TRADE NEWS BULLETIN Volume II Number 61 Tuesday, April 6, 1993 ________________________________________________________ NAFTA News Summary ________________________________________________________ MULRONEY STILL WANTS NAFTA APPROVAL SOON Canadian Prime Minister Brian Mulroney is still anxious to pass the North American Free Trade Agreement (NAFTA) before leaving office this June. During a ceremony in his honor Monday, hosted by former U.S. President Ronald Reagan at the Reagan Presidential Library in California, Mulroney reiterated his support for NAFTA, and said he believed it should be passed soon by the Canadian, U.S. and Mexican governments. Mulroney also urged leaders from the U.S. and Mexico to quickly approve supplemental accords on labor and the environment in order to obtain NAFTA approval by January 1994, its target implementation date. Since announcing last January his plans to step down as Prime Minister , Mulroney has pledged to push NAFTA through Parliament where his Conservative party holds a solid majority. Source: "Canada's Mulroney Urges Passage of NAFTA," REUTER, April 5, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ NEW FRENCH GOVERNMENT TOUGH ON AGRICULTURE TRADE After their first ministerial meetings, officials of the new Conservative French government announced they need a few weeks to fully discuss the U.S.-EC farm accord, and that at the moment they still want to re-open the deal for negotiation. Other EC members, who have already approved the agriculture trade deal, agreed to give the French government time to review the policy before calling a final vote. The farm deal, signed last November by the U.S. and EC, was expected to speed the conclusion of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), but agricultural and other disputes continue to block the talks. The former socialist French government had promised to veto the farm deal, saying it violated farm reforms made by the EC last May. The new government seems to be following the same stance. "We are determined to defend the interests of French agriculture," said Foreign Minister Alain Juppe. He called farming "one of the essential pillars of the French economy ... It's almost a question of civilization." Prime Minister Edouard Balladur is expected to meet with farm leaders today to discuss a solution to GATT talks. French farmers continue to demand a rejection of the farm deal, warning the new government that they will return to the streets in protest if their concerns are not satisfied. A spokesman for the leading French farmers union, the FNSEA, welcomed Balladur's decision to meet with them, and applauded Balladur's tough stance thus far during trade talks. Meanwhile, Balladur announced in a speech to the French Senate last week that he was very much in favor of a multilateral trade agreement, describing it as the most urgent problem facing the world economy. German Economics Minister Guenter Rextrodt announced to German radio today, from his meetings in Washington, that the U.S. has set December 15 as a conclusion date for GATT. "The good news is that the Americans are determined to bring the GATT negotiations to a conclusion by December 15," Rextrodt said. "The GATT talks have a high priority for them in their new economic policy." Sources: Andrew Hill, "New French Ministers Want to Reopen EC-U.S. Farm Pact," FINANCIAL TIMES, April 6, 1993; "Bonn Says U.S. Wants GATT Deal by December 15," REUTER, April 6, 1993; Andres Wolberg- Stok, "New French Government Suggests Hard Trade Stance," REUTER, April 5, 1993; Eduard Cue, "Balladur Calls GATT Most Urgent Economic Program," UPI, April 2, 1993; "Employers, Farmers Welcome First Balladur Steps," REUTER, April 2, 1993. ________________________________________________________ EC ANNOUNCES PLAN TO REDUCE BARRIERS ON RUSSIAN GOODS European Community officials met yesterday to negotiate an eventual free trade agreement with Russia. At Moscow's request, the deal will aim to reduce barriers to exchanges of goods, services and investment during the next decade. Tariffs on most Russian industrial exports to the EC will be quickly eliminated, and very few blocks to Russian farm produce will remain after the accord is settled. The French government is supportive of the agreement, which is surprising considering how strongly they have opposed other farm accords in the past. However EC officials noted that any attempt to turn the trade agreement into an official free trade zone would not be possible until Russia becomes a member of GATT. Sir Leon Brittan, EC trade commissioner, said the agreement was, "a recognition of the need for the Community to do what it can to assist the process of reform and democracy in Russia." The EC-Russia accord is expected to be finalized by June 21 for the Copenhagen summit. Source: David Gardner, "EC Ready For Talks on Lower Trade Barriers," FINANCIAL TIMES, April 6, 1993. ________________________________________________________ Events: "45th California Symposium on Transportation Issues: Partnerships for the Future," sponsored by the University of California, May 12- 14 at the Red Lion Hotel Costa Mesa. For information contact: University of California, Institute of Transportation Studies, Richmond Field Station, 1301 South 46th Street, Bldg 452, Richmond, CA 94804. ________________________________________________________ Resources: "Trading for the Common Good: A Statement of the National Catholic Rural Life Conference on the North American Free Trade Agreement," is a two page fact and discussion bulletin focusing on human and environmental concerns of the NAFTA. For information or copies contact: National Catholic Rural Life Conference, 4625 Beaver Avenue, Des Moines, IA 50310-2199. Tel: 515-270-2634. "State Legislative Resolution: North American Free Trade Agreement & The General Agreement on Tariffs and Trade," is a model resolution for the trade agreements composed by the Center for Policy Alternatives, and was sent to key legislatures in late February. For a copy contact: Center for Policy Alternatives, 1875 Connecticut Avenue, North West, Suite 710, Washington, DC 20009. Tel: 202- 387-6030. Fax: 202-986-2539. ________________________________________________________ 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 ________________________________________________________