TRADE NEWS BULLETIN Volume 2 Number 76 Friday, April 30, 1993 _______________________________________________________ NAFTA News Summary _______________________________________________________ SIX ENVIRONMENTAL GROUPS MAY BACK NAFTA The NEW YORK TIMES reports today that six environmental groups may announce conditional support for the North American Free Trade Agreement. The Environmental Defense Fund, the National Audubon Society, the National Wildlife Federation, the Nature Conservancy, the Natural Resources Defense Council and the World Wildlife Fund are expected to endorse the trade pact even if a proposed trinational environmental commission does not have the power to levy sanctions against countries that abuse the environment. This would be in conflict with the majority of U.S. environmental organizations which are firmly opposed to NAFTA. In a March 4, 1993 letter to U.S. Trade Representative Mickey Kantor, 24 environmental groups -- including the Humane Society of the United States, Friends of the Earth, the Sierra Club and the National Toxics Campaign Fund -- stated they would oppose NAFTA if there are not strong enforcement provisions for environmental agreements. Meanwhile, a majority of Republican senators have sent a letter to President Clinton saying they support NAFTA but oppose giving environmental and labor commissions broad powers. "If (Clinton) has to create whole new levels of regulation and bureaucracy relating to environmental protection and labor laws, he will lose most of the Republicans, including myself," said Senator John C. Danforth (R-Missouri), who arranged the letter to Clinton. Administration officials continue to reject speculation that NAFTA does not have the votes to pass Congress. "Not only do we believe it will pass, the President strongly supports it and will push it through," said USTR Kantor. In fact, some supporters predict Budget Director Leon Panetta's recent statement of doubt concerning NAFTA's likelihood of passing Congress will galvanize support for the trade deal. "It was a good early-warning signal and I'm happy he said it," said Robert Matsui (D-California), who is organizing a House group to promote NAFTA. Mexican Trade Minister Jaime Serra Puche maintains that despite growing criticism it is "highly probable" that NAFTA will go into effect as scheduled on January 1, 1994. Puche said that it is important to realize that NAFTA critics "do not represent general opinion and that they do not reflect any change in the opinion of the three governments." Sources: Keith Bradsher, "Free Trade Pact Wins Wide Range of Support," NEW YORK TIMES, April 30, 1993; "NAFTA 'Highly Probable' by 1994 - Mexican Official," REUTER, April 28, 1993. _______________________________________________________ LABOR SECRETARY REICH PUSHES NAFTA IN OP-ED In an opinion-editorial in today's WALL STREET JOURNAL, Labor Secretary Robert Reich rejects the arguments of organized labor and declares that NAFTA and its supplemental agreements will "improve the living standards of workers throughout the Americas." He argues that U.S. workers have little to fear from NAFTA. "It would be sadly ironic if the economic stresses now experienced by many Americans prevented us from enjoying the economic benefits lying just around the corner," Reich says. He argues that unskilled and semi-skilled manufacturing positions will decrease in the United States regardless of NAFTA. Even if "millions of workers in developing nations were not eager to do these jobs at a fraction of the wages of U.S. workers," Reich says, increased domestic competition "would drive companies to cut costs by installing robots, computer-integrated manufacturing systems, or other means of replacing the work of unskilled Americans with machinery that can be programmed to do much the same thing." Reich predicts jobs will be created in the United States under NAFTA as more open trade and other liberalizing measures increase Mexican incomes to create demand for U.S. exports. Further, Reich declares that all workers who lose their jobs due to NAFTA will receive retraining, job search assistance and other services. Several labor unions, which want additional provisions to protect U.S. jobs, are not buying Reich's arguments and are actively campaigning against NAFTA. The International Union of Electrical Workers, for example, is sending out "Defeat NAFTA Organizing Guides" to union activists. Source: Kevin G. Salwen, "Labor Secretary, Despite Opposition of Unions, Backs Mexico Trade Pact," WALL STREET JOURNAL, April 30, 1993; Robert Reich, "Trade With Mexico Is a Boon for U.S. Workers," WALL STREET JOURNAL, April 30, 1993. _______________________________________________________ GATT News Summary _______________________________________________________ FRANCE TO CLARIFY GATT POSITION French Prime Minister Edouard Balladur has ordered a 15-point report to clarify France's position in GATT talks. "I want to draw up a French report on GATT that is as precise and as factual as possible. I want to avoid generalization," Balladur said. Agriculture Minister Jean Puech said he will use the report to resume dialogue with EC partners, but he did not elaborate on France's specific proposals to unblock the stalled talks. The new French government has vowed to take a more constructive approach to GATT negotiations. Trade ministers from the European Community, the United States, Canada and Japan will hold a special meeting in Toronto May 14 in an attempt to jump-start the Uruguay Round. In other GATT news, former EC Commissioner Peter Sutherland has been widely mentioned in the Irish media as the next director- general of GATT. Sutherland, who is currently chairman of Ireland's largest banking group, was EC Competition Commissioner from 1985 to 1989. Current GATT director-general, Arthur Dunkel, is expected to leave his post sometime this year. Sources: "Balladur Orders Report on France's GATT Position," REUTER, April 29, 1993; "France's Puech Seeks Dialogue With EC on GATT," REUTER, April 29, 1993; "Canada Said to Host GATT Trade Talks on May 14," REUTER, April 29, 1993; "Former Commissioner Sutherland Tipped as GATT Chief," REUTER, April 29, 1993. _______________________________________________________ Events: A national week of actions is planned May 1-9 to promote fair trade. For more information, contact Jim Jontz or Scott Paul of Citizens Trade Campaign. (202) 554-1102. _______________________________________________________ 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 _______________________________________________________