TRADE NEWS BULLETIN Volume II Number 59 Friday, April 2, 1993 ________________________________________________________ NAFTA News Summary ________________________________________________________ WILSON, KANTOR MEET TODAY AS CANADA LISTS U.S. BARRIERS Canadian Trade Minister Michael Wilson will meet with U.S. Trade Representative Mickey Kantor today in Ottawa to discuss side agreements to the North American Free Trade Agreement and other issues. The meeting comes a day after the Canadian government released a report listing U.S. barriers to the free flow of goods, services and investment from Canada to the United States. The "1993 Register of United States Barriers to Trade" concludes that barriers remain in government procurement and other areas. The report says agricultural exports are often subject to long delays due to health and safety inspections at the U.S. border. Meanwhile, the Canadian government Wednesday used its conservative majority in Parliament to push NAFTA one step closer to ratification. Legislation to implement NAFTA passed the lower house of Parliament by a 113-94 vote. The bill now goes to a committee for review before returning to the House for another vote. "We don't expect it to be back into the House before late May," said a spokeswoman for Government House Leader Harvie Andre. If the House of Commons passes it after the committee makes changes, the legislation would go to the Senate. Sources: "Canada Says Barriers to Trade With U.S. Remain," REUTER, April 1, 1993; "Canada Pushes NAFTA Ratification One Step Closer," REUTER, April 1, 1993; "Free Trade Accord Clears Canada Commons Hurdle," WALL STREET JOURNAL, April 2, 1993. ________________________________________________________ BENTSEN SAYS CONGRESS SHOULD WAIT ON NAFTA U.S. Treasury Secretary Lloyd Bentsen said Congress should wait to act on NAFTA until finishing work on President Clinton's economic program. Bentsen repeated his strong support for NAFTA, but said he did not want opposition to NAFTA to affect the economic package. "We really have to concentrate on one thing at a time," Bentsen said. He urged Congress to consider NAFTA in the fall. When asked why, given the growing opposition to the pact, the Administration did not want to delay NAFTA beyond this year, he replied, "Salinas." Mexican President Carlos Salinas de Gortari's term expires next year, and he cannot run for re-election. "I grew up on that border," Bentsen said. "The United States was always the colossus of the North, and Mexican politicians got elected attacking the United States. Now the country wants to work with us, and that is an incredible change. We can't lose that opportunity." Source: David Rosenbaum, "Economy Stressed Over Trade," NEW YORK TIMES, April 2, 1993; "Bentsen Urges Congress to Hold Off On NAFTA - NYT," REUTER, April 2, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ NEW FRENCH GOVERNMENT WANTS MORE TIME ON GATT French Foreign Minister Alain Juppe said today that France's new government needs time to study its position in GATT negotiations. After meeting with British Foreign Secretary Douglas Hurd, Juppe said it is still unclear whether the proposed EC-U.S. farm agreement is compatible with the EC's Common Agricultural Policy. "We have just arrived, we must re-study these questions fully and try to make others understand the constraints they impose on France," he said. Hurd pressed Juppe to work for a speedy conclusion of GATT talks. "We don't want to see this agreement rejected on this side of the Atlantic because there are many people on the other side that would also want to reject it," Hurd said. Meanwhile, the EC Confederation of Food and Drink Industries said it was shocked by cuts in the volume of processed food exports under the EC-U.S. farm accord. The Confederation said the EC must ensure the industries remain competitive because 2.5 million jobs are at stake. "Is the EC really going to accept a managed trade system which puts at risk exports ... when unemployment is the main problem facing the Community?" a statement said. Source: Eduardo Cue, "France Asks for Time to Re-Examine GATT," UPI, April 2, 1993; "EC Food Industry Criticizes U.S. Farm Trade Pact," REUTER, April 1, 1993; David Gardner, "New French Government in Old Corner," FINANCIAL TIMES, April 2, 1993. ________________________________________________________ WORLD BANK ECONOMIST: GATT WILL NOT HAVE MUCH IMPACT In a recent paper, World Bank economist Jean Baneth argues that industrial countries already have such low trade barriers that they have little to gain from further trade liberalization through GATT. "As manufacturing sectors are already open, further opening, even radical, cannot give much impetus to efficiency or acceleration of growth," Baneth writes. While claiming there is much room for liberalization in agriculture trade, Baneth contends that agriculture's low share of the market precludes it from providing much impetus to trade. Source: Alan Wheatley, "Free Trade Will Help But Not Much, Economist Says," REUTER, April 1, 1993; "GATT Developments," REUTER, April 1, 1993. ________________________________________________________ Resources: The Inter-Hemispheric Education Resource Center has released the results of its year-long investigation into the shift of manufacturing jobs from the United States to Mexico. A preliminary report listing U.S. corporations that have moved to Mexico is available from the Resource Center ($5.95 plus $3.00 postage.) The list and written analysis will be included in a forthcoming book, "Runaway America: U.S. Jobs and Factories on the Move," by Harry Browne and Beth Sims. The Center is accepting orders of the book, which will be published in June ($9.95 plus $3.00). The Resource Center, Box 4506, Albuquerque, NM 87196. Tel: 505-842-8288. Fax: 505-246-1601. ________________________________________________________ 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 ________________________________________________________