TRADE NEWS BULLETIN Volume II Number 47 Friday, March 12, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ CONGRESSIONAL LEADERS WARN CLINTON ABOUT NAFTA Democratic senators and representatives warned the Clinton Administration that the North American Free Trade Agreement faces possible defeat without stronger guarantees to protect jobs and the environment. U.S. Trade Representative Mickey Kantor, who was appearing before the House Ways and Means trade subcommittee, heard reports from NAFTA supporters and critics alike that the trade pact is in political trouble. "My reading on the floor of the House is that the votes are not there," said Rep. Robert Matsui (D-California), a vocal supporter of NAFTA. "In fact, I even question whether or not we will have the ability to pass NAFTA at any time in the future unless there is a greater grassroots interest." Democratic Economic Forum Chair Marci Kaptor (D-Ohio) confirmed the pact is in trouble but declined to give a head count. Calling NAFTA "a positive step for our nation and an historic step for the North American continent," Kantor tried to convince the skeptical lawmakers that NAFTA would not hurt the environment or workers' rights. Labor and environment groups argued that tri-national commissions should have the authority to levy fines and other sanctions against countries that violate environmental and labor laws, a provision Mexico rejects as a threat to its sovereignty. Kantor, who begins negotiations next week with Mexico and Canada, repeated his opposition to granting enforcement powers to the commissions, but he told the lawmakers that he was aware of their concerns and that the Clinton Administration "will not ask you to vote on NAFTA implementing legislation until these negotiations result in full and effective agreements." House Majority Leader Richard Gephardt (D-Missouri) suggested that he also may vote against the agreement if a border commission does not have the money or power to clean up pollution problems and to inspect border plants to halt further pollution. In the Senate, Max Baucus (D-Montana), chair of the Finance trade subcommittee, said the outcome of the Senate vote depends on the parallel agreements. Senator Donald Riegle Jr. (D-Michigan) sent a letter to Clinton yesterday that was cosigned by 25 Democratic senators. "NAFTA, as it currently stands, fails to promote fair trade or serve American interests in the areas of fair labor standards, environmental protection, and worker health and safety standards," the letter stated. Separately, the U.S. Hispanic Chamber of Commerce and several other Latino business groups announced their support for NAFTA. "The implementation of the NAFTA will favor the economic interest of the American people. Hispanic entrepreneurs are a natural bridge for the economic integration of North America," said chamber president, Jose Nino. Source: Peter Behr, "Free Trade Treaty in Trouble, White House Warned," WASHINGTON POST, March 12, 1993; "Clinton Launches Aggressive Pro-NAFTA Hearing," REUTER, March 11, 1993; Martin Crutsinger, "Mexico-Trade," AP, March 12, 1993; "U.S. Hispanic Businessmen Close Ranks Behind NAFTA," REUTER, March 11, 1993. _________________________________________________________ GATT News Summary _________________________________________________________ ARGENTINA LAUNCHES DRIVE TO SUPPORT GATT Argentine President Carlos Menem will announce today an effort supported by 40 countries to speed up the stalled negotiations of the Uruguay Round of GATT. Menem is expected to release a letter, signed by industrialized and developing countries, urging the major powers to help complete the talks. GATT diplomats said that among the countries signing the letter were members of the Cairns group of farm exporting nations, the seven-nation European Free Trade Association and East European states. The stalemate in the talks is widely blamed on U.S., EC and Japanese differences over farming and industrial subsidies. As French farmers continue to protest against the U.S.-EC agreement on farm export subsidies -- yesterday farmers blocked roads and rail lines in southwestern France in protest of the plan -- agriculture and GATT have become major issues in this month's parliamentary elections. Candidates from across the political spectrum are now vowing to veto a GATT deal. Source: "Argentina's Menem to Announce Drive for GATT," REUTER, March 11, 1993; Juliette Rouillon, "Fate of French Agriculture A Major Election Issue," REUTER, March 12, 1993. _________________________________________________________ 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.apc.org _________________________________________________________