TRADE NEWS BULLETIN Volume II Number 48 Monday, March 15, 1993 ______________________________________________________ NAFTA News Summary ______________________________________________________ LABOR, ENVIRONMENT DISCUSSIONS BEGIN THIS WEEK Long awaited negotiations on establishing labor and environmental accords between Canada, the United States and Mexico will begin Wednesday. The talks have been the subject of debate since the countries signed the North American Free Trade Agreement (NAFTA) last December. The supplemental agreements must proceed along "three fundamental principles, " said Mexican President Carlos Salinas de Gortari in an interview over the weekend. "First, they will be consistent with the free trade agreement already signed; second, that they are about the environment and labor laws and not disguised protectionism, third they will respect the sovereignty of each country." Salinas hinted Mexico will bring its own proposals to the discussions, but he would not disclose details. He said he remains optimistic that NAFTA will pass the legislatures of the three countries. Environmental groups want the U.S.-Canadian-Mexican commissions to have the authority to levy fines and sanctions on companies that violate environmental laws. But U.S. Trade Representative Mickey Kantor suggested last week that monitoring the agreements and developing commissions with the power to investigate problems in the areas of border pollution and worker rights would be enough to maintain enforcement of regulations. Sources: Bob Davis, "White House Walks the NAFTA Tightrope," WALL STREET JOURNAL, March 15, 1993; Jeff Frank, "NAFTA or Not," WASHINGTON POST, March 15, 1993; "Salinas Optimistic About NAFTA Chances," REUTER, March 14, 1993. ______________________________________________________ GATT News Summary ______________________________________________________ THAILAND TO LIBERALIZE MORE SERVICES Thailand may expand by 50 percent or more the list of services it is willing to liberalize under the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), Commerce Ministry officials said. Forty-nine service industries have already been offered and officials expect the number to climb to at least 73 if the ministries of Public Health, Education and Science and Technology agree to more liberalization. Bangkok is seeking exemption from most-favored nation commitments and may use the service industry liberalization as a bargaining tool in upcoming negotiations. The final list of industries, which is not expected until mid-April, must be approved by Thailand's International Economic Relations Committee. Source: "Thailand May Put More Services Under GATT," REUTER, March 15, 1993. ______________________________________________________ US-EC FARM DEAL TRIGGERS INTERNAL TENSION AMONG FRENCH French farm and industry lobby groups are adopting different approaches to GATT talks, Prime Minister Pierre Beregovoy said in an interview with LE MONDE newspaper. Beregovoy said that many industrialists seek a rapid conclusion of the stalled Uruguay Round, fearing protectionism from other countries. Farm lobbyists however remain firmly opposed to any concession on the oilseeds deal hammered out last November between the U.S. and EC. Just 10 days ahead of parliamentary elections which the Socialists are widely expected to lose, Beregovoy said, "Any government will be confronted with this contradiction, but I think any concession on the farm question would be impossible." Source: "Beregovoy Sees Internal French Tension on GATT," REUTER, March 12, 1993. ______________________________________________________ GATT OFFICIALS CONCERNED ABOUT ANTI-DUMPING CASES Trade officials in Geneva are concerned that countries will begin widespread use of anti-dumping laws in the absence of a successful conclusion of the Uruguay Round. One official said, "The main danger which I see is that (industrial) countries which are using anti- dumping actions are setting a bad example, which other countries will pick up on and use against them." Serious reform of anti- dumping regulations is needed or developing countries will be squeezed out of trade reform efforts, officials said. Mexico recently accused five U.S. meat companies of exporting pork to Mexico at prices below their cost. The National Pork Producers Council (NPPC) wrote U.S. Trade Representative Mickey Kantor and Agriculture Secretary Mike Espy urging them to monitor the Mexican investigation to ensure that GATT regulations are respected. The NPPC wrote, "We would strongly encourage you to inform the appropriate Mexican officials that any deviation from the GATT dumping code will bring an immediate challenge to their actions in the GATT." Sources: "U.S. Should Monitor Mexico Trade Probe-U.S. Pork Group," REUTER, March 12, 1993; Keith Rockwell, "Trade Officials Fear Increased Anti-Dumping Actions," JOURNAL OF COMMERCE, March 9, 1993; "Mexico Files Pork Dumping Complaint," JOURNAL OF COMMERCE, March 8, 1993. ______________________________________________________ Resources: "Transnational Investment and Job Loss in Chicago: Impacts on Women, African-Americans and Latinos," a study by David C. Ranney and William Cecil examining the impacts of NAFTA and GATT on U.S. job loss for particular working sectors. The study concludes that, although many numbers point to export-led growth under these trade proposals, increased employment will not result. The study is available from: The Center for Urban Economic Development, University of Illinois at Chicago, M/C 345, Rice Building, Suite 500, P.O. Box 4348, Chicago, IL 60680. Tel: (312) 996-6336. ______________________________________________________ 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 _________________________________________________________