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Say Yes to Shipping to Canada!

 

Are you a Canadian who wants a store or online store to ship to Canada?
Are you a store or online store located outside of Canada who does not ship to Canada?

This post is for you!

PRO's on selling to and shipping to Canada:
- Canada has one of the highest percentages of its' population online - over 86% of Canadians are online!  (This means they are ready and waiting to buy.)
- Canadians are serious consumers!  Canada relies heavily on international trade for its' consumer base - $486 BILLION worth of items are imported into Canada as of 2013.

CON's on selling to and shipping to Canada:
- Duties and taxes can add cost to the items being purchased
- Many sellers do not tell the Canadian buyer the 'landed cost' at the time of sale - meaning that the Candian buyer ends up with 'sticker shock' when they receve the invoice for duties, taxes and customs fees.
- Courier companies can be known to charge high customs fees. 

Let's look at this from the perspective of the Canadian buyer - here are some examples from Twitter with Canadians asking if the seller will ship to Canada - 

 

(That is just a small sampling - all in one day!)

So there is a demand from Canadians who want to buy from you, the seller!

Why don't companies ship to Canada?  Here's a few examples why -


When a U.S. seller decides to sell to and ship to Canada - it will most likely be a very small percentage of their sales - 10%, maybe 20% of their shipments will go to Canada.  However, those 10% or 20% can be the biggest pain to that seller.  If the Canadian is upset about duties, taxes, customs fees, etc., - they might go back to the U.S. seller and complain about it.  It's too expensive, you didn't tell me about the fees, etc., etc.  The seller then says to themselves "This is such a small percentage of my business - why should I put up with all of this grief?!" 


Well, BorderBuddy has a solution for you!

We want ALL companies to ship to Canada - and we can help!

Here is what BorderBuddy can do for Canadian buyers and U.S. (and other) sellers -
1)  Provide ALL COSTS at the time of sale.  No surprise to the Canadian buyer - no angry calls or emails to the seller.
2)  Provide customs clearance for the Canadian buyer.
3)  Be the U.S. sellers dedicated agent at the border for all things customs and border related.
4)  Provide a flat customs clearance fee for the Canadian buyer and the U.S. seller so there is no guessing on the fees.

Let's work together so you can say YES to shipping to Canada!

Contact us today.

 

 

 


April 2014 Economic Digest - Importing and Exporting

 

April 2014 Edition

WEIGHT


Cutting vehicle weight may be the next advance in reducing the financial and environmental cost of driving. Until now car makers have met a trend towards tougher fuel economy standards worldwide by reducing engine sizes and introducing technology, for example to cut motors when a car is idling. However, one common argument against using lighter weight materials is a feared compromise on vehicle safety.

LIGHTS

Canadians have stepped up their purchases of old-style incandescent light bulbs as buyers stockpile them in the wake of the first phase of a ban on manufacturing the power-guzzling product. Retailers report a jump in sales as a result of a ban on 75-watt and 100-watt bulbs being made or imported into Canada. At the end of the year, 40- and 60-watt bulbs will also come under the ban.

LOSSES

Justice Department auditors in the US have found that the US agency tasked with stopping illegal tobacco trafficking lost track of 420-million cigarettes purchased in under cover operations.

PARKING

The London borough of Westminster has begun installing smart parking sensors. The sensors detect whether a bay is vacant or not. Combined with an app that allows drivers to view a map of parking spaces in real time, it will direct them to an empty space. On average, drivers spend 15 minutes looking for a parking space in the area. It is hoped that the system will cut down both on congestion and carbon emissions.

AID

Japan is pledging more than US$14-billion in aid and trade deals to Africa. Japan's Prime Minister made the announcement during a recent visit to Oman, before going to Ethiopia, Ivory Coast and Mozambique, the three fastest growing economies. This is seen as a step by Japan to compete with China in a new bid for African resources. Africa is expected to be the centre of global economic growth in the coming years.

COINS

Collecting coins used to be more of a hobby, now it's an investment area with people paying millions for coins. At a recent auction in New York, A Brazilian 1922 gold piece sold for US$499,375. An anonymous collector paid $4.4-million for a 1740 Russian coin in Zurich. A two-day sale of Russian and ancient coins in Florida brought in $6.5-million. Unlike larger collectibles such as fine art, antiques, wine and automobiles, coins are easy to store and transport.

BEES

New research shows that in half the European countries, there are not enough honey bees to pollinate crops with the shortage particularly acute in Britain which has only a quarter of the bees required. Scientists believe that a boom in biofuels has sparked a massive increase in the need for pollination. Across Europe though, overall numbers of honey bee colonies increased by seven per cent between 2005 and 2010. But in the same period, areas of biofuel crops like oilseed rape, sunflowers and soybeans increased by almost a third. It is believed that wild pollinators like bumblebees and hoverflies are presently making up the shortfall.

PIGS

The Canadian pork industry is bracing for the arrival of a virus that has killed more than a million young pigs in the United States and caused meat prices to spike. The virus, which is deadly for piglets was found in the US last spring and sent pork prices soaring by 25 per cent. The virus has been reported in 22 states and is predicted to cause a drop in the size of the US herd by as much as three per cent as its spread accelerates. Canada exported more than 5.6-million live hogs and a billion kilograms of pork in 2012, worth about C$3.5-billion.

IMPLANTS

Researchers in Oxford have developed a degradable implant which they say has huge potential to improve surgical success rates. The protective patch, which wraps round soft tissue repairs, will be trialled in patients with shoulder injuries. It is hoped in time this approach could help other patients with other conditions including arthritis, hernias and heart defects.

GOLD

The Swiss National Bank reported that the value of its gold reserves fell by US$17-billion in 2013. Gold prices tumbled last year by 28 per cent, the steepest annual drop since 1981 as investors instead piled into the booming stockmarkets. Switzerland's central bank hold more than 1,000 tonnes of gold. America holds the largest amount of gold in the world, around 8,000 tonnes.

CONGRESS

For the first time, more than 50 per cent of the US Congress are millionaires. The median net worth in 2012 for all current members of Congress in office was US$1,008,767. There are 268 current members with a net worth of $1-million or more, up from 257 members, or 48 per cent, a year earlier. Lawmaker wealth varies from one with an estimated fortune of $464-million built on car alarms to another with $12.1-million in net liabilities related to outstanding debt on loans for his family's dairy farm.

SCOTCH

A new scheme has been launched to protect the Scotch whisky industry from fake or sub-standard products. The verbification scheme set up by the UK government will help consumers identify genuine UK-made products. Producers will have to sign up for the scheme if they want to sell within the European Union. Producers, blenders, bottlers, labellers and bulk importers will have to apply to HM Revenue and Customs if they want to be verified. The Scotch whisky industry is worth around US$8-billion to the Scottish economy and employs over 10,000 people in Scotland.

DIAMONDS

Scientists have discovered compelling evidence that diamonds exists in the icy mountains of Antarctica. They have identified a type of rock in the permanently frozen region that is known to contain the precious stones. However, recovering any Antarctic mineral resources for commercial purposes is currently forbidden.. Diamonds are formed from pure carbon under extreme heat and pressure at depths of about 150k in the Earth's crust and volcanic eruptions bring them to the surface.

VESSELS

A floating vessel that is longer than the Empire State Building is high has taken to the water for the first time. Shell's Prelude was floated in South Korea and when fully built will be the largest floating facility ever built, weighing more than 600,000 tonnes. It will be used in the production of natural gas from 2017 and will operate for 25 years off Australia's north-west coast. The vessel is estimated to cost between US$10-and $12-billion.

TRANSPORTATION

A record crop of wheat and grains in Western Canada in 2013 has highlighted the weakness in the transportation system that moves the commodities from field to foreign markets. The grain industry needs more trains to meet global demand and capitalize on strong prices. One of the problems is that the rise in moving crude oil by rail is creating new competition for track space and locomotives. The rail industry claims the problem is the record crop not oil-by-rail which accounted for just 2 per cent of rail car loads in 2013.

OIL

Under the groves that make southern Italy the world's second largest olive oil producer, geologists have found a more lucrative liquid: Europe's biggest onshore crude oil fields. Basilicata, a mountainous, sparsely populated province in the arch of Italy's boot, holds more than one billion barrels, offering the country a weapon to fight a two-year recession. Italy is to double production raising its output to almost 200,000 barrels a day, making it Europe's third largest oil producer, after the UK and Norway.

ABUSE

US authorities have named Ukraine as the country with the worst record of protecting intellectual property rights. A report by the US Trade Representative says Kiev has failed to fight internet piracy and the use of illegal software. Such software is even being used by government departments. Ukraine has been warned that it could lose trade benefits if it fails to act. The report also raises grave concern about the alleged misappropriation of trade secrets in China.

CLIMATE

An average of 5.3 per cent of annual gross domestic product could be lost in East Asia by the year 2100 if the four countries in the region don't take measure to tackle it, according to the Asian Development Bank. Rising temperatures in China, Japan, Mongolia and South Korea will spur more flooding and tropical storms in coastal areas and make northern agricultural regions more prone to drought. The study underscores the risks of inaction on climate change faced by a region that was responsible for 30 per cent of the world's carbon emissions in 2010.

WATER

A huge water source has been discovered in the arid Turkana region of northern Kenya which could supply the country for 70 years. The discovery of two aquifers brings hope to the drought-hit region. Another aquifer has been found in Namibia, the continent's driest country.

ATMs

Access to traditional financial services such as deposit-taking accounts and automatic teller machines (ATMs), in developing countries has expanded in recent years. Since 2004, the number of ATMs per 100,000 adults has more than doubled to around 22 (compared with over 70 in rich countries). Russia and Brazil have more ATMs relative to their population than other emerging markets.

DISASTERS

The Insurance Bureau of Canada says the estimate of the insured property damage caused by last June's southern Alberta floods is more than C$1.7-billion, the costliest natural disaster in Canadian history. Well in excess of 25,000 claims were filed in the wake of the floods and the final figure is expected to be higher.

SPICES

Europeans had a taste for spicy food at least 6,000 years ago it seems. Researchers have found evidence for garlic mustard in the residues left on ancient pottery shards discovered in what is now Denmark and Germany. The spice was found alongside fat residues from meat and fish.

VEGETARIANS

Ditching meat and fish in favour of a vegetarian diet can have a dramatic effect on the health of your heart. A study of 44,500 in England and Scotland showed vegetarians were 32 per cent less likely to die or need hospital treatment as a result of heart disease. Differences in cholesterol levels, blood pressure and body weight are thought to be behind the health boost. Heart disease kills 94,000 people in the UK each year, more than any other disease, and 2.6-million people live with the condition.

TIMBER

Measures to prevent illegally harvested timber from entering the European Union have come into effect. The new regulation requires importers or sellers of timber and wood products to keep records of the sources of their supplies. Interpol estimates that illegal logging contributes up to 30 per cent of timber in the global market, costing in excess of US$20-billion each year. The EU accounts for 35 per cent of the world's primary timber consumption.

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 2014 Economic Digest - Importing and Exporting

 

March 2014 Edition

VALUE

The prospect of liquefied natural gas plants being built in northern British Columbia has sent assessed values for residential properties soaring in the region. In the District of Kitimat, the average assessed value for a single-family detached home was C$228,000 on July 1st last year, up 26.7 per cent from the previous 2012 evaluation. Across B.C the total value of the assessment rolls climbed a modest 1.35 per cent. Rental vacancy rates in Kitimat hit 40 per cent several years ago, now they are close to zero.

ROADS

Seven European countries, along with Switzerland, are levying fees to use roads for a particular period that tend to favour local drivers over foreign ones, which is against EU rules. In April, Britain will start charging foreign trucks up to US$16 a day to use its roads. Belgium and Latvia are considering similar levies. To get around EU rules, most of these schemes involve taxing all cars and trucks but in effect refunding domestic drivers by reducing vehicle taxes. Recent research shows that truck tolls like these not only harm economic growth but may also damage Europe's competitiveness.

THEFT

Crime in Britain has been falling since the mid-1990s but between 2010 and 2011, the cost of thefts of farm animals has shot up by 170 per cent and were up again last year when about 69,000 sheep were stolen. Over the past three years, US$676,000 worth of livestock, mainly sheep, were stolen in Cumbria. Rustlers target sheep because unlike cattle that have electronic ID tags and passports, sheep simply have ear tags that can be easily removed.

JETS

Ferraris and Rolls-Royces have become common sights in China's cities as a new class of super-rich indulge a growing appetite or luxury, but tight regulation has meant the private jet, the ultimate status symbol of the global elite, remains rare. Recent rule changes, however, indicate that China is preparing to open its skies to private aircraft, a move that may herald the greatest expansion of business and private aviation in the past 30 years.

WATER

Canadian agricultural producers used approximately 1.7-billion cubic metres of water for irrigation in 2012, more than double the amount reported in 2010. Irrigation volumes increased in all provinces, with the exception of British Columbia, where volumes remained the same. Alberta farmers accounted for just over three-quarters of the irrigation water applied to crops in 2012, with B.C. next with 14 per cent of the total. The majority of water was used to irrigate field crops (61 per cent) and forage crops (34 per cent). The remainder was applied to fruit crops (3 per cent and vegetable crops (2 per cent).

FORESTS

Tree loss in one of the world's largest rainforests has slowed according to a recent study. Satellite images of Africa's Congo Basin reveal that deforestation has fallen by about a third since 2000. It is believed that this is partly because of a focus on mining and oil rather than commercial agriculture, where swathes of forest are cleared. Sprawling across the heart of Africa, the Congo Basin rainforest is second only to the Amazon in size. It covers nearly 2-million square kilometres.

FISH

According to a major new study, many European fish stocks are on the road to recovery from overfishing. Many stocks in the northeast Atlantic were being fished sustainably and, given time, should recover. The study examined the status of 57 stocks monitored over 60 years in the northeast Atlantic. However, the status of some stocks, particularly cod, remains precarious.

TAGS

British Airways has announced plans to test reusable luggage tags made from electronic paper. Flight information can be transmitted to the tag via the ticket holder's smartphone, using data from the airline app stored after digital checkin. Currently, operators print off individual paper tags for every bag checked in before each flight. The tags were presently being tested by staff before being made available to travellers late in 2014.

LEAVE

The Canadian government is taking aim at sick leave in the public service where it says the absenteeism rate of 18.2 days a year is more than 2 1/2 times the private sector average. The current system of banked sick days leads to an absenteeism rate well above the private sector. The government plans to change the existing rules which have not been changed since 1970 with tow new programs, a short-term disability system for workers with temporary illness and the long term disability program will be reformed.

OBESITY

There are almost twice as many obese people in poor countries than in rich ones as fat and sugar consumption rises. The Overseas Development Institute puts the number of overweight and obese adults in developing countries at more than 900-million. This compares with 557-million in industrialized countries. Factors behind the increase in obesity include rising incomes and urbanization, which tend to lead to diets rich in animal products, fat, salt and sugar.

PENSIONS

Membership in registered pensions plans (RPPs) in Canada reached 6,114,600 in 2011, up 49,000 from a year earlier. Membership in public sector pension plans rose by 0.6 per cent to 3,160,000 while the number of members in private sector plans increased to 2,954,700. The participation of women in RPPs continued its long-term upward trend. In 2011 total employer and employee contributions to RPPs reached a record high of C$58.9-billion. The market value of assets in RPPs totalled $1.3-trillion, up 4.8 per cent from the previous year.

ANTIBIOTICS

The US food safety regulator is moving to phase out some use of antibiotics in livestock in an effort to curb growing antibiotic resistance in human disease. The FDA has asked pharmaceutical firms voluntarily to relabel their drugs to prevent them being used in healthy animals. In the US food supply, antibiotics are routinely fed to healthy livestock to enable them to gain weight faster. As many as 23,000 Americans a year die from antibiotic-resistant infection.

PULSES

A British company has demonstrated a prototype device capable of stopping cars and other vehicles using a blast of electromagnetic waves. The device uses radio frequency pulses to "confuse" a vehicles electronic systems, cutting its engine. It is believed the primary use would be as a non-lethal weapon for the military to defend sensitive locations from vehicles refusing to stop.

RAILWAYS

Kenya has formally launched a new, Chinese-financed, railway which should extend across East Africa to reach South Sudan, the Congo and Burundi. The first section will link the Kenyan port of Mombassa to the capital, Nairobi, reducing the travel time from 15 hours to about four. It is said to be the country's biggest infrastructure project since independence 50 years ago. The cost of the project will be US$3.2-billion, mostly funded by China.

DAIRY

At 36 trips a year, dairy is one of the most frequently shopped grocery departments in the US. New product dairy introductions are robust at approximately 12,000 to 13,000 products annually. Sales of yogurt projected to 2017 show an anticipated 17 per cent growth (an estimated US$9.1-billion). Yogurt is a growing breakfast and snack category.

GAS

Saudi Arabia's liquefied petroleum natural gas prices are headed for the worst year since the global financial crisis as record exports from the US loosen the Middle East hold on the Asian market. Saudi Arabia's monthly propane contract price, the benchmark for sales to Asia, dropped 9 per cent this year, the biggest loss since 2009. The slump in prices underscores how the North American shale gas boom is affecting energy markets around the world.

WATER

Despite the popularity of beverages such as coffee and soda, water stakes its claim as the top beverage consumed by American adults throughout the day. Although many Americans begin the day with coffee, as the day goes on, water plays a more important role in satisfying beverage needs. Tap and filtered and bottled water is the top beverage at lunch and dinner, followed closely by soft drinks. Younger consumers are less likely to consume water however.

HERDING

Robots could be used in the future to round up cows on dairy farms. A four-wheeled device, known as Rover, has been tested by a team at Sydney University. It was used to move a herd from a field to a dairy. Researchers were amazed how easily cows accepted the presence of the robot. They were not fazed by it and the herding process was calm and effective. Because the robot moved in a steady manner it allowed cows to move at their own speed which was important in reducing lameness among cattle.

TOXIC

Argentina, Indonesia and Nigeria are among the top 10 most polluted places on the planet. This is due to jewellery and other chemical processing. In these extraordinarily toxic places life spans are short and disease runs rampant among the millions of people who live and work there, often to provide the products used in richer countries. In some places in Indonesia, measurements of mercury, a poisonous, potent neurotoxin, used in processing gold are 350 times higher than what is considered safe.

DEBT

The average consumer debt in Vancouver, excluding mortgage, in the third quarter of last year was the highest in Canada at C$40,174. The second highest was Calgary's debt at $37,920. Nationally, the average consumer debt was $27,355. Across Canada, average debt was up 0.83 from the previous quarter and 2.19 per cent from a year ago.

PHONES

A majority of Canadian seniors now own a cellphone but only a small number have made the leap to using a smartphone. Researchers conducted interviews with over 6,000 Canadians to track how technology usage was trending, including among those in the seniors demographic, which was defined as 68 and older. About 61 per cent of the 774 seniors polled said they owned a cellphone, compared with 87 per cent of the younger respondents. Only 13 per cent of the seniors owned a smartphone, versus 63 per cent of the other Canadians polled. The seniors had a very slight preference for Apple’s iPhone but Blackberry’s and Google Android devices were owned in similar numbers.

ACCIDENTS

The annual figures for people dying in car crashes in England and Wales have fallen by 40 per cent in the past 50 years. This is despite the rise in the number of vehicles on the road. Men were more likely than women to die each year. Safety experts said measures including seat belts, speed cameras and curbs on drinking and driving had all helped curb deaths. About 1.3-million people die globally in crashed every year. Current trends suggest road accidents will become the fifth leading cause of death globally by 2030.

CANCER

The cost of cancer to the countries of the European Union is US$107-billion a year, according to recent research into the first EU-wide analysis of the economic impact of the disease. The figures include the cost of drugs and health care as well as earnings lost through sickness or families providing care. Lost productivity, because of work missed through sickness or dying young cost $52-billion.

AGING

In a recent UN report, Sweden ranked first for treatment of the elderly. Afghanistan ranked worst. The report examined the quality of life of the elderly in 91 countries using 13 different indicators.

OPTICS

In 2011, a 75 year old Georgian woman stole some fibre optic cables and cut off the internet to two entire countries.

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 2014 Economic Digest - Importing and Exporting

 

February 2014 Edition

POPULATION


Japan's population declined by a record 244,000 people in 2013. An estimated 1,031,000 babies were born last year, down some 6,000 from the previous year. Meanwhile, the number of people that died last year was 1,275,000, a rise of around 19,000 from 2012. Japan's population has been shrinking for several years. If current trends persist it will lose a third of its population in the next 50 years. A quarter of the population is currently aged over 65 and that figure is expected to reach nearly 40 per cent by 2060.

PANAMA

A consortium constructing a massive expansion to the Panama Canal has threatened to halt work unless US$1.6-billion of cost overruns are paid. Work on the $3.2-billion expansion began in 2009 and construction is due to be completed in June 2015, nine months behind schedule. The majority of work involves building a third set of locks that can accommodate ships that can carry 12,000 containers. At the moment, the biggest ships that can navigate the canal carry 5,000 containers.

ENERGY

Exports of primary energy and energy products produced in Canada increased 5.3 per cent in 2012. Canada exported 73.5 per cent of its crude oil production, 56.5 per cent of its marketable natural gas and 23.3 per cent of its refined petroleum products. Just over 58 per cent of primary energy produced in Canada is destined for export markets, primarily the United States. Ontario, Alberta and Quebec continued to account for most of the energy consumed in Canada.

MAIL

Canada Post's decision to raise stamp prices and shift to community mailboxes will severely effect small businesses and home offices. As of March 1st, the price of a stamp rises to 85 cents, when bought in booklets or rolls, a 35 per cent increase from the current price of 63 cents. This hits small companies at a time when there are few alternatives to sending and receiving cheques by mail. Forty per cent of small businesses send 50- or more pieces of mail a month and 98 per cent use the mail every month.

TRAVEL

Passenger demand in the commercial airline market is expected to rise 31 per cent by 2017 according to an industry survey. The forecast for the 2013-2017 period calls for an increase in passenger numbers to 3.91-billion in 2017 from 2.98-billion in 2012, or almost one billion more passengers. Of the new passengers in the 2013-2017 period, about 292-million will be on international routes and 638-million on domestic runs. The single biggest driver of growth will be China with about 30 per cent of the new passengers.The strongest international passenger growth will come from the Middle East and Asia-Pacific regions.

EXTERMINATORS

Wild pigs are clever and hard to hunt, it can take a day to stalk just one. But they are no match for an aerial drone operated by Louisiana Hog Control, a pest-extermination firm. The remote-controlled aircraft with thermal imaging and a laser pointer. It easily spots the pigs' warm bodies from 4,000 feet and points them out to a hunter on the ground wearing night vision goggles who shoots them. Each year, America's 6-million feral pigs cause an estimated US$1.5-billion of damage to crops, lawns and wildlife.

CREDIT

British working-class families are still paying for Christmas in the summer and one in six middle-income families borrowed money to pay for food, drink and presents last holiday season. The average amount borrowed was US$1,130 and the typical family took 24 weeks to pay back the loan. Meanwhile, close to half the families who borrowed money to celebrate the previous year, still have not finished paying that debt.

STANDARDS

The federal government is being urged to accept European standards for new vehicles which would open the Canadian market to more vehicles and to advanced safety features not now available in Canada. Many offshore-based auto makers have to make their vehicles comply with unique Canadian tests that add costs and delay the entry of some new vehicles or keeps them out altogether. The issue has also arisen recently in the US which is engaged in its own set of negotiations with Europe.

SHIPS

Japanese and Chinese shipyards have their sights on one of the few markets that is not in the doldrums, sophisticated tankers for liquified natural gas, hoping to challenge market leader South Korea. With demand for gas soaring in Asia and a North American gas export boom just over the horizon, China's technical skills are improving and Beijing wants importers to use more ships built at home. It is possible that orders of new LNG carriers in the next five years could be between 100 and 200, depending on how many North American projects come to pass.

ORANGES

A gnat-sized insect, the Asian citrus psyllid, has forced one Florida farm to replace about 1,000 orange trees on its 50-acre farm in the past two years. The bug spreads a disease called citrus greening that causes fruit to shrink and drop early. Florida, the world's largest orange-grower after Brazil, will harvest 121-million boxes of the fruit in the season that began last October, the least since 1990. US consumers spend about US$1.45-billion annually on orange juice.

JOBS

America's employers are expected to bring more jobs home in 2014 now that the country's energy costs and wage growth are lower than in many other countries. Productivity is higher too. Companies in the US are now benefitting from trends that only a few years ago worked against them. The country's average annual hourly manufacturing pay rose just over 4 per cent between 2006 and 2011. China's by comparison shot up 14 per cent and Brazil's hit 18 per cent. America also gets a better deal on energy prices than their global counterparts. US worker productivity has rise almost 5 per cent a year since 1990.

ROBBERIES

The number of robberies on British bank branches has dropped by 90 per cent in the past decade.There were 66 robberies in 2011 compared to 847 in 1992. The drop has been attributed to a raft of innovative technologies making it extremely difficult for traditional robbery tactics to work. A similar trend has been noted in the US where FBI figures for 2012 put the number of bank robberies nationwide at 3,870, the lowest in decades.

SOAP

The US health regulator FDA has warned that antibacterial chemicals in soaps and body washes may pose a health risk. The agency has proposed a rule that would require manufacturers to prove such soaps are safe and more effective against infection than plain soap and water. Manufacturers have until the end of 2014 to submit the results of clinical trials on their products. The new regulations would be finalized in 2016.

FARMS

Annually, the world produces 588-million tonnes of milk, 124-million tonnes of poultry and 59-million tonnes of beef. Europe and the Americas are the world's epicenters of beef production. Cattle are the biggest source of greenhouse gasses, accounting for more than three-quarters of all emissions from global livestock.

MULTIVITAMINS

Two more studies have been published recently knocking the supposed benefits of multivitamins. Millions of Americans spend billions of dollars each year presumably to boost their health and fill gaps in their diets. However, popping the pills do not protect aging men's brains or help heart attack survivors. The government does not recommend routine vitamin supplementation as a way to prevent chronic diseases.

TRUST

The Harris Poll's annual poll of Americans' of how generally honest and trustworthy 19 large industries are reveals that supermarkets are still the most trusted. 30 per cent say they have faith in supermarkets, followed by hospitals, 28 per cent. Tobacco companies are trusted by only three per cent of those polled.

COLOUR

Radiant Orchid has been chosen as Panatone's Colour of the Year for 2014, after studying worldwide trends and is forecast to the breakthrough shade for this year. For more than a decade Panatone's Colour of the Year has influenced product development and purchasing decisions in multiple industries, including fashion, home and industrial design, as well as packaging and graphic design.

PIANOS

The endorsement of famous musicians has not prevented the closure of centuries-old Western piano makers after decades of struggling to compete with less pricy pianos from the Far East. Of Europe's piano-makers, only nine remain of around 300 that were in business in the first half of the 20th century. Cheap pianos from China dominate the market. Of the 493,000 pianos made worldwide in 2012, nearly four-fifths were made there.

PENSIONS

More British pensioners living abroad will be forced to prove they are alive in order to keep their state pensions. The Treasury says it loses millions every year by paying pensions to friends and relatives of the deceased. The government is sending certificates to those who have retired which they have to get countersigned. By sending the forms out to more pensioners more often, the government aims to bring in an extra US$90-million over two years. The push will only apply to countries such as France that do not automatically share information with the UK.

BIKES

Figures from industry bodies indicate that bicycles outsold cars in 26 of the European Union's 28 states in 2012. Italy was typical of many southern European states with 1.6-million bikes bought as against 1.4-million cars.

REINDEER

Increasing demand for reindeer meat is putting pressure on Finland's stocks. Producers have turned down orders from Germany, France and Spain because they are already struggling to cater for the domestic market. Declining production means Finnish herders will sell fewer than 80,000 animals for slaughter this year. A recent request from a Germany company for 100,00 animals was refused. Some processors are already importing carcasses from Russia to help meet demand.

NUTS

Recent food market research finds that nuts are among the top 10 snack-oriented convenience foods for US consumers motivated by health and weight needs. Nuts are a popular snack for breakfast and morning snack but are eaten throughout the day by those who want a nutritious, natural, good-for-you snack. 77 per cent of US households have nuts or seeds on hand.

GRAIN

World production of grains will rise by 7 per cent to a record 2.5-billion tonnes in the 2013-2014 crop year, according to the Food and Agriculture Organization. This will boost global end-season stocks in 2014 by 11 per cent to 568-million tonnes. Coarse grains, mostly maize, will account for the bulk of the increase. American farmers have planted the biggest acreage of maize since 1936.

TAXES

The UK taxman has compiled a list of the most bizarre excuses for sending in a late tax return, including a builder who claimed to be mourning the death of his goldfish and a farmer who had a run-in with a cow. Both were fined $200 for late filing.

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 2014 Economic Digest - Importing and Exporting

 
January 2014 Edition

ELEVATORS
After a decade of development at its laboratory in Kohja, which sits above a 333-metre-deep mineshaft, the Finnish elevator manufacturer Kone announced that it has devised a system that should be able to lift an elevator a kilometre (3,300 feet) or more. This is twice as far as they can go at present. Effectiveness of lifts is one of the main constraints on the height of buildings. Kone's technology replaces the steel cables by which lift cars are presently suspended with ones made of carbon fibres which weigh 45 per cent less than steel.

AFRICA

Nigeria is hoping that a new investment protection treaty with Canada will help double trade with Canada between the two countries by 2015 but particularly outside the African nation's dominant oil industry. Bilateral trade with Nigeria reached C$2.3-billion last year, having doubled since 2006. However, Canadian direct investment totalled just $36-million. The new treaty will provide reassurance for Canadian mining companies that they will not see their investments nationalized.

TRENDS

In the past month, only 3 per cent of Britons used a phone box to make a call. Calls from boxes have fallen by over 85 per cent in the past five years. In rural areas, over 12,000 phone boxes are used for just one call a month and over 70 per cent are losing money. Payphone kiosks in other countries are falling out of fashion too. Almost 100,000 have been removed in France since 2000. In Austria, 30 booths have been converted into charging stations for electric cars. In Japan, an art group in Osaka has converted some into aquariums.

CHARGING

The PowerPot is an ingenious device targeted at campers that allows people to charge a mobile phone while they are cooking. The device hides a thermoelectric generator inside a normal looking cooking pot. When filled with water over a heat source it begins to generate electricity for charging USB devices. A five watt model charges an iPhone twice as fast as connecting it to a computer over USB. The pot is perfect for campers, backpackers and emergency-preparedness people and even has an application for use in developing nations.

CLIMATE

Experts from the Asian Development Bank forecast that climate change could chop an average of 5.3 per cent off annual gross domestic product in East Asia by 2100 if four countries in the area don't take measures to tackle it. Rising temperatures in China, Japan, Mongolia and South Korea will spur more flooding and tropical storms in coastal areas and make northern agricultural regions more prone to drought. China's model of economic growth at all costs has made it the world's biggest carbon emitter and has blanketed cities in smog that can surpass the UN's recommendations by almost 40 times.

W-F

Researchers have tested an underwater w-f network in a lake in an attempt to make a deep-sea Internet. The team say that the technology could help to detect tsunamis, offering more reliable warning systems. They aim to create an agreed standard for underwater communications to make interaction and data-sharing easier. Unlike normal w-f, which uses radio waves, the submerged network technology utilizes sound waves.

SUGAR

A fire in Brazil's largest port has burnt some 180,000 tonnes of raw sugar, damaging six warehouses and pushing international prices to a one-year high. Brazil is the world's main sugar exporter, accounting for nearly half of international sales. This is the biggest fire in the history of the port of Santos, which exported 12.8-million tonnes of sugar in the first eight months of last year. The cause of the fire is still unknown and four other sugar warehouses in the terminal are operating normally.

BEETLES

An invasive species of beetle that has killed tens of millions of ash trees in North America could spread across Europe. The emerald ash borer, first recorded in the Moscow area in 2007 has now become established in surrounding broadleaf woodlands. The pest, which is expected to cost the US economy US$10-billion has spread up to 25 miles each year has now been found 235k west and 220k south of the Russian capital.

PROSPECTING

Scientists have found that gold is found in the leaves of some plants. Researchers from Australia say that the presence of the particles in a eucalyptus tree's foliage indicates that deposits are buried many metres below. They believe that the discovery offers a new way to locate the sought-after metal in difficult-to-reach locations. Using the Australian synchrotron, a vast machine that uses X-rays to probe matter in remarkable detail, they found traces of gold in the leaves, twigs and bark of some trees.

TRADE

America depends less on international trade than many other countries. Its imports and export of goods add up to less than 25 per cent of GDP. China's are nearly 50 per cent and Irelands nearly 90 per cent. It is not because Americans are insular but because the vibrant domestic market is so big. America moved US 20-trillion in merchandise in 2010, or more than 100 per cent of GDP, if trade between cities is counted. The top 20 metropolitan areas count for almost a third of the total. St. Louis and Detroit are busier traders than the Netherlands.

TUNNELLING

A railway tunnel underneath the Bosphorous has opened creating a new link between the Asian and European shores of Istanbul. Work began in 2004 but archaeological excavations delayed the construction. Japan gave US$1-billion towards the $4-billion total cost of the 1.4km tunnel which is designed to withstand earthquakes.

JAPAN

The population across the Japanese archipelago dropped by around 284,000 to an estimated 127.5-million last year. The number of people aged 65 or over surpassed 30-million for the first time, accounting for 24 per cent of the population, in contrast to children aged 14 and under which decreased to a record low of 13 per cent.

SMOKING

A new survey in Ontario and Quebec shows that smoking, the smell of which gets absorbed into carpets, walls and ceilings, can reduce the resale value of a home by nearly 30 per cent. With an average home in Ontario listed at C$369,000 that means a loss of $107,100 for homeowners.

FLAVOUR

The Belgian post office is issuing a new set of stamps that smell and taste like chocolate. More than 500,000 stamps are being printed on special paper with a cocoa-scented varnish and chocolate tasting glue.

CLOTHING

A group of clothing makers say they will stop using fibres made from endangered forests, a move aimed at limiting environmental damage. One third of the 70-million trees cut down each year to make cheap clothing fibres come from places such as Canada's northern boreal forest, the rainforests on the West Coast and Indonesia. Demand for cheap fabric is growing as the world's US$2.7-billion garment industry looks for ways to cut costs while meeting consumer desire for inexpensive clothing.

TASTE

A French restaurant has been forced to turn customers away since it began serving insect-based entrées three months ago. The head chef regularly imports grasshoppers, beetles and water scorpions from Thailand for about US$720 a kilogram which arrive salted and in sealed packages. The dead insects have become the core ingredient in dishes served in the restaurant which has more than doubled its business in less than a month. Last spring, the UN's Food and Agriculture Organization encouraged the practice, citing that insects are a good source of protein, good fats, calcium, zinc and iron.

INFRASTRUCTURE

The Colombian government is seeking to assure Canadian financiers of the safety of investing in its plans to build 8,000 kilometres of roads through the mountainous South American country. Colombia, which has a free-trade agreement with Canada, expects to spend US$25-billion by 2020 on new roads and highways, some of which will be built up and down three mountain ranges to allow easier travel between the capital Bogota and the Pacific coast. It is an ambitions project. By comparison, the expansion of the Panama Canal is a $5-billion project.

AUTOS

The days of Ontario bragging about being the largest automaking jurisdiction in Canada and the United States are coming to an end. Michigan has roared into first place in vehicle manufacturing among states and provinces last year, knocking Ontario off the perch it has enjoyed since 2004. Michigan and some other states have been the biggest beneficiaries of the robust recovery in the US market that has the Detroit Three auto makers rushing to boost production as quickly as they can.

INVENTIONS

A company founded by some Apple employees has redefined the unglamorous smoke detector with a new Internet-connected device. The new product is a smoke and carbon monoxide detector that uses wireless technology. The device has different sensors for smoke and steam (so no more alarms when you are boiling pasta) and can warn residents of rising CO levels with its own speaking voice. And when the battery runs low it sends the owner a message instead of chirping around 3.00am.

ADVERTISING

Because of improved stability in the advertising market, it is expected that global advertising expenditures will have reached US$503-billion in 2013 having risen 3.5 per cent. In Canada, advertising revenues grew by 2.7 per cent to $11.3-billion with spending on Internet advertisements exceeding TV slightly.

TRANSPORT

Oil shipments by train jumped in 2013 as pipelines exceeded capacity. In the first half of 2013, the amount of oil and refined petroleum products transported by rail reached 356,000 carloads, up 48 per cent over 2012. This is the equivalent of 1.37-million barrels per day, nearly 20 per cent of US daily crude production. In Canada, where only 500 carloads were shipped in 2009, 2013 saw about 140,000 carloads shipped, about 286,000 barrels per day, a 280-fold increase in just four years.

DRUGS

Maine's new law that allows for international prescription-drug imports is the first in the US. The Maine State Employees Association has a pending contract with a Canadian broker to provide some 200 brand medications from licensed pharmacies to as many as 13,000 state employees plus their dependents. The contract could save the union's health plan and Maine taxpayers between US$3-million and 5-million a year.

VEHICLES

The new Canada-European trade agreement will provide a boost for European auto makers, who have posted gains in their Canadian market share for the past decade. The key to larger gains is the elimination of a 6.1 per cent tariff that applies to vehicles imported into Canada from outside North America. This will be a major benefit for luxury car makers in Germany and Britain. The tariff will remain in place on vehicles imported from their home countries by Japanese and South Korean manufacturers.

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 2013 Economic Digest - Importing and Exporting

 

December 2013 Edition

 

ORGANICS


According to a recent report, organics now represents C$3.7-billion a year in sales in Canada, a number that has tripled since 2006. This makes the Canadian market for organics the fourth largest in the world. 58 per cent of Canadians buy organic foods weekly with such foods representing 23 per cent of their grocery bill. Organics are the fastest sector of the food industry.

 

ORE

 

Since late 2010, at least five ships loaded with Indonesian minerals have sunk when bound for China. The most recent vessel was carrying nickel ore, a potentially deadly cargo which has accounted for four out of the 20 bulk carriers lost worldwide during 2010-11. The ships were found to have sunk because the cargo had liquified. Nickel ore is dangerous because if it gets too wet, the fine, claylike particles that are often present in the ore, turn to a liquid that sloshes about the holds with such momentum that even a giant ship can capsize.

 

RAISINS

 

According to some, the US Agricultural Marketing Agreement Act of 1937 is the world's most outdated law. Since 1940, raisin farmers have been required to make over a portion of their crop to a government agency called the Raisin Administrative Committee. The committee decides each year how many raisins the domestic market can bear, and thus how many it should siphon off to preserve an "orderly" market. It does not pay for the raisins it appropriates and gives many of them away, while selling others for export.

 

POWER

 

A Canadian entrepreneur is planning a C$1-billion underwater transmission line to take electricity from Ontario to the US northeast. The cable, to run across Lake Erie, would carry surplus electricity to Pennsylvania and on to 13 US states and the District of Colombia, where there is an increasing demand for power, particularly from "clean" sources. The project would deliver Canadian-generated power to the grid that supplies power to 60-million Americans. It will involve laying two six-inch high-voltage cables.

 

TABLETS

 

The fourth quarter of this year will see shipments of tablet computers top personal computers for the first time. Tablet shipments will hit 84.1-million units, compared with 83-million for PCs. The total market for Internet-connected devices of desktops, laptops, smartphones and tablets in 2013 will rise 28 per cent to US$622.4-billion and hit $735-billion by the end of 2015. The growth of smartphones and tablets is making up for a projected decline of 10 per cent of PCs this year.

 

WEALTH

 

Canadian wealth is hitting new heights, though debt still remains a worry. Earlier this year, according to Statistics Canada, household net worth climbed to reach a record C$7.2-trillion. On a per capita basis, net worth rose to $204,800. The 1.9 per cent increase in household net worth was led by gains in equities and pension assets

 

CHEESE

 

Sophisticated cheese flavours and varieties continue to develop a following in the United States. Bolder flavours are the hottest cheese trend as consumers venture beyond younger-aged cheeses to more robustly aged and flavourful ingredient-filled cheeses. The top three fastest growing natural cheeses at retail are manchego, gruyere and gouda. Restaurants are offering more cheese varieties on menus for appetizers, to accent entrées and for desert. Deli cheeses account for 19.8 per cent of deli department dollar sales.

 

POULTRY

 

Between 2011 and 2012, sales in the US of turkey, duck and other specialty birds grew a considerable 6.5 per cent in one year, reaching US$7.1-billion, up from $6-billion in 2008. 84 per cent of Americans surveyed say they eat turkey and 92 per cent eat chicken.

 

BANANAS

 

Climate change could lead to bananas becoming a critical food source for millions of people and could replace potatoes in many developing countries. Cassava and the little known cowpea plant could play increasingly important roles in agriculture. As temperature increase, the world's three biggest crops in terms of calories, maize, wheat and rice will decrease in many countries. Potatoes could also suffer from volatile weather patterns and be replaced by bananas in certain regions.

 

OIL

 

OPEC has acknowledged that technology for extracting oil and gas from shale is changing the global supply picture significantly and that demand for crude will rise more slowly than previously predicted. It is now forecast that shale oil will contribute two million barrels per day (bpd) to global supply by 2020 and three million bpd by 2035. For comparison, two million bpd is equal to the current output of OPEC member Nigeria, which is Africa's top exporter.

 

MOUNTAINS

 

It is being billed as the largest "mountain-moving" project in Chinese history. One of China's biggest construction firms will spend US$2.2-billion to flatten 700 mountains, levelling the Lanzhou area and allowing developers to build a new metropolis. The new area could increase the region's gross domestic product by $27-billion by 2030 and has already attracted $7-billion of corporate investment.

 

COAL

 

The International Energy Agency forecasts that coal will catch up with oil as the world's leading energy source by 2022. Increased demand from India and China are fuelling the push. By 2017, the agency says that global coal consumption will stand at 4.32-billion tonnes of oil equivalent, versus 4.4-billion tonnes for oil itself. However, natural gas offers the best hope for reducing carbon emissions.

 

GRASS

 

New research indicates that a species of invasive grass is making wildfires in the western US larger, hotter and more frequent. A variety of grass called cheatgrass dries out and burns more rapidly than other vegetation. It is believed that this grass has fuelled almost 80 per cent of the largest fires in the American West over the last 10 years. The species gets its name because it grows very early and very quickly and then dies, cheating other varieties out of valuable nutrients.

 

VIEWING

 

In 2012, 12-million Canadian households subscribed to basic television services. Of these, 68 per cent obtained the service from a cable company, 24 per cent from a satellite company and eight per cent from companies that deliver television programming over telephone lines. The average amount spent monthly was C$52.

 

PROSPECTING

 

An amateur prospector in the Australian state of Victoria has astonished experts by unearthing a gold nugget weighing 5.5kg (177 ounces). The man used a handheld metal detector and found the nugget lying 60cm underground. The estimated value of the nugget is $315,000.

 

MERCURY

 

More than 140 countries have agreed on a set of legally binding measures to curb mercury pollution. Mercury can produce a range of adverse human health effects, including permanent damage to the nervous system. Mercury emissions have been increasing recently in several developing countries. Mercury can be released into the environment through a number of industrial processes, including mining, metal and cement production and the burning of fossil fuels.

 

ROADS

 

The EU has spent billions of euros to build roads in sub-Saharan Africa. The EU now finds that poor maintenance by recipient countries is leaving roads in ruins, jeopardising work to reduce poverty and hunger. A recent review shows that despite the US$6.1-billion spent on building modern highways between 1995 and 2011, the investments were less successful than expected because governments failed to follow up with maintenance or enforced weight limits.

 

GPS

 

Researchers in Spain have developed a system they say can greatly improve the accuracy of car sat-navs. It combines a conventional global positioning system (GPS) with those of other sensors, accelerometers and gyroscopes, to pinpoint a car's location to within 2 metres (6ft 6in). The system can be installed cheaply in any car and has the potential to help the emerging driverless car industry. The margin of error of a commercial GPS used in cars is about 15 metres in an open field where the receiver has good visibility.

 

SPAM

 

Since a peak in 2008, the share of e-mails that are junk has steadily declined. In 2011, it fell from 80 per cent to 67 per cent of the global total with spam filters doing their job. Also, police are cracking down on spammers and users are ignoring the spam that does get through. Many spammers have switched to peddling fake handbags and baldness cures via online ads which are often cheaper and more likely to be clicked.

 

LIGHTING

 

France is forcing shops and offices to go dark overnight in a bid to fight light pollution. Under a new law, lights in shop window displays will be turned off at 1am. Interior lights in offices and other non-residential buildings will have to be turned off an hour after the last employee leaves. Exceptions will be made for Christmas and other special occasions. The move is expected to save 250,000 tonnes of CO2, enough energy to power 750,000 French households.

 

WILDLIFE

 

Animals and plants bought to Europe from other parts of the world are a bigger than expected threat to health and the environment, costing at least US$16-billion a year. More than 10,000 "alien" species have gained a foothold, from Asian tiger mosquitos to North American ragweed and at least 1,500 are known to be harmful. Some of them were introduced as early as 77AD by the Romans.

 

SECURITY

 

German security researchers have found that freezing an Android phone for one hour to -10C allowed them to reveal its confidential contents, including contact lists, browsing history and photos. They found that quickly connecting and disconnecting the battery of a frozen phone forced the handset into a vulnerable mode allowing them to copy data on the phone.

 

BEER

 

A new economic impact study has found that the US beer industry, comprising brewers, beer importers, beer distributers, brewer suppliers and retailers, directly and indirectly contributes US$247-billion annually to the American economy. The industry encompasses 2,851 brewing establishments, 3,728 distributers and 576,353 retailers. The beer industry directly employs 1.1-million people paying nearly $31.8-billion in wages.

 

INFRASTRUCTURE

 

A recent survey indicates that a high number of bridges in the United States are structurally deficient. In New York, 2,000 bridges are deficient and badly in need of repair. The estimate of the cost of repairs is US$3.6-trillion. There are 607,380 bridges in the national inventory of which 20,808 are considered to be "fracture critical" which means that they have no structural redundancy.

 

LOST

 

The Royal Mail National Return Centre, a vast warehouse in Belfast, holds 20-million "undeliverable" items which have been separated from their owners. Only a fifth of the 20-million lost items are returned successfully.

 

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 2013 Economic Digest - Importing and Exporting

 

November 2013 Edition

LEGO

Denmark's Lego has become the world's second-biggest toy maker after reporting a 13 per cent increase in sales. It generated sales of US$1.8-billion in the first half of this year, overtaking US-based Hasbro. The world's biggest toy maker is Mattel with annual sales of $2.3-billion. On average, each person on earth owns 86 Lego blocks and ten lego sets are sold each second. 400-million Lego figures were sold last year. Lego recently introduced a series of building blocks designed for girls.

JOBS

Older Canadians who can't find higher paying jobs are pushing out students in the low-wage part-time work force. The jobless rate among students 15- to 18- looking for part-time work has soared to more than 20 per cent, the highest on record, as older workers are forced into part-time jobs. Since 2007, employment in the 15-to-18 age group has plummeted dramatically by 22 per cent, well above the 4-per cent drop in that group's population.

SWISS MADE

Switzerland's parliament has taken steps to tighten rules governing how Swiss-made products are labelled. The government has approved a threshold of 60 per cent of the value of manufactured goods in order for them to carry the coveted Swiss Made label. The threshold for most food products has been set at 80 per cent of the product's weight. The new requirements are expected to become law next year.

GENETICS

In 2012, the global dairy-genetics business was worth C$1.5-billion, up 155 per cent since 2006. Canadian exports of dairy animal genetics (bovine embryos, semen and live cattle) totaled $110.3-million and went to more than 100 countries. The Canadian dairy industry generated total net farm receipts of $45.9-billion in 2012.

FISHING

It is a good time to be a fisherman. The global fish-price index of the UN's Food and Agriculture Organization hit a record high earlier this year. Changing consumer diets, particularly in China, explains much of the sustained upwards movement. High oil prices, which increase the cost of fishing and transportation, also add to the price of putting fish on the table. The FAO's price for wild fish nearly doubled between 1990 and 2012 while that of farmed fish only rose a fifth. The amount of wild fish captured globally has barely changed in two decades with a ceiling of about 90-million tons a year.

COMPETITIVENESS

Switzerland and Singapore top the list of the most competitive countries in the world in a global ranking that puts Canada in a distant 14th place. Finland, Germany and the United States round out the top five of this years most competitive countries. In 2009, Canada sat in ninth position. However, Canada fares well in education, efficient financial and labour markets and its strong institutions. Innovation and business sophistication is where Canada has tumbled in the rankings.

BUYING

In 2008, 11.8-billion pieces of mail were sent, in 2012, that figure was 9.8-billion. In 2012, e-commerce spending in Canada was C$21.45-billion, up from C$15.3-billion in 2010. By 2016, e-commerce spending in Canada is projected to be $35-billion. Based on a survey of 4,000 Canadians who shop on line, 37% bought apparel; 35% books and music; 23% consumer electronics; 19% computer hardware and 16% other general merchandise.

BUMPING

Passengers who are denied a seat on overbooked Air Canada flights within Canada may be able to get larger refunds. The Canadian Transportation Agency has upheld an earlier ruling that previous compensation for passengers involuntarily bumped from domestic flights was inadequate. Air Canada passengers who are delayed less that two hours should be compensated C$200. Between two and six hours the compensation rises to $400 and at more than six hours the amount jumps to $800.

STYLE

Japanese apparel stores are testing a new way to attract shoppers: digital mannequins that model the piece of clothing you have just picked off the rack. The system uses an innovative hanger that signals a computer when it is picked up. The computer then displays the clothing on a model on a nearby screen. This technology is part of a trend among bricks-and-mortar retailers who are trying to match the personalized shopping experience provided online.

SERVICE

The upsurge in popularity of food trucks among consumers in the US is threatening the quick service restaurant (QSR). New research shows that about half the respondents in a survey would have ordered from a fast food restaurant had they not obtained a meal or a snack from a food truck. The top reasons consumers gave for using food trucks related to availability of "interesting" foods and convenience, which are the traditional strengths of QSR outlets. 

DEVICES

It is estimated that the market for smartwatches will reach US$9-billion with unit sales of 90-million by 2018. And by the end of this year, global tablet shipments are expected to reach 227-million units. Chinese app users spend 64 per cent of their time on apps developed locally, if more foreign app developers can make apps that catch on in China, there is a great potential there.

HEIGHT 

The average height of European men grew by a surprising 11 centimetres from the early 1870s to 1980, reflecting significant improvements in health across the region. The swift advance may have been due to people deciding to have fewer children in this period as smaller family size has previously been found to be linked to increasing average height. The study analyzed data on height in 15 European countries.

CALLS

The average monthly complaints in the US from consumers who signed up for the Do Not Call List but still are getting telemarketing calls have jumped 63 per cent from 2011. Much of the blame is on a proliferation of computerized robocalls. Illegal robocall operations are taking advantage of increasingly sophisticated technology that has made it much easier to simultaneously send thousands of robocalls costing less than one cent a minute.

RADIO

Despite pressure from online listening services, radio in Canada continues to churn out consistent profits. Last year, Canada's 675 commercial radio stations saw their revenues increase, reaching C$1.62-billion. Profit before interest and taxes increased almost four per cent to $323-million. In 2012, these stations employed 10,050 people and paid $681-million in salaries. FM stations bought in the most money. Eleven stations were started last year bringing the total to 546.

LABELS

Eight meat and livestock groups from the United States and Canada have asked a US court to strike down stricter US meat labelling rules that they say have hurt US processors and Canadian farmers. The suit seeks to undo recent revisions to rules that required retail outlets to label meat according to where it came from. The country of origin labelling rules have led to lower US imports of Canadian cattle and pigs which has hurt Canadian farmers and US processing plants that relied on imported livestock.

HIGHWAYS

The Durango-Mazatlan Highway is one of Mexico's greatest engineering feats. It has 115 bridges and 61 tunnels and is designed to bring people, cargo and legitimate commerce through a mountain range known until now for marijuana, opium poppies and an accident-prone road called the Devil's Backbone. The 230-km highway will link port cities on the Gulf of Mexico with the Pacific and will eventually move five million vehicles a year, more than four times the number on the old road plus more goods and produce from Asia to the Mexican interior. 

HAIR

Venezuela is calling on the police to act against gangs that are stealing women's hair. The thieves sell the hair, sometime stolen at gunpoint, to salons where it is used for extensions and wigs.

ADVERTISEMENTS

A British online broadcaster, along with a German advertising agency, wants to turn bus and train windows into talking advertisements. The company is using technology that beams high-frequency oscillations, or vibrations, through the glass. When a commuter rests their head against a train window, the oscillations are converted into sound through a process called bone conduction, they will hear the message while other passengers remain oblivious. In recent tests, some commuters were annoyed that they could not rest their heads and sleep.

TIME

In 1979 the United Auto Workers (UAW) had more than 1.5-million members and nine of the country's best selling cars were American brands. The Toyota Corolla came eighth, the first time a foreign brand had cracked the top ten. Today, the UAW's membership is around 400,000, and not all are car workers. And of the top selling cars last year, seven were foreign badged. Americans are not only buying foreign cars, they are also making them. Seven of America's 15 most productive assembly plants were foreign owned. 

CARS

Americans are paying record prices for new cars and trucks. The average price of a vehicle in the US hit US$31,252 recently, up almost $1,000 over last year. The sharp increase has been driven by consumers loading cars up with high-end stereos, navigation systems, leather seats and safety gadgets. This buying pattern began about two years ago with low interest rates that let buyers choose pricier cars while keeping monthly payments in check. Add in booming sales of expensive pickup trucks and you get record high prices.

CROPS

Researchers in the key corn-growing state of Illinois are finding significant damage from rootworms in farm fields planted in a rotation with genetically modified corn, a combination of measures that are supposed to protect the crop from pests. Evidence from two Illinois counties suggests that pest problems are mounting as the rootworms grow ever more resistant to efforts to fight them. The Western corn rootworm is one of the most devastating corn rootworm species in North America.

DEBT

An anonymous half-million pound bequest to Britain has mushroomed to 350 million pounds (US$546-million) since it was made 85 years ago. The donor left the money in 1928 but said it should be handed over once Britain had amassed enough funds to pay off its entire national debt, which now totals 1.2-trillion pounds.

POWER

South Korea has switched on a road which can recharge electric vehicles as they drive over it. The project's developer says the 12km route is the first of its kind in the world. Vehicles fitted with compatible equipment do not need to stop to recharge and can also be fitted with smaller than normal batteries. Two public buses are already using the technology.

CENSORSHIP

A man using the British Library's wi-fi network was denied an online version of Shakespeare's Hamlet because the text contained "violent content."

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

October 2013 Economic Digest - Importing and Exporting

 

October 2013 Edition

 METHANE

Scientists say that the release of large amounts of methane from thawing permafrost in the Arctic could have huge economic impacts for the world. Researchers estimate that the climate effects of the release of this gas could cost US$60-trillion, roughly the size of the global economy in 2012. The impacts are most likely to be felt in developing countries and would include flooding, sea level rise and damage to agriculture and human health. However, it is also estimated that 30 per cent of the world's undiscovered gas and 13 per cent of undiscovered oil lie in Arctic waters.

METRO

The Saudi government has announced it will spend US$22-billion on a metro system for the capital Riyadh. The project is said to be the largest public transport initiative in the world. It will have six lines with over 180km of track and will help to boost the economy. Construction will begin next year, with trains running by 2019. Saudi has a lot of spare cash and needs to spend it.

ROYALTIES

China has not paid Hollywood its share of the profits from some of this year's big box office films because of a dispute over a new two per cent tax on foreign films. China's box office revenues increased by 36 per cent to US$2.7-billion in 2012, making it the second-biggest movie market in the world, underscoring its importance as a key market for Hollywood's moviemakers.

NUTRITION

Driven by 77-million consumers of sports drinks and 28-million consumers of nutrition bars in the US, the sports nutrition market has experienced significant growth in recent years. Women dominate the market for nutrition bars, as only 45 per cent of those eating at least one bar in the last 30 days are men, while 55 per cent are women. In contrast, men account for 64 per cent of high-volume users of sports drinks.

CONCRETE

One of the biggest drawbacks of concrete is that it is not as weatherproof as the stone it often substitutes for. Salt and ice routinely turn microscopic fractures in its fabric into gaping holes which let in water. Scientists have now shown that it is possible to mix special bacteria, which releases crack-sealing chemicals into concrete before it is poured, in effect creating self-healing concrete. Another approach is using a protective waterproof polymer that sticks readily to the concrete and forms a seal.

ICE CREAM

Despite the vast array of ice cream flavour varieties available in the US, it turns out that vanilla has staked its claim as the most popular among consumers, followed by chocolate and butter pecan in second and third place with Neapolitan and Rocky Road tied for fourth. However, there is an increasing trend towards frozen yogurt.

GLUTEN

The US Food and Drug Administration has now set a standard for gluten-free claims on food labels, a step that will help the three million Americans with celiac disease and bring uniformity to the US$4-billion market for gluten-free products. Gluten is a composite of starch and proteins found in certain grassy grains like wheat, barley and rye which, when eaten by people, can trigger the production of antibodies that damage the lining of the small intestine.

TUNNELLING

The world's largest tunnelling machine has started drilling under the city of Seattle. The machine is 326 feet long, weighs 7,000 tons and will leave a tunnel nearly 58 feet in diameter. It will take about 14 months to complete the two-mile tunnel which will drill beneath 200 downtown Seattle buildings. The machine was built in Japan, arrived in 41 pieces and is worth US$80-million.

RESEARCH

Spending on research and development (R&D) in Canada's higher education sector increased over the past year to C$11.6-billion. This sector comprises universities and affiliated research hospitals, experimental stations and clinics. Provincially, R&D spending by higher education institutions increased in every province except Prince Edward Island and Saskatchewan. Ontario and Quebec continue to report about two-thirds of R&D spending.

HOUSING

America's housing market is in recovery but home-ownership rates, at 65.1 per cent, are at their lowest since 1995. In the second quarter of this year America's total inventory was 132.8-million units of which over 30 per cent are now renter-occupied. The rental vacancy rate has fallen from 11.1 per cent in 2009 to 8.2 per cent now. This has pushed rents up which could make home-ownership more attractive.

FERRARI

Britain has now overtaken Germany to become Ferrari's biggest market in Europe. The manufacturer delivered 415 cars in the first half of the year, a rise of six per cent, overtaking Germany where 388 cars were sold in the same period. A total of 3,767 vehicles were delivered to dealerships in this period, a rise of 2.8 per cent. Sales in US and Canada were 1,048, a growth of 9 per cent.

BREWING

Non-alcoholic beer is growing in popularity around the world. Last year, 2.2-billion litres was downed, 80 per cent more than five years ago. In the rich world it is mainly consumed by a health-conscious minority, but in the Middle East it now accounts for almost a third of worldwide sales. In 2012, Iranians drank nearly four times as much as in 2007 and consumers in Saudi Arabia, Egypt and the United Arab Emirates have a growing taste for it.

FRUIT

Georgia is famous as a major producer of the peach whose image appears on state license plates. But now the state actually makes more money from the sale of blueberries. The value of blueberry production in Georgia beat the peach crop in 2005 and the gap has grown bigger since then. Blueberries generated an estimated US$94-million for Georgia growers in 2012 making it more than three times as valuable as the $30-million peach crop.

TRASH

Sweden has run out of trash. The country of more than 9.5-million is so big on recycling that only four per cent of all waste generated in the country goes to landfill, an amazing figure when compared to the US where half the garbage goes into landfill. However, this creates a dilemma as the country relies on waste to heat and provide electricity to a quarter of a million homes. Sweden is now importing trash from neighbouring countries including Norway and has considered importing it from the US.

BUILDINGS

Competition to build the country's skyline higher is continuing even as China's economy has slowed and the government reins in credit. The Shanghai Tower will be China's tallest building when completed in 2015 at 632-meters. China completed 22 buildings higher than 200 metres last year, accounting for 33 per cent of the global number, more than any other country. However, the 660-meter Ping An Finance Centre will become China's tallest building when completed in 2016. The tallest building currently is the 492-meter Shanghai Financial Centre.

DINNERS

Surveys indicate that the restaurant supper occasion (as they are called in the trade) lost over 650-million consumer visits since 2006 but will gain 795-million visits over the next decade. Restaurant supper visits have steadily declined since 2006, while supper meals eaten in-home have increased. Per capita annual supper meals eaten in-home increased from 235 in 2006 to 250 in 2012. Conversely, per capita supper meals eaten away from home fell from 67 in 2006 to 61 in 2012.

FREIGHT

Europeans have long pitied Americans for the quality of their passenger trains, but when it comes to moving goods, the US has a well-kept freight network that is the most cost effective in the world. In 2011, the seven largest freight railways had revenues of US$67-billion (up from $47.8-billion in 2009). Net income was $11-billion. By 2035 the demand for rail freight is expected to double with new business coming from moving consumer goods. Truckers are battling high fuel and labour costs, shortages of drivers and congestion.

TRENDS

Falling TVs sent nearly 200,000 US children to the emergency room over 20 years and the injury rate has climbed substantially for these sometimes deadly accidents. Safety experts say better awareness is needed about the dangers, especially the risks of putting heavier, older model TVs on top of dressers and other furniture young children may try to climb on. Most injuries are in children under 5; head and neck injuries, including concussions are the most common.

POLLUTION

Air pollution in Los Angeles has declined due to California's strict vehicle emission controls according to scientists. Despite a three-fold increase in the number of vehicles on southern California roads since 1960, pollution there has declined. In addition, ozone levels have improved though ozone pollution in Los Angeles remains the worst of any American city.

HAY

In some parts of the US, bales of hay have become the focus of a crime spree. Long periods of severe drought and grass fires across much of the western US have forced the price of hay and other livestock feeds to record highs. Some US auctions have reported 800lb-hay bales, enough to feed the average cow for about 20 days, fetching close to US$350 each. Many thieves are stealing one bale at a time hoping farmers won't notice but the more brazen are stealing truckloads.

RACE

Britain is on course to become one of the most diverse countries in the world. Within half a century half the people in the UK will be foreign or from an ethnic minority. This would mean the UK could overtake the US as the world's melting pot with fewer people describing themselves as British or white. One in three babies in England now has a parent who was born abroad. By 2050, non-whites and foreigners could account for 38 per cent of people in the UK.

SNAILS

South Florida is battling a growing infestation of the giant African land snail. The snail is considered one of the most destructive invasive species, feeding voraciously on more than 500 plant species. They can also eat through plaster walls which provides the calcium content they need for their shells. More than 1,000 are being caught each week in Dade County and 117,000 in total since the first one was spotted in 2011.

LOBSTER

In the early days, residents in the Massachusetts Bay Colony found them to be so abundant that they washed up on the beach in two-foot-high piles and people thought of them as trash food, fit only for the poor or to be served to servants or prisoners. Lobster shells around a house were considered to be a sign of poverty and degradation. In the 19th century consumers could buy Boston baked beans for 53 cents a pound, canned lobster sold for 11 cents a pound and it was fed to cats.

RECORDS

A retired pig consultant in the UK has logged every mind-numbing detail in the world's biggest personal diary. It spans 66 years, contains four million words on 21,000 pages in 51 volumes and includes 33,000 photos and weighs half a ton.

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

September 2013 Economic Digest - Importing and Exporting

 

September 2013 Edition

COFFEE

Farmers in Brazil are upset by falling prices. Their beans now fetch around US$106 a 60kg bag, a four-year low and less than half they got two years ago. A reversal soon looks to be unlikely. A third of the world's coffee is grown in Brazil. There are two problems. First, the traditional markets for their wares are saturated. Growth in Europe, America and Japan which between them drink over half the world's coffee is flat. Second, in the parts of the world where demand is growing like China, Indonesia and Brazil itself, drinkers are filling their pots with cheaper beans.

BANKS

The Industrial and Commercial Bank of China (ICBC), with assets of US$160-trillion has now displaced the Bank of America to become the world's biggest bank. China now boasts four of the world's ten biggest banks, (the same number as the United States), whereas Europe and Japan have only one each.

SEAFOOD

Total retail sales of fish and seafood products in the U.S. exceeded US$14.7-billion in 2012, up from $13.3-billion in 2008. However, the industry is at a crossroads. As of 2011, the per capita consumption by Americans was about 15-pounds of fish and shellfish per year. That figure represents a decrease from 15.8-pounds per capita in 2010 which itself was a drop from 16-pounds per capita in 2009.

HEADPHONES

A Glasgow engineer has designed a prototype pair of headphones which can harness solar power to keep mobile devices charged. The headphone band is fitted with a flexible solar cell and the energy generated is stored in two small lithium batteries. The inventor is hoping to raise US$300,000 to get the headphones into production.

COMPOST

Over half of Canadian households (61%) participated in some form of composting activity in 2011, more than double the rate in 1994. Overall, 45% of all households reported composting kitchen waste and 68% of households with a lawn or garden reported composting yard waste. Households in Prince Edward Island (96%) and Nova Scotia (94%) were most likely to have composted.

CHOCOLATE

According to the latest research, just more than half (51%) of adult consumers say that their favourite type of plain chocolate is milk chocolate, followed by 35 per cent who favour dark chocolate and 8 per cent prefer white chocolate. In the last survey in 2011, 57% favoured milk and 33 per cent preferred the dark variety. The better understood health benefits of dark chocolate may be increasing its popularity as more consumers are looking for snack foods that can serve a nutritional function. The chocolate confectionary market has grown 19 per cent from 2007 to 2012 in the U.S.

RICHES

Last year, 12-million people in the world had $1-million or more in investible assets. This is a million more than in 2011. After falling in two of the last five years, their wealth increased by 10 per cent in 2012 to a record $46.2-trillion. America is home to 3.4-million of the rich, Japan (1.9-million), and Germany over one million and account for more than half of the world's wealthy. Canada has about 600,000 of the super rich.

SEEDS

The destruction of tropical rainforests is having an even greater impact on the environment than was previously thought. Scientists have found that deforestation in Brazil is causing trees to produce smaller, weaker seeds that are less likely to regenerate. It is believed that this has been triggered by the loss of large birds from the forests, which have beaks big enough to feed on and disperse the seeds. Brazil's Atlantic rainforest was once home to a vibrant array of plants and animals. With the arrival of sugar and coffee plantations, the forest has been reduced to just 12 per cent of its original size.

TAXES

Taxes on property go back a long way. Ancient civilizations from Greece to China had levies on land. In the U.S. local governments have raised money from property taxes since the colonial eraand in the States they still account for 17% of all government revenue: in Britain and Canada the figure is around 12%. Only 2% of revenue from property taxes is assessed in Germany and Italy and in Switzerland it is just 0.4%.

BEES

A higher than expected loss of honey bees over the winter is causing Canada to reassess whether to open the U.S. border to the importation of packaged bees. Meanwhile, in Ontario, there have been several cases reported of both bees and whole hives being stolen. The same occurred last year both in B.C. and Alberta. In Ontario, honey production contributes C$25-million to the provincial economy.

HOMES

Britons now live in the smallest homes in western Europe with the average one-bed new-build the same size as a Tube carriage. Developers bent on making more profit are now cramming a lounge, kitchen, bedroom and bathroom into just 46 square metres. Overall, the average UK house is 76 square metres, 10 per cent smaller than 30 years ago. The average house in the Netherlands is 115.5 square metres, 53 per cent bigger. British architects are claiming that the lack of space and light in new British homes is causing marriage break-ups, health problems and hold children back at school.

PLASTER

U.S. scientists have designed a super-grip plaster covered with microscopic needles to heal surgical wounds. The "bed-of-needles" patch was inspired by a parasitic worm that lives in the guts of fish and clings on using cactus-like spikes which fixes skin grafts firmly in place without the need for staples. The patch is three times stronger than the materials currently used for burns patients.

CARS

The Royal Automobile Club in the UK has launched a device that will warn motorists about faults in their cars before they break down. The match-box sized device transmits data about the car before and after every journey by slotting it into a cars' computer. The automated system means that drivers then get a phone call, text or email telling them there is a fault with their car.

BHUTAN

This small Himalayan country of 1.2-million people plans to become the first country in the world to turn its agriculture completely organic. It will ban the sales of pesticides and herbicides and rely on its own animals and farm waste for fertilisers. The government expects farmers to be able to grow more, and to export increasing amounts of high quality niche foods to neighbouring India, China and other countries.

GLASS

Murano is a small island near the centre of Venice that attracts five million visitors a year and has been home to glass factories for over 700 years. Recently there has been a shift in taste from elaborate, heavy glass to inexpensive, contemporary designs that go in the dishwasher which has hurt local artisans. More than a third have closed in the past decade. At the bottom end of the market, Chinese glass now does the job more cheaply.

SHRIMP

Thailand is fighting a new disease that has reduced its shrimp output as much as 40 per cent, driving prices as much as 20 per cent higher in major markets and pressuring Western restaurants and retailers. Early mortality syndrome appeared in Thailand, the world's largest shrimp exporter last year after ravaging stocks in China in 2009 and then in Vietnam.

CHERRIES

Okanagan cherry growers in B.C. are looking ahead with an anticipated extra C$20-million in sales annually to China. Some growers have been converting acres of apple tree land into cherry orchards. It costs $30,000 an acre to replant new apple varieties and as little as $15,000 per acre for cherry trees. It is predicted that sales of cherries will be worth $10-million in 2014, increasing to $20-million annually over the next five years. The fruit is considered a luxury item in China where ripe cherries with green stems represent good luck.

THEATRE

Broadway, America's theatre district had a record breaking 2011-12 season with takings of US$1.14-billion.. However, the boost was largely down to rising ticket prices as admissions were down from 12.53-million to 12.33-million. Tourists accounted for 63.4 per cent of tickets sold while international tourists made up 18.4 per cent of all admissions. 67 per cent of audiences were female. Musicals attracted the biggest audiences accounting for $933-million of overall takings. The average price for a musical was $94.85 and $79.54 for a play.

PENSIONS

A giant mountain of 20-million kilos of maturing cheddar is to be used in the UK as security for a pension fund. In the event of the fund running into financial trouble, the trustees will be able to sell blocks of cheddar to make up the shortfall.

WASTE

An American company has developed a technique that it says can make bread stay mould-free for 60 days. The company says it could significantly reduce the amount of wasted bread, in the UK, almost a third of the loaves purchased. Food waste is a massive problem in most developed countries. In the U.S., figures released this year suggest that the average American family throws away 40 per cent of the food they purchase, which adds up to US$165-billion annually.

TIN

Exports of tin by Indonesia, the world's biggest supplier, may exceed earlier estimates by as much as 33 per cent after the government eased a quality rule. Sales will probably total 100,000 metric tons as the amended regulation will allow smelters to boost shipments.

DELAYS

China's major airports have the worst flight delays in the world. According to figures from around the world, Beijing and Shanghai came bottom for on-time flights. Eight of the 10 worst-performing Asian airlines in terms of delays were Chinese carriers. A flight is considered on-time if it arrives or departs within 15 minutes of the scheduled take-off or landing time. Tokyo's Haneda airport topped the list with an on-time performance of 95.04 per cent.

JETS

Demand for bigger, longer-range business jets is increasing again after a fall from grace during the recession. As farflung destinations in Africa and Asia, such as Angola and Mongolia attract more business travellers, corporate jets become more fuel-efficient. As a result, companies are in the market for big-cabin, corporate aircraft for long, intercontinental trips. They also find it cheaper to send larger teams by private jets when so many commercial flights are fully booked and expensive. The industry delivered 129 business jets worldwide in the first quarter of this year.

WINE

A year ago, Canadian law was changed to permit individual purchases of wine across provincial borders. So far, just two provinces, British Columbia and Manitoba, have authorized interprovincial internet and phone sales to individuals.

PROFIT

Two men in Essex, England, were sent to jail for stealing a Henry Moore sculpture which they sold for scrap for US$90. The sculpture was valued at $750,000.

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

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

August 2013 Economic Digest - Importing and Exporting

 

August 2013 Edition

MORE SIZE

Denmark's Maersk Line has unveiled the world's biggest container ship, hoping a new fleet of super-size vessels will deliver savings and return it to profit in an industry suffering from overcapacity, weak economies and cut-throat competition. The 55,000-tonne ship with the length of four football fields is worth US$185-million and is the first of twenty to be delivered to Maersk Line. It will have the capacity to transport 18,270 20-foot containers and will consume approximately 35 per cent less fuel per 20-foot container. Maersk moves 20 per cent of all containers from Asia to Europe and 18 per cent the other way.

TRADE

The UK has announced plans for what could be the biggest bilateral trade deal in history between the European Union and the U.S. worth hundreds of billions of dollars. A successful agreement aimed at boosting exports and driving growth could have a greater impact than all the other world trade deals put together. It is estimated that such a deal could be worth US$150-billion to the EU economy, $120-billion to the U.S. and $127-billion to the rest of the world. The deal will focus on bringing down remaining tariffs and other barriers to trade. Agriculture is expected to be a significant bone of contention.

INVESTMENT

The World Bank is calling on Canadian companies to help reduce extreme poverty by making more investments in the developing world, as development assistance alone cannot do the job of wiping out chronic poverty and that the private sector has much to gain from boosting its presence in struggling countries. About 60 per cent of total mining investment in Latin America comes from Canadian firms. The total annual spending on development assistance is US$125-billion, a pittance compared with the $200-billion per year infrastructure deficit over the next five years in India alone. Ninety per cent of all the jobs created in the world come from the private sector.

CALORIES

Lower-calorie foods and beverages dramatically boosted revenue at 16 US food and beverage companies that account for nearly US$100-billion in annual sales. Between 2006 and 2011, sales of low-calorie products increased more than $1.25-billion, over four times the growth of higher calorie products. These companies had committed to reduce 1.5-trillion calories in food and beverage sales in the U.S. and have achieved the target three years earlier than planned.

RECORDS

In 2006 23 per cent of Canadian doctors were using electronic medical records (EMRs). Now, 56 per cent of family physicians are using them, with an average savings of 3.8 hours per week. 15.6 minutes are saved on average managing a lab report. Last year it is estimated that 4.4-million hours were saved by doctor using EMRs.

WASTE

Tossing out food is a waste of money and water, according to the World Resources Institute, an environmental think-tank. Inside the 1.3-billion tons of food wasted every year worldwide is 45-trillion gallons of water. This represents a staggering 24 per cent of all water used for agriculture.

CONFECTIONARY

In 2011, the global confectionary industry reached almost US$185.5-billion, representing growth of five per cent year over year. The Asia-Pacific region led the market in sales volume with over 3,000 tons of confectionary products and chocolate accounting for more than 55 per cent of total confectionary sales. The US, UK, Brazil, Germany and Russia made up the top five markets in terms of value. This market is expected to be worth $208-billion by 2017.

TECHNOLOGY

Canadian enterprises sold almost C$122-billion of goods and services over the Internet in 2012, double that value of online sales in 2007. Three sectors, manufacturing, wholesale trade and retail trade, accounted for more than 61 per cent of the total value. Overall, 11 per cent of Canadian enterprises made sales of goods or services online in 2012. Volume was highest in the wholesale trade sector at $44.6-billion and the percentage of firms online was highest in the information and cultural industries sector at 35 per cent.

CANALS

Nicaragua is reported to have signed a 100-year concession with a Chinese company to build an alternative to the Panama Canal, a step that could have profound geopolitical ramifications. The US$40-billion project will reinforce Beijing's growing influence on global trade and weaken U.S. dominance over the key shipping route between the Pacific and Atlantic oceans.

BREADWINNERS

Mothers are now the main breadwinners in 40 per cent of American households according to Pew Research. Most of those are single parents, but the big rise is in the share of households in which the wife earns more than her husband, which is now the case in 15 per cent of all households with children. The median family income in such homes is US$80,000, compared with a national median of $57,000 and $23,000 for single mother households. Women's participation in the workforce has been rising for decades but that number has shot up since the 2007 recession.

DRONES

Anti-hunting groups in Britain, conservationists on African game reserves and U.S. animal welfare groups have started using drones to combat poaching and to monitor suspected illegal activities. The cost of unmanned aerial vehicles has dropped so fast in the last year that it has now become cost effective for civilians, rather than only the military, to use them widely. The Sea Shepherd conservation society pioneered the use of UAVs in 2011 to locate the Japanese whaling fleet heading for the Arctic. UAVs can film anything and go anywhere and what cost US$30,000 a few years ago can now be got for $5,000.

POPULATION

India looks set to overtake China as the world's most populous nation from 2028. At that point, both nations will number 1.45-billion people. Subsequently India's population will continue to grow until the middle of the century, while China's slowly declines. The UN estimates that the current global population of 7.2-billion will reach 9.6-billion by 2050. Nigeria's population is expected to exceed that of the U.S. by the middle of the century and could rival that of China by 2100.

PROFITS

The world's 40 largest mining companies saw profits fall 49 per cent last year to US$68-billion during a slump that has stretched into 2013. Weak commodity prices have dragged down the sector which saw volumes rise by six per cent but revenues remain flat.

DAMS

Ethiopia has started diverting a stretch of the Blue Nile to make way for a US$4.7-billion hydroelectric dam that is causing a dispute with countries downstream. The Great Ethiopian Renaissance Dam, which is currently under construction, is part of a $12-billion investment project to boost power exports. The Blue Nile is one of two major tributaries of the Nile, one of the world's longest rivers. Both Egypt and Sudan are objecting to the dam which they say violates a colonial-era agreement which gives them rights to 90 per cent of the Nile's water.

TRENDS

A German cafe is charging customers for the amount of time they spend in the facility instead of charging them for the items they order. Customers are given time-marked wristbands when they enter the cafe. Clocks around the establishment are purposely set to different times to help customers stop thinking about time.

PESTICIDES

Insecticide sales are surging in the U.S. after years of decline as American farmers plant more of their acreage to corn and a genetic modification designed to protect the crop from pests has started to lose its effectiveness. This is a boon for big pesticide makers but it has sparked fresh concerns that one of the most widely touted benefits of genetically modified crops, that they reduce the need for chemical pest control, is unravelling. At the same time, the resurgence of insecticides could expose both farmers and beneficial insects to potential harm.

MENUS

The Angus burger is going away and it may not be the only McDonald's dish on the chopping block. The world's largest restaurant chain has also considered axing Caesar salads, the McSkillet Burrito, the Southers Style Biscuit and steak bagels. The culling is an effort by McDonalds to streamline a menu that has expanded 70 per cent to about 145 items since 2007.

EGYPT

Two years of political upheaval have battered tourism, a motor of Egypt's economy, and lingering uncertainty over the future means it may be years before Egypt regains its place in the sun. In 2010, the last year before Egypt's revolution, a record 14-million tourists arrived and the industry was 13 per cent of GDP and directly or indirectly employed one in seven workers. Arrivals plummeted to 9.5-million in 2011. Hotel occupancy rates are barely 15 per cent in Cairo and below five per cent in Luxor.

FARMS

Equity in Canada's farm sector totalled C$341.4-billion at the end of 2012, up 7.7 per cent from a year earlier. Strong gains in the value of assets outpaced a rise in liabilities. Manitoba recorded the largest percentage increase, up 13.7 per cent to $22.3-billion. Total value of farm assets rose to $408.1-billion while liabilities rose to $66.7-billion. The largest dollar increase was in the value of farm real estate. Growth in the value of crop inventories outweighed a decline in the value of livestock and poultry inventories.

SIZE

Sharp has released what it says is the largest TV ever to go on sale in Europe. The Aquos features a 96-inch screen, trumping the 84-inch screen from LG. Sharp has offered the size in the U.S since 2012, the world's biggest market for jumbo-TVs but believes that there is significant demand in the UK and the rest of Europe for such a set. Eight per cent of all TVs sold in the U.S are sixty inches or larger. In the UK, six per cent of all units sold are over fifty inches.

ICELAND

It may not be the prospect of cheap fish that has prompted China to sign its first free trade deal with a European nation. The pact will waive most tariffs in the two countries' bilateral trade, which Iceland says was more than US$400-million in 2012. With the Icelandic population a mere 320,000 and no low-tariff entry to other European markets included in the deal, many believe that China's real goal is better access to shipping routes through the Arctic.

PHONES

New research shows that the average smartphone user looks at their phone 143 times per day, which works out to nine times every waking hour, or once every 6.7 minutes.

CHOCOLATE

The maker of Cadbury chocolate is close to introducing heat-resistant bars it can sell at market stalls in Africa and some of the world's hottest places. Mondelez International the maker of Cadburys products, which also makes Oreo cookies, has spent ten years on research and is close to introducing the new snacks to consumers. The product was patented last year and can withstand 40 degrees and not turn to liquid.

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

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