NetNews Usenet Archive 1992 #27/NN_1992_27.iso/spool/misc/activism/progress/8511

Text File | 1992-11-18 | 8.3 KB | 176 lines

Newsgroups: misc.activism.progressive
Path: sparky!uunet!gumby!wupost!mont!pencil.cs.missouri.edu!daemon
From: Andrew Lang <[e-mail]>
Subject: TRADE.NEWS 11-18-92
Message-ID: <[e-mail]>
Followup-To: alt.activism.d
Originator: [e-mail]
Sender: [e-mail]
Nntp-Posting-Host: pencil.cs.missouri.edu
Organization: ?
Date: Thu, 19 Nov 1992 02:47:39 GMT
Approved: [e-mail]
Lines: 161

/* Written  2:06 pm  Nov 18, 1992 by [e-mail] in igc:trade.news */
/* ---------- "TRADE.NEWS 11-18-92" ---------- */

TRADE NEWS BULLETIN
Wednesday, November 18, 1992
_________________________________________________________
GATT News Summary
_________________________________________________________
EC-US TALKS BEGIN TODAY - FRENCH MAINTAIN OPPOSITION

Just hours before the United States and European Community were
set to begin key agriculture trade talks in Washington, a statement
from the office of French President Francois Mitterand reiterated his
opposition to any agreement that goes beyond the subsidy and
production cuts outlined in the EC's Common Agricultural Policy
(CAP). The office also announced the French parliament would be
asked to debate the trade issue and approve a government-drafted
position on the negotiations.

U.S. and EC negotiators planned to meet today to avert a looming
trade war over EC subsidies, which the U.S. claims cost American
farmers $1 billion in sales a year.  Still in question is what France's
reaction would be if the EC and U.S. reach a deal without France's
blessing.  The French government announced their continued
opposition after an emergency inner cabinet meeting on the talks.
"The inner cabinet recalls that France has always wanted a global
and balanced agreement beneficial to the world economy.  It notes
that the conditions for this do not currently exist."

On Monday night, EC agriculture negotiator Ray MacSharry was
granted a "clear benediction" by the EC to achieve a deal with the U.S.
At a farm ministers meeting, France tried to shore up support from
other EC members by presenting studies of the predicted effects of a
new agriculture deal, but according to UK Agriculture Minister David
Curry, "Nobody endorsed the French figures."  Ireland and Spain
expressed some concern that a GATT deal would, as France claims, go
beyond the recently reformed CAP.  But France's support has
declined since last week.  MacSharry disputed French claims that a
deal would require that more land be taken out of production than
the 15 percent "set-aside" agreed under CAP.

French farmers, who export 50 percent of their agriculture
production and oppose U.S. demands for further reductions, staged
protests today in France, including a large one in front of the U.S.
embassy in Paris.  Some fear a completed GATT would set off
massive, destructive protests.  Farmers already object to reforms in
the EC's Common Agricultural Policy (CAP) and say that an
agriculture deal would further cut their exports.  EC trade negotiator
Frans Andriessen contends a new deal would remain within the
framework of CAP.

The French wheat growers' association, AGPB, said the U.S. demand
for cuts would more than halve the EC's share of the world grain
market by the year 2000.  "The issue would no longer be only
economic, but also strategic, since grain exports are a food weapon,"
AGPB said in its monthly newsletter.

France's largest opposition party, the neo-Gaullist RPR, called on the
French government to veto any GATT deal because of its effects on
French agriculture.  In a separate statement, the Senate economic
affairs commission also called on the government to exercise its right
of veto if a trade accord set quantitative restrictions on agricultural
production or exports.

The U.S. rejected an EC proposal to reduce EC oilseeds production to
9.5 million tons and the volume of its subsidized wheat exports by
21 percent.

Source: ICDA UPDATE, URUGUAY ROUND IN GATT AND TRADE
RELATED ISSUES, May-October 1992, "GATT Deal Would Halve EC
Grain Market Share - Group," REUTER, November 18, 1992; "Trade
Talks," AP, November 18, 1992; Martin Crutsinger, "Trade," AP,
November 17, 1992; Andres Wolberg-Stok, "France Slams Possible
Deal in Key Trade Talks," REUTER, November 18, 1992; David
Gardner, "France Fails to Block Farm Accord," FINANCIAL TIMES,
November 17, 1992, p. 1; "French Opposition Party Urges Veto of
GATT Accord," REUTER, November 18, 1992.
_________________________________________________________
CHINA DENIES GATT ENTRY MEANS CHEAP IMPORTS

A senior Chinese official denied widespread reports that China's
possible re-entry into the General Agreement on Tariffs and Trade
would mean a flood of cheap imports into the country.  "Once China
joins GATT, it doesn't mean there won't be any import controls,"
Ministry of Foreign Economic Relations official Long Yongtu told the
LEGAL DAILY.  Long said there were a number of safety valves China
could employ if domestic industries were threatened but that any
controls China places on imports would be consistent with GATT
guidelines.

Source: "China Denies GATT Membership Means Import Flood,"
REUTER, November 17, 1992.
_________________________________________________________
NAFTA News Summary
_________________________________________________________
MEXICO NOT PUSHING NAFTA, WAITING FOR CLINTON

Mexico has stopped pushing for quick passage of the North American
Free Trade Agreement amid signs the Clinton Administration may
want to focus on the domestic economy first, the NEW YORK TIMES
reports today.   Apparently the Mexican government will not push
President-elect Bill Clinton nor the 121 new members of Congress
into a rapid decision on the trade pact.  Rather, Mexican officials say,
they will discuss any of Clinton's objections to the pact at his
convenience.

At a hearing, Canadian Trade Minister Michael Wilson said he
expected NAFTA to remain on schedule despite the election of
Clinton.   Wilson said the leaders of Canada, the United States and
Mexico will probably sign the NAFTA toward the end of December.
"We will, however, be watching the developments in the United
States and in Mexico closely and will work both with the outgoing
and incoming administrations as well as (Mexican) President Salinas
and his team to ensure that we have a coordinated approach to
implementing the agreement," Wilson said.   The agreement, which is
scheduled to go into effect January 1, 1994, must still be approved
by the legislatures of the three countries.

Clinton, who believes in free trade in principle, has expressed
concern that NAFTA may encourage an exodus of U.S. jobs to Mexico,
as businesses take advantage of Mexico's lax environmental
regulations and labor laws.  Clinton has said he would not seek a
renegotiation of NAFTA, but that he would enact "supplemental"
agreements.  In listing his top priorities upon assuming office, Clinton
has noticeably not mentioned completing the NAFTA or GATT accords
trade pacts.

Meanwhile, the International Trade Commission began conducting an
independent review of NAFTA yesterday.  The six-member
commission, which was asked by Congress to conduct an
investigation, heard testimony from a variety of supporters and
opponents of NAFTA.

Source:  Keith Bradsher, "Trade Pact May Have to Wait," NEW YORK
TIMES, November 18, 1992, p. C1; "NAFTA to be Signed Next Month,"
Canada Says," REUTER, November 17, 1992.
_________________________________________________________
Resources:

Just released is the May-October 1992 edition of ICDA UPDATE:
URUGUAY ROUND NEGOTIATIONS IN GATT AND TRADE RELATED
ISSUES.  It's available from the International Coalition for
Development Action (ICDA), Rue Stevin 115, B-1040 Brussels,
Belgium.  Tel: [phone].  Fax: [phone].
_________________________________________________________
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]
_________________________________________________________