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The Nanny State... attacks gum... sweet potatoes

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    The Nanny State... attacks gum... sweet potatoes

    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.
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