NetNews Usenet Archive 1992 #27/NN_1992_27.iso/spool/misc/activism/progress/8425

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From: Andrew Lang <[e-mail]>
Subject: TRADE.NEWS 11-16-92
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/* Written  2:48 pm  Nov 16, 1992 by [e-mail] in igc:trade.news */
/* ---------- "TRADE.NEWS 11-16-92" ---------- */

TRADE NEWS BULLETIN
Monday, November 16, 1992
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GATT News Summary
_________________________________________________________
LEAKED REPORT INDICATES MACSHARRY GOING BEYOND CAP

In agriculture negotiations with the United States, European
Community Agriculture Commissioner Ray MacSharry is going
beyond the price and production cuts agreed under the EC's recently
reformed Common Agricultural Policy (CAP), according to a document
obtained by a French newspaper.

The Paris-based LIBERATION newspaper said the document, which
was obtained from a European Commission official, reveals that the
10 million ton limit on oilseeds production offered to the U.S. by
MacSharry would require 21 percent of land to be taken out of
production compared to the 15 percent under CAP.  Further, if the
U.S is successful in its demand for an output ceiling of 9 million tons,
"set-aside" land could reach 38 percent.

MacSharry briefly resigned as EC agriculture negotiator last week,
claiming that Commission President Jacques Delors was blocking a
deal.  Delors and others had accused MacSharry of offering more
concessions than he was authorized in searching for a deal.  The
Uruguay Round of the General Agreement on Tariffs and Trade
(GATT) is stalled over the EC and U.S. failure to reach an agriculture
agreement.  The U.S. recently announced it would impose $300
million in retaliatory tariffs on European products if the EC does not
reduce its farm subsidies by December 5.

Meanwhile, the heads of 27 leading European industrial companies
called on Delors to seek an EC-U.S. accord on agriculture.  "Business
leaders do not find it acceptable that the prospects of recovery for
the whole range of manufacturing and service industries should be
endangered by the continued failure to reach a mutually satisfactory
agreement on trade in agriculture products," members of the
European Round Table (ERT) told Delors in a meeting.

But European farm leaders applauded Delors for his "clear and
unbending" position in EC-US negotiations. The farm lobby
organization COPA called on Delors to continue "to defend the
interests of agriculture to the benefit of the whole Community."

Source: David Gardner, "Dispute Over Trade Talks Revived By Leaked
Report," FINANCIAL TIMES, November 16, 1992, p. 1; "European
Farm, Industry Chiefs Pull on Opposite Ends," REUTER, November 16,
1992.
_________________________________________________________
DUNKEL MEETS US OFFICIALS TODAY

GATT Director-General Arthur Dunkel will talk with Bush
Administration officials today in an attempt to settle the long-
running dispute over European farm payments.  Dunkel, who arrived
in Washington Sunday after talks with European officials, will meet
with U.S. Trade Representative Carla Hills and Agriculture Secretary
Edward Madigan.

"I think there is now a real political will (to reach a solution) and I
hope this time it will work," Dunkel said.  He said he would tell USTR
Hills that the EC seemed ready to reach an agreement.  EC External
Affairs Commissioner Frans Andriessen and Agriculture
Commissioner Ray MacSharry will meet with Hills and Madigan
Wednesday to work on a compromise.

Source: Peter Blackburn, "EC Farm Meeting to Review World Trade
Deal Prospects," REUTER, November 15, 1992; Robert Trautman,
"Talks to Open Amid Signs Trade War May Be Averted," REUTER,
November 16, 1992.
_________________________________________________________
GATT THREATENS WORLD ENVIRONMENT, GROUPS SAY

While politicians and business officials are promoting the economic
benefits of GATT, environmentalists say it may be the single-greatest
threat to laws protecting the world's environment.  Roger Wilson of
Greenpeace in Amsterdam argues that because GATT endorses free
trade as its number one priority, environmental laws will be
overturned.  "We have already seen situations where environmental
regulations have been determined by GATT to be illegal barriers to
trade and we fear this will be the trend for the future," Wilson said.

As evidence, environmentalists point to a GATT ruling that U.S. bans
on tuna imports caught in dolphin-unsafe methods are unfair trade
barriers.  They say that ruling could set a dangerous precedent which
could stifle efforts of other countries to protect animal and plant
species.

Most environmentalists welcome the impasse in concluding the
Uruguay Round of GATT as an opportunity to remind people of
GATT's environmental consequences.  "As long as we don't have a
massive trade war, then I think this delay could be beneficial," said
Charles Arden-Clarke of the World Wide Fund for Nature in
Switzerland.

Source: Ben Hirschler, "Why GATT Makes Greens See Red," REUTER,
November 16, 1992.
_________________________________________________________
NAFTA News Summary
_________________________________________________________
NAFTA COULD END CLINTON'S "HONEYMOON" WITH CONGRESS

An article in Saturday's WASHINGTON POST asserts that if Bill Clinton
tries to force the North American Free Trade Agreement on skeptical
Democrats, "whatever honeymoon he  enjoys with Congress could
turn sour early."

A number of Democrats are opposed to the trade pact, believing it
will lead to U.S. job losses because of cheaper labor and looser
environmental enforcement in Mexico.  "We just had a jobs election -
that was clearly the overriding issue," said Senator Donald W. Riegle
Jr. (D-Michigan), a strong opponent of NAFTA.  "Something as
potentially destabilizing as this (agreement) has to be dealt with
very carefully."

Clinton has said he supports NAFTA if "supplemental agreements" on
the environment, labor standards and import safeguards are
submitted to Congress. He told Mexican President Carlos Salinas de
Gortari that he would not try to renegotiate the trade pact itself.

Source: Guy Gugliotta, "North American Free Trade Pact Should
Shorten Clinton Honeymoon; Some Democrats in Congress, Labor
Oppose Accord as Job Destroyer," WASHINGTON POST, November 14,
1992.
_________________________________________________________
REPORT TRIES TO EASE PUERTO RICAN CONCERNS ABOUT NAFTA

Puerto Rican government officials and economists have expressed
concern that a more competitive Mexico under the North American
Free Trade Agreement would reduce Puerto Rico's earnings from
exports.  But a study commissioned by the island's development
bank concludes that, if NAFTA were implemented, Puerto Rico would
enjoy advantages over Mexico in pharmaceuticals, electronic
components and accessories, professional instruments, electronic
computing and rum distilling.  The report, undertaken by KPMG Peat
Marwick of the U.S., said Puerto Rico will have a more difficult time
competing in other sectors such as clothing, textiles, tuna and leather
footwear industries.

Source: Canute James, "Puerto Rico Sees Gains in NAFTA," FINANCIAL
TIMES, November 13, 1992, p. 3.
_________________________________________________________
Events:

The American Conference Institute has organized a two-day
conference December 2-3 in Washington, DC to look at "business
implications and legal rules" for the North American Free Trade
Agreement.  Among the speakers are U.S. Trade Representative Carla
Hills, Mexican Secretary of Commerce and Industry Jaime Serra-
Puche and Canadian Trade Minister Michael Wilson.  For a complete
agenda or a registration form, call [phone].  The registration
fee is only $895 per person.  For government employees and
academics the fee is $595.
_________________________________________________________
Other On-line Conferences:

trade.strategy - a discussion of trade issues
trade.library - a repository of trade information
eai.news - a news summary of Latin American trade topics
susag.news - a news summary of sustainable agriculture issues

Produced by:
Kai Mander
The Institute for Agriculture and Trade Policy (IATP)
1313 Fifth Street SE, Suite #303
Minneapolis, MN 55414-1546 USA
Telephone:[phone] Fax:[phone]
E-Mail:[e-mail]
_________________________________________________________