TRADE NEWS BULLETIN Volume II Number 53 Monday, March 22, 1993 ________________________________________________________ NAFTA News Summary ________________________________________________________ LATINO GROUPS LIST CONDITIONS FOR NAFTA SUPPORT Latino groups gathered recently in El Paso, Texas for the Latino NAFTA Summit. In a joint statement, the groups listed conditions under which they would support the North American Free Trade Agreement. According to the coalition, the trade pact needs improvements in the following areas: border infrastructure, job retraining and displaced worker assistance, the environment, labor standards, targeted economic development in Mexico and the U.S., small businesses, immigration, and Caribbean issues. The groups said the three countries should agree to a set of basic worker rights, including: "the right of association, the right to organize and bargain collectively, prohibitions on forced labor, restrictions on the use of child labor, minimum acceptable conditions regarding minimum wages, hours of work and workplace health and safety." For a synthesis of the conclusions, write: Nelson Salinas, 11945 SW 173 Terrace, Miami, FL, 33177. A story in Sunday's NEW YORK TIMES describes how northern Mexico is attracting high-tech plants and U.S. jobs, and "is rapidly becoming the newest American industrial belt." The article includes a chart comparing gross pay per hour for comparable workers at Ford Motor plants in Mexico and the U.S. Assembly workers averaged $1.55 per hour in Mexico and $17.38 in the U.S. For top-paid, skilled workers, Mexican workers earned $2.87, compared to $20.21 in the U.S. Meanwhile, in what some are calling a conflict of interest, President Clinton is expected to name Daniel Tarullo as chief of the State Department's trade office. Tarullo's law firm, Shearman and Sterling, has advised Mexico on NAFTA since 1991. "It's absolutely disquieting when the whole U.S. national interest is in the purview of someone who just days before was representing the whole national interest of a foreign government," said Lori Wallach of citizen advocacy group Public Citizen. Sources: LATINO NAFTA SUMMIT Document; Louis Uchitelle, "America's Newest Industrial Belt," NEW YORK TIMES, March 21, 1993; Asra Q. Nomani, "Tarullo, Mexican Adviser on NAFTA, Is Expected to Run U.S. Trade Office," WALL STREET JOURNAL, March 22, 1993. ________________________________________________________ SEPARATISTS: QUEBEC WOULD WANT TO JOIN NAFTA The leader of Quebec's separatist party said Quebec would join the North American Free Trade Agreement if the province gains independence from Canada. Jacques Parizeau, of the Parti Quebecois, said small countries can prosper if they belong to large markets and said he hoped Chile's membership would set a precedent for Quebec. "I would like ... Chile, for instance, to be the fourth member, so that the conditions would be clearly economic so that when Quebec presents itself the precedent has already been reached that conditions are economic and not political," Parizeau said. Source: Michael Ellis, "Quebec Separatists See NAFTA Membership," REUTER, March 20, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ U.S. DELAYS SANCTIONS AGAINST EC UNTIL AFTER TALKS The United States announced Friday it would delay plans to ban European Community businesses from bidding for some U.S. government contracts. "I'm very happy to reach this modest agreement," said European Commission President Jacques Delors after talks with President Bill Clinton and U.S. Trade Representative Mickey Kantor. The ban was scheduled to take effect today, but the U.S. agreed to wait until after Kantor and EC Trade Commissioner Leon Brittan meet in Brussels March 29. The U.S. claims the EC public utilities directive, which took effect January 1, gives preferential treatment to EC firms when bidding for government telecommunications and electronic equipment contracts. As part of the agreement to delay sanctions, EC and U.S. officials will meet this week in Washington, D.C. In hopes of jump-starting long-stalled GATT talks, the EC and U.S. "are committed to negotiate a significantly larger market access package in both goods and services," said a joint statement. The announcement eases trade tensions between the U.S. and EC, but many question whether either side is prepared to make concessions to avoid a trade war. French opposition leader Jacques Chirac, whose RPR party is one of two parties expected to win general elections this month, predicted the U.S. and EC will have a showdown on GATT. "We must not be afraid of a European crisis if our vital interests are at stake," Chirac said. "GATT must undergo major reforms because we can no longer negotiate in GATT as it exists." Chirac, who is in position to succeed President Francois Mitterand in 1995, has already said he views the EC-US farm trade accord as invalid. But Australian Trade Minister John Kerin last month warned U.S. officials against reopening the agriculture deal. Kerin said such a step would allow the EC to retreat from previous commitments. The U.S. and Japan avoided a potential trade conflict thanks to surprisingly strong sales of U.S.-made semiconductors in Japan. A trade agreement between the U.S. and Japan had set a goal of 20 percent for the foreign share of Japan's chip market at the end of 1992, but most industry and government officials had predicted the figure would be below that goal. Sources: Stephen Nisbet, "Tough Trade Talks Ahead Despite Sanctions Delay," REUTER, March 20, 1993; Peter Behr, "Looming Trade Conflicts Defused; U.S. Delays European Sanctions; Japanese Exceed Chip Goal," WASHINGTON POST, March 20, 1993; Jeff Bater, "Clinton administration Backs Off EC Threats," UPI, March 19, 1993; "Kerin Warns Against Reopening U.S.-EC Ag Deal, Says Kantor Shares View," INSIDE U.S. TRADE, February 26, 1993; Bob Davis, "Trade Tension Eases for U.S., Europe and Asia," WALL STREET JOURNAL, March 22, 1993; "U.S. - EC Joint Statement," March 19, 1993. ________________________________________________________ Events: The Organization for Economic Cooperation and Development (OECD) has scheduled a one-day meeting June 30 for NGOs and industry representatives to obtain views and opinions for consideration by OECD's working group on trade and environment. Each OECD member country will invite one, or possibly two NGO representatives to attend the meeting. Selection of industry representatives will be worked out between OECD and its business and industry advisory council (BIAC). ________________________________________________________ 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 ________________________________________________________