TRADE NEWS BULLETIN Volume 2 Number 96 Tuesday, June 1, 1993 Headlines: PEROT CRITICIZES NAFTA - - SUPPORTERS COUNTER GATT NOMINEE FACES RESISTANCE DELORS SAYS SERVICES SHOULD BE NEW GATT PRIORITY POLITICAL ISSUES WILL DECIDE CHINA GATT ENTRY ________________________________________________________ NAFTA News Summary ________________________________________________________ PEROT CRITICIZES NAFTA - - SUPPORTERS COUNTER Ross Perot purchased 30 minutes of NBC television airtime Sunday to urge the American public to pressure lawmakers to reject the North American Free Trade Agreement. Perot told viewers that NAFTA threatens their jobs. "If you and I just sit here complacently, it will create that giant sucking sound that I've been talking about." He encouraged the audience to tell their representatives they would be defeated in next year's elections if they voted for NAFTA. Even before the program aired, NAFTA supporters tried to counter Perot's accusations. Three members of the Clinton Administration appeared at a news conference to defend the pact. Appearing with Labor Secretary Robert Reich and Laura D'Andrea Tyson, chair of the Council of Economic Advisers, U.S. Trade Representative Mickey Kantor said Perot "has been victimized by some who are not exactly neutral on this subject, who have not looked at this in a serious way and are not dealing with the information in what I would call valid terms." In addition, 16 congressional supporters of NAFTA sent Perot a letter challenging the accuracy of the economic study Perot has cited to show NAFTA will cost jobs. In Toronto, Juan Gallardo, a leading spokesperson for the Mexican business community, denied that the cheaper wages in Mexico would cost U.S. jobs. "The end result is an overall job gain for all," he said. Gallardo said Perot's statement that 600,000 manufacturing jobs have already moved to Mexico from the U.S. has nothing to do with NAFTA. Mexican President Carlos Salinas de Gortari applauded Canada's House of Commons for its approval of NAFTA and said all three countries would "prosper" under the deal. Salinas told members of the World Affairs Council in Boston that NAFTA would help Mexico "export goods, not people." Salinas later traveled to Dallas where he made a similar argument, calling NAFTA a "migration-reducing agreement." Perot warned viewers that a pro-NAFTA publicity campaign was in the works, "so put on your helmet, put in your teeth guards and be prepared for it." A new public opinion poll by TIME magazine and CNN released Friday reveals nearly two-thirds of Americans believe NAFTA will cost U.S. jobs while only a quarter believe it will create jobs. Sources: "Perot-Trade," AP, May 31, 1993; Peter Behr, "White House Responds to Perot on Trade Pact; Officials Try to Counter Billionaire's TV Drive," WASHINGTON POST, May 29, 1993; Nancy Dunne, "Perot Attacks NAFTA Over 'Threat to Jobs,'" FINANCIAL TIMES, June 1, 1993; "Mexican Business Envoy Says Perot Wrong on NAFTA," REUTER, May 31, 1993; Bryan Sierra, "Mexican President Pushes NAFTA, Praises Canadian Approval," UPI, May 28, 1993; Keith Bradsher, "Administration Attacks Perot's Ad on Trade Pact," NEW YORK TIMES, May 29, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ GATT NOMINEE FACES RESISTANCE Major developing countries may resist the nomination of former EC competition commissioner Peter Sutherland for director-general of the General Agreement on Tariffs and Trade. The countries say the EC and the United States are attempting to push through the appointment. "The feeling is that the big two simply decided who they want and now assume it is a foregone conclusion," said an ambassador with one of the opposing countries. Representatives from developing countries in Latin America, Africa and Asia met twice last Friday to discuss how to proceed. The world trade body has scheduled a special session on June 9 to determine the successor to current chief Arthur Dunkel. Source: Robert Evans, "Revolt Brews Over EC Candidate for Top GATT Post," REUTER, May 31, 1993. ________________________________________________________ DELORS SAYS SERVICES SHOULD BE NEW GATT PRIORITY European Commission President Jacques Delors encouraged all GATT members to pay closer attention to liberalizing services such as banking and insurance. Speaking to the European parliament in Strasbourg last week, Delors implied he now agrees with the U.S. and Britain that the European Community should focus less on agriculture. Delors said that services made up half of EC Gross National Product but only 20 percent of EC exports. Delors urged France to accept the oilseeds part of November's U.S.-EC farm deal, which is partly to blame for stalled GATT talks. "The oilseeds agreement is the best we can get and it will allow Europe to produce oilseeds in the same quantity as in its record year," Delors told a news conference. French Agriculture Minister Jean Puech agreed that agriculture issues should not get in the way of discussion in other areas. "We want global talks. The farm issue must not be discussed at the expense of other (sectors)," he said. French government officials have indicated that a one million Ecu package to EC farmers could help gain their support for the deal. U.S. Commerce Secretary Ron Brown said U.S.-EC efforts to advance GATT talks would not suffer from the U.S. decicion to impose sanctions on the EC. Sources: "Lionel Barber, "Delors Makes Services Deal New GATT Priority," FINANCIAL TIMES, May 27, 1993; "France Urges Greater EC Cohesion in GATT Talks," REUTER, May 30, 1993; "Brown Sees No GATT Fallout From U.S. -EC Trade Row," REUTER, May 28, 1993. ________________________________________________________ POLITICAL ISSUES WILL DECIDE CHINA GATT ENTRY Trade delegates completed a week-long negotiating session on China's bid to re-join GATT. The working party adjourned Friday, the day President Clinton renewed most-favored-nation (MFN) status for China. Trade officials say China's human rights record and parallel talks with Taiwan to join GATT are key factors in considering China's application. "China's joining will depend more on the political environment than on the negotiating environment," said one official. Source: Stephanie Nebehay, "China Accession to GATT Seen Depending on Politics," REUTER, May 28, 1993. ________________________________________________________ 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 ________________________________________________________