NetNews Usenet Archive 1993 #1/NN_1993_1.iso/spool/misc/activism/progress/9794

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From: Kai Mander <[e-mail]>
Subject: TRADE.NEWS 1-5-93
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TRADE NEWS BULLETIN  Volume II Number 2
Tuesday, January 5, 1993
_________________________________________________________
NAFTA News Summary
_________________________________________________________
MIXED VIEWS ON NAFTA TRUCKING PROVISIONS

U.S. trucking companies are scrambling to prepare for the easing of
restrictions under the North American Free Trade Agreement.  While
some are eager to increase their operations in Mexico, other
companies -- and their drivers -- fear they will be unable to compete
with the stiff competition from Mexico.

Many U.S. trucking companies feel they are at a disadvantage
because Mexican carriers do not have to pay worker's compensation
and unemployment benefits, nor must they meet the same safety
requirements.  "They gained a lot of things; we gained nothing," said
Stephen P. Murphy, a lobbyist and retired general counsel for Yellow
Freight System Inc.  "We didn't get a fair deal."

U.S. carriers object to NAFTA's provision prohibiting American
companies from buying control of Mexican trucking companies until
the year 2000.  Mexican companies are already allowed to buy U.S.
carriers.  U.S. carriers are also disappointed NAFTA does not overrule
Mexico's ban on extra-long trucks, which U.S. corporations use
frequently.

U.S. truck drivers fear NAFTA's honoring of Mexican commercial
drivers' licenses in the U.S. will lead to many job losses as companies
hire Mexican drivers at lower wages.   "If these companies can get
them to work for nothing, and they don't have to meet our
requirements, then a lot of Americans are going to lose their jobs,"
said Keith B. Green, a driver for Yellow Freight.  A recent
International Brotherhood of Teamsters' study found that U.S. truck
drivers earn an average $140 a day in total compensation, compared
to $7 a day for their Mexican counterparts.

Towns along the U.S.-Mexico border have benefited from the two
countries' respective ban on foreign drivers.  Currently, trailers must
be exchanged at the border.  But because NAFTA eliminates the ban
on foreign drivers, border towns are likely to suffer a sharp decline
in activity as transportation companies choose to do their
consolidating and warehousing in other, larger cities further from the
border.

James Giermanski, director of the international trade division of
Laredo State University, says the towns should expect long-term
employment and distribution changes from NAFTA.  "I don't think
border cities are making traffic assumptions.  I don't think they even
understand the agreement," Giermanski said.

Source: Keith Bradsher, "North-South Route to Trucking Profit," NEW
YORK TIMES, January 5, 1993, p. C1; "NAFTA Leaves Texas Truckers
Singing the Blues," JOURNAL OF COMMERCE, August 18, 1992, p. 3B;
Kevin G. Hall, "US-Mexican Trade Agreement Will Cut Role of Border
Truck Hub," JOURNAL OF COMMERCE, December 23, 1992, p. 1.
_________________________________________________________
SALINAS PROMOTES THREE POSSIBLE SUCCESSORS

Mexican President Carlos Salinas de Gortari promoted three members
of his Institutional Revolutionary Party (PRI) to cabinet rank.
Salinas, who is prohibited under the Mexican constitution from
seeking a second term, is expected to follow tradition this year and
choose a PRI cabinet minister to succeed him when his six-year term
expires in July 1994.

Several analysts were surprised at the selection of Jose Patrocinio
Gonzalez, governor of the southern state of Chiapas, as interior
minister.  Chiapas is known as one of the worst states for human
rights abuses.  Salinas also named Jorge Carpizo MacGregor, head of
the government's National Commission on Human Rights, as the new
attorney general.  Emilio Lozoya Thalmann, director of the Institute
for Social Security and Services for State Employees, was named
minister of energy, mines and state firms.

Source: Janet Duncan, "Mexico Shuffles Cabinet with Eye to
Presidential Race," REUTER, January 4, 1993;
_________________________________________________________
GATT News Summary
_________________________________________________________
GATT PROBLEMS CONTINUE; US WILL SUBMIT TARIFF LIST

U.S. President George Bush and French President Francois Mitterand
failed to make progress toward completing the General Agreement
on Tariffs and Trade during talks Sunday.  "I reiterated the U.S.
position, which is that we'd like to see a successful conclusion of the
GATT round," Bush told reporters.  "There are known differences.
We did not eliminate those differences."

As the January 20 inauguration date approaches and a  GATT does
not appear imminent, it seems virtually certain that President-elect
Bill Clinton will inherit the negotiations.  But Bush is still gunning for
a deal.  In addition to the Bush-Mitterand talks, U.S. Trade
Representative Carla Hills and new EC Trade Commissioner Leon
Brittan held secret talks at an undisclosed location, according to one
top trade official.  The EC's previous top trade negotiator, Frans
Andriessen, has left the European Commission.

GATT Director-General Arthur Dunkel is also expected to use the top-
level Trade Negotiations Committee (TNC) meeting in Geneva on
January 15 to encourage a conclusion of the Round.

In related news, a trade official said the United States would submit
a new draft list of tariff cuts for industrial products in GATT this
week.  The list is a response to the European Community list issued
December 17.  Details of the U.S. list were not available, but one
official said, "It will continue to reflect our willingness to go to zero-
for-zero (tariff levels) in certain sectors."

Source: "Bush, Mitterand Make No Progress on GATT," REUTER,
January 3, 1993; Stephanie Nebehay, "GATT Negotiators Await
Signals from U.S. and EC," REUTER, January 5, 1993; "US to Submit
Tariff List on Industrial Goods," REUTER, Jan. 5, 1993.
_________________________________________________________
IRAN EAGER TO JOIN GATT

Iran expressed interest in joining GATT, and asked for the world
trade body's cooperation in speeding up the application process, the
Iranian news agency reported.  Sirous Nasseri, ambassador to the
United Nation's European office in Geneva, told GATT chief Arthur
Dunkel last week that Iran had implemented measures to "change
tariffs, step up non-oil exports and create free trade and economic
zones with other countries" as part of Iran's new economic policies.

Source: "Iran Plans to Join GATT," REUTER, December 28, 1992.
___________________________________________
Events:

"Free Trade in North America: The Occupational and Environmental
Impact" is the theme of the annual conference of The Society for
Occupational and Environmental Health (SOEH). The conference will
be held at Rutgers University, Piscataway, New Jersey, March 18-20,
1993.  For more information about SOEH and the conference, contact:
SOEH, 6728 Old McLean Village Drive, McLean, VA 22101.  Tel: (703)
556-9222.
_________________________________________________________
Resources:

1.  THE ECONOMIST is now offering: NAFTA: MEXICO PLANNER, "a
package of six articles drawn from the Economist Intelligence Unit
newsletters and research reports."  The magazine says the articles
are intended to provide management guidelines, strategies and
opportunities for conducting business within the NAFTA treaty.  The
package sells for US$49.  For more information, call 1-800-342-4220.
_________________________________________________________
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]
_________________________________________________________