NetNews Usenet Archive 1992 #26/NN_1992_26.iso/spool/misc/activism/progress/8290

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From: Andrew Lang <[e-mail]>
Subject: TRADE.NEWS 11-10-92
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/* Written  4:01 pm  Nov 10, 1992 by [e-mail] in igc:trade.news */
/* ---------- "TRADE.NEWS 11-10-92" ---------- */

TRADE NEWS BULLETIN
Tuesday, November 10, 1992
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GATT News Summary
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EC SPLITS HINDER OILSEED DEAL, DUNKEL TO INTERVENE

European Community ministers yesterday called for the immediate
resumption of talks with the U.S. on farm subsidies and held off from
drawing up a list of U.S. goods to hit with retaliatory measures. The
U.S. said last week it will impose 200% tariffs on European white
wine,  rapeseed oil and wheat gluten if a deal on oilseeds is not
reached by December 5.  U.S. soybean growers fear their products
would be targeted if the EC retaliates.

Leading trade envoys indicated yesterday that General Agreement
on Tariffs and Trade (GATT) chief Arthur Dunkel appears likely to be
given formal approval today by the Trade Negotiations Committee
(TNC)  to intervene in the dispute.  The TNC is  made up of top
envoys from the 108 GATT member states.

The GATT has twice ruled against the EC's subsidy policy,  but
FEDIOL,  a Brussels-based seed crushers and oil processors
federation,  says the GATT rulings don't stipulate production volume
cuts.  The U.S. is demanding guaranteed volume production cuts,
while the EC prefers to make cuts in acreage.  FEDIOL, a large buyer
of U.S. soybeans,  contends the EC has already made considerable
concessions to the U.S.  While U.S. soybean growers blame their
falling market share in Europe mainly on EC subsidies,  part of the
decrease is also due to increased European imports from countries
such as Brazil.

U.S. Department of Agriculture spokesman Roger Runnigan said U.S.
negotiators are ready to meet with the EC any time,  and that "We do
hope that whoever is the (EC) negotiator has the authority that
parallels that which secretary Madigan has from President Bush."
Madigan claims unlimited authority to strike a deal.

Deep divisions remain in the EC over how far to go in order to reach
an agreement.  Spain,  Belgium,  Portugal and Greece all rallied
behind France's stance favoring retaliation over concessions to the
U.S. in Monday's meeting of EC ministers.  The UK,  Germany,  the
Netherlands and Denmark were the countries most opposed to
retaliation.

Divisions between industry and agriculture cross borders.  Although
German and French leaders disagree,  the German farm minister has
been one of France's strongest allies in opposing U.S. demands.  The
EC farmers body,  COPA, said the EC should stand united against
further concessions.  Meanwhile, a German industry group head said,
"... there is a threat that European industry could be held hostage to
mistakes in EC agriculture policy."

The international reaction to the U.S.-EC row has been impatience
and worry over the effects of a trade war.  Canada criticized the U.S.
for acting outside the GATT rules in leveling sanctions,  and Japan
said the EC should not take counter-measures.  U.N. Conference on
Trade and Development (UNCTAD) chairman Juan Manuel Santos said
"A trade war would be suicidal for the industrialized countries ... But
for the developing world a trade war would be catastrophic ..."

U.S. President-elect Bill Clinton has not made clear what his stance on
the oilseed negotiations would be,  but on agriculture in general has
said,  "Until the EC and others play by fair trade rules,  I would play
by their rules."

Source:  Frances Williams,  David Gardner,  "GATT Chief Dunkel to
Intervene in Europe-U.S. Row,  FINANCIAL TIMES,  November 10,
1992;  Robert Evans,  "GATT Envoys Mandate Dunkel Act to Save
Trade Talks,"  REUTER,  November 9,  1992;  Craig Forman,  Peter
Gumbel, "Trade Talks Expose Disarray in the EC,"  WALL STREET
JOURNAL,  November 10,  1992;  Peter Blackburn,  "FOCUS - EC Wants
GATT Talks,  France Softens Stance,"  REUTER,  November 9,  1992;
"EC Wants to Avoid Provoking Trade War With U.S.,  UP,  November
10,  1992;  "EC Oilseed Lobby Says Wants GATT,  US Must Move Too,"
REUTER,  November 11,  1992;  Richard Murphy,  "German Industry,
Slamming Delors,  Calls for Trade Deal,"  REUTER,  November 9,  1992;
"Trade,  Infrastructure Need Quick Action,"  JOURNAL OF COMMERCE,
November 5,  1992;  Sharon Schmickle,  "Soybean Growers Wary of
Sanctions,"  MINNEAPOLIS STAR-TRIBUNE,  November 7,  1992;  " EC
Should Not Retaliate vs U.S. on Oilseeds - MITI,  REUTER,  November
9,  1992;  "Canada Disapproves if U.S. Trade Sanctions,"  UP,
November 6,  1992,  "U.N. Body Says Trade War Would Crush Poor
Nations,"  REUTER,  November 9,  1992.
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CANADIAN BREWERS WANT GATT ARBITRATION

Some Canadian brewers are calling for binding arbitration under
GATT to end their beer trade war with the U.S.  The dispute started
when the U.S. imposed retaliatory duties on Canadian beer for an
environmental levy on cans it claimed was discriminatory.  More U.S.
beer than Canadian beer is sold in cans.  Third party arbitration of
the dispute could occur under the U.S.-Canada Free Trade Agreement
rather than GATT.

Source:  Jason Szep,  "Canadians Push to Cap Costly Beer Trade War,"
REUTER,  November 6,  1992.
__________________________________________________
NAFTA News Summary
__________________________________________________
BORDER POLLUTION MONITOR FEARS NAFTA

Currently allotted a $250,000 annual budget to enforce
environmental standards over an 8,800 square mile region along the
U.S.-Mexico border,  Hector Villa is concerned about the prospect of
increased industrial growth resulting from the North American Free
Trade Agreement (NAFTA) without adequate funds to control it. Villa
is the district manager for the Texas Water Commission,  the state's
main evironmental enforcement agency.  His inspectors currently
face massive levels of illegal dumping without the protective gear to
handle toxic materials.  The minimal level of environmental
regulation in the region is indicated by the fact that more than 25
years after maquiladoras have begun operating on the Mexican side
of the border,  no agency does testing for heavy metals or other
industrial effluents in the Rio Grande.

Source:  Robert Tomsho,  "Environmental Posse Fights Lonely War
Along the Rio Grande,"  WALL STREET JOURNAL,  November 10,
1992.
__________________________________________________
Other Trade News
1. China has threatened to stop buying planes from Boeing if the
Clinton Administration revokes China's most-favored-nation trading
status.  Clinton has said he would approve the preferential status --
which allows goods otherwise facing 70% tariffs to enter the U.S. with
3% tariffs --only if China enacts human rights and economic reforms.
China's threats not to buy Boeing aircraft could influence Clinton's
decision. Boeing is the largest U.S. exporter.

Source:  "Boeing Fears Clinton Will Reverse China's Most-Favored-
Nation Status,"  JOURNAL OF COMMERCE,  November 9,  1992.
__________________________________________________
Resources:
1.  A package of reports on the U.S.-EC dispute on agriculture
subsidies: "GATT:  U.S.-EC Brinkmanship,  Again,"  THIRD WORLD
ECONOMICS,  October 16-31,  1992,  Published by the Third World
Network.  87 Cantonment Road, 10250 Penang Malaysia.
__________________________________________________
Produced by:
Hannah Holm
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]

Other On-line Confrences:
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
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