Posted by
Ana Webb on Mon, Apr 01, 2013 @ 08:00 AM
April 2013 Edition
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TRADE
According to the World Bank, the value of exports from developing countries to other developing countries (South-South trade) now exceeds exports from poor countries to rich ones (South-North trade). In 2002, developing countries bought only 40 per cent of total developing country exports, the rest went to rich nations. In 2010 the share was split evenly, now the developing country share is larger. Developing countries have been increasing their role in everything, such as world output and bank loans, and their share of world trade has doubled from 16 per cent in 1991 to 32 per cent in 2011.
WINE
Consumption of wine in Canada is growing three times faster than globally and Canada is projected to be the fifth fastest-growing wine market in the next five years. Between 2007 and 2011, Canadian wine consumption increased by 14.55 per cent, hitting 43.21-million cases in 2011; one case represents 12 bottles. Most of the wine is imported but Canada is now strong on the production side and domestic wines are getting more popular.
WATER
Cotton with a special coating that collects water from fog is a potential solution to providing water in desert regions. Dutch researchers have developed a special polymer treatment for cotton fabric that allows the cotton to absorb exceptional amounts of water from misty air, as much as 240 per cent of its own weight compared with only 18 per cent without the coating. The coated cotton then releases the collected water as it gets warmer. The water is pure and the cycle can be repeated many times.
COFFEE
Changing climate threatens to reduce the flow of coffee which presently fills 1.6-billion cups each day according to the New Scientist. It may not be long before an espresso costs more than a glass of wine. There are some 26-million farmers who depend on coffee to feed their families. The apparently insatiable demand has made coffee the second most traded commodity after oil, with exports worth US$15-billion each year. All that is under threat because the coffee industry is built on a plant that is peculiarly vulnerable to our changing climate.
ADVERTISING
The unique "Find Yourself Here" tourism campaign for Newfoundland has racked up 173 awards so far but is now facing many competitors. Since the campaign began, non-resident visits to the province have risen by 22 per cent and visitor spending is up by 37 per cent. Tourism in the province is set to become a billion-dollar business.
CARS
Honda officials report that the only Chinese-made car on sale in Canada has been a success so far after importing the Fit subcompact from a Honda plant in China for a year. Fit sales grew to 4,736 in 2012 from 2,835 in 2011 helped by the greater availability of the car from China, though Honda could sell more of the cars in Canada if it could get them.
LANGUAGE
Data from the 2011 census reveals that Polish is now the second language in England. The survey of 54.1-million residents of England and Wales shows 546,000 speak Polish making it England's second main language. There are still slightly more Welsh speakers in Wales at 562,000. The next biggest main languages are the south Asian languages of Punjabi, Urdu, Bengali and Gujarati followed by Arabic, French, Chinese and Portuguese.
RICE
A gene that raises rice yields by enhancing root growth and nutrient absorption in low quality soils has been identified in a species of rice in India and successfully introduced into other rice varieties. Scientists and rice breeders have known for years that Kasalath rice is unusually efficient at nutrient absorption but have only just identified the gene responsible. Using conventional breeding methods they introduced the gene into a few rice types in Indonesia, the Philippines and Japan and found that it raised yield by up to 20 per cent.
ACCESS
According to the United Nations, the world now has nearly as many cellphone subscriptions as inhabitants. At the end of 2011, there were about six billion subscriptions, roughly one for 86 of every 100 people. China alone accounted for 1-billion subscriptions and India should hit the 1-billion mark this year. 2.3-billion people, or about one in three of the world's 7-billion inhabitants, were Internet users by the end of 2011, but there is a strong disparity between rich and developing countries.
CARDS
A credit card with an LCD display and built-in keyboard has been launched in Singapore by Mastercard. The card has touch-sensitive buttons and the ability to create a "one-time password" doing away with the need for a separate device sometimes needed to log in to online banking. Eventually the card will be rolled out globally and could display information such as loyalty or reward points or recent transaction history.
WATER
Mexico and the U.S. have agreed new rules on sharing water from the Colorado River, which serves some 30-million people in the two nations. Under the deal, the US will send less water to Mexico during a drought, while Mexico will be able to store water north of the border during wet years. The Colorado River flows 2,230km from the Rockies into the Gulf of California. The US and Mexico signed a treaty in 1944 governing the allocation of resources from the Colorado River, which supplies seven US and two Mexican states. Mexico will also get US$10-million to repair irrigation channels damaged during a 2010 earthquake.
PATENTS
Last year, 14,205 patent applications for computer-related products and technologies were filed. In 2011 that figure was 11,974 showing an increase of 19 per cent in 2012. Graphene has been a particularly popular patent subject in 2012. It is an ultra-thin carbon layer that can be used to make flexible screens and the potential for graphene in the next generation of devices is huge.
FARMING
Sales of fruits and vegetables by Canadian farmers reached C$1.7-billion in 2012, up 9.2 per cent from 2011. Fruit sales increased 13 per cent to $872-million while vegetable sales rose 5.4 per cent to $874-million. The largest contributors to vegetable sales were carrots with $92-million in sales, tomatoes ($82-million), sweet corn ($72-million) and cabbage ($63-million). Among fruits, sales of cranberries rose 43 per cent and sales of blueberries were up 22 per cent. Unseasonable spring weather caused a drop in apple sales of 32 per cent. Farmers in Quebec, Ontario and B.C. account for more than 88 per cent of Canadian fruit and vegetable sales.
CONNECTIVITY
Cuba has been connected to the global Internet for the first time with a high-speed cable. The US$70-million cable arrived from Venezuela last year but tests on the line have only just begun. Cubans currently rely on expensive and slow satellite links to go online. Government and research institutions are expected to be the first beneficiaries of the new connection.
MELTING
Glaciers in the tropical Andes have shrunk by 30-50 per cent since the 1970s. The glaciers, which provide fresh water for tens of millions in South America, are retreating at their fastest rate in 300 years. The Santa River valley in Peru could be the most affected, its hundreds of thousands of inhabitants rely heavily on glacier water for agriculture, domestic consumption and hydropower. Also, La Paz in Bolivia gets 15 per cent of its water from glaciers, increasing to 27 per cent in the dry season.
CARTELS
After talks in Colombo between Sri Lanka, India, Kenya, Indonesia, Malawi and Rwanda, which account for more than 50 per cent of global tea production, the nations announced the formation of the International Tea Producers' Forum. Efforts will initially focus on sharing knowledge and boosting demand for tea to raise prices, but more sophisticated and controversial methods such as supply controls could be raised in the future. A tea cartel was proposed in 1994 but there was no unity among producing nations at the time.
SPACE
A U.S company is looking to asteroids for precious metals. It hopes to land spacecrafts on asteroids and have them scrape up material for return to Earth for sale. The company has unveiled plans to hunt for small asteroids that pass close to Earth which might one day be mined for their precious resources. It is intended that a series of low cost prospecting satellites will be launched in 2015 on missions of two to six months, with larger spaceships embarking on round-trips to collect materials a year later.
GERMANY
Britain has now become Germany's biggest trading partner. The Anglo-German trade in goods and services in the first nine months of 2012 was US$207-billion with both exports and imports going at double digit rates with British exports to Germany rising 20 per cent. The surge was led by medical equipment, drugs, car components and petroleum goods. It is one of the fastest growing trade relationships in the developed world.
GOLD
India has raised its gold import tax to tackle its trade deficit. The import tax is rising from 4 per cent to six per cent a year, after doubling from 2 to 4 per cent. The government wants to curb imports of gold. India is the biggest importer of gold in the world. Many Indians buy gold jewellery and coins to protect the value of their money in the face of inflation.
TVs
More than 13,000 households across the UK are still using black-and-white television sets according to the TV Licensing authority. London has the biggest number of monochrome licences at 2,715, followed by Birmingham and Manchester. The number of licences issued has dwindled from 212,000 in 2000. A total of 13,202 monochrome licences were in force at the beginning of 2013. Black-and white licenses cost US$77.50 a year and colour $230.
MOVIES
Attendance at movies in the U.S. has risen for the first time in three years, bucking a trend of declining audiences. Takings were a record US$10.8-billion, this growth can largely be attributed to inflation and rising ticket prices. Ticket sales hit their modern peak in 2002 when 1.6-billion tickets were sold. International box office takings for 2013 are predicted to be $23-billion.
MEALS
Newcastle University researchers say that recipes by prominent TV chefs are less healthy than supermarket ready meals. The meals in TV chefs' cookbooks contained more calories, fat, saturated fat and sugar, but less salt. The study, published in the British Medical Journal compared 100 main meals from four TV chefs, who had books at the top of the bestsellers charts to 100 supermarket ready meals. These were then compared to nutritional guidelines set by the World Health Organization. However, it was widely agreed that cooking from scratch was healthier than buying prepared meals.
NOTES
Botanists have pointed out that the maple leaves featured on Canada's new C$20, $50 and $100 notes are Norway maple leaves, not Canadian ones.
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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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Posted by
Ana Webb on Fri, Mar 01, 2013 @ 08:00 AM
March 2013 Edition
GARLIC
Trade in illegal garlic in Europe has become so serious that inspectors have had to resort to forensic data analysis, mobile X-ray machines, DNA labs and a whistleblowing website. Contraband garlic in the EU has been depriving authorities of tens of millions of euros in lost taxes. China produced 18,560,000 tons of garlic in 2010, 82 per cent of the world's output, according to the United Nations. Growers from other countries complain they cannot compete against the cheap, abundant Chinese crop. Garlic smuggling cases are, after meat and sugar, the most common type of agricultural investigations probed in Europe.
THREATS
According to the World Economic Forum, a major systemic financial failure, extreme weather patterns, a water-supply crisis, weapons of mass destruction, cyber attacks and stark income disparity, are just a few of the major risks to the global economy this year. The single most likely risk in the next decade is severe income disparity, according to a study, based on a survey of more than 1,000 experts in industry, government and academia who were asked to assess 50 global risks. This is the second year in a row the widening gaps between the world's richest and poorest citizens was flagged as the most likely global risk.
ADVERTISING
Operating revenues for the Canadian advertising and related services industry rose 2.1 per cent between 2010 and 2011 to C$6.9-billion. The strongest increase was in Alberta with 11.2 per cent and the lowest in New Brunswick with a 16.5 per cent decrease. Among the different industries, the strongest growth was posted by direct mail advertising. As in previous years, firms in Ontario accounted for most of the revenue generated by the industry with 59.9 per cent, followed by Quebec, 23.4 per cent and British Columbia with 8.4 per cent.
CARS
Canadians ignored the anaemic economic recovery and warnings about mushrooming household debt to drive 1,676-million cars off dealers' lots in 2012, with favourable financing conditions propelling the industry to the second-highest sales year on record. The best year was in 2002 with sales of 1,707-million vehicles sold. The strong Canadian dollar helped but over the past decade, new auto prices have dropped an average of one per cent each year.
DIET
Researchers in the Netherlands say that the wriggly beetle larvae known as mealworms could one day dominate supermarket shelves as a more sustainable alternative to chicken, beef, pork and milk. Currently, livestock use about 70 per cent of all farmland. In addition, the demand for animal protein continues to rise globally, and is expected to grow by up to 80 per cent between 2012 and 2050. The researchers found that growing mealworms released less greenhouse gases than producing cow milk, chicken, pork and beef. Growing mealworms takes up only about ten per cent of land used to produce beef, 30 per cent for pork and 40 per cent of the land used to produce chicken to generate similar amounts of protein.
GERMS
According to scientists, brass door knobs, handles and handrails should be brought back into common use in public places to help combat superbugs. Researchers have discovered that copper and alloys made from the metal, including brass, can prevent the spread of antibiotic resistance in bacteria. Plastic and stainless steel surfaces, which are now widely used in hospitals and public settings, allow bacteria to survive and spread when people touch them, Even if the bacteria die, DNA that gives them resistance to antibiotics and survive can be passed on to other bacteria on these surfaces. Copper and brass however, can kill the bacteria and destroy this DNA.
HOUSING
With a surge in record-setting trophy sales to billionaires, the Manhattan apartment market had its strongest year in 2012 since the peak of the real-estate boom in 2008. The number of sales rose by 10.5 per cent compared with a year earlier, even for lower priced apartments and median prices continued to rebound. Five of the 10 most-expensive residential sales on record in Manhattan closed in 2012, including the three most expensive. There were 11 sales at more than US$30-million each, more than double the number in 2011. The record sale was a condominium on West 62nd Street which sold for $88-million.
SAFETY
A smart test road with glow-in-the-dark pavement and weather indicators will be installed by the middle of the year in the Netherlands. The inventor has developed a photo-luminescing powder that will replace road markings, charging up in sunlight to provide up to 10 hours of glow-in-the-dark time once darkness falls. Special paint will also be used to paint markers like snowflakes across the road's surface, images which will become visible when temperatures drop to a certain level, warning drivers that the surface will likely be slippery.
RICE
Thailand is trying to put together a cartel of rice-producing countries. But unlike oil, rice rots. The alliance, which could include Vietnam, Cambodia, Myanmar and Laos may be announced soon with a view to raising rice prices in global markets. The five Asian nations are expected to export 15-million tons of milled rice this year, about 40 per cent of the total global trade in the staple.
PATENTS
China's patent office received more applications than any other country's in 2011, according to the World Intellectual Property Organization, a body that follows 126 patent offices. China received 526,412 applications, exceeding those for America and Japan. Globally, filings rose by 7.8 per cent, breaking the two million mark. China has accounted for 72 per cent of the world's patent-filing growth between 2009 and 2011. The U.S. contributed 16 per cent. Almost one million patents were granted in 2011; Japan has approved the most, but the U.S. has the most patents in force, more than 2.1-million out of an estimated 7.9-million worldwide.
HEMP
Canada's small hemp industry is growing, but still faces hurdles because of its illegal and potent cousin marijuana. Production of hemp is forecast to almost double by 2015, which will translate to about C$100-million to the Canadian economy. About 200 growers across the country have been licensed by Health Canada and can only plant seeds that have been approved by the federal government. Hemp is filled with nutritious Omega 3 and 6 and is used to make breakfast cereals, pretzels, protein powders, salad dressings and lactose-free milk. Fibres from the hearty plant is made into building products, paper and clothes. Hemp oil is used to make cosmetics.
GOLD
Scientists in Southampton, UK., are now able to change the colour of gold, which could have implications for jewellery-making and security features. The technique used by the scientists involves embossing tiny raised or indented patterns on the metal's surface, altering the way that it absorbs or reflects light, thus changing its colour to the naked eye. The gold can now be made red or green, or a multitude of other hues.
METALS
The U.S. Department of Energy is giving US$120-million to set up a new research centre charged with developing new methods of rare earth production. Rare earths are 17 chemically similar elements crucial to making many hightech products, such as phones and PCs. They are also used in wind turbines, solar panels and electric cars. The U.S. wants to reduce its dependency on China, which produces more than 85 per cent of the world's rare earth elements. The U.S. Geological Survey estimates there may be deposits of rare earths in 14 US states.
FOOTBALL
The U.K. Office for National Statistics reports that nearly one million tourists attended a Premier League football match last year, helping to boost the British economy by spending US$1.12-billion. Over 900,000 visitors spent an average of $1,256, an increase from 2010, when 750,000 visitors attended football games. The most popular teams to visit were Manchester United,and Liverpool. London clubs Arsenal, Chelsea and Tottenham were the next most popular.
WINDOWS
There was a lot of interest in the Winbot 7 at the recent Consumer Electronics Show in Las Vegas. It automatically moves along the surface of a window while cleaning and squeegeeing the glass. What makes this robot better than some others is that it uses a vacuum seal to stick onto the window instead of a separate magnet. To clean a window, you plug it into a power port, spray the cleaning pads with a solution, place it against a window and turn it on.
PCs
PC makers sold 89.8-million units worldwide in the fourth quarter of last year, down 6.4 per cent from the same quarter in 2011. For all of 2012, 352-million PCs were sold, down 3.2 per cent from 2011. That was the first annual decline since 2001. A 2.8 per cent growth is forecast for 2013. Analysts now say that people are waiting up to ten years to replace computers rather than five in the past.
TECHNOLOGY
The hotly-anticipated Pebble smartwatch, which was created thanks to US$15-million in crowdsourced funds, is now available. The Pebble has a e-ink display, similar to those found on e-readers, and lasts seven days on one battery charge. The 1.26in screen is able the display a multitude of apps as well as tell the time. On the Pebble website, the cost of the watch is US$149. Wearers can also receive text messages and e-mails through the device.
CHIPS
U.K consumers are going to have to pay more for the 382-million fish-and-chip meals they eat each year after the second wettest year in a century. Most of the country's 10,500 outlets have raised their prices for chips about 10 per cent. A medium portion of chips now costs US$2.42, 30 cents more than a month previously. This may increase again because the new crop won't be ready until summer. The average person in the U.K. eats 104.5-kilograms of potatoes a year, almost twice as many as in the U.S.
CRANES
Four cranes, each 14 stories high and costing US$40-million, have just been unloaded from China in the port of Baltimore and are being prepared for operations. They are part of the city's gamble that when supersize container ships start coming through the expanded Panama Canal in 2015, Baltimore will be one of the few ports on the East Coast ready for their business.
SIZE
San Francisco's building code has been downsized. A pilot program has been approved which will see efficiency units or apartments with reduced square footage requirements. Approval has been given to an ordinance that will change the definition of an efficiency dwelling to include units that are as small as 220 square feet, including the bathroom and closets. The Planning Commission is required to provide an analysis of the smaller living program before it can be expanded. Currently, one bedroom apartments or studios rent for about $3,000 a month.
CONVENIENCE
The idea behind the SwipeTie is simple. a silk necktie with a patch of microfibre fabric (the same stuff used for lens-cleaning cloths) behind the tip of the tie, at the ready to wipe smudges and greasy fingerprints from the screen of a smart phone or tablet.
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
Posted by
Ana Webb on Fri, Feb 01, 2013 @ 08:00 AM
TRADECanada is reviving its long-stalled free trade talks with South Korea as the federal government shifts its negotiating focus from Europe to fast-growing Asia. South Korea is the world's 15th-largest economy. Reaching a final agreement pits the interests of auto-makers who have long fought duty-free entry of Korean vehicles such as Hyundai and Kia to Canada against the Canadian agri-food exporters who are losing market share to rivals in the U.S. and Europe which already have free trade there.COFFEERecord coffee harvests in Brazil, the biggest coffee grower, are compounding a global glut of arabica used by chains like Starbucks Corp. and Dunkin' Donuts Inc. which should lower their costs. Brazilian farmers will reap 50.8-million bags this year, a record for the so-called low season. The harvest reached 55.9-million 60-kilogram bags in 2012, an all time high. Output usually drops in alternate years because of growing cycles. THE FUTUREThe Conference Board of Canada forecasts that by 2025, Canada's exports to the U.S. will drop from about three quarters to about two-thirds. By contrast, Canada's share of goods trade with booming China will expand to almost 7 per cent from 3 per cent currently. The share of Canada's exports to India will more than double and will be roughly equal to Canada's trade with Mexico. Trade with Brazil will also double by 2025. HOMESSome 50-million of China's 230-million urban households live in substandard quarters often lacking their own toilet and kitchen. It is estimated that China will need to build 10-million new apartments each year until 2030. Some may be as small as 160 square feet to be affordable. Recently, larger apartments have been the traditional focus of China's developers which can cost as much as 40 years' income. TVsHigh-definition televisions have rapidly become the norm in U.S. homes. More than three-quarters of American homes now have a high-def TV and nearly 40 per cent have more than one. In 2007, only 11 per cent of homes had a high-def TV. However, there is more of a taste for high definition than a supply of programming. In May of 2011, 61 per cent of all prime-time viewing was done on a high-def set, yet only about 29 per cent of prime-time viewing on networks was in true high definition programming and it was even less for cable networks. Sports and entertainment are the most likely to be seen in high definition. GENDERCanada is losing ground on a key measure of gender equality, sliding out of the world's top twenty list along with the United States. Canada fell three notches in the World Economic Forum's annual list, landing in 21st spot behind the Philippines, Latvia and Nicaragua. The world's most equal societies are still the Nordic ones: Iceland remains in first place followed by Finland, Norway and Sweden. Yemen is in last place in the 135-country list. SPEEDA new U.S. study says that setting a speed limit for cargo ships sailing near ports and coast lines could cut their emissions of air pollutants by up to 70 per cent. Such speed-reduction policies would help reduce the impact of marine shipping on Earth's climate and human health. While marine shipping is the most efficient form of transporting goods with more than 100,000 ships carrying 90 per cent of the world's cargo, engines on large cargo vessels burn low-grade oil that produces large amounts of pollution.LOSSIt is estimated that Canadian retailers lose about C$4-billion a year to theft, accounting errors and damaged products. A Retail Council of Canada report estimates that employee theft has grown to more than 33 per cent of theft-related incidents from 19 per cent in 2008. Theft by external parties, including shoplifters and organized crime dropped to 43 per cent of reported incidents from 65 per cent in 2008. Alcohol, women's apparel, cosmetics and fragrances are among the top stolen items. TECHNOLOGYLettuce is California's main vegetable crop. The state grew US$1-6-billion worth of the plant in 2010 and accounts for more than 70 per cent of all lettuce grown in the U.S., the world's second-biggest exporter of the plant. Lettuce are fussy to grow needing fertilizing, weeding and thinning so they do not grow too close to each other. Now, an application has been developed for a robotic labourer which can be pulled behind a tractor which takes pictures of the plants and identifies weeds and lettuces that are growing too close to each other and kills them but feeds the remaining crops at the same time.LIFEPeople around the world are living longer but with higher levels of sickness. High blood pressure, smoking and alcohol have become the highest risk factors for ill health replacing child malnourishment which topped the list in 1990. The burden of HIV/AIDS remains high accounting for 1.5-million deaths last year.TRENDSThe Latino growth has impacted U.S. grocery trends to the extent that it has redefined American cuisine. Overall, the U.S. market for Hispanic food and beverages exceeded US$8-billion in 2012, an increase of three per cent from the previous year and an increase of eight per cent from 2009. This sector is expected to approach $11-billion in 2017, up 31 per cent from present levels. Given the enormous buying power of Latinos this is a trend marketers cannot afford to ignore.GUMA fifty per cent federal tax on chewing gum is being proposed in Mexico to help pay for the cleaning of chewing gum that people spit out in public places such as sidewalks, plazas and parks.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
Posted by
Ana Webb on Thu, Jan 03, 2013 @ 10:28 AM
LABOUR
Mexico was once feared as a key source of low-cost labour for American and Canadian companies when the NAFTA was signed, then along came China. But now, as China's workers increasingly demand higher wages, Mexico has re-emerged as an attractive place for North American manufacturers. Already, economists are saying that Mexican labour is as cheap as China. Mexico also has the advantage of being close to the United States and sharing a long land border which reduces shipping costs.
PIRACY
Last year, Somali piracy cost the shipping industry an estimated US$7-billion, but the recent fall in the number of successful hijackings has been dramatic. In 2010 there were 219 cases of pirates trying to board vessels and 236 in 2011. This year, the total is just 71. Successful seizures are down from 49 in 2010 to 28 in 2011 and only 13 this year. Piracy has become far riskier and less profitable in the last year or so.
LABELS
The ubiquitous "Made in China" label may be losing some of its power as Americans seek products manufactured at home but it is not just U.S. consumers who want to buy American. Recent research indicates that a rising middle class in China has an appetite for U.S. goods, preferring them to Chinese-made products because of their perceived higher quality and durability. However, a strong majority of consumers in Germany and France prefer products made in their own countries to U.S. goods, and would be prepared to pay more for local goods as well.
TRADE
Canada has been granted observer status in a new Latin American trade bloc. The Pacific Alliance is comprised of Colombia, Chile, Mexico and Peru and boasts about 215-million consumers with a combined GDP of US$2-trillion. While they are not as integrated as the European Union the members have sought to remove restrictions on the movement of goods and services as well as capital and people between them. They have also linked their stock markets, opened joint trade offices and moved to ease visa requirements. Canada has free trade agreements with all four countries but their integration should make it easier for companies to do business there.
SAFETY
The U.S. Transportation Department has proposed a regulation imposing criminal penalties and jail time for truck and bus companies that try to evade regulations by changing their names. The rule would let the agency more effectively keep the small number of carriers with the worst safety records off the road. The Department has been criticized for not being aggressive enough in targeting rogue carriers, especially so-called chameleons who repaint their buses and transfer employees and assets to a new company.
NUMBERS
By this month, there will be 379 Wal-Mart stores in Canada with a total square footage of 4.6-million and employing 90,000 staff. Each day, one million people visit the stores. Wal-Mart is set to open 73 more Canadian stores this year. The larger stores carry about 100,000 items with the small stores around 70,000. This year, Target is planning to open about 130 stores in Canada.
THEFT
The Canadian wireless industry is vowing to combat mobile device theft following months of pressure from the federal telecom regulator, police and politicians. The plan will make it more difficult for criminals to reactivate stolen devices, such as smart phones and tablet computers which should reduce the incentive for theft. Violent cell phone thefts have increased by 71 per cent from 2010 to 2011 in Montreal and 37 per cent in Vancouver in the same period. Stolen phones can sell for hundreds of dollars on the black market.
GROWTH
The fast-growing economies of China and India will soon be worth more than the combined domestic product of the Group of Seven countries. However, it is now predicted that China's GDP growth will slow significantly after 2020 because of a rapidly aging population that will present major policy challenges to the country's leadership. By 2030, more than 35 per cent of China's population will be older than 65 and by 2060, more than 60 per cent of people living in China will be seniors. After 2020, China's economic growth will be overtaken by India and Indonesia.
PRODUCTS
At least three firms paid millions for product placement and marketing rights in the latest James Bond movie Skyfall. Coke is the spy's soft drink of choice (specifically Coca-Cola Zero). French wine maker Bollinger makes Bond's Champagne but the biggest drink-related deal involves Heineken, which reportedly paid US$45-million to convince Bond to ditch his martini. Omega recently released 11,007 watches to mark the 50th anniversary of the franchise and an additional 5,007 limited edition Skyfall watches which have an 007 emblem on the dial.
GAS
The global market for liquified natural gas (LNG) will shift further to Asia by 2020, where high prices will attract new supply sources, while Europe is expected to remain dependent on pipeline supplies and North America will become a marginal LNG exporter. Trading in LNG will rise by over 4 per cent a year between now and 2020 with Asia taking the lion's share. The value of LNG cargoes will rise to around US$325-billion up from $250-billion in 2011, based on global supplies of 460-million tonnes a year. Japan and South Korea are the world's top two buyers of LNG with China and India not far behind.
EPA
It has been learned that both Hyundai and Kia overstated the gas mileage on 900,000 vehicles sold in the past three years, a discovery that could bring sanctions from the U.S. government and millions of dollars in reimbursements to car owners. The results were uncovered in an audit of test results by the Environmental Protection Agency which has ordered the window stickers on the Korean vehicles changed to show that they are one to six miles per gallon lower depending on the model. Hyundai and Kia executives said the higher figures were unintentional errors.
POWER
U.S. researchers are claiming that a device which can harness energy from the heart can produce enough electricity to keep a pacemaker running. Presently, pacemaker batteries need replacing. Tests suggest that the device could produce 10 times the amount of energy needed. If researchers can refine the technology and it proves robust in clinical trials, it will further reduce the need for battery changes.
CONSTRUCTION
The 105-storey hotel which dominates the skyline of the North Korean capital, Pyongyang, may open this year, 26 years after construction began. Started in 1987, the pyramid-shaped building has become known as the "Hotel of Doom" It is the 47th tallest building in the world at 1,100 feet and has the fifth greatest number of floors, 105. Construction was abandoned in 1992 when North Korea suffered an economic crisis. Esquire magazine has called it the "Worst Building in the History of Mankind" which is hideously ugly, even by communist standards.
BANANAS
An international trade dispute over bananas dating back two decades has finally been settled. The European Union and ten Latin American countries signed an agreement to formally end eight separate World Trade Organization (WTO) cases. Latin American banana exporters had long protested against EU tariffs designed to protect small growers in former European colonies in Africa and the Caribbean. The agreement involves the EU reducing tariffs on imported bananas from US$224 per tonne to $145 per tonne within eight years.
TAXES
The Danish government intends to abolish a tax on foods that are high in saturated fats. The measure, introduced a little over a year ago was believed to be the worlds first so called "fat tax." Foods containing more than 2.3 per cent saturated fat, including dairy produce, meat and processed foods, were subject to the surcharge. Authorities are now saying that the tax had inflated food prices and put Danish jobs at risk.
AID
The UK government is to end financial aid to India by 2015. Support worth about US$319-million will be phased out between now and 2015 and the UK will then shift to offering technical assistance. This move reflects India's economic progress and status. Until last year, when it was overtaken by Ethiopia, India was the biggest recipient of bilateral aid from the UK.
OIL
The United States will overtake Saudi Arabia to become the world's top oil producer by 2017. And by 2020, the U.S. will be a net exporter of gas. This will have enormous implications for an abundant supply of cheap gas for its chemical, plastics, glass and steel industries. The U.S. presently imports 20 per cent of its energy needs.
TASTE
With health and global realities important concerns for consumers, some food trends in 2013 will be moving from cutting-edge to mainstream. Sour will be common as palates move beyond sweet, salty and fatty to tart, acidic and bitter. Weight watchers will see chefs exchanging their butter and bacon for broth and beets. Asian foods will infiltrate American comfort foods and vegetables will star as the main dish rather than just a side plate or salad.
GROCERIES
The U.S. grocery market grew to US$645-billion in 2011 from $568-billion in 2007 a growth of 14 per cent. over four years.
DRUGS
Experts say that a global treaty is required to crack down on the deadly trade in fake medicines. Currently, there are more sanctions around the use of illegal tobacco than counterfeit drugs. The World Health Organization (WHO) says more than one in every 10 drug products in poorer countries are fake and that a third of malaria drugs are counterfeit. WHO estimates nearly a third of countries have little or no medicine regulation.
CONCRETE
Experimental concrete that patches up cracks by itself is to undergo testing. The concrete contains limestone-producing bacteria, which are activated by corrosive rainwater working its way into the structure. The new material could potentially increase the service life of concrete, with considerable cost savings as a result. Concrete is the world's most widely used building material, but it is prone to cracks, which means that structures need to be substantially reinforced with steel.
WINE
A poor wine harvest in 2012 is predicted to lead to a shortage of wine across the world. The International Organization for Wine and Vine (OIV) says wine production has fallen to its lowest level since records began in 1975. Hardest hit are wine-makers in Argentina, where output has fallen 24 per cent and in the world's two largest wine producers, Italy and France. Overall production is expected to have been around five billion gallons. Global thirst for wine is growing, especially in the developing world, and demand is expected to outstrip production. The exception is the U.S. where output grew by 7 per cent.
UNEMPLOYMENT
A Swedish town has hit on a novel way to cut its unemployment figures: it is paying young people to move to Norway, and more than 100 have already found work there.
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Thank you for reading the A & A Economic News Digest. For more information visit our websitewww.aacb.com or contact A & A Contract Customs Brokers Ltd. at strehler@aacb.com.
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Posted by
Ana Webb on Sat, Dec 08, 2012 @ 09:37 AM
LUXURY
Chinese shoppers at home and abroad are pushing global sales of luxury items to new heights, helping the sector post its third consecutive year of strong growth since the global recession. A new study forecasts that global luxury goods market for clothing, accessories, jewellery, cosmetics and art will grow ten per cent this year to US$274 billion. This represents an increase from $240 billion in 2011.
VIRUS
Malicious software, or malware, is now being installed on some Windows computers before they even leave the factory. Microsoft said that one out of five computers it tested in China was shipped with malware, the worst being a virus that connects with an illicit network of infected computers. Microsoft blames less reputable manufacturers who preload machines with counterfeit Windows software, which is more vulnerable to attack.
SUGAR
Major U.S. soft drink manufacturers are to start displaying their drinks' calories on vending machines next year and point customers towards less sugary products. This is their latest response to critics who have singled them out for contributing to the U.S. obesity epidemic. The project, which will first launch in Chicago and San Antonio aims to stop the spread of anti soda measures in municipalities after New York City moved to limit portion sizes and other cities contemplate taxes on sugary beverages.
MOTOR HOMES
Winnebago Industries has reported its highest motor home order backlog since the recession, underscoring the recovery of the U.S. recreational vehicle market. The largest motor home maker, known for its luxurious touring vehicles that provide home like comfort on the road, said total order backlog nearly doubled to 1,884 units at the end of the fourth quarter. More staff have been hired to handle the orders and it plans to increase production.
VACATION
A growing number of U.S. companies are helping their workers buy some extra time. Vacation "buy sell" programs which let employees purchase extra time off or sell days they don't expect to use, are increasingly popular. Workers who buy time, pay in instalment via payroll deduction, while those who sell get credits on their pay. Fifty one per cent of firms surveyed now offer paid time off programs compared with 42 per cent in 2009. The median full time worker in the U.S. gets 2.6 weeks vacation a year, but 57 per cent do not use their full entitlement. One Chicago building company has had a buy sell program for 20 years which has become so popular that management has had to cut the maximum purchase to one week.
CEREALS
Kellogg Co. is hoping to turn cereal into a breakfast staple in China. The company currently gets most of its revenue from North America but is seeking to developing markets in China and India where the appetite for convenience foods is growing. China is expected to be the largest food and beverage market within the next five years. This year, the cereal market in China is expected to be worth US$225 million, more than double what it was five years ago.
OIL
Mexico has discovered new deep water oil deposits with estimated reserves of 125 million barrels. The latest find was at about 2,900 meters in the Gulf of Mexico. Earlier in the year, at another well in the same region, reserves of around 300 million barrels were confirmed.
WORTH
According to Forbes, the ten most valuable sports teams in the world are worth a combined US$16 billion, up from $14.4 billion a year ago, an 11 per cent increase. Two soccer teams top the list: Manchester United and Real Madrid. Joint third are the New York Yankees and the Dallas Cowboys. Of the 50 most valuable teams, 41 are American, including all 32 NFL teams.
SUBSIDIES
Government support for agriculture in the mostly rich countries of the OECD amounted to US$252 billion in 2011, or 19 per cent of total farm receipts. The general trend for subsidies is downward: compared with the second half of the 1990s, subsidies fell in all countries. Levels of support vary widely. In Norway, Switzerland and Japan, more than half of gross farm receipts came from subsidies in 2009 11. For farmers in Australia, Chile and New Zealand, it was less than five per cent.
SPAIN
The Saudi Arabia of olive oil is Spain with its baking summers and warm winters and it accounts for half of global production. But the absence of rain this year may reduce total global supply by around 20 per cent compared with a year ago when the world was awash in over three million tonnes of olive oil. Then, high levels of production had pushed prices to a nine year low. Over the past three months, the price of extra virgin olive oil has risen by 50 per cent to about US$3,400 a tonne. Germans are using five times more olive oil and the British ten times the amount of oil compared with 1990.
TREES
The Canadian RCMP has just one member nationwide working full time as a forest crimes investigator. Thieves are targeting specific trees but curly Maple trees at around 120 years old are highly coveted for their unique grain pattern and hard wood and are used for making instruments. Typically, thieves will chop a tree into pieces and sell the raw chunks to export brokers or local businesses. A vehicle load of high quality maple can fetch up to C$6,000 from local mills who process the wood for sale to instrument makers. Cedar trees have also become a favourite target of poachers in British Columbia.
HELIUM
The balloon industry is in a down cycle due to a shortage of helium gas. Hospital radiology departments also use liquid helium to cool magnets in equipment such as an MRI scanner. Helium plant shutdowns in Algeria, Poland and Australia have contributed to the global supply and in Texas, which has one of the largest geological deposits of helium rich natural gas, a pipeline that carries about 30 per cent of global supply of helium has been closed for maintenance in July. The main target for blame is the Federal Helium Reserve which stores around about 13 million cubic feet of helium but is only allowed by law to sell a specific amount of helium annually privately.
TAXES
The Cayman Islands is losing some of its allure as it has introduced what amounts to the territory's first ever income tax. It will fall only on expatriate workers who have helped build the territory into one of the most famous, or notorious, offshore banking centres that offer tax advantages for foreign investments. The tax is a 10 per cent payroll levy on expatriates who earn more than US$36,000 a year. It is a monumental shift for a territory of 56,000 people where zero taxes and a friendly reputation have attracted 91,712 companies, including 235 banks and 758 insurance companies.
BIKES
More Americans are taking to the road on two wheels. Between 1977 and 2009, the total number of annual bike trips more than tripled. Commuting cyclists have also increased in number, with twice as many biking to work in 2009 as in 2000. Cities are increasingly vying to be bike friendly. Among them, Chicago has said it will build over 30 miles of protected cycle lanes next year. At the moment it ranks fifth. Ahead of it are Washington, DC, Boulder, Colorado, Minneapolis and Portland, Oregon.
RAIL
The Swedish government is to invest US$8.2-billion to improve its railway network after a summer of technical problems. The government says the plans will lead to more frequent, faster and more punctual rail services that will not only benefit passengers and rail cargo users, but also create jobs and growth.
WEALTH
Britain's wealth has more than doubled over the past 20 years and was equivalent to US$178,000 per person last year. The rise in the country's wealth by 3.3 per cent to $10.9-trillion came despite a poor year for the economy. Property alone is now worth $6.5-trillion and accounts for more than half of household wealth with houses and apartments more than tripling in value in the past 20 years.
APPS
Several companies in the U.K. are trying to provide a better way of finding a taxi. All are entering the fast growing market for taxi apps on mobile phones. The concept is simple: to hail a cab, just pull up an app on your phone and press a button. The app-makers then find a nearby driver looking for a fare. The customer can then watch on a map as their ride makes its way to pick them up within minutes.
WORMS
The squishy things much sought after by fishermen for bait and birds for nutrition are now being put to work treating thousands of tonnes of toxic sludge left in farms and fields by Indian factories as industrial growth has skyrocketed in recent years. The worms burrow up to five feet deep in the contaminated soil, soak up heavy metals and other toxins and come to the surface without releasing the toxins. They may then be transported to a secure long-term dump site or burned.
ACQUISITIONS
Between April and June of this year Canadian acquisitions in Europe reached C$15.1-billion, nearly 70 per cent of the record $21.8 billion Canadian companies spent taking over foreign companies.
BOOKS
Sales of children's e-books nearly tripled over the first six months of this year compared to the same period in 2011. 2.6-million of children's e-books were sold compared to one million last year at the same time. Much of the increase is due to the advances in technology which have caused the sales of digital books for children, including picture books, to take off dramatically. Experts are concerned that such a trend could result in a generation of children reading more from screens than from books.
DOWNLOADING
Canadians may complain about high internet bills and low download limits but it still isn't stopping then downloading songs like crazy. Canadians are fourth in the world for unauthorized music downloads. Only the U.S., Britain and Italy rank higher but on a per capita basis , Canadians download more unauthorized music than any other country. On a per capita basis, Canadians downloaded two and a half times as many songs as Americans.
DO NOT CALL
The Canadian Radio-television and Telecommunications Commission (CRTC) has taken action against two Indian companies for breaking Canada's telemarketing rules. The companies have been found guilty of making unsolicited telemarketing calls to Canadians who have registered their numbers with the National Do Not Call List. One company has been fined C$495,000 and the other $12,000.
POLLUTION
Vancouver B.C. is using remote sensing to measure the diesel pollution from thousands of semi-trailer trucks, dump trucks, buses and other heavy-duty vehicles. The program uses infrared and ultraviolet beams from a specialized testing trailer at the side of the road. Trucks and buses do not have to slow down or stop for the emissions testing.
ALL YOU CAN EAT
Two men in Brighton England have been banned from an all-you-can-eat restaurant after the manager branded them as "pigs".
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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 |
Posted by
Ana Webb on Thu, Nov 01, 2012 @ 05:39 PM
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RVs
Shipments of RVs in the U.S. have increased 5 per cent over 2010 and are expected to grow another 7 per cent by the end of 2012. Some areas are seeing double digit growth in sales. RVs sell for as little as US$5,000 for a caravan to $1.5-million for a deluxe motor home. More than 90 per cent of them are made in the U.S. and more than 80 per cent in a single county in Indiana. The RV market is considered by some as a an indicator of the health of the American economy and a growth in sales indicates that credit is opening up.
CUBA
Authorities in Cuba report that tourism revenues rose 12.8 per cent in 2011, returning to levels three years earlier as the key sector recovers from losses due to the global financial downturn. Tourism income was US$2.5-billion compared with $2.2-billion the previous year. In all, the island hosted 2.7-million visitors, up 7 per cent from 2010.
OIL
Besides drugs, extortion and people-smuggling, a growing sideline in Mexico is stolen oil. In 2010, criminals made off with 3.35-million barrels of oil belonging to Pemex, the state owned oil monopoly, up from 2.16-million barrels in 2010. The thefts are reckoned to deprive the company of as much as US$1-billion a year. Some goes missing from trucks and some siphoned out of lengthy exposed pipes. Last year, Pemex detected 1,324 taps, over twice as many as the year before.
MOVING
Tape and corrugated cardboard boxes for moving are apparently on their way out. Now, starting in California but spreading across the country, several companies are offering reusable tough plastic boxes which are delivered to the mover and then picked up afterwards. These containers can stack higher than cardboard and have built-in carrying handles for easy carrying. One company charges US$99 for 25 of its containers, suitable for a small apartment and has a variety of other rates up to $269 for 100 containers. Customers have the use of the boxes for two weeks.
COUPONS
Canadians realized only 3.72 per cent of all the savings available through the use of coupons in 2006, according to an industry study. That's just C$134-million saved out of a possible $7-billion that year. Unlike in the U.S, Canadians still don't take extreme couponing seriously.
SPACE
Researchers predict that space tourism and commercial spaceflight could become a US$1.6-billion business in the next decade. It is estimated that there will be enough demand for such space flights to fill 400 to 500 seats per year at an average of $200,000 per seat.
ART
China's explosive economic growth and the global rebound last year propelled the sale of art and antiques to US$60-billion last year, up by more than 50 per cent over previous years. $20.4-billion were sold in the U.S. 34 per cent of the total market: $13.8-billion in China, $13.2-billion in the U.K and $3.6-billion in France.
DEGREES
It is estimated that there are 18,000 parking lot attendants in the U.S. with college degrees. and some 5,000 janitors in the U.S. with PhDs. In all, some 17-million college educated Americans have jobs that do not require their level of education.
WASTE
It is estimated that Americans throw away nearly half their food and, in 2010, recycled only 34 per cent of their waste. In Sweden, by contrast, only four per cent of waste from households ends up in landfills. And burning waste powers 20 per cent of the country's district heating as well as supplying electricity for a quarter million homes. Because it has become so good at recycling, Sweden now imports 800,000 tonnes of trash each year from other European countries, including Norway, to power its waste-to-energy program.
DEBT
By September of this year America's total national debt, which includes government debt owed to business and foreign government, passed US$16-trillion for the first time. It passed $15-trillion only ten months previously.
ARMS
Delivery of arms to developing countries last year were the highest since 2004, totalling US$28-billion. The U.S. and Russia, the world's leading arms suppliers, accounted for two-thirds of deliveries to the developing world. America's exports in particular are helped by a long-standing client base, which orders upgrades, spare parts and support services every year. Arms deals were buoyed last year by unusually high demand from Saudi Arabia which is the Middle East's biggest arms buyer with $2.8-billion in purchases. India, which is Russia's biggest high-value client was close behind at $2.7-billion.
IGUANAS
Dubbed the "green plague" an infestation of iguanas are wreaking havoc on Puerto Rico chewing up plants and crops and burrowing under roads and dikes. The reptiles, which are not native to Puerto Rico, have few natural predators and their numbers are now estimated to be around four million, outnumbering humans in the U.S. territory. Now, the authorities are planning on slaughtering them and exporting the meat to countries in Latin America, Asia and elsewhere with a taste for lizards. In Central America where they are prized, they are eaten roasted and in stews
MILK
The organic milk business in Canada and the U.S. is worth US$2.4-billion a year and is growing. However, this is an industry with headaches, from legal battles to accusations of putting profits before quality, to conflicts over what "organic" really means. Both Canada and the U.S. have regulations as to what qualifies as organic milk, including requirements that cows consume organic feed and graze on fresh grass.
TRADE
After 18 years of growing pains, Russia has become the 156th full member of the World Trade Organization (WTO), the ninth largest economy on the planet. Canada may be a prime beneficiary of the Russian opportunity. Canada-Russia trade is now only about C$2.5-billion a year, about half Canada's trade with Brazil and a fifth of Canada's investment in the Netherlands. There are not many economies that are growing and modernizing at the rate Russia's is. Canada is already involved with agriculture in Russia and with mining and industrial machinery.
FARMING
Argentine growers are planting corn and soy after ideal conditions, thanks to a record August rainfall that has raised hopes that the country's harvest could bolster global grain stocks depleted by the worst U.S. drought in decades. The dry spell in the U.S. Midwest and poor crops from the Black Sea bread basket have lifted prices of corn, wheat and soybeans. The world is now looking to Southern Hemisphere producers, Argentina, Brazil and Australia to replenish shrinking grain reserves. Argentina is the world's biggest corn exporter after the U.S.
TIRES
The cost of mining-truck tires, those of 3.5 metres in diameter, is soaring. Resurgent global growth and China's appetite for raw materials haven't just propelled gold over US$1,600 an ounce, they have tripled the price of mining-truck tires. Normally about $30,000 to $60,000 apiece, the gargantuan tires are now selling for up to $100,000. When one considers that mining trucks run on six wheels and wear out tires in about 12 months, the cost of keeping a mining vehicle on the road could be $600,000 a year.
COFFEE
Thanks to decades of diligent brand-building, Colombian coffee sold for a premium in the world market. But nowadays most coffee served in the country is from beans grown in Ecuador or Peru. Output in Colombia, once the second producer after Brazil, hit a 35-year low in 2011 of 7.8-million 60kg bags, down from an average of 13-million in the 1990s. Although the collapse in the harvest was partly due to unusually heavy rains over the past three years, the farmers face other problems such as fungal rust and insect infestations as well as the price volatility caused by the strength of the peso.
TAXES
A giant federal tax hike has spurred a historic drop in smoking in the U.S. The tax jumped from US39 cents to $1.01 per pack in 2009 to finance expanded health care for children. Since then the tax has brought in more than $30-billion in new revenue. About three million fewer people smoked last year than in 2009, despite a larger population. Teen smoking immediately fell between 10- and 13 per cent when the tax hike took effect.
PETS
Across the United States, 26 per cent of dogs had implanted microchips in 2010, compared to 17 per cent in 2009. Some 12 per cent of cats also had microchips in 2010. These figures are likely going to increase this year after two highly publicized cases of owners being reunited with their pets because of implanted microchips. Most shelters and humane societies now implant microchips in animals before allowing them to be adopted.
CROATIA
Tourism to Croatia is on the rise. In July, nore than 3.1-million people visited the Adriatic country. A total of 6.6-million tourist visits have been recorded since January. In 2011 more than 11.4-million tourists visited Croatia spending about US$8.3-billion. The Croatian economy recorded essentially no growth in 2011 for the third consecutive year but in the first quarter of 2012 the economy expanded for the first time.
HOTELS
Best known for its DIY furniture, Scandinavian retailer Ikea is planning to launch a chain of 100 budget hotels in Europe. The first two will open in Germany in 2014.
STEEL
China is ramping up its exports of cheap steel, sometimes at a loss, as bulging stocks give way to a worsening domestic demand. Slowing construction and industrial activity has hit Chinese steel demand and prices hard, prompting market participants to export more agressively than ever, even to markets such as the Middle East and Africa where it doesn't usually sell.
RISK
Emerging economies in Asia, including India and the Philippines face the greatest financial risk from natural disasters. Last year was deemed to0 be the most costly 12 months on record for natural disasters costing US$380-billion. The main reason was the earthquake and tsunami that struck Japan in 2011 which was estimated to have cost $210-billion.
WINNERS
In the UK, approximately 50 per cent of lottery winners move house within the first three months of a big win and thirty per cent said they now employ a cleaner to look after the new home. 2,800 millionaires have been created by the National Lottery since it started.
ACCIDENTS
Pedestrian fatalities in car crashes in the U.S. are on the rise again after five years of decline. Nearly 4,300 people died when hit by cars in 2010, a 4 per cent increase from 2009. About 75 per cent of pedestrian deaths were in urban areas. A meeting was held recently to finalize a global safety standard that includes proposed changes to the design of hoods and fenders so they absorb more of the impact when cars collide with people. In 2010 there was a total of 32,885 fatalities in car crashes.
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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 |
Posted by
Ana Webb on Mon, Oct 01, 2012 @ 08:00 AM
October 2012 Edition
SERVICES
The U.S. was the world's biggest exporter of services last year, with 13.9 per cent of the US$4.1-trillion total. Britain was next followed by Germany. The U.S. also complains the most having brought 20 trade disputes to the World Trade Organization since 2006. However, the WTO recently ruled in favour of some of America's complaints against China. The world's biggest merchandise exporter is China with 10.4 per cent of the world's total.
BOOKS
The U.S. book market declined 2.5 per cent in 2011 as sales of lower-priced e-books more than doubled. Publishers generated US$27.2-billion in book sales, down from $27.9-billion in 2010. Sales of trade books-adult fiction, nonfiction, children's books and others-were little changed at almost $14-billion. E-books in the category more than doubled to $2.07-billion, although print remained dominant, with $11.1-billion. The industry lost revenue because of the proliferation of e-books.
VISITORS
One bright tourism trend is the increase in the number of visitors to Canada from Asia, particularly Mainland China. In the first five months of 2012, residents from China made 115,200 trips to Canada, a 22.9 per cent increase from the same period in 2011. China has now overtaken Australia as the fourth largest overseas market for visitors to Canada, behind the UK, France and Germany. China is now one of the world's most influential markets for international travellers. More than 77-million Chinese are expected to take a trip overseas this year.
FEES
Canada's broadcast regulator says that an obscure fee that cable companies charge to fund local television content is being scrapped and the companies have until this fall to explain how the fee will be removed from customers' bills. The fund was originally created to ensure that television stations had the resources to meet Canadians' needs for local programming. Starting in 2008, cable and satellite firms were ordered to pay into the C$100-million fund to protect Canadian content.
FARMING
Not long ago, American farmers were expecting bumper harvests and the prices of grains and oilseeds were falling. Since then, a severe heatwave has hit the Midwest wilting crops and sending prices soaring. Soyabeans have hit a record of US$16 a bushel. World stocks of the oilseed which is crushed for animal feed are already low following a drought in South America. Yields of maize stocks will be at their lowest since 2003. Higher feed prices will depress American beef and poultry production and will likely affect other food prices as well.
CHARGING
Scientists at the University of South Carolina have found a way to use a cheap T-shirt to store electrical power. It could pave the way for clothes that are able to charge phones and other devices. Fibres in the fabric, when soaked in a solution of fluoride and baked, convert from cellulose to activated carbon. By using small parts of the fabric as an electrode, the researchers showed the material could be made to act as a capacitor and store an electrical charge. Capacitors are components of nearly every electronic device on the market.
TEXTING
New research shows that people in the UK are now more likely to text than to make a phone call. While 58 per cent of people communicated via text on a daily basis in 2011, only 47 per cent made a daily phone call. The shift away from traditional ways of keeping in touch is being led by young people aged 16-24. The average UK consumer now sends 50 text messages a week, while fewer calls are being made on both fixed and cell phones. In 2011, for the first time, there was a drop in cell phone calls by one per cent while landline calls were down by 10 per cent and overall time spent on the phone was down by five per cent.
HEALTH CARE
After nearly a decade of generous increases, health-care spending across the 34 countries of the OECD was largely flat in 2010. Spending increased by an annual average of 4.8 per cent between 2000 and 2009. In 2010, eight countries cut spending while only three increased it by more than three per cent in real terms. Austerity-hit Ireland and Greece cut their health spending by 7.6 per cent and 6.5 respectively. In 2010 OECD governments spent an average of 9.5 per cent of their GDP on health care, up from 6.9 per cent in 1990. The U.S. spends by far the greatest amount at 17.6 per cent of its national income.
CALLS
The U.S. government has announced a crackdown on computer-controlled, pre-recorded phone calls. The Federal Trade Commission is calling on telecom and marketing industry leaders to attend a meeting about the issue this month. The FCC wants to explore innovations that could let it trace where such calls come from and prevent the use of faked caller IDs. The U.S. made it illegal to make unwanted calls in 2009. Experts believe many offenders operate by routing calls via the internet from offshore centres, making it hard for the U.S. to completely eradicate the problem.
NOISE
The Canadian government has launched a study of the health impacts of turbine noise on people living near wind power developments. The study will focus on 2,000 homes at 8 to 12 wind installations. It will measure individuals' blood pressure and test hair samples and interview people about annoyance, sleep quality and stress. The results will be published in 2014. While the wind industry has always claimed there is no evidence of direct health impacts from turbines, anti-wind advocates say there are ample reports proving that people are suffering.
DRUGS
India is moving ahead with ambitious plans to spend nearly US$5-billion to supply free drugs to patients, bringing the nation closer to universal health coverage. This is part of the government's latest five year spending plan (2012-2017) and should start this month. The central government will pay $3.61-billion while India's 29 states will be asked to pay the balance. This initiative will be a giant step in expanding access to medicine in the country of 1.2-billion people.
TRADE
Top metals consumer China and world No.1 copper producer Chile plan to double their bilateral trade to US$60-billion by 2015. Until now, China has made relatively few investments in the Andean country, despite being its main trade partner and sharing a free-trade agreement. The two countries have also signed an agreement to give investors security for their investments in either of the two countries.
RAIL
California law makers have approved financing for a bullet train that would eventually become part of the first dedicated high-speed line in the U.S. Approval was given for a 130 mile (209km) stretch, part of a larger line proposed to run from Los Angeles to San Francisco. The final cost of the LA-San Francisco line is estimated at US$68-billion. The vote allows California to use $3.2-billion in federal funding. The project is essential because of population growth. California's budget is presently $16-billion in the red.
WOMEN
The number of women in the top ranks of Canada's largest companies has climbed by less than one percentage point over the past two years, a glacial pace of change that means many firms are vastly underutilizing talented women. A review of almost 500 companies found that 17.7 per cent of senior officer positions were held by women in 2010, a modest increase from 16.9 per cent in 2008. Crown corporations lead with 27 per cent of top jobs filled by women.
SCOTCH
The export value of Scotch whisky, which has proved virtually impervious to the global economic slowdown, rose by 71 per cent between 2006 and 2011 to US$6.72-billion. Over the same period, food exports have risen by a similarly impressive 65 per cent. Much of this is salmon. Scottish producers rushed to fill a gap in the world market when disease affected Chile's salmon exports a few years ago.
GROCERIES
Statistics from the U.S. Commerce Department show that the U.S. grocery market grew to US$645-billion last year from $568-billion in 2007, a 14 per cent growth in four years. Warehouse clubs and supercentres remain the key competitor to supermarkets, despite all the coverage of dollar and drug stores. The supermarket share of the total grocery market has dropped again from 59.2 per cent in 2010 to 58.9 per cent in 2011.
TIRES
By adding rubber "crumbs", reclaimed from shredded tires, to the bitumen and crushed stone used to make asphalt, engineers are designing quieter streets. First used experimentally in the 1960s, this rubberized, softer asphalt cuts traffic noise by around 25 per cent. Even better, it also lasts longer than the normal sort. Enough tires are recycled each year in the U.S. to produce 20,000-lane miles. Rubber roads are popular in China, Brazil, Spain and Germany.
LAND
Canada's prime shopping strips are cheap compared to big cities around the world. The most expensive is a strip of Bloor Street in the Yorkville area of Toronto which features some of the country's fanciest designer stores and is worth US$310 per square foot, making it the 34th most expensive strip in the world. Top spot is New York's Fifth Avenue at $2,633, a gain of 22 per cent in the past year.
ADS
A far-reaching ban on advertising alcohol advertising has gone into effect in Russia, part of a campaign to tackle the country's drinking problems. The ban prohibits alcohol advertising on television, radio, the internet, public transit and billboards. And as of next year, the ban will also apply to print media. Russian alcohol consumption is double the critical level set by the World Health Organization.
LOBSTER
It used to be that lobster was considered a luxury. But thanks to an abundance of the soft-shell crustaceans in recent months, it is no longer a meal for special occasions. An excess supply in Maine has driven prices to under US$4 a pound making the sea creature cheaper per pound than deli meat in some cases.
LOYALTY
Recent consumer research shows that when consumers search for online coupons and savings, 62 per cent search for store related deals and 24 per cent for product specific coupons, while only 14 per cent search specifically for brand name product discounts online. Nearly half of U.S. consumers--88.2-million-- will use online coupons and codes in 2012 and it is estimated that by the end of 2013, 96.8-million U.S. adults will have used such discounts.
LOANS
China has offered to set up a US$10-billion credit line for Latin American countries to support infrastructure projects. China has been keen to increase trade in the area and with many of the Latin American countries still at the development stage, they are anxious to build new infrastructure in a bid to boost economic growth.
CONVENIENCE
Islamic worshippers may now purchase "e-rugs." These are prayer mats with a built in alarm for the five daily prayer times and a compass that points towards Mecca.
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
Posted by
Ana Webb on Sat, Sep 01, 2012 @ 08:00 AM
September 2012 Edition
TEA
Britain's tea addiction is sparking an ecological crisis. The country's 62-million residents consume 165-million cups of the hot beverage each single day, and the soggy leftovers are piling up. The UK's national recycling and garbage reduction body, estimates that tea bags are now the largest single food waste contributor, adding 370,000 tonnes to landfills each year. They have now partnered with the nation's largest tea maker to convince people to compost the sachets rather than toss them in the trash.
WINE
For the first time in a while, things are looking up for Georgian wine. Exports from the former Soviet republic increased last year by 37.7 per cent to 16.9-million litres earning about US$54-million, not much by big-country standards but it points to a recovery of sorts, the highest figure since Russia imposed a crippling trade embargo in 2006. Before the ban, Russians drank a lot more Georgian wine than did tiny Georgia. Blessed with relatively moderate temperatures, Georgia boasts more than 500 grape varieties.
WEALTH
Asia-Pacific now has the largest number of wealthy citizens of any region in the world, a shift that underscores the tilting of global economic clout. The number of high net-worth individuals rose 1.6 per cent in Asia-Pacific to 3.37-million people, led by growth in China and Japan along with Malaysia and Indonesia. That surpasses North America's high net-worth population of 3.35-million. It is the first time in the 16-year period of reporting this data that neither Europe or North America is at the top of the list.
WEIGHT
If the entire human population stepped on a scale, the weight would be 316-million tons, or 632-billion pounds. The overweight people in the world carry an estimated 16-million tons of extra weight, the equivalent of 242-million normal weight people. The average body mass globally was 136 pounds (62kg). In North America, which has the highest body mass of any continent, the number was 178 pounds (80.7kg).
CAMERAS
A camera capable of creating images with "unprecedented detail" has been unveiled by U.S. engineers. The prototype machine, called AWARE2, is capable of taking pictures with resolutions of up to 50 gigapixels, equivalent to 50,000 megapixels. It works by synchronizing 98 tiny cameras in a single device. The machine is likely to be used first for military surveillance. The prototype camera itself is two-and-a-half feet square and 20 inches deep. Most consumer cameras currently on the market are capable of taking photographs ranging from eight to 40 megapixels.
CUSTOMS
Bolivian customs officials are to be forced to carry special pens, with a hidden camera and a voice recorder, in a crackdown on corruption. The voice recorded will remain active during all working hours. Even the Director of Customs will be issued with her own pen. Officials will be selected randomly to have the recordings in their devices checked. The Bolivian Customs Department, with more than 1,000 employees, is seen as one of the most corrupt areas of the government in the South American country.
SPEED
IBM's Sequoia has taken the top spot on the list of the world's fastest supercomputers for the U.S. The newly installed system trumped Japan's K Computer made by Fujitsu which fell to second place. It is the first time the U.S. has been able to claim top spot since it was beaten by China two years ago. Sequoia will be used to carry out simulations to help extend the life of aging nuclear weapons, avoiding the need for real-world underground tests. Sequoia is 1.55 times faster than the Fujitsu model and uses over 1.5-million processors.
HOUSING
Canadians are playing a larger role in the U.S. housing market than in any year since 2007 and they outpace buyers from China and Mexico by far. Foreigners snapped up US$82.5-billion worth of U.S houses in the 12 month period to March 31st of this year, compared to $66.4-billion a year earlier. Chinese buyers made the next largest segment followed by Mexicans at 8 per cent. Canadians accounted for 24 per cent of all international sales, compared with 23 per cent in 2011 and 11 per cent in 2007.
TRANSPORT
A long-awaited new bridge at Canada's busiest border crossing has been announced which will ease traffic gridlock and encourage trade. The link, between Windsor, Ont. and Detroit, will cost C$1-billion. Under the terms of the agreement in principle with Michigan, Canada is financing the construction and will recover the costs through tolls on the U.S. side of the Detroit River. The addition of customs plazas, coupled with the costs of land expropriation, will see the total bill swell to between $3.5- and $4-billion. The new span will be a few kilometres south of the existing Ambassador Bridge.
INDIA
The government of India has pledged to move ahead with major infrastructure projects to give a boost to the country's slowing economy. Included are: building 9,500 kilometres of roads; constructing three new airports and upgrading two others to international standards; two new aviation hubs to make India a major transit point and two new ports. It is estimated that India will need to spend US$1-trillion in the next five years which will require significant private-sector partnerships with the government.
GAS
A monster British Columbia well just south of the 60th parallel is pumping a tremendous volume from a globally significant new field that will dramatically boost Canada's gas resources. It stands to be one of the best gas reservoirs in North America and initial results show it contains enough gas to match Canada's entire current output for nearly a decade. It is estimated that the area may contain 210-trillion cubic feet of natural gas.
AFRICA
The United Nations has said that Africa needs to boost agricultural productivity if it is to sustain its economic boom. Many African countries have registered impressive growth rates, but sub-Saharan Africa cannot sustain its present economic resurgence unless it eliminates the hunger that affects nearly a quarter of its people. The situation affects children in particular, with 40 per cent of African children aged under five malnourished. New approaches are required covering multiple sectors from rural infrastructure to health services.
TRANSIT
Driven by high gas prices and an uncertain economy, Americans are turning to trains and buses to get around in greater numbers than ever before. But the aging transit systems they are using face an estimated US$80-billion maintenance backlog that jeopardizes service when it's most in demand. Transit trips over a 12-month period recently set a new record. The current peak is 10.3-billion trips in a year set in 2008. But decades of deferred repairs and modernization projects have many transit agencies scrambling to keep trains and buses in operation.
BEDS
A Spanish furniture maker has introduced the world's first bed that makes itself. The smart bed is equipped with a device that enables it to automatically straighten the bedding. In a mere 50 seconds the bed activates its mechanical arm with two rollers which pulls the duvet to the head of the bed. At the same time, the pillows are straightened by cords attached to the pillow cases after which the panels rotate, elevating the pillow. Once the upper coverlet has been stretched to the head of the bed, the pillows fall back onto it. The bed contains a safety feature preventing the mechanism activating when a person is still in bed.
DIAMONDS
Despite a healthy long-term demand driven by China and India, global economic uncertainty is taking its toll on the diamond industry. While it is projected that diamond prices will stay flat in 2012, prices are already at elevated levels, though cost inflation and currency movements are chipping away at producer margins. Prices are forecast to rise again in 2013 at an average of six per cent per year, reflecting both growing demand and constrained supply.
TRASH
According to the World Bank, many cities now devote more resources to coping with their trash than to any other single task. Solid waste management is almost always the responsibility of local governments and is often their single largest budget item, particularly in developing countries. The Bank estimates that 1 to 5 per cent of the world's urban population is employed in solid waste management. The world now spends $204.5-billion to handle about 1.3-billion tons of trash each year, about 2.6 pounds (1.2kg) per person per day.
FARMING
Thanks to high crop prices and the health of rural America, farmers are under pressure to accept cuts in the generous handouts they receive from the federal government. Payments to farmers, which include sums for taking part in conservation programmes, have been running at about US$123-billion a year since 2007. Yet since then, farmers have enjoyed record prices and incomes which are at the highest in almost 40 years and farm failures are down to a rate of less than one in 200 a year.
TRENDS
In 2011, the city of Vancouver, British Columbia, installed 820 new parking meters, more than three times the average of 240 metres installed annually since 1996. The increase has helped raise the city's revenue from on-street parking to a new high of C$42.5-million, a 32 per cent increase from the $32.2-million collected in 2009. This, in a city with the highest peak on-street parking rates in North America, with rates climbing as high as $6.00 an hour in some downtown locations.
GLUTEN
A recent study indicates that gluten-free foods and beverages have been transformed into a mainstream sensation embraced by consumers as a personal choice towards achieving a healthier way to live. No longer used just by the estimated 3-million Americans with celiac disease, gluten-free products have had a compounded annual growth rate of 30 per cent from 2006 to 2010 and reached US$2.6-billion in 2010 and will continue over the next five years when sales should exceed $5-billion by 2015.
SUCCESS
Started in 2006 in a cramped kitchen behind a shop front in a rural Scottish village, the Highland Chocolatier sold hand made luxury chocolates to hotels and restaurants in Britain. Last year, the company sold about six tonnes of chocolate and expects to sell 13-15 tonnes this year much of the growth being exports. After an enquiry through the Scottish economic development agency, visitors from Japan started turning up in the small village. The products are now sold in Japan, Australia, New Zealand, Germany. and the Middle East.
SAVINGS
A British police force has advertised for members of the public to wash and valet its patrol cars. Staffordshire Police is hoping to save 5,500 hours a year by getting volunteers from the community to regularly clean its fleet of vehicles. The idea is the latest cost-cutting idea from cash-strapped forces which are also seeking people to work for free completing tasks such as gardening and translating. However, some police officers and staff are concerned about the potential for volunteers to be a security risk.
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
Posted by
Ana Webb on Wed, Aug 01, 2012 @ 08:00 AM
August 2012 Edition
PHONES
The trend away from land lines in Canada is gaining traction as wireless plans decline in price because of increased competition among mobile service providers. It is estimated that 8.8 per cent of households were wireless-only in 2008 rising to 14.8 per cent at the end of 2011. The figure should reach 18.1 per cent by the end of this year and 21.6 per cent by the end of 2013. Younger Canadians are the most likely to go wireless-only.
FOOTBALL
One of the largest advertisers in the world has made a significant statement as to where they believe they get most value for their advertising dollars. General Motors Co. has announced that it will pull millions of dollars out of the Super Bowl and that Chevrolet has struck a 5-year deal to be the automotive partner with the world's most popular soccer club, Manchester United. 400-million people consider themselves fans of the NFL, but more than eight times as many, 3.5-billion, or half the world's population, are fans of soccer, and 660-million are fans of Manchester United.
TOURISM
British Columbia went big in San Francisco recently when it put a vending machine in a public square as part of Tourism B.C.'s campaign to woo U.S. travellers. People who punched in codes to see more were rewarded. A person inside pushed presents out through a large slot that included guide books, a mountain bike and even a surfboard. All came with discount cards to fly with Air Canada to B.C. All this is part of a plan to fight a downward trend that has seen foreign visits drop since 2001.
DRINKS
The mayor of New York wants to restrict sales of large sized sugary drinks in public venues. The move would outlaw sales of drinks 473 ml (16 oz) and over in restaurants, cinemas, stadiums and arenas. Cups over that size at self-service fountains would also disappear. The ban would apply to any drink that contains more than 25 calories per 235 ml (8 ounces) and less than 51 per cent milk or milk substitute by volume as an ingredient, which means that milk shakes would be given a reprieve.
DRUGS
A third of malaria drugs used around the world to stem the spread of the disease are counterfeit. Researchers who looked at 1,500 samples of seven malaria drugs from seven countries in South East Asia say poor-quality and fake tablets are causing drug resistance and treatment failure. Data from 21 countries in sub-Saharan Africa including 2,500 drug samples showed similar results. No large studies have been conducted in India and China. Despite this, malaria mortality rates have dropped by more than 25 per cent globally since 2000 and by 33 per cent in Africa.
COMMERCIALS
A legal row has erupted in the U.S. over a set-top box that lets viewers skip over commercials in recorded TV shows. Three U.S. broadcasters, Fox, NBC and CBS, have sued the maker of the device. The networks worry that if viewers choose not to see the ads, their main source of revenue will dry up. The large U.S. TV networks depend on income from commercials for survival. Worldwide spending on TV ads is estimated to reach US$200-billion by 2017.
SUSHI
California tuna connoisseurs are shying away from sushi over Japan radiation fears. Traces of radiation in tuna from the Fukushima nuclear disaster have been found off the U.S. coast, and consumers are being cautious. However, much if not most of California's bluefin tuna comes from fish farms in Mexico.
SIZE
The U.S. Centers for Disease Control has charted the growth of fast-food portion sizes since the 1950s. The average soda was 7 ounces in the 1950s, and is 42 ounces today. The hamburger was 3.9 ounces back then: it is 12 ounces today. A portion of French fries was 2.4 ounces in the 1950s, it is 6.7 ounces today.
TRAVEL
Statistics Canada says that Canadian business travellers made more trips abroad last year, while foreign business travel to Canada was down. In the last quarter of 2011 Canadians made more than 807,000 overnight business trips outside the country. Of these, 600,000 were to the United States, a 4.7 per cent increase. Overseas business travel was up two per cent. Business travel to Canada was down by 2.1 per cent to just over 570,000 trips of which about 70 per cent were made by U.S. business people. Foreign business travellers spent C$588-million in Canada in the last quarter of 2011.
REMUNERATION
Profits at big U.S. companies broke records last year, and so did pay for CEOs. The head of a typical public company made US$9.6-million in 2011. That was up 6 per cent from the previous year. Companies trimmed cash bonuses but handed out more in stock awards. The typical CEO got stock awards worth $3.6-million but cash bonuses fell about 7 per cent. The median pay for U.S. workers was about $39,300--up about one percent from the previous year.
CHEESE
The magnitude-6 earthquake that hit northern Italy recently has taken a toll on the country's cheese industry. Parmesan cheese producers near the quake's epicentre have seen 300,000 massive wheels of cheese that were aging on tall shelves crash to the ground. Only about 30 per cent of the wheels survived unscathed. After aging for 12 to 24 months, three million parmesan wheels worth US$2.6-billion are sold each year from the region.. Two-thirds stay in Italy, the rest is exported. The wheels that fell represent 10 per cent of annual production.
SICK
While Americans may seem obsessed with football and Canadians are crazy about ice hockey, it is nothing compared with China's obsession to basketball. An online survey of 9,500 workers in eight countries showed that Chinese workers were the most likely to call in sick to view a sporting match or after a late night watching or attending a game. China also had the most people skipping work to play a sport, and basketball was the most likely to spur absenteeism there. These findings were similar to another survey conducted globally last year.
NUTS
A military revolt in the tiny African nation of Guinea-Bissau is rocking the market for prized cashew nuts. Some of the world's tastiest cashews are rotting in roadside piles with farmers having no way to ship them to Indian factories that steam the cashews out of its poisonous shell. The country is Africa's fifth biggest cashew grower and the yearly cashew harvest accounts for 98 per cent of the country's export revenue and employs nine out of ten people, including children. No president has completed a full term in this chaotic West African country.
PARKING
Vancouver, one of the most expensive housing cities in the world, is filled with empty, unused parking spaces in apartment buildings. As residents buy fewer cars, take transit, if it's nearby, and travel more with bikes and car-shares, thousands of parking spaces are going unused. It is estimated that each stall costs between C$20,000 and $45,000 to build, a cost that is passed on to buyers and renters.
SHOES
Women's shoe therapy is helping to drive Canadian retailers' footwear sales, even as their apparel sales lag. Consumers are getting their fashion fix with the purchase of a new pair of pumps rather than pants or a suit. As a result, retailers are feeling the urgency to add shoe aisles to their stores, raising the stakes for everyone to grab a bigger part of Canada's C$4.9-billion footwear market. Retailers can generate higher gross profit margins from footwear than apparel if they quickly sell the products at full price, rather than having them languish on shelves and cleared out at a discount.
TECHNOLOGY
The Hershey Co. is employing GPS mapping to provide precise measurements of farm acreage as part of a scheme in the African nation of Ghana. The cutting-edge technology will help farmers better plan and manage their farms, thereby boosting yields and farmer incomes. This is part of Hershey's US$10-million commitment in West Africa over the next ten years to accelerate the chocolate makers cocoa programmes in the region. The investment will involve 1,000 farm families and help enhance cocoa farming, community health, and reduce instances of child labour.
ORGANIC
Driven by consumer choice, the U.S. organic industry grew by 9.5 per cent overall last year to reach US$31.5-billion in sales. Of this, the organic food and beverage sector was valued at $29.22-billion while the organic non-food sector reached $2.2-billion. The organic food sector grew by $2.5-billion in 2011 with the fruit and vegetable category contributing close to 50 per cent of those new dollars. The fastest growing sector was the meat fish and poultry category which grew by 13 per cent.
PROFIT
After 16 years of profitability, Canada Post recorded a pretax loss of C$253-million in 2011, the result of dwindling mail volume, a costly pay equity ruling and a strike and lockout. Canada Post's loss compared to a $134-million profit in 2010. Revenue was $7.5-billion, the same for both years. The fundamental challenge for Canada Post is that it must work harder every year to deliver less mail to a generation hooked on Facebook, Twitter and texting.
MINING
Graphite is the new darling of the mining industry with Canadian graphite miners angling to be high-end suppliers to the global lithium market where companies like LG, Samsung, Mitsubishi and Hitachi are fuelling growing demand for new technologies ranging from smartphones and laptops to electric cars. The mineral is a major component of lithium batteries, lighter and more powerful than traditional batteries. After decades of near-dormancy in the graphite industry, an increasing number of companies are racing to produce flake graphite, the purest natural form of the mineral.
SOYBEANS
Prices for soybeans have recently shot up to their highest level in nearly four years after disastrous crops in Argentina and Brazil. Soybeans, which are widely used for vegetable oil, animal feed, soy milk and tofu, have soared 23 per cent this year as a result of a South American drought. Production has declined by 11 per cent this year. Soybeans, by value, rank second among U.S. agricultural exports. 85 per cent of the world's soybean crop is used for vegetable oil and meal.
FEATHERS
In the world of obscure commodities, feathery down feathers are a newcomer. Price increases are forcing apparel and bedding makers to re-engineer their goods, search for alternatives or warn retailers they will have to pass along the higher costs to customers. Prices of the feathery insulation are ascending just as retailers are starting to move beyond last year's spike in the price of cotton which raised apparel makers' costs on everything from T-shirts to denim. A pound of white goose feathers that cost about US$12 in 2009 sell for about $28 today and $9 a pound duck of feathers now cost $19 a pound.
TAXES
Six billion Euros is unpaid taxes were recovered in the first four months of this year by the Italian taxman as authorities crack down on what until now has been regarded as a national sport.
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
Posted by
Ana Webb on Sun, Jul 01, 2012 @ 08:00 AM
July 2012 Edition
FARMERS
Despite the economic downturn, Britain's farmers have been enjoying a boom in business. Government figures show the agriculture and horticulture sector of the economy grew by 25 per cent last year. Farmers are now selling more produce overseas and it now represents the UK's fourth largest export sector. The gross value added contribution that farmers and growers made to the economy grew by US$3.5-billion to $12-billion.
AFRICA
Plans are on track to create a 26-nation free-trade area by integrating three existing African trade blocs. The East African Community, the Common Market for Eastern and Southern Africa and the Southern African Development Community aim to create a free market of 525-million people with an output of US$1-trillion. Although African economies are growing fast, the continent has attracted criticism over its slow pace of integration.
GOLF COURSES
In the past few years, the development of hundreds of golf courses in the U.S. was abandoned, victims of the foreclosure crisis. Many of those closed were tied to grand real estate development plans and it is predicted that as many as 1,500 courses will close over the next decade. Now, thousands of acres of golf greens, ponds and clubhouses sit abandoned, slowly decaying, dragging down neighbourhood property values along with them. Those who bought property along the courses are forced to watch the formerly manicured lawns grow out of control bringing a range of nuisances, from exotic animals to illegal activity.
BAGS
U.S. airlines' revenue from bag fees fell last year for the first time, because of fewer people travelling. The 17 largest airlines made US$3.36-billion down from $3.4-billion in 2010. The total number of passengers last year on those airlines fell by about 1.5 per cent. Fees for first and second checked bags began four years ago when fuel prices soared to all-time highs and revenue has climbed ever since. Between 2008 and 2009, money from bags jumped by 42 per cent and from 2009 to 2010 by 24 per cent. Delta Airlines made more than any of its peers last year earning over $863-million in fees.
TURBINES
A giant subsea turbine which uses tidal power to generate electricity has successfully completed initial tests off Orkney. The turbine was lowered into position during winter storms and is performing well to a very high standard. Scotland has the best tidal power resources in Europe. It is expected that all the machines for this project will be installed between 2013 and 2015.
KNIVES
The multifunctional Swiss Army knife has been recognized worldwide for almost 130 years. The knife is also supplied to the German and 10 other armies. The company makes 35,000 knives each day and has diversified into watches and luggage and today 50 per cent of sales are from new product categories. Some products now offer USB memory sticks. After 9/11, sales of the Swiss Army knife dropped by almost 30 per cent but the company leased workers to other companies while continuing to pay their wages and no worker was made redundant for financial reasons.
SALES
Health Canada has reminded Canadians that garage sales now face the same responsibilities as legitimate retailers when it comes to screening for banned or unsafe products. Everyone holding a garage sale in Canada is legally responsible for ensuring products sold or even given away, whether new or used, are safe and meet current safety standards. According to the Health Canada website, a garage sale is effectively breaking the law if it includes lawn darts, corded blinds, broken toys, toys with powerful magnets, hockey helmets, tiki torches or any product that has been the subject of a recall.
PIRACY
The value of computer software piracy in Canada was estimated to be C$1.1-million last year with 40 per cent of computer users admitting they acquired software illegally. A Business Software Alliance study found that nearly one in three copies of software was unlicensed in Canada in 2011. The study also found that admitted software pirates in Canada were predominantly male between the ages of 25 and 34.
SURGERY
China performs more cosmetic surgery than any country except the U.S. and Brazil. The market, which barely existed 15 years ago, is now worth some US$2.4-billion. China's growing wealth and obsession with celebrity is fuelling the growth. The People's Ninth Hospital in Shanghai is that city's busiest for cosmetic surgery. There were 50,000 operations in 2011, a 50 per cent increase in five years. The three most common procedure are double eyelid surgery, liposuction and nose jobs. As many as 70 per cent of China's cosmetic procedures take place in illegal, unlicensed salons.
COMMODITIES
The price of iron ore, the main component of steel, recently fell below US$140 a tonne. Canada exported C$3.35-billion of iron ore in 2010 which is ranked sixth in value among metals and minerals exported by Canada. It is estimated that 2.8-billion tonnes of iron ore were mined globally in 2011.
3M
This giant 110-year old conglomerate is one of the world's most complex manufacturing enterprises. It is estimated that 3M makes 65,000 products, ranging from Scotch tape to film for solar-energy panels, dental braces and dog chews. They are produced in 214 plants, in 41 countries. 3M's long term plan is to have fewer, larger, more efficient plants and spread them out around the world. 3M now has 10 manufacturing hubs, including six in the U.S. and one each in Singapore, Japan, Germany and Poland. and gets nearly two-thirds of its sales outside the U.S.
FARMS
The 2011 Canadian Agricultural census shows that while the number of farms has decreased 10 per cent in the last five years to 205,730, the average farm size has jumped seven per cent. In some regions, such as Saskatchewan, the number of farms has fallen nearly 17 per cent, while average farm size is up 15 per cent to more than 1,600 acres. Farms with $1-million or more in annual revenue represent the fastest growing sector of Canadian agriculture, jumping 36 per cent since 2006. Just 9,602 farms generate 49 per cent of Canada's $51-billion in total gross farm receipts.
QUINOA
Peruvians used to look down on quinoa, a fixture of Andean diets for centuries as food for the poorest of the poor. However, thanks to the growing global demand for organic foods, this protein-rich chenopod, a member of the spinach family, earned Bolivia US$6.4-million from quinoa exports in 2011, 36 per cent more than in 2010. Peru earned $23-million where production has risen from 7,000 tonnes a year in the 1980s to 42,500 tonnes last year.
MEAT
Fifty years ago, global consumption of meat was 70-million tonnes. By 2007, the latest year for comparable data are available, it had risen to 268-million tonnes. The amount of meat eaten by each person leapt from about 22kg in 1961 to 40kg in 2007.Tastes have changed however. Cow (beef and veal) was top of the menu in the early 1960s, accounting for 40 per cent of meat consumption, but in 2007 its share had fallen to 23 per cent. Pig is now the animal of choice, with around 99-million tonnes consumed and poultry has jumped from 12 per cent to 31 per cent of the global total.
ADS
Canada's broadcast regulator has been asking TV providers to turn down the noise in loud commercials and is now making it an order. Rules have now been published controlling the volume of commercial messages for companies that own TV channels, distribution systems such as cable and satellite services, and video-on-demand offerings must follow. The TV industry must have the loudness under control by September at the start of the new TV season.
COFFEE
A mutant strain of one of the world's most devastating coffee diseases is attacking crops in Guatemala, putting farmers on high alert for a wider outbreak in Central America. Growers are battling a new form of leaf rust fungus, or roya, which kills leaves on coffee trees and makes the weakened plants less productive. Leaf rust usually infects coffee grown at lower altitudes where it is hotter and wetter but a new variety is creeping up to the higher, cooler areas.
GAS
The U.S. is still pumping three billion more cubic feet of natural gas each day than it can consume. The country has become awash in it since "fracking' (hydraulic fracturing of gas bearing shale deposits) began barely five years ago. The price has plummeted from US$8.00 per thousand cubic feet to $2. Not long ago natural gas was a tenth of the price of oil, now it is 50th. If production continues at the present rate, all the storage reservoirs in the U.S. will be full by the Fall.
LUMBER
In 2011, led by British Columbia, Canada emerged as the largest exporter of lumber in the world to China, surpassing Russia as China's leading source for lumber. The trend has continued in 2012. In the first quarter of 2012, Canada supplied 1.45-million cubic metres (about 900-million board feet) corralling 47 per cent of the market share for softwood lumber in China. Russia is second at 35 per cent. China now accounts for 26 per cent of Canadian lumber exports while the U.S. accounts for 63 per cent.
SOLAR
The world's solar power generating capacity will grow between 200 and 400 per cent over the next five years, with Asia and other emerging markets overtaking leadership from Europe. The fastest growth is expected in China and India, followed by Southeast Asia, Latin America and the Middle East.
MOVIES
China is now the world's second-biggest film market after America. It has a booming home-grown film industry making historical dramas and romantic comedies, but foreign blockbusters are the big money-earners. Last year, China's box-office take rose more than 30 per cent, to over US$2-billion. The number of cinema screens in China has doubled in five years, to nearly 11,000, again, second only to America and revenues may overtake the States by 2020. China will still not grant Hollywood the access it desires. Only 34 foreign films may be shown in China each year.
DIGITAL
Sales of e-books grew by 54 per cent in 2011 and are now worth US$365-million to the publishing industry. In 2007, the market for e-books, downloads and online subscriptions was worth $111-million. Digital content now accounts for 8 per cent of the total value of book sales in 2011. The total value of the book market is estimated to be $4.8-billion. In the UK, the number of book stores halved in the last six years with roughly 2,000 shops closing since 2006.
SIZE
A duplex penthouse at a tower under construction on Manhattan's West 57th Street has sold for more than US$90-million, setting a record for a single residence in the borough. The 11,000 square-floor unit, spanning the 89th and 90th floors sold at a price between $8,000 and 9,000 a square foot.
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