NetNews Usenet Archive 1993 #1/NN_1993_1.iso/spool/misc/activism/progress/9851

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From: Kai Mander <[e-mail]>
Subject: TRADE.NEWS 1-7-93
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TRADE NEWS BULLETIN  Volume II  Number 4
Thursday, January 7, 1993
_________________________________________________________
USTR NOMINEE KANTOR INEXPERIENCED IN TRADE

Last month, President-elect Bill Clinton chose his campaign chairman
and long-time advisor Mickey Kantor for the post of United States
Trade Representative (USTR).

Because Kantor is a novice in international trade matters, some
analysts suggest trade may not be a high priority in the Clinton
Administration.  Furthermore, Clinton's failure to include the USTR in
the group of foreign policy appointments announced in early
December will, according to the JOURNAL OF COMMERCE, surely lead
to speculation the appointment is merely a political payback to
Kantor.

Others contend Kantor's background as a lawyer and his lack of a
previously established position on trade will enable him to negotiate
trade agreements that satisfy diverse groups.  But U.S. businesses,
many of which are eager for completion of GATT and NAFTA accords,
reacted with disappointment at Kantor's nomination.  They are
confused about Kantor's trade positions, and they worry that well-
publicized conflicts with other Clinton advisers may hamper Kantor's
effectiveness.

Opponents of GATT and NAFTA are not any happier.  Many had
hoped Clinton would choose a USTR more in touch with
environmental, labor and agriculture concerns and they are uneasy
about Kantor's close connections to corporate interests.  Kantor has
lobbied for some of the United States' largest corporations, including
Philip Morris, General Electric, Occidental Petroleum, Martin Marietta
and Atlantic Richfield.

Besides inheriting stalled GATT talks and the onus  of establishing
supplemental agreements to NAFTA, Kantor will have a host of other
issues to address, including possible trade conflicts on steel and
spiraling U.S. trade deficits with Japan and China.

Meanwhile, Clinton is close to naming three deputy U.S. trade
representatives and the general counsel for the trade
representative's office.  Among those under consideration, according
to sources, are Rufus Yerxa, the current deputy trade representative
to GATT, Michael Wessel, a trade adviser to House Majority Leader
Richard Gephardt (D-Missouri) and Barry Carter, trade director for
the transition team.

Clinton is expected to name Laurence Summers, the chief economist
at the World Bank, as undersecretary of the Treasury.  Summers
would oversee international economic issues for the administration.

Source: John Maggs, "USTR Post Low on Clinton List," JOURNAL OF
COMMERCE, December 28, 1992; Nancy Dunne, "US Trade Groups
Puzzled by Selection of Kantor," FINANCIAL TIMES, December 30,
1992; Stuart Auerbach, "Kantor's Trade Slate Is a Blank; Clinton
Selects Envoy for Negotiating Skills," WASHINGTON POST, December
29, 1992; Andrea Shalal-Esa, "Kantor Is Political Insider with Strong
Corporate Ties," REUTER, December 24, 1992; Gerald F. Seib, Michael
K. Frisby, "Clinton Is Close to Naming Key Aides for Economic and
Foreign Policy Posts," WALL STREET JOURNAL, January 5, 1993;
"World Bank's Summers Likely to Get Treasury Post," WALL STREET
JOURNAL, January 7, 1993, p. B3.
_________________________________________________________
GATT News Summary
_________________________________________________________
US WANTS EC CONCESSIONS IN AUDIO-VISUAL TRADE

The United States is pushing for significant concessions from the
European Community in audio-visual services as part of a new
General Agreement on Tariffs and Trade (GATT).  The U.S. film and
television industries are eager to open Europe's $30 billion market,
but Europeans say they do not want their culture dominated by the
United States.

"The overwhelming problem is that in the US, audio-visual services
are seen in purely commercial terms," an EC official complained.  "In
the EC, the economic aspect is seen as much less important, and it is
seen in cultural and political terms."

Because U.S. films already account for 70 percent of movie
attendance in Europe, compared to 20 percent for local film makers,
U.S. negotiators are particularly interested in prying open the
television industry.  EC nations currently set aside a minimum of 50
percent of their television programming to local production.

Japan supports the U.S. position because some Japanese companies
control financial interests in some of the largest U.S. film makers.
But others, such as Australia and India, are equally concerned that
an opening of audio-visual markets would destroy domestic
industries.  The U.S. film and television industry is larger than the
industries of the EC member nations combined.

Source: David Dodwell, "US Film Makers Focus on GATT," FINANCIAL
TIMES, January 7, 1993, p. 4.
_________________________________________________________
SELF-SUFFICIENCY IN JAPAN DECLINING

Although Japan has thus far refused to open its rice markets to
foreign imports, the country's food self-sufficiency is on the downfall
as imports of other food products increase, the Agriculture Ministry
reported recently.  The country's food self-sufficiency rate on a
calorie basis fell from 47 percent in 1991 to 46 percent in 1992.  Rice
accounts for 26 percent of the country's annual calorie intake for the
average Japanese.  Rice exporting nations want Japan to open its
markets to foreign rice as part of GATT.

Source:  "Japan's Self-Sufficiency in Food Declines," REUTER, December
28, 1992.
_________________________________________________________
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]
_________________________________________________________