TRADE NEWS BULLETIN Volume II Number 54 Tuesday, March 23, 1993 ________________________________________________________ NAFTA News Summary ________________________________________________________ ROSS PEROT WILL TESTIFY AGAINST NAFTA - OPPOSITION GROWING Ross Perot will speak out against the North American Free Trade Agreement before the House of Representatives' Small Business Committee Wednesday. He is also considering a 30-minute television commercial against the agreement, according to an aide. Perot's actions come as new House members continue to express concerns about the pact. An informal poll of 63 new Democratic members taken shortly after the election found only five in support of the agreement. In comparison, 27 of the Democrats who left the House last year had voted in 1991 to renew fast-track authority to negotiate the pact. "I'm one of the few who will stand up for it, at least in principle," said Representative Karen Shepherd (D-Utah). "Most say it can't be fixed." Meanwhile, the Center for Policy Alternatives has launched an effort to encourage progressive state legislators to introduce resolutions urging the Clinton Administration and Congress to address states' concerns about NAFTA's impact on state laws. The group is concerned NAFTA "will, in effect, rewrite the role of the states under the American constitution by undermining any state enforcement and legislative actions that are contrary to facilitating free trade." The Center has released a sample resolution calling on Clinton and Congress to: assess the impact of NAFTA on states; protect the constitutional role of states; mitigate the economic impact on states; ensure state environmental powers; and provide state governments with roles in dispute resolution. Source: Keith Bradsher, "2 More Problems Emerge for 3-Nation Trade Accord," NEW YORK TIMES, March 23, 1993; "State Legislative Resolution," Center for Policy Alternatives, Washington, D.C. ________________________________________________________ ANHEUSER-BUSCH BUYS INTO MEXICAN BEER COMPANY Anheuser-Busch announced yesterday it will acquire 18 percent of Grupo Modelo SA, Mexico's largest beer company and maker of Corona beer. Foreign beers claim a paltry 0.5 percent share of the Mexican market, but analyst Lavinia Agnew predicts, "That's obviously going to change in the post-NAFTA environment." Mexico currently places a 20 percent tariff on imported beer, but NAFTA would phase out that duty over a number of years, creating heavy competition in the Mexican beer market. Regardless of whether NAFTA is ratified, Anheuser-Busch chairman Jack Purnell said the move will enable the company to capitalize on growing international sales and markets for beer. "NAFTA would be the icing on the cake, but the cake itself is very appetizing," Purnell said. Anheuser officials said the move is part of a new company strategy to develop friendly relationships with competitors. "We're looking at acquiring other brewers and other brands outside of Mexico," a senior official said. Last week, the company announced a joint venture with Kirin Brewery to distribute Budweiser in Japan. Juan Sanchez Navarro, vice-president of Modelo, said the joint venture "is an example of strategic associations that will be increasingly seen in other sectors" as Mexican businesses prepare for NAFTA. Source: Damian Fraser, "Anheuser-Busch in Mexican Beer Venture," FINANCIAL TIMES, March 23, 1993; Richard Gibson, "Anheuser- Busch to Buy 18% Stake in Mexican Brewer," WALL STREET JOURNAL, March 23, 1993; Anthony DePalma, "Anheuser in Mexican Brewer Tie," NEW YORK TIMES, March 23, 1993; "Mexican-U.S. Brewers Forge Links Ahead of NAFTA," REUTER, March 22, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ EC STILL UNCLEAR ON CLINTON TRADE POLICY Hugo Paemen, the European Community's chief trade negotiator, and Tran Van Thinh, EC ambassador to GATT, will meet with their U.S. counterparts in Washington, D.C this week to set the groundwork for next week's talks in Brussels between U.S. Trade Representative Mickey Kantor and EC Trade Commissioner Leon Brittan. While EC officials expressed relief the U.S. delayed sanctions scheduled to go into effect yesterday, they were unsure what, if anything, the move reflects about trade policy under the Clinton Administration. "We are dealing with signals rather than certainties," said a spokesperson for EC Commission President Jacques Delors. Kantor will also meet with EC Farm Commissioner Rene Steichen in Brussels. "They're likely to broadly review agriculture in the GATT Uruguay Round and could also discuss a bilateral oilseeds agreement," an EC official said. U.S. Agriculture Secretary Mike Espy will hold more detailed talks in Brussels, probably in the third week of April, he added. Sources: Stephen Nisbet, "EC Still Unsure of U.S. Trade Policy," REUTER, March 22, 1993; Lionel Barber, Nancy Dunne, "EC Envoys Move Quickly After US Trade Offer," FINANCIAL TIMES, March 23, 1993; "Steichen to Meet Kantor on March 30," REUTER, March 30, 1993. ________________________________________________________ Events: A large grassroots demonstration against the NAFTA is planned for the Nogales, Arizona / Nogales, Sonora border crossing on Sunday, April 4th at 2pm, to be held in conjunction with a like demonstration at the US / Canada border. Labor, environmental, social justice and other groups will participate. For more information, contact: Carolyn Campbell (Sonoran Bioregion Greens): (602)792-3454 David Hodges (Student Environmental Action Coalition): (602)624-7652. Email: sol3az@igc.apc.org. Postal mail: PO Box 2084, Tucson, AZ 85702, USA. ________________________________________________________ Resources: The March 12 TEXAS OBSERVER offers a comprehensive look at human rights violations by the U.S. Immigration Service (INS). Subscriptions are $32 one year, $59 two years, $84 three years. TEXAS OBSERVER, 307 W. 7th St. Austin, TX 78701. ________________________________________________________ Note: The next Trade News will be published Monday, March 29. ________________________________________________________ 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 ________________________________________________________