TRADE NEWS BULLETIN Volume 2 Number 79 Wednesday, May 5, 1993 ________________________________________________________ NAFTA News Summary ________________________________________________________ ENVIRONMENTAL GROUPS STATE CONDITIONS FOR NAFTA SUPPORT Seven environmental groups, some of which were previously opposed to the North American Free Trade Agreement (NAFTA), will announce their support for the pact if side agreements permit trinational panels to arbitrate environmental disputes. The National Wildlife Federation, the World Wildlife Fund, the Nature Conservancy, the Audubon Society, the Environmental Defense Fund, the Natural Resources Defense Council and Defenders of Wildlife plan to sign a position paper proposing the formation of a North American Commission on the Environment with power to investigate environmental complaints. Under the plan, if a country fails to adhere to the commission's recommendations, another country could register a complaint to a NAFTA dispute-resolution panel, which would hear the complaint and possibly impose sanctions. The great majority of U.S. environmental groups are still strongly opposed to NAFTA, but some supporters of free trade hope the letter will alleviate the environmental concerns of citizens and lawmakers. "Our hope is to remove the environment as an issue that could block ratification," said Ken Berlin, an attorney who is drafting the endorsement letter. "If (the administration) plays the supplemental agreements right, you could have an environmental constituency in favor of trade," said Stewart Hudson, a trade analyst at the National Wildlife Federation. Source: Bob Davis, "Environmental Groups Will Back NAFTA If Arbitration of Disputes Is Permitted," WALL STREET JOURNAL, May 4, 1993. ________________________________________________________ U.S. MAY ASK CANADA TO HELP FINANCE BORDER CLEAN-UP The Clinton Administration may seek financial assistance from Canada to clean up the U.S.-Mexico border. Trade Representative Mickey Kantor said yesterday that, in light of increased budget constraints, cleaning the badly polluted border area poses a financial problem for the United States, and hinted that all NAFTA partners would need to help fund the project. "The Canadians are full partners in these negotiations, and we would like them of course to be full partners in all aspects of it," Kantor said. "Whether or not that would require the Canadians to be involved in some financing of the ... cleanup on the Mexican-U.S. border is problematical." Speaking to a group of business executives, Kantor urged them to stimulate Congressional support for NAFTA. He tried to convince the group that NAFTA remains a top priority for the administration, and said Budget Director Leon Panetta was correct to state that Congress would not pass NAFTA without supplemental agreements. "Your support ... is needed at this critical junction," Kantor said. If the U.S. cannot summon enough support and clinch side accords on labor and the environment, many believe Congress will reject the trade pact. Sources: David Haskel, "U.S. Trade Chief Seeks Business Report for NAFTA," REUTER, May 4, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ U.S. AND JAPAN AGREE WITH G-7 TIMETABLE FOR GATT USTR Mickey Kantor said yesterday that the United States hopes to complete a draft accord of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) by early July. For the first time since Kantor was appointed to the top trade post, he offered a timetable to conclude the long-stalled global trade talks. He said he envisioned a preliminary deal on access to foreign markets prior to the the meeting in Tokyo of the Group of Seven (G-7) leading industrialized nations. Kantor said that achieving some sort of agreement before and during the G-7 talks would "give great impetus to the Round itself." He said a preliminary deal would not include the setting of tariff rates for all categories. Japanese government officials are considering holding a GATT ministerial meeting on the eve of the G-7 discussions. According to the daily NIHON KEIZAI SHIMBUN, Japanese officials believe a GATT meeting of 100 delegates would prompt G-7 leaders to reach concrete results. Sources: Keith Bradsher, "Timetable Outlined for Trade Pact," NEW YORK TIMES, May 5, 1993; "Japan Eyeing Pre-Summit GATT Meeting- Report" REUTER, April 28, 1993. ________________________________________________________ MARKET ACCESS ISSUE REMAINS UNRESOLVED BETWEEN U.S. AND EC The United States and European Community continue to squabble over market access for farm products. "We still believe our interpretation is the right one," said EC Farm Commissioner Rene Steichen in Brussels after his first meeting with U.S. Agriculture Secretary Mike Espy. Steichen contends the U.S. wants "fixed markets now" but the Dunkel Draft of GATT outlines only "opportunities" for market access. Espy said last November's EC-U.S. farm deal leaves the issue of market access "largely unresolved" and said the lack of conclusion on the issue "jeopardizes the current Uruguay Round." Under the draft text, GATT members must provide, after six years, minimum access for foreign farm produce equal to five percent of domestic consumption. Espy and Steichen will resume market access talks at the end of May. Sources: David Gardner, "U.S. Links GATT Deal to Better EC Access," FINANCIAL TIMES, May 5, 1993; "U.S., EC at Odds on Farm Trade," REUTER, May 4, 1993; Peter Blackburn, "U.S.'s Espy Reviews GATT Farm Prospects With EC," REUTER, May 4, 1993; "EC Seeks 'Global Result' in GATT Talks," REUTER, May 4, 1993; "EC, U.S. Still Disagree on Farm Market Access," REUTER, May 4, 1993; "USDA's Espy Sees Late May Meet on Market Access," REUTER, May 4, 1993. ________________________________________________________ Events: The Canadian Labour Congress is organizing a May demonstration in Ottawa to protest unemployment, free trade, social cutbacks and other issues. Environmentalists, church groups, native peoples and women's groups will join the demonstration. For information contact: Canadian Labour Congress, (613) 521- 3400. In Canada, 1-800-363- 9005. ________________________________________________________ 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 ________________________________________________________