TRADE NEWS BULLETIN Volume 2 Number 41
Thursday, March 4, 1993
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NAFTA News Summary
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CANADIAN BUSINESS LEADERS VOICE SUPPORT FOR NAFTA

Several Canadian business leaders hailed last week's introduction to Parliament
of NAFTA implementing legislation.  "You can't isolate Canada from international
competition and regional trading blocs," said Greg Macdonald, public affairs
director of the Canadian Manufacturers Association.  The Business Council on
National Issues, which represents some of Canada's largest corporations, also
gave its support.  The Conservative government is hoping Parliament will ratify
the trade pact before national elections this fall.  Meanwhile, opposition
parties, labor and environmental groups criticized the legislation and called
for a delay in the ratification process until after the elections.  Liberal
leader Jean Chretien has said changes should be made to NAFTA. 

Source: Leo Ryan, "Canadian Business Hails NAFTA Legislation Debut," JOURNAL OF
COMMERCE, February 28, 1993.
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COLORADO EXPECTS AGRICULTURAL GAINS UNDER NAFTA

According to a six-month study by the Colorado Department of Agriculture, most
of the state's agriculture industries will benefit from NAFTA.  The study
predicts increased Mexican demand for U.S. corn, wheat, potatoes, and barley,
all of which are produced in Colorado.  "Fortunately for Colorado, most of the
things we produce that Mexico buys, we produce more efficiently and can
compete," said Jim Rubingh, marketing director for the agriculture department.
However, the report concludes the trade agreement will hurt the cut-flower,
sugar, dairy and wool industries.  The Rocky Mountain Farmers Union says stiff
competition from Canada and Mexico could wipe out these industries, which total
$1 billion in Colorado.

Source: Janet Day, "Colo. Agriculture Expects Overall Gains From NAFTA," JOURNAL
OF COMMERCE, February 24, 1993.
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GATT News Summary
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CHINA GATT ENTRY SLOWED BY MARKET ECONOMY

Despite China's pledge to join the General Agreement on Tariffs and Trade (GATT)
by this year, U.S. officials say it could take years to adapt China's "socialist
market economy" to global trade regulations.  "I'm going to retire in seven
years and I'm not sure I can wrap it up at the current pace," said Douglas
Newkirk, an assistant U.S. trade representative.   China had previously applied
for membership to GATT but was rejected in 1989 after the military assault on
pro-democracy demonstrators.  Newkirk says GATT talks have not caught up to
where they were before the crackdown.
 
Lorraine Toly, a U.S. embassy spokesperson, said an acceptable membership
protocol for China "is one that commits China to the liberalization of its trade
regime."   The U.S. wants China to commit to a unified national trade policy,
transparent trading rules and elimination of non-tariff barriers.  U.S.
officials say China is rejecting demands that it accept a system to safeguard
GATT signatories from a surge of Chinese exports to their countries.

Human rights organizations are urging the Clinton Administration to put
diplomatic and economic pressure on China by repealing Most Favored Nation (MFN)
trade status.  New York-based Asia Watch says China has shown little sign of
genuine political liberalization to match its economic reforms.

Sources: "China Pledges To Work Hard On GATT Application," REUTER, March 3,
1993; James McGregor, "China's Entry Into GATT Is Stalled By Thorny 'Socialist
Market Economy'," WALL STREET JOURNAL, March 3, 1993; Tony Walker, "Clinton
Urged To Step Up Pressure Against China," FINANCIAL TIMES, March 3, 1993.
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U.S. WILL PUSH FOR PROGRESS IN GATT

U.S. Trade Representative Mickey Kantor said U.S. negotiators will push hard for
progress at today's GATT talks in Geneva.  The discussions are expected to focus
on subsidies, dumping and other trade disputes. "We hope that we can reach in
due time a good and successful conclusion to the Uruguay Round," Kantor told
reporters.

During a speech to a semiconductor industry group yesterday, Kantor said the
U.S. will target Japan's computer chip market as part of an active trade policy.
In 1990, Japan struck a deal with the U.S., promising to allow 20 percent
foreign market share of its computer chips by 1992.  As of the third quarter of
1992, Japan had imported only 15.9 percent.  "We are resolute and determined to
get results,"  Kantor said.  "We fully expect Japan to live up to the letter of
the agreement."

Sources: Lyndsay Griffiths, "U.S. Talks Tough on Japanese High-Tech Trade,"
REUTER, March 3, 1993; "U.S. Bid To Break GATT Logjam," REUTER, March 3, 1993.
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Events:

FREE TRADE: WHO'S GONNA PAY?, a video available for $20 from Labor Education
Service, University of Minnesota, Industrial Relations Center, 271 19th Avenue
South, Minneapolis, MN 55455.  Tel: (612) 624-5020.
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Produced by:
Kai Mander and Gigi Boivin
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.apc.org
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