest to achieve that price.

AUSTRALIA

According to the central bank, the worst drought in the country's history could severely cut Australia's economic growth from 1.9 per cent to 1.15 per cent. Farm output may drop by 20 per cent and farmers spending and investment levels could fall. The wheat crop is forecast to drop from 11.5-million tonnes to 9.6-million tonnes in 2006-07. Global wheat prices recently hit their highest level in ten years after Australian officials said the nations harvest could be reduced by half.

CITIES

Saudi Arabia has unveiled plans to build a US$30-billion "economic city" in the impoverished Jizan region in the south of the country. The city, 117 square kilometres in size, will feature a port, an aluminum smelter, a steel processing plant and a commercial business area as well as housing. Revenue from oil will be partly used to fund the scheme. A Malaysian conglomerate has won a tender to build much of the city. The project is expected to create 500,000 jobs.

RETURNS

With the holiday season over, retailers will now face the ugly duckling of the retail sector, returned goods. These add up to a C$10-billion headache for Canadian merchants and it is getting worse. As many as a third of retailers sales end up as returns, a new study has found. Many merchants are grappling with the dilemma of whether to tighten their return policies and risk losing customers.

MICE

Mice will take part in the 2008 Olympic Games in Beijing as food tasters. Mice show adverse reactions in 17 hours, while laboratory tests take much longer.

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

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

December 2006 Economic Digest - Importing and Exporting

December 2006 Edition

TRANSPORT

 
According to the industry, railways are used in Canada to get 99 per cent of coal to market, 90 per cent of grain and the auto sector output, 75 per cent of aluminum inputs and 70 per cent of chemical industry output. Also, 65 per cent of potash and chemical fertilizers, 50 per cent of pulp and paper and 40 per cent of Canadian steel.

WATER

A scarcity of water is harming the case for using food crops to make biofuels. Surging crude oil prices have strengthened the argument for green energy created by cultivating food crops such as sugar cane to make ethanol fuel and vegetable oils to make biodiesel. In a world where one billion people lack access to clean drinking water, vast quantities are needed to cultivate crops with two thirds of the world's water used in agriculture. It is estimated that 700 tonnes of water are required to grow one tonne of sugar cane.

MAIL

The European Commission is calling for Europe's postal market to be opened up to rivals by 2009 saying that mail delivery companies should not have a legal monopoly on any part of the service. However, postal operators will still have to guarantee a basic service. Many countries have been slow to open up their postal market to competition, and some, especially France, are reluctant to move forward with a reform agreed on nearly 10 years ago. Where it has occurred, in Britain and Sweden for instance, postal service has improved.

AQUACULTURE

Operating revenues generated for Canada's aquaculture industry in 2005 rebounded to an all-time high in the wake of increased production and exports. Record revenues of C$753-million were recorded, up 11 per cent from 2004. This ended two consecutive years of decline. The value of aquaculture exports surged 22 per cent to $515-million with a 25 per cent increase in the value of fresh salmon exports to the U.S.

IMMIGRANTS

The Inter-American Development Bank in Washington, D.C. estimates that 12.6 million Latin American immigrants in the U.S. will send US$45.3-billion home this year. Immigrants in Texas will send $5.2-billion home to their relatives second only to California. Immigrants from Mexico, Central America and South America are estimated to have more than $500-billion in buying power in the U.S. In Texas, immigrants contribute about $52-billion to the local economy, up 64 per cent over 2004. Immigrants in California send home about $13.2-billion. New York ranks third with $3.7- billion bound for Latin America.

SPENDING

Supermarkets in the U.S. continue to boost their Information Technology (IT) spending and will have paid US$9.8-billion to refresh their systems this year. While self-checkout and new hardware systems are big parts of this expenditure, software and external services are driving much of the IT spending growth.

STUDIES

Xiamen University in China is requiring law and business students to take golf lessons to prepare them for a business world where deals are made on the links. Several other institutions offer golf lessons but this is the first one making them a required class. Some students complained the sport is too elitist but supporters defended it as a healthy social activity.

ELECTRICITY

A report by the North American Electric Reliability Council warns that demand for electricity is increasing three times as fast as resources are being added in the U.S., a trend that could shake electric-system reliability in the coming decade. US demand will increase by about 20 per cent from 2005 to 2015. Increasingly, it is left to a deregulated market to determine whether and when new resources are built.

TRENDS

The London black cab, an icon since the Second World War, will be built outside England for the first time to attract new buyers and lower costs. The taxis will be made in Shanghai in 2008 and will sell into the local market. In Britain, 100,000 black cabs have been sold since 1948. About one million taxis and limousines are sold annually in China. The black cab takes its name from a shortened version of cabriolet, a type of carriage available for hire in 19th century London.

LEFT-OVERS

The world's first dedicated doggie bag was invented in 1948. However, the doggie bag concept goes back at least as far as Renaissance England. In those days, hosts used oversized napkins, in part because they ate with their hands, but also to provide large containers for leftovers.

COVERAGE

If it's Sunday and you have a fender-bender in the Church parking lot in the U.S., no problem if you have a FaithGuard insurance policy. The policy is targeted at the nearly 150-million Americans who go to church regularly. There is no deductible as long as you are driving to a place of worship.

AUCTIONS

A model of the Starship Enterprise from the cult science fiction series Star Trek sold recently for US$600,000, 20 times the expected sale price. The 78 inch model made its TV debut in 1987. A replica of Captain James Kirk's command chair fetched $67,000.

THE WEB

The Internet has overtaken newspapers and magazines as Europeans' main source of news and feature-type information. But TV continues to be the dominant medium for most people, with Europeans spending three times as much time watching programmes as going online. On average, Europeans spend four hours per week online

STUDENTS

Over a quarter of New Zealand's university enrolments come from overseas. The U.S. has so many domestic students that it ranks much lower, even though it attracts 21.6 per cent of the world's 2.7-million foreign students. That, however, represents a sharp decline from its share of 25.3 per cent in 2000.

SCREENS

A Cambridge team have developed metal structures that can morph from flat screens into tubes and other shapes. In the future, the structures may form the basis for electronic displays that could be rolled up and placed in a bag or pocket. The scientists believe the material could also be used for re-usable packaging or roll-up keyboards

RENOVATIONS

Canadians continue to be enthusiastic home renovators with a majority saying that they plan to work on their bathrooms, basements or decks in the next two years. A survey of home renovation intentions found that those planning to work on their homes will spend C$8,982 on average, up $148 from last year.

FARMS

The Canada Year Book reports that Canada has roughly as much land devoted to agriculture as in the past, but far fewer farms. The number of farms peaked in 1941 and has been declining ever since.The average farm size in 1941 was 96 hectares, by 2001 it was 273 hectares. Some 32,500 farmers were foreign-born in 2001, comprising 9.4 per cent of total farm operators. The number of Prairie grain elevators declined to 412 in 2002 from 3,117 in 1981.

MANAGERS

A recent staffing company research study shows that the majority of bosses, 92 per cent, consider themselves to be excellent or good bosses. But employees differ with just 67 per cent rating their bosses so favourably. while 23 per cent say their boss is doing a fair job and 10 per cent a poor job.

ORTHOPAEDICS

A number of companies are making trendy crutches, walkers, wheelchairs, casts and slings. Crutches, for instance, now come in titanium and other high-tech metals and a palette of colours including steel blue, teal and magenta; they may be padded with sheepskin, a shapeable gel and given shock absorbing tips of polymer gel.

R&D

An unprecedented surge in research and development spending is helping China catch up with the two long-standing leaders in the field, the U.S. and Japan. R&D spending in China has been growing at a annual rate of about 17 per cent, and is far higher that the 4- to 5 per cent annual growth rates reported for the U.S., Japan and the European Union. China is increasingly making its mark with scientific discoveries and patents held by its scientists. America's share of the global R&D expenditures in 2007 is expected to be 32 per cent.

CHILE

Thousands of street vendors eke out a living in selling hairclips, underwear, pirated Cds and other inexpensive goods on almost every downtown street corner in Chile's capital. A recent study shows the amount of illegal commerce has increased almost 13 per cent in the past year despite government efforts to crack down. That is more than twice Chile's national rate of economic expansion which is about 5 per cent.

CELL PHONES

U.S. mobile-phone subscriptions rose to 213 million in 2005, 28 million more than a year earlier. Average monthly use of U.S. wireless voice services increased 17 per cent to more than 12 hours per user. Average per minute revenue fell to 7 cents from 9 cents.

MARMALADE

Celebrating its 125th anniversary, a U.K. jam maker has produced the world's most expensive marmalade. The Fine Cut Seville Orange Marmalade with Whisky, Champagne and Gold, mixes the finest Seville marmalade with vintage whisky and a dash of champagne garnished with gold leaf. The resulting spread, encased in a custom-made crystal jar, valued at US$2,200, would cost $150 to cover a single slice of toast.

SENSORS

Several major U.S. retailers are going high-tech to learn more about their shoppers'in-store shopping patterns. They are testing infrared sensors to measure customer traffic and generate "audience ratings" for products. The system's infrared beams track shoppers' movements and correlate them with actual sales data producing what could be the first scientific measurement of in-store sales tools.

TRADE

The European Union and India have agreed to negotiate a bilateral deal on trade and investment. The agreement would aim to eliminate 90 per cent of tariffs within seven years of the agreement coming into force. Trade between India and the EU is currently about 40 billion Euros (US$50-billion) each year.

ART

Not just Indian software and outsourcing firms that are benefitting from the rise of the internet. Indian modern art is also on an upward spiral on the web. Prices have risen around 20-fold since 2000. One picture that sold earlier in the year for $1.58-million would have gone for little more than $100,000 four years ago. Worldwide sales of Indian art, worth around US$200-million last year, are expected to have doubled in 2006. It is still a tiny fraction of the $30-billion global art market but is sizeable for an emerging market.

E-BAY

A three-year-old boy whose mother left her computer's E-Bay screen on, managed to buy a US$20,000 car on the auction site from a car dealership using the "buy it now" button.

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

November 2006 Economic Digest - Importing and Exporting

November 2006 Edition

AIRLINES

The CEO of the International Air Transport Association (IATA) has suggested that with over 1,000 airlines, the skies are filled with far too many airplanes. Restrictive foreign-ownership rules and lack of progress in reaching an open skies agreement between Europe and the U.S. are seriously hindering the ability of the industry to slash overcapacity and reshape itself as a healthy business. A Europe-U.S. open skies deal would set the stage for a global liberalization of air transport and generate an estimated annual profit of US$12-billion.

DRINK

For the first time, wine sales have surpassed spirit sales in Canada according to Statistics Canada. Last year, national wine sales reached C$4.2-billion compared with $4-billion for spirits. There is a growing preference among many Canadians for premium-priced vintages as well as widely hyped research attributing certain health benefits from modest wine consumption. Beer however, remains Canada's alcoholic beverage of choice with sales of $8.4-billion in 2005.

PARTS

Canada is joining the U.S. and the European Union in launching a trade complaint with the World Trade Organization against China arguing that this Asian economic power is slapping on unfair tariffs when importing Canadian car parts. Canada is a significant supplier of auto parts to China, having shipped about C$265-million on average to China between 2003 and 2005. These tariffs are giving Chinese car parts producers an unfair advantage.

NUTRITION

U.S. consumers are purchasing an unprecedented amount of sports nutrition products having spent nearly US$4-billion on this category last year with spending poised to grow to $4.8-billion by 2010. For many consumers, sports nutrition items represent a hoped-for short cut to better health. Sports bars, drinks and gels make up the largest share of the market with sales of over $3-billion in 2005.

SPEED

Computer giant IBM will build the world's most powerful supercomputer at a US government laboratory. The machine, codenamed Roadrunner, could be four times more potent than the current fastest machine, also built by IBM. The new machine will be able to achieve "petaflop speeds," says IBM. One petaflop is the equivalent of 1,000 trillion calculations per second. Running at peak speed, it will be able to crunch through 1.6 thousand trillion calculations per second.

TRENDS

Britain's biggest supermarket chain has started stocking imported Polish foods like pickled cabbage and vodka to cash in on the wave of workers from Poland since the country joined the European Union. Between May 2004 and June 2006, 265,000 Poles applied successfully for work in Britain, often employed in low-paying sectors such as agriculture and factory work. Some estimates suggest that the real number of Poles working in Britain could exceed one million.

DEVELOPMENT

U.S. golf courses are being ploughed under in record numbers to make way for residential and commercial development. Course openings fell from a peak of 398 in 2000 to 125 last year. During the same period, course closings soared from 23 to 93 in 2005. When courses temporarily closed for renovation are included, the U.S. had fewer golf courses open at the end of 2005 than a year earlier, the first year-to-year drop since 1945.

LIGHT

A Japanese scientist who invented environmentally friendly sources of light has been awarded the Millennium Technology Prize, worth over US$2-million. The award recognizes his inventions of blue, green and white light-emitting diodes (LEDs) and the blue laser diode. Blue LEDs are used in flat screen displays and blue lasers will be in the next generation of DVD players. White LEDs could provide a sustainable, low-cost alternative to lightbulbs, especially in developing countries.

FOOD

The Independent reports that food supplies are shrinking around the globe. New figures show that this year's harvest will fail to produce enough to feed everyone on earth for the sixth time in the last seven years. Humanity has so far managed by eating its way through stockpiles built up in better times, but these are now below danger levels. Both the UN's FAO and the U.S Department of Agriculture estimate that this year's grain harvest will fall for the second successive year.

HOBBIES

Across the U.S., an obscure new hobby is emerging, racing golf carts. People buy old carts for peanuts and bring them up to speed with lift kits, oversized tires, more powerful engines and roll bars. It is estimated that as many as four million Americans may own these vehicles, capable of speeds of up to 50 miles per hour. They are particularly popular in Arizona, California, Georgia and Florida.

STRIPPERS

Five people in China have been detained for running striptease sendoffs at funerals. The once-common events are held to boost the number of mourners as large crowds are seen as a mark of honour.

GLARE

Samsung Electronics has developed a new technology to help solve the problem of bright light keeping cellphone users from seeing the display screen. A device senses the brightness of the ambient light and adjusts the image so that viewers can see what is being shown more easily while outdoors. When indoors, the sensor dims the display's backlight to save power.

FISH

Nearly half the fish consumed in the world are now farmed rather than caught in the wild according to the United Nations. Only nine per cent of the fish consumed in 1980 were farmed, while 43 per cent is farmed today. Farmed fish now amounts to 45.5-million tons a year, worth US$63-billion. Currently, freshwater and marine capture fisheries produce 95-million tons annually of which 60-million tons is destined for human consumption.

CHIPS

Since the 10th century, travellers to Cornwall in the UK have been helped by hundreds of distinctive Celtic crosses carved from rough hewn granite which mark the route. But a recent wave of thefts, fuelled by Cornish nationalism, has prompted officials to adopt a 21st century solution to protect the ancient signposts. They are now being fitted with microchips about the size of a grain of rice which are glued to the crosses before being smeared with dirt to disguise them. If found, a scanner can reveal where the cross came from.

WINE

Organic wines in the U.K are fast gaining more space in wine racks across the country as demand increases from environmentally aware consumers. One chain has seen a 49.3 per cent increase in sales of organic wine in the past year. These wines are being imported from countries such as Chile, France and South Africa.

WEIGHT

The number of overweight people in the world has now overtaken the malnourished for the first time.

COKE

Faced with a slumping demand for its flagship soft drinks, Coca-Cola Co. is stepping outside the cooler and into the hot beverage market, launching a new line of brewed lattes, teas and coffees. Canada is serving as a global test market for Coke's foray into the premium coffee category. The company will sell its coffee concept through existing food service and entertainment customers such as restaurants and movie theatres. Two thirds of Canadians consume coffee daily.

DRIVING

A Chinese women's attempt to teach her dog how to drive proved a costly error as her car crashed into an oncoming vehicle. The lady from inner Mongolia had noticed how fond the dog was of crouching at the wheel and thought it should have a turn at steering while she operated the accelerator and brake.

BUSINESS

Singapore has taken first place as the easiest country to do business in the World Bank's Doing Business 2007 report with Turkey and Hong Kong in second and third places. The report measures the number of days it takes to start a business. The Republic of Congo is the hardest place followed by Brazil and Venezuela. Reform has allowed Georgia to leap from 112th place last year to 37th this year. China has become one of the top-ten reformers by improving investor protection, cutting red tape and establishing credit history for loans.

CONCESSIONS

Canada's largest theatre chain reports that moviegoers spent an average of C$3.72 at concession stands in the first six months of 2006. This represents an eight per cent increase over last year and a 22 per cent jump from 2002. The addition of fast-food kiosks such as frozen yogurt, pizza and specialty coffee shops has driven the trend. Rising concession sales are the fast growing part of the business.

CONNECTIONS

By September of this year, the total number of worldwide cellular connections had reached 2.5-billion, just 12 months after passing the 2-billion mark. Growth is currently running at more than 40-million new connections per month. A quarter of the growth is coming from China and India. Other growth areas include Russia, the U.S., Pakistan, Ukraine, Brazil and Indonesia. It is predicted the next 500-million connections will take 16 months.

NORWAY

So many Norwegians call in sick to work that the government has decided that employers will have to pay a greater share of sick leave costs. In the first quarter of this year, 7.4 per cent of the work force was on sick leave on any given day. Under current rules, employers pay for the first 16 days of sick leave per year, the government welfare system pays the rest.

WASTE

The government of China admitted recently that its water is unfit for drinking and has announced plans to spend US$150-billion over five years on sewage and water treatment facilities. By the end of last year, a total of 278 Chinese cities still had no waste water treatment facilities and pollutants in industrial discharges were often above permitted national standards.

FOOTBALL

Five National Football League teams, led by the Washington Redskins have franchise values above US$1-billion according to Forbes magazine The Redskins have led the list for seven years and are worth $1.423-billion. The New England Patriots are second followed by the Dallas Cowboys, the Texans and the Philadelphia Eagles.

SUGAR

Americans stir, slurp and swallow an average of 45 pounds of sugar and 42 pounds of high fructose corn syrup each year. This works out to a total of 26 teaspoons or 390 calories per day, much of it hidden in carbonated soft drinks.

BRANDS

According to a recent study, private label food and grocery items will make up 28.6 per cent of the market across Europe within the next four years and be worth US$549-billion a year, an increase of 45 per cent from the current $380-billion. Currently, the top private label markets in Europe are the U.K., Germany, France Spain and Italy. The future growth will come from Russia and the rest of Eastern and Central Europe.

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