February 2013 Edition
GUM
A 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.
GROWTH
Rising levels of carbon dioxide in the atmosphere may
have a silver lining: doubling the size of the sweet
potato, the fifth most important food crop in the
developing world. Many studies of the effects of higher
atmospheric carbon dioxide on crops have shown
rising yields of rice, wheat and soy. The hardy sweet
potato is increasingly becoming a staple in Africa and
Asia, producing more edible energy per hectare per
day than wheat, rice or cassava.
TRENDS
The 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.
GENDER
Canada 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.
LIGHT
U.S. researchers have developed a new type of lighting
that could replace fluorescent bulbs. The new source is
made from layers of plastic and is said to be more
efficient while producing a better quality of flicker-free
light. The new light source is called field-induced
polymer electroluminescent technology. It is made
from three layers of light-emitting polymers that
contain a small volume of nanomaterials that glow
when electric current is passed through them. It is
believed that the first units will be produced this year.
CUBA
Communist-run Cuba has legalized non-agricultural
co-operatives as the state slowly pulls back from its
centrally planned economy in favour of private
initiative and market forces. The move is the latest
reform under the President, Raul Castro, who wants to
transform the country's Soviet-style economy into one
more in line with Asian Communism where political
control remains absolute, while allowing more space
for the private sector. The initial stage calls for the
establishment of more than 200 associations in
sectors such as transportation, food services, fishing,
personal and domestic services, recycling and
construction.
ENERGY
By the end of last year, Canada had about 6,500
megawatts of wind power capacity, enough to power
close to two million homes. For the second consecutive
year, more than 1,000 MW of power had been added to
Canada's grid and there will be around 1,500 MW of
new installations on average annually over the next
few years. Ontario has the most installations. There are
now 159 wind farms across Canada with more than
3,500 turbines. Wind power generates about 3 per
cent of the country's power.
MILK
In an age of vitamin waters and energy drinks, the
decades-long decline in U.S. milk consumption has
accelerated, worrying dairy farmers, milk processors
and grocery chains. Per capita U.S. milk consumption,
which peaked around the Second World War, has fallen
almost 30 per cent since 1975, even as sales of yogurt,
cheese and other dairy products have risen. Children,
who tend to be heavy milk drinkers, account for a
smaller share of the U.S. population than they once
did. Americans drank an average of 20 gallons (75
litres) of milk last year, a decline of 3.3 per cent from
the previous year, and the biggest slide year-over-year
since 1993.
NUMBERS
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
Toronto's Pearson International Airport employs
40,000 workers, creating a C$26-billion annual
economic impact including revenues related to direct,
indirect and induced activities. In 2011, 33.4 million
passengers passed through Toronto which had
448,000 take-offs and landings. Vancouver
International Airport has 23,614 direct jobs, creating a
$5.3-billion gross domestic product and handles 17-
million passengers.
HACKING
Last October, it was learned that an international
computer hacker had stolen from the South Carolina
Department of Revenue data base, the tax records of
every South Carolinian who has filed a tax return
online since 1998, 3.8-million individuals and almost
850,000 businesses. It is believed to be the largest
cyber-attack against a state tax agency in America's
history. Hijacked information included anything listed
on the tax returns, from Social Security numbers and
bank account information to details about taxpayers'
children.
R&D
Gross domestic expenditure on research and
development (R&D) in Canada amounted to C$30-
billion last year, up slightly from 2011. Of this,
Business accounted for about $15.5-billion, the higher
education sector for about $11.5-billion, the federal
government for about $2.5-billion and the balance by
provincial governments, provincial research
organizations and private non-profit organizations.
TRAFFIC
There has been an increase in traffic on the Northern
Sea Route, the icy passage along Russia's Arctic coast.
Global warming has opened a route between Europe
and Asia that can cut journey times by three weeks.
Last year, some 50 vessels made the voyage. One ship
that left Norway last November was the first to carry
liquefied natural gas. It sailed for Japan where the
Fukushima nuclear disaster has led to an increase in
demand.
Past issues of the A&A Economic News Digest can be
found at
http://www.aacb.com/publications/ed/index.asp
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.
GUM
A 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.
GROWTH
Rising levels of carbon dioxide in the atmosphere may
have a silver lining: doubling the size of the sweet
potato, the fifth most important food crop in the
developing world. Many studies of the effects of higher
atmospheric carbon dioxide on crops have shown
rising yields of rice, wheat and soy. The hardy sweet
potato is increasingly becoming a staple in Africa and
Asia, producing more edible energy per hectare per
day than wheat, rice or cassava.
TRENDS
The 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.
GENDER
Canada 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.
LIGHT
U.S. researchers have developed a new type of lighting
that could replace fluorescent bulbs. The new source is
made from layers of plastic and is said to be more
efficient while producing a better quality of flicker-free
light. The new light source is called field-induced
polymer electroluminescent technology. It is made
from three layers of light-emitting polymers that
contain a small volume of nanomaterials that glow
when electric current is passed through them. It is
believed that the first units will be produced this year.
CUBA
Communist-run Cuba has legalized non-agricultural
co-operatives as the state slowly pulls back from its
centrally planned economy in favour of private
initiative and market forces. The move is the latest
reform under the President, Raul Castro, who wants to
transform the country's Soviet-style economy into one
more in line with Asian Communism where political
control remains absolute, while allowing more space
for the private sector. The initial stage calls for the
establishment of more than 200 associations in
sectors such as transportation, food services, fishing,
personal and domestic services, recycling and
construction.
ENERGY
By the end of last year, Canada had about 6,500
megawatts of wind power capacity, enough to power
close to two million homes. For the second consecutive
year, more than 1,000 MW of power had been added to
Canada's grid and there will be around 1,500 MW of
new installations on average annually over the next
few years. Ontario has the most installations. There are
now 159 wind farms across Canada with more than
3,500 turbines. Wind power generates about 3 per
cent of the country's power.
MILK
In an age of vitamin waters and energy drinks, the
decades-long decline in U.S. milk consumption has
accelerated, worrying dairy farmers, milk processors
and grocery chains. Per capita U.S. milk consumption,
which peaked around the Second World War, has fallen
almost 30 per cent since 1975, even as sales of yogurt,
cheese and other dairy products have risen. Children,
who tend to be heavy milk drinkers, account for a
smaller share of the U.S. population than they once
did. Americans drank an average of 20 gallons (75
litres) of milk last year, a decline of 3.3 per cent from
the previous year, and the biggest slide year-over-year
since 1993.
NUMBERS
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
Toronto's Pearson International Airport employs
40,000 workers, creating a C$26-billion annual
economic impact including revenues related to direct,
indirect and induced activities. In 2011, 33.4 million
passengers passed through Toronto which had
448,000 take-offs and landings. Vancouver
International Airport has 23,614 direct jobs, creating a
$5.3-billion gross domestic product and handles 17-
million passengers.
HACKING
Last October, it was learned that an international
computer hacker had stolen from the South Carolina
Department of Revenue data base, the tax records of
every South Carolinian who has filed a tax return
online since 1998, 3.8-million individuals and almost
850,000 businesses. It is believed to be the largest
cyber-attack against a state tax agency in America's
history. Hijacked information included anything listed
on the tax returns, from Social Security numbers and
bank account information to details about taxpayers'
children.
R&D
Gross domestic expenditure on research and
development (R&D) in Canada amounted to C$30-
billion last year, up slightly from 2011. Of this,
Business accounted for about $15.5-billion, the higher
education sector for about $11.5-billion, the federal
government for about $2.5-billion and the balance by
provincial governments, provincial research
organizations and private non-profit organizations.
TRAFFIC
There has been an increase in traffic on the Northern
Sea Route, the icy passage along Russia's Arctic coast.
Global warming has opened a route between Europe
and Asia that can cut journey times by three weeks.
Last year, some 50 vessels made the voyage. One ship
that left Norway last November was the first to carry
liquefied natural gas. It sailed for Japan where the
Fukushima nuclear disaster has led to an increase in
demand.
Past issues of the A&A Economic News Digest can be
found at
http://www.aacb.com/publications/ed/index.asp
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.