TRADE NEWS BULLETIN Volume I Number 201 Wednesday, November 25, 1992 _________________________________________________________ GATT News Summary _________________________________________________________ FRANCE CANNOT BLOCK FARM DEAL French farmers and other GATT opponents had hoped France could invoke a little-used EC veto rule to reject the recently negotiated EC- US agriculture agreement, but after further review, French government officials now say they lack the authority to block the deal. They maintain, however, that they still can block EC acceptance of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). European and U.S. officials doubt France will try to block either deal. British Trade and Industry Secretary Michael Heseltine said France has much to gain from a completed GATT and that he did not expect France to get in the way. "I believe it is possible to complete the negotiations this year," he said. France opposes the farm compromise on the grounds that it goes beyond the reforms of the EC's Common Agricultural Policy (CAP) agreed in May. The Community's 17-member executive commission met today in Brussels to examine France's complaint, but the commission was expected to reject the claim, smoothing the way for resumption of GATT talks. A WALL STREET JOURNAL editorial Tuesday accused French farmers of "picking the pockets of their fellow citizens," and called on French President Francois Mitterand to give his blessing to the agriculture agreement "on behalf of French consumers and industrial workers." Source: Ivor Owen, "Britain Expects French Deal on GATT," FINANCIAL TIMES, November 24, 1992, p. 12; "All Eyes on France," WALL STREET JOURNAL, November 24, 1992, p. A14; Alan Riding, "French Now Agree They Lack A Veto Over Farm Accord," NEW YORK TIMES, November 24, 1992, p. 1; Randall Mikkelsen, "Hard for France to Block Deal - U.S., EC Officials," REUTER, November 23, 1992. _________________________________________________________ JAPAN CABINET DIVIDED ON ENDING RICE IMPORT BAN Now that the European Community and the United States have reached a tentative agreement on oilseeds subsidies, GATT member- nations are pressing Japan to open its rice markets. On Tuesday, top Japanese officials expressed conflicting views over whether Japan should lift its long-standing ban on foreign rice imports, leading Prime Minister Kiichi Miyazawa to call a Cabinet meeting to work on a common position. Earlier in the day, Foreign Minister Michio Watanabe and Trade Minister Kozo Watanabe advocated lifting the ban to comply with GATT rules. "Our final purpose is a successful conclusion of the Uruguay Round," Kozo Watanabe told reporters. But Farm Minister Masami Tanabu and Finance Minister Tsutomu Hata insisted Japan should maintain the barriers. "If the time comes to change Japan's position, I may consult (with other ministers and party leaders), but it is not time now," Tanabu said. As recently as Saturday, Prime Minister Miyazawa cited the necessity of continuing the ban to maintain rice self-sufficiency, which he said protects Japan's national security. Japan bans almost all rice imports under the 45-year old Food Control Law. The Japanese statements followed renewed calls by U.S. Trade Representative Carla Hills asking Japan to lift the ban. In a CNN interview Monday, Hills said she expected access to rice markets to be high on the agenda when GATT negotiations reopen Thursday in Geneva. "The benefits that come from the overall package to each nation greatly outweigh the political problems." Most Japanese analysts predict the country will eventually lift the ban to protect the interests of Japan's giant electronics and automobile companies which are concerned a continued ban will wind up hurting them, as countries would take steps to retaliate for Japan's huge trade surplus. "It will take a while to change the domestic law. But otherwise, Japan will have no problem in accepting the GATT plan," said Yasuhiko Yuize, an economics professor at Chiba University. Source: "Japanese Cabinet Split Over Foreign-Rice Ban," UPI, November 24, 1992; Stuart Auerbach, "Trade Talks' Focus Turns to Japanese; Rice Imports Could Snag GATT Revisions," WASHINGTON POST, November 24, 1992; Risa Maeda, "Japan Seen Sacrificing Rice Ban for Trade's Sake," REUTER, November 24, 1992. _________________________________________________________ ASIAN WOMEN SPEAK OUT AGAINST GATT A group of Asian rural women released a statement declaring opposition to GATT and structural adjustment programs (SAP). The women, from India, Indonesia, Nepal, Sri Lanka, South Korea, Vietnam and the Philippines criticized GATT and SAP as "present- day mechanisms of international capital to maintain, expand and intensify its extraction of profits from our countries at the expense of our poor people especially rural women." Source: "Antipolo Declaration of Asian Peasant Women," Conference Statement, November 13, 1992. _________________________________________________________ NAFTA News Summary _________________________________________________________ CHURCHES CITE CONCERNS ABOUT NAFTA The Autumn edition of INTERFAITH IMPACT MAGAZINE looks at some of the concerns voiced by opponents of the North American Free Trade Agreement. In the magazine, a coalition of groups working for justice and peace, argues that NAFTA would weaken the sovereignty of Mexico, Canada and the United States, increase U.S. unemployment, fail to protect workers and communities and work against sustainable rural development. Under NAFTA, the magazine predicts: Consumers would not find lower prices -- studies show companies benefiting from lower tariffs rarely pass on the savings to consumers; Mexican companies would suffer because they would have no way of defending against better financed U.S. and Canadian companies; Displacement of as many as 500,000 Mexican farmers and increased migration to Northern areas of Mexican would increase the number of Mexicans seeking to emigrate to the United States; Unelected, unaccountable officials would be in charge of upholding state and national laws protecting the environment, the safety of our food and other issues; Mexican and Canadian companies would be forced to wait 20 years before producing generic copies of new drugs. Source: "North America Free Trade Agreement Likely to Be Costly," INTERFAITH IMPACT MAGAZINE, Autumn 1992, p. 9. _________________________________________________________ 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:(612)379-5980 Fax:(612)379-5982 E-Mail:kmander@igc.org _________________________________________________________