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How Fish Processors and The Mandalorian Are Helping Spain’s Economy – BNN Bloomberg

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(Bloomberg) — Close to Bilbao in Northern Spain, biotech firm Biolan designs and manufactures diagnostic products that are being used in more than 60 countries, including at factories owned by dairy giant Groupe Lactalis and Thai fish processor Thai Union Group Pcl.

It wasn’t always this way. When Asier Albizu co-founded the firm, it was a three-person business that supplied grape quality assessments to Spain’s wine industry. But as the domestic economy got stuck in a long-running slump after the collapse of a property bubble in 2008, domestic demand suffered, so Biolan looked elsewhere for business.

That international expansion is part of a transformation that’s taken place across Spain. For thousands of companies like Biolan, trade emerged as a glimmer of light after the crash left the country mired in recession and the banking system in need of a bailout.

Now, a decade and a half later, what started as a desperate reaction to an unprecedented crisis has led to a permanent shift. The number of firms engaging in regular cross-border trade has grown almost 30% over the last decade, according to government figures. More recently, services exports have picked up, adding to the resilience of the economy. Spain is forecast to grow faster than the euro area this year, extending a run of outperformance over the past decade.

“In the first years of the crisis, economists questioned, myself included, whether the increase in exports was permanent,” said María Jesús Fernández, a senior economist at think tank Funcas. “But then when the domestic economy revived, the exports were not lost, and that gain has been maintained.”

Spain’s economy is still heavily reliant on tourism, though exports of other services have improved, including areas like engineering, IT and cultural services, which have seen a take-off since the pandemic. Personal, cultural and government services are up about 70% since 2019, while financial services have risen more than 40%.

The trade performance has helped to correct long-term imbalances. The current account is back in the black after decades in deficit. And figures last month showed non-tourist goods and services also posted a surplus in 2023.

El Ranchito, a visual effects firm based in Madrid, saw revenues boom in 2022, as movie and TV production rebounded after the pandemic. 

The company, which worked mostly on Spanish film, TV and advertising when it was founded two decades ago, now does 80% of its work internationally. It’s portfolio includes high-profile shows “The Mandalorian,” “Game of Thrones” and “Stranger Things.”

Gonzalo Carrión, El Ranchito’s finance director, said better tax rebates “helped attract big producers like Netflix and HBO.”

Support from the government to encourage investment is key to further progress, particularly if Spain is to improve productivity and living standards, areas where it still lags behind many of its peers. 

Because while Spain exported itself out of a crisis, it was partly built on the back of painful austerity. 

And many are frustrated that they’re not sharing in the economy’s recovery, particularly after the post-pandemic inflation spike. Unemployment is close to 12%, relatively low investment has meant chronically weak productivity, and GDP per capita is below the euro-area average.

Such weaknesses are among the reasons Spain has been one of the biggest recipients of the European Union’s recovery aid — known as NextGenerationEU. Those funds will boost the economy, Bloomberg Intelligence forecasts, “if channeled to the right projects.”

Lucky Break

Biolan’s export success after the financial crisis was a mix of design and luck. As it saw customers cutting back on tests that weren’t deemed essential, it looked abroad for opportunity.

Then, after a winery visit in Chile, a chance meeting with a fish meal producer led to an unexpected alliance. The company was looking to upgrade its analysis equipment, and Albizu realized Biolan could supply it by making just a few tweaks to its existing technology.

He now sells to businesses across the fish supply chain, from tuna catchers in the Philippines to sardine exporters in Morocco. Last year, 85% of Biolan’s revenue came from outside Europe.

“Over the years we’ve greatly diversified in food markets,’ Albizu said. “From a sales point of view, we exported zero the first and second years, now we export 92% of our production.”

Other companies that were already geared towards foreign markets leaned more in that direction after 2008. Ormazabal, a maker of equipment for electric grids that began working abroad in the late 1980s, said this helped it as the domestic economy tanked. 

“We accelerated our internationalization process, and that saved us,” Chief Executive Officer Jorge Gonzalez told Bloomberg. “We compensated for the drop in the national market.”

Since 2015, Spain has outpaced the euro area in economic growth every year bar one. The outlier is 2020, when the pandemic wiped out tourism, dealing a particularly heavy blow to the economy.

Expansion is forecast to slow this year, in line with a broad cooling across Europe and the globe. But at 1.7%, according to the latest Bloomberg survey of economists, Spain will still grow far faster than the euro region.

Meanwhile, the country’s trade success was highlighted recently by Luis de Guindos, who was economy minister during the early years of the post-crisis turnaround.

“The export capacity of the Spanish economy is surprising, how it has changed,” de Guindos, now vice president of the European Central Bank, told RNE radio. “Traditionally, Spain always had a trade balance deficit, and has had a continuous surplus since 2013, which shows that we are competitive, that we export.”

–With assistance from Thomas Hall and Macarena Muñoz.

©2024 Bloomberg L.P.

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Construction wraps on indoor supervised site for people who inhale drugs in Vancouver

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VANCOUVER – Supervised injection sites are saving the lives of drug users everyday, but the same support is not being offered to people who inhale illicit drugs, the head of the BC Centre for Excellence in HIV/AIDS says.

Dr. Julio Montaner said the construction of Vancouver’s first indoor supervised site for people who inhale drugs comes as the percentage of people who die from smoking drugs continues to climb.

The location in the Downtown Eastside at the Hope to Health Research and Innovation Centre was unveiled Wednesday after construction was complete, and Montaner said people could start using the specialized rooms in a matter of weeks after final approvals from the city and federal government.

“If we don’t create mechanisms for these individuals to be able to use safely and engage with the medical system, and generate points of entry into the medical system, we will never be able to solve the problem,” he said.

“Now, I’m not here to tell you that we will fix it tomorrow, but denying it or ignoring it, or throw it under the bus, or under the carpet is no way to fix it, so we need to take proactive action.”

Nearly two-thirds of overdose deaths in British Columbia in 2023 came after smoking illicit drugs, yet only 40 per cent of supervised consumption sites in the province offer a safe place to smoke, often outdoors, in a tent.

The centre has been running a supervised injection site for years which sees more than a thousand people monthly and last month resuscitated five people who were overdosing.

The new facilities offer indoor, individual, negative-pressure rooms that allow fresh air to circulate and can clear out smoke in 30 to 60 seconds while users are monitored by trained nurses.

Advocates calling for more supervised inhalation sites have previously said the rules for setting up sites are overly complicated at a time when the province is facing an overdose crisis.

More than 15,000 people have died of overdoses since the public health emergency was declared in B.C. in April 2016.

Kate Salters, a senior researcher at the centre, said they worked with mechanical and chemical engineers to make sure the site is up to code and abidies by the highest standard of occupational health and safety.

“This is just another tool in our tool box to make sure that we’re offering life-saving services to those who are using drugs,” she said.

Montaner acknowledged the process to get the site up and running took “an inordinate amount of time,” but said the centre worked hard to follow all regulations.

“We feel that doing this right, with appropriate scientific background, in a medically supervised environment, etc, etc, allows us to derive the data that ultimately will be sufficiently convincing for not just our leaders, but also the leaders across the country and across the world, to embrace the strategies that we are trying to develop.” he said.

Montaner said building the facility was possible thanks to a single $4-million donation from a longtime supporter.

Construction finished with less than a week before the launch of the next provincial election campaign and within a year of the next federal election.

Montaner said he is concerned about “some of the things that have been said publicly by some of the political leaders in the province and in the country.”

“We want to bring awareness to the people that this is a serious undertaking. This is a very massive investment, and we need to protect it for the benefit of people who are unfortunately drug dependent.” he said.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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N.B. election: Parties’ answers on treaty rights, taxes, Indigenous participation

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FREDERICTON – The six chiefs of the Wolastoqey Nation in New Brunswick distributed a survey on Indigenous issues to political parties ahead of the provincial election, which is scheduled to kick off Thursday. Here are some of the answers from the Progressive Conservative, Liberal and Green parties.

Q: How does your party plan to demonstrate a renewed commitment to recognizing our joint treaty responsibilities and acknowledging that the lands and waters of this territory remain unceded?

Progressive Conservative: The party respectfully disagrees with the assertion that land title has been unceded. This is a legal question that has not been determined by the courts.

Liberal: When we form government, the first conversations the premier-designate will have is with First Nations leaders. We will publicly and explicitly acknowledge your treaty rights, and our joint responsibility as treaty people.

Green: The Green Party acknowledges that New Brunswick is situated on the unceded and unsurrendered territories of the Wolastoqiyik, Mi’kmaq and Peskotomuhkati peoples, covered by the Treaties of Peace and Friendship. Our party is committed to establishing true nation-to-nation relationships with First Nations, grounded in mutual respect and co-operation as the treaties intended.

Q: How does your party propose to approach the issue of provincial tax agreements with First Nations?

Progressive Conservative: The government of New Brunswick operates in a balanced and fair manner with all organizations, institutions and local governments that represent the citizens of this province, including First Nations. Therefore, we cannot offer tax agreements that do not demonstrate a benefit to all citizens.

Liberal: Recent discussions with First Nations chiefs shed light on the gaps that existed in the previous provincial tax agreements with First Nations. Our party is committed to negotiating and establishing new tax agreements with First Nations that address the local needs and priorities and ensure all parties have a fair deal.

Green: The Green Party is committed to fostering a respectful relationship with First Nations in New Brunswick and strongly opposes Premier Blaine Higgs’s decision to end tax-sharing agreements. We believe reinstating these agreements is crucial for supporting the economic development and job creation in First Nation communities.

Q: How will your party ensure more meaningful participation of Indigenous communities in provincial land use and resource management decision-making?

Progressive Conservative: The government of New Brunswick has invested significant resources in developing a robust duty to consult and engagement process. We are interested in fully involving First Nations in the development of natural resources, including natural gas development. We believe that the development of natural gas is better for the environment — because it allows for the shutdown of coal-fired power plants all over the globe — and it allows for a meaningful step along the path to reconciliation.

Liberal: Our party is focused on building strong relations with First Nations and their representatives based on mutual respect and a nation-to-nation relationship, with a shared understanding of treaty obligations and a recognition of your rights. This includes having First Nations at the table and engaged on all files, including land-use and resource management.

Green: We will develop a new Crown lands management framework with First Nations, focusing on shared management that respects the Peace and Friendship Treaties. We will enhance consultation by developing parameters for meaningful consultation with First Nations that will include a dispute resolution mechanism, so the courts become the last resort, not the default in the face of disagreements.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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Canadian Coast Guard crew member lost at sea off Newfoundland

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ST. JOHN’S, N.L. – A crew member of a Canadian Coast Guard ship has been lost at sea off southern Newfoundland.

The agency said in a release Wednesday that an extensive search and rescue effort for the man was ended Tuesday evening.

He was reported missing on Monday morning when the CCGS Vincent Massey arrived in St. John’s, N.L.

The coast guard says there was an “immediate” search on the vessel for the crew member and when he wasn’t located the sea and air search began.

Wednesday’s announcement said the agency was “devastated to confirm” the crew member had been lost at sea, adding that decisions to end searches are “never taken lightly.”

The coast guard says the employee was last seen on board Sunday evening as the vessel sailed along the northeast coast of Newfoundland.

Spokeswoman Kariane Charron says no other details are being provided at this time and that the RCMP will be investigating the matter as a missing person case.

This report by The Canadian Press was first published Sept. 18, 2024.

The Canadian Press. All rights reserved.

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