TRADE NEWS BULLETIN Volume II Number 45 Wednesday, March 10, 1993 ______________________________________________________ NAFTA News Summary ______________________________________________________ KANTOR REJECTS ENFORCEMENT POWERS FOR PANELS U.S. Trade Representative Mickey Kantor announced yesterday that he would not support giving trinational panels the power to enact monetary penalties against violators. Environmental and labor groups had hoped President Clinton would push for the enforcement mechanism as part of side agreements to the North American Free Trade Agreement (NAFTA). Kantor told the Senate Finance Committee the panels should not "have the power to go in and enforce laws in the U.S. or go in and enforce laws in Mexico." During his election campaign, Clinton said an Environmental Protection Commission should "have the power to provide remedies including money damages and the legal power to stop pollution." Kantor implied the powers would not be necessary. "The mere fact of making (problems) public usually persuades the government to react properly," he said. He told senators that a good "starting point" for the commissions would include procedural changes in the Mexican legal system to ensure better enforcement of laws. Robert Housman, a lawyer and trade specialist at the Center for International and Environmental Law, welcomed the legal changes but said environmental groups would want the ability to bring cases in each country's courts and to ensure that procedures were open, honest and fair. Negotiations over the commissions will begin March 17. Kantor said Clinton will "walk away from the table" if NAFTA does not include satisfactory side agreements. Sources: Bob Davis, "U.S. Urges Curbs on Power of Panels on North American Environment, Labor," WALL STREET JOURNAL, March 10, 1993; Keith Bradsher, "U.S., in Trade Pact, to Ask Mexican Legal Change," NEW YORK TIMES, March 10, 1993; "No NAFTA Without Side Deals--U.S. Trade Chief," REUTER, March 9, 1993. ______________________________________________________ GATT News Summary ______________________________________________________ EC WARY OF U.S. TRADE POLICY, U.S. WANTS GLOBAL SUPPORT The European Community (EC) is still unclear of the direction the U.S. will pursue in trade policy. During his first two weeks in office, Clinton set tariffs on steel imports from the EC, leading some to worry the new administration would embrace a "protectionist" trade agenda. But yesterday, Clinton expressed a desire to complete long- delayed world trade talks. "I am strongly committed to a successful completion of the Uruguay Round this year, and taking other trade measures which will open markets all around the world and reduce trade barriers," Clinton told reporters after a private meeting with French President Francois Mitterand. In an effort to speed the trade talks, Clinton will likely seek a 10 month extension of U.S. fast-track negotiating authority. U.S. officials said Japanese leadership is important and necessary for talks to continue and said the U.S. plans to "enlist other nations" to take part in stimulating world economic growth and creating a better arena for free trade. "Growth will resume through concerted action by the leading economic powers: our attack on the budget deficit, Germany's willingness to lower interest rates, Japan's readiness to stimulate its domestic economy," said USTR Mickey Kantor. Sources: Lyndsay Griffiths, "Clinton Wants GATT Deal But Says U.S. Allies Must Chip In," REUTER, March 10, 1993; "EC Reassured by Clinton's Moves on GATT," REUTER, March 9, 1993; "U.S. Trade Chief Sees No Quick GATT Deal," REUTER, March 9, 1993. ____________________________________________________ JAPANESE CONSUMERS MIXED ON RICE IMPORTS, POLL REPORTS Japanese voters are almost evenly split on whether to lift the country's ban on rice imports, according to a nationwide poll by the ASAHI SHIMBUN newspaper. Of the 2,294 respondents, 42 percent said they were in favor of opening rice markets to foreign imports, compared to 47 percent opposed. Seventy-six percent of farmers and fisherman oppose the imports. Explaining their opposition to rice imports, more than 20 percent of the those polled said Japan should be self-sufficient in its staple foods and another 20 percent expressed concern about the safety of foreign rice. Japanese households currently pay 2.5 times as much for rice as North Americans. Japan has been under pressure from the General Agreements on Tariffs and Trade (GATT) to lift the ban. Source: "Japanese Split on Whether to Import Rice," REUTER, March 8, 1993. ______________________________________________________ Other Trade News: According to Canada's FINANCIAL POST, Trade Minister Michael Wilson and Defense Minister Kim Campbell are the favorites of corporate Canada to become the next leader of the Tory Party. The Business Council on National Issues said Prime Minister Brian Mulroney's successor must be committed to growth-oriented policies, employment growth, deficit and debt reduction, low inflation, trade liberalization, strengthening Canada's economic union and political stability. Source: "Business Favors Favorites in Tory Leadership Race," NEWSCAN, March 5, 1993 ______________________________________________________ Events: "Women in AG in Developing Countries" will be the topic of an evening sponsored by the Ceres Society, a program designed to provide educational and social opportunities for women in agriculture. March 15, 5:00 to 7:00 pm. $20.00 fee includes dinner. To reserve a space contact: Minnesota Rural Futures, P.O. Box 3367, Mankato, MN 56002. Tel: 1-800-450-5643. ______________________________________________________ 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 ______________________________________________________