TRADE NEWS BULLETIN Volume I Number 206 Friday, December 4, 1992 _________________________________________________________ GATT News Summary _________________________________________________________ EC-US FINALIZE FARM ACCORD; CHARLES BACKS FRENCH Technical details of the agriculture trade agreement announced November 20 between the United States and European Community were finalized yesterday in Brussels. The deal ended the possibility of the U.S. carrying out threatened trade sanctions against the EC. Meanwhile, European farmers continue to criticize and protest the plan to reduce subsidies to farmers. The German Farmers' Union (DBV) expects as many as 50,000 farmers to join a peaceful demonstration against the agriculture agreement in Bonn next Tuesday. In England, Prime Minister John Major, a strong supporter of attempts to liberalize world trade, will meet with UK National Farmers Union (NFU) President David Naish Monday in hopes of allaying some of the concerns of British farmers. In contrast to the views of the conservative British government, Prince Charles defended French farmers in a speech in Paris today. "Because of the imperatives of trade, and the unyielding rigors of 'comparative advantage' do we really need to compress the traditions and vitality of rural life and culture into the straight jacket of an industry like any other?" Charles asked. He said French agriculture policies support "rural traditions without which it would be impossible to enjoy a way of life that recognizes ... the importance of elements in our lives which enrich and ennoble us, but which are not 'cost-effective' in strictly economic terms." Source: Jeremy Lovell, "EC/U.S. Tie Up Final Details of Farm Trade Deal," REUTER, December 3, 1992; Paul Taylor, "Britain's Prince Charles Defends French Farmers," REUTER, December 4, 1992; "German Farmers Expect 50,000 to Rally in Bonn," REUTER, December 4, 1992; "EC Says U.S. Trade Sanctions Threat Now Formally Lifted," KNIGHT RIDDER, December 4, 1992. _________________________________________________________ JAPANESE REJECT LIFTING RICE IMPORT BAN Letters, signed by Japanese organizations representing consumers, farmers and citizens, have been sent to key GATT negotiators to express their concerns about the free trade pact. The groups oppose lifting Japan's rice import ban, stating, "Each nation should have the sovereign right to meet their minimum basic needs" in food security, ecological security and social security. GATT Director General Arthur Dunkel, U.S. Agriculture Secretary Edward Madigan, U.S. Trade Representative Carla Hills, EC Agriculture Commissioner Ray MacSharry and External Affairs Commissioner Frans Andriessen were among the recipients of the letter. An advertisement, which appeared in major newspapers earlier this year, was also sent to the officials. The ad states the reasons Japanese people oppose lifting the rice ban and contends, "The Japanese government lacks the public support necessary to ratify GATT." Source: "Why Japanese Say NO to Rice Imports," Joint Statement, December 4, 1992; Letters to Edward Madigan, Carla Hills, Frans Andriessen, Arthur Dunkel. _________________________________________________________ NAFTA News Summary _________________________________________________________ LEADERS WILL SIGN NAFTA DECEMBER 17 The leaders of the United States, Canada and Mexico will officially sign the North American Free Trade Agreement on December 17, White House Press Secretary Marlin Fitzwater announced Thursday. U.S. President George Bush will autograph the accord in a ceremony at the Organization of American States in Washington. Source: "Bush Set to Sign Free Trade Pact," UPI, December 3, 1992. _________________________________________________________ CANADA'S NDP HOPES CLINTON BLOCKS NAFTA Canada's opposition New Democratic Party (NDP) hopes President- elect Bill Clinton's expressed concerns about NAFTA's environmental and labor provisions will lead to a reopening of the negotiations. "This is not a free trade pact ... this is a guarantee of cheap wages for the corporate interests who bought and paid for President Bush's election," said NDP trade spokesman Dave Barrett in early November. "The question is whether the same interests will be served by Clinton," Barrett added. Meanwhile, Canada's ruling government is worried Clinton will seek changes in NAFTA after assuming office January 20, "We have negotiated an agreement, and we have negotiated in good faith with the U.S. ... and with the Mexican government and we have an agreement that has good balance in it," said Canadian Trade Minister Michael Wilson. He added that environmental and labor standards are already being discussed outside the NAFTA, and that any proposed changes in the text could cause it to "unravel." Source: "Canada Would Oppose Any Changes to NAFTA from U.S.," REUTER, November 3, 1992; "NAFTA Will Not Hurt Canada's Environment - Report," REUTER, Nov. 3, 1992. _________________________________________________________ Events: European Community heads of state will gather for a summit in Edinburgh, Scotland December 11-12. According to French and German officials, GATT talks will not be a significant issue at the meeting. Groups opposed to the economic path the European Community is taking will hold "The Other European Summit" to present alternative viewpoints. For more information, see the apc electronic conference, "toes.general". _________________________________________________________ Resources: 1. BANK CHECK QUARTERLY presents views on the environmental, social, and economic impacts of the policies and projects supported by World Bank and IMF lending. The November 1992 edition includes an article entitled, "The Free Trade Connection." Editorial offices c/o: International Rivers Network, 1847 Berkeley Way, Berkeley, California, 94703 USA. Tel: (510) 848-1155. Fax: (510) 848-1008. Email: irn@igc.apc.org. 2. The European Commission released earlier this year, EC REPORT ON UNITED STATES TRADE AND INVESTMENT BARRIERS 1992: PROBLEMS OF DOING BUSINESS WITH THE U.S. The report is the eighth on the barriers faced by Europeans wishing to trade with, and invest in, the United States. The 96-page report is available from Services of the Commission of the European Communities. If you'd like a copy, fax a request with the name of the report and a return address to 202-429-1766. Or call, 202-862-9560. _________________________________________________________ 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 _________________________________________________________