TRADE NEWS BULLETIN Volume II Number 56 Tuesday, March 30, 1993 ________________________________________________________ NAFTA News Summary ________________________________________________________ SUGAR INDUSTRY CAN EXPECT BETTER DEAL, SAYS OFFICIAL The U.S. sugar beet industry is hopeful that side agreements will improve the North American Free Trade Agreement (NAFTA). George Sinner, former North Dakota governor and current vice president of American Crystal Sugar Co., said the current text could potentially allow Mexico to export up to 1.5 million tons of sugar to U.S. markets, driving down prices for domestic producers. But Sinner seemed relieved after hearing U.S. Trade Representative Mickey Kantor's promise last week not to "sacrifice substance for speed" in the talks. According to Sinner, Kantor was very specific about sugar provisions. "What has hopefully changed is the sometimes blind commitment to free trade even when our own people's needs are threatened," Sinner said. Source: Rona K. Johnson, "Sugar Industry Official Expects Better NAFTA Deal," JOURNAL OF COMMERCE, March 23, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ KANTOR POSTPONES SANCTIONS AGAINST EC U.S. Trade Representative Mickey Kantor announced the U.S. will postpone retaliatory sanctions against the EC for a second time. After meeting with EC Trade Commissioner Leon Brittan in Brussels yesterday, Kantor said he was "neither an optimist, nor a pessimist, but a realist" concerning the chances of avoiding a dispute over EC procurement rules. Kantor suspended the measures after Brittan agreed to begin preparations to withdraw provisions favoring EC companies in public contracts. Brittan said if they cannot reach an agreement after their next meeting in Washington April 19-20, both sides will be "free to act as we wish." Kantor and Brittan agreed that Japan needs to make additional concessions to conclude the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). "We will not complete the Round without some leadership by the U.S. and the EC, but we will also not complete it if Japan continues to behave as if it had little stake in the outcome," said Kantor. Kantor said he wanted November's U.S.-EC farm deal to be implemented as soon as possible, despite French opposition. Conservative parties, which won French elections, have strongly criticized the oilseeds deal throughout their campaigns, contending the agreement would place an unfair burden on French farmers. According to a senior EC diplomat, "The received wisdom is that we should not put the new French government to the test immediately." EC foreign ministers will discuss the agreement on April 5 but are unlikely to vote on it then. "We are hoping for a council approval in May," said EC Farm Commissioner Rene Steichen. The U.S. will announce a decision soon on President Bill Clinton's request for a renewal of fast-track negotiating authority, which requires Congress to reject or accept a trade deal with no amendments. Sources: Julie Wolf, Charles Goldsmith, "U.S. Will Delay Trade Sanctions Against Europe," WALL STREET JOURNAL, March 30, 1993; David Dodwell, David Gardner and Andrew Hill, "U.S. Suspends Threat of Sanctions Against EC," FINANCIAL TIMES, March 30, 1993; "Kantor Wants Blair House Farm Deal Enforced Quickly," REUTER, March 29, 1993; "EC to Give France Time Before Oilseeds Decision," REUTER, March 29, 1993; "United States to Make Announcement Soon on GATT," REUTER, March 29, 1993. ________________________________________________________ MALAYSIA, APEC WANT TO BREAK GATT DEADLOCK Malaysian International Trade and Industry Minister Rafidah Aziz urged other East Asian nations to join together to break the impasse in GATT talks. "Being a third component of the tripolar configuration, East Asia has to present a coherent, coordinated and collective view ... on how the world trading system can function multilaterally," she said. Aziz pressed for renewal of an earlier proposal to set up the East Asian Economic Caucus (EAEC) as a dialogue on free trade among Asian nations and the world. Aziz blamed the U.S. and EC for trying to reopen negotiations which could lead to "a total rejection of the Uruguay Round itself." East Asian nations account for one-fifth of the world's trade, totaling $1.3 trillion in 1991. Meanwhile, Australian Trade Minister Peter Cook said yesterday that the 15-member Asia-Pacific Economic Cooperation (APEC) should aim for a common market across Asia, the Pacific and North America, though he said a free trade zone would not be possible soon because of the diverse economies involved. U.S. President Bill Clinton has shown support for APEC, which produces 40 percent of the world's exports, and plans to meet with members in Washington this week to discuss global trade liberalization. However, Cook said a successful conclusion of GATT "would probably do more for long-term global prosperity and stability than just about any other single measure one could imagine." Sources: Moon Ihlwan, "Malaysia Urges East Asian Role to End GATT Dispute," REUTER, March 30, 1993; Wilson de Silva, "Asian Free Trade a Goal for APEC, Australia Says," REUTER, March 29, 1993. ________________________________________________________ Other Trade News ________________________________________________________ U.S. BUSINESS GROUP WANTS SUPER-301 IMPOSED ON S. KOREA The American Chamber of Commerce (AMCHAM) in South Korea has asked the U.S. to impose Super-301 trade compliance laws against Seoul in hopes of breaking down the country's restrictive trade barriers. Super-301 is a clause of Washington's 1988 trade bill requiring cited nations to reform and dismantle trade barriers or face punitive barriers of up to 100 percent on exports to the U.S. AMCHAM named 12 business sectors in which South Korea imposed trade restrictions: consumer goods, intellectual property rights, banking, foreign investment, insurance, accounting, taxation, chemicals, advertising, telecommunications, pharmaceuticals and transportation. A Seoul Trade Ministry official commented, "With the birth of (President Kim Young-sam's) government, many regulations are expected to be eased ... Such a reform cannot be implemented overnight." Source: "U.S. Group Wants Trade Law Invoked on South Korea," REUTER, March 30, 1993. ________________________________________________________ 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 ________________________________________________________