TRADE NEWS BULLETIN Volume 2 Number 99 Week In Review and Recent Publications May 29-June 4, 1993 Headlines: MULRONEY CRITICIZES PEROT'S ANTI-NAFTA ARGUMENT HUMAN RIGHTS BECOMING AN ISSUE IN NAFTA SUTHERLAND ENCOUNTERS RESISTANCE CHINA'S GATT ENTRY DEPENDS ON POLITICAL CLIMATE OECD MEMBERS AGREE TO PUSH FOR GATT CONCLUSION ________________________________________________________ NAFTA News Summary ________________________________________________________ MULRONEY CRITICIZES PEROT'S ANTI-NAFTA ARGUMENT Canadian Prime Minister Brian Mulroney criticized Texas billionaire Ross Perot's argument that the North American Free Trade Agreement will mean a net loss of American jobs. Perot told American viewers Sunday, during a 30 minute television presentation, that the trade pact will lure U.S. businesses south of the border in search of lower wages. Mulroney argued that wage rates alone do not determine the location of a company's operations. U.S. and Canadian productivity "is so far ahead of that of Mexico that to make the argument (against NAFTA) simply on the basis of wages is misleading and extreme," Mulroney said during a meeting in Washington with U.S. President Bill Clinton. "Wage rates are one of many causes, many considerations of competitiveness, (including) the cost of capital, infrastructure, education, technology." Clinton said that he did not agree with "any evidence" Perot offered. Other NAFTA supporters worked hard to counter Perot's accusations before the program aired. Three members of the Clinton Administration, including Trade Representative Mickey Kantor, appeared at a news conference to defend the pact. 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," Kantor said. In addition, 16 congressional supporters of NAFTA sent Perot a letter challenging his prediction that NAFTA would cost U.S. jobs. Sources: "Clinton and Mulroney Oppose Perot on NAFTA," UPI, June 2, 1993; Peter Behr, "White House Responds to Perot on Trade Pact; Officials Try to Counter Billionaire's TV Drive," WASHINGTON POST, May 29, 1993; Keith Bradsher, "Administration Attacks Perot's Ad on Trade Pact," NEW YORK TIMES, May 29, 1993. ________________________________________________________ HUMAN RIGHTS BECOMING AN ISSUE IN NAFTA Seven human rights groups, joined by twenty other agricultural, church, environmental and labor organizations, urged President Clinton to ratify several human rights treaties as a solution to NAFTA worker welfare concerns. The groups contend, in a letter to Clinton, that international human rights treaties, which establish basic civil and political rights for all, have already been negotiated and signed by Mexico. "With the mandate for reform given you by the American people on November 3, we urge you to press for prompt ratification of these treaties," the groups wrote. They also press Clinton to adopt three other treaties, drafted by the International Labor Organization, which guarantee workers the right to organize free labor unions and engage in collective bargaining without suffering discrimination from either the state or management. Source: Draft Open Letter/Petition to President Clinton, WORLD POLICY INSTITUTE, May 17, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ SUTHERLAND ENCOUNTERS RESISTANCE Major developing countries agreed on Wednesday to resist the nomination of former EC Competition Commissioner Peter Sutherland for the position of director-general of the General Agreement on Tariffs and Trade. Ambassadors who attended an informal caucus meeting said they want an open discussion to decide the new GATT chief. Sutherland, who is backed by the United States and European Community, is expected to win the post because it has traditionally gone to a European. "It is being taken for granted that the post should go to a European," said Chilean envoy Ernesto Tironi. "That may be right, but let's have a chance to discuss and agree ... Why should someone from a developing country not head GATT?" Julio Lacarte-Muro, Uruguay's trade envoy, and Colombian diplomat Luis Fernando Jaramillo have been nominated for the post. "These two appear to have been brushed aside once Sutherland came in," said another envoy. Developing countries comprise 84 of GATT's 111 members. The world trade body has scheduled a meeting June 9 to determine the successor of current GATT chief Arthur Dunkel, however trade diplomats say the new resistance may threaten this decision. Sources: Robert Evans, "Developing States Push for Own GATT Candidate," REUTER, June 2, 1993; Robert Evans, "Revolt Brews Over EC Candidate for Top GATT Post," REUTER, May 31, 1993. ________________________________________________________ CHINA'S GATT ENTRY DEPENDS ON POLITICAL CLIMATE Trade delegates agreed, after a week-long session, that China's admittance to GATT will depend on political issues. During the 14th negotiating session, held to draft the terms for Chinese membership, a GATT working party said China's application will depend on its human rights record and parallel negotiations for Taiwan's membership. "China's joining will depend more on the political environment than on the negotiating environment," said one trade official. The working party will meet again September 27 to discuss China's re-entry. Pending accession, China is allowed to take part in the Uruguay Round as one of 117 nations seeking a global accord to reduce trade barriers. Source: S. Nebehay, "China Accession to GATT Seen Depending on Politics," REUTER, May 28, 1993. ________________________________________________________ OECD MEMBERS AGREE TO PUSH FOR GATT CONCLUSION Ministers from industrial countries agreed after a two day meeting of the Organization for Economic Cooperation and Development (OECD) that rising unemployment figures could be slowed by a successful conclusion of the Uruguay Round of GATT talks. A final communique estimated that unemployment for the 24 OECD members could reach 36 million by the end of this year. "This represents enormous human and economic costs," the communique said. Australian Treasurer John Dawkins told a news conference that economic growth, 1.2 percent this year, would not be enough to halt rising unemployment. Ministers agreed that liberalized trade and economic policies would be an important step toward the reduction of unemployment. "Building confidence in the world economy through some decisive action on the trade front is one of those things which can be taken collectively over the next few months," said Dawkins. Ministers from the United States, Canada, Japan and the European Community said they expect to draft an outline accord, aimed at lowering tariffs, within the next month. Sources: John Chalmers, "Trade Breakthrough Tempers Gloom at OECD Meeting," REUTER, June 3, 1993; "U.S. Pleased With Trade Talks Progress," REUTER, June 3, 1993. ________________________________________________________ For copies of the following resources, contact the authors or organizations listed. 1. Jeremy Brecher, "Global Visions: Beyond the New World Order," SOUTH END PRESS, 1993, 320 pages. South End Press, 116 St. Botolph Street, Boston, MA 02115. Tel: (800) 533-8478. US$19.00. 2. Vandana Shiva, "Monocultures of the Mind: Biodiversity, Biotechnology and the Third World," THIRD WORLD NETWORK, 1993, 190 pages. Third World Network, 87, Cantonment Road, 10250 Penang, Malaysia. Tel: (604) 373511. US$17.00. 3. Pat Choate, "Jobs At Risk: Vulnerable U.S. Industries and Jobs Under NAFTA," THE MANUFACTURING POLICY PROJECT, April 1993, 63 pages. The Manufacturing Policy Project, 201 Massachusetts Avenue, N.E., Washington, D.C. 20002. Tel: (202) 543-1212. Free. 4. Cynthia Anderson-Barker, "How Mexico Rigs Elections," LOYOLA LAW SCHOOL, April 1993, 70 pages. Robert Benson, Loyola Law School, 1441 West Olympic Blvd., Los Angeles, CA 90015. Tel: (213) 736-1094. Free. 5. Jeff Faux and Thea Lee, "The Effect of George Bush's NAFTA On American Workers: Ladder Up or Ladder Down?" ECONOMIC POLICY INSTITUTE, 1993, 34 pages. Economic Policy Institute, 1730 Rhode Island Ave., NW #200, Washington, D.C. 20036. Tel: (202) 775-8810. US$5.00. 6. Marcus Colchester and Larry Lohmann, "The Struggle for Land and the Fate of Forests," WORLD RAINFOREST MOVEMENT, 1993, 400 pages. World Rainforest Movement, 87, Cantonment Road, 10250 Penang, Malaysia. Tel: (604) 373511. US$25.00. 7. Roger Herdman, "Drug Labeling in Developing Countries," OFFICE OF TECHNOLOGY ASSESSMENT, 1993. 204 pages. New Orders, Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954. Tel: (202) 783-3238. US$11.00. This study examines the current labeling practices of U.S.-based multinational corporations for the products they sell in the developing world. Half the products surveyed seriously diverge from U.S. safety standards, according to the study. 8. John H. Jackson, "World Trade Rules and Environmental Policies: Congruence Or Conflict?" WASHINGTON AND LEE LAW REVIEW, Vol. 49, No. 4, 1992, 60 pages. Washington and Lee Law Review, School of Law, Washington and Lee University, Lexington, VA 24450. Tel: (703) 463-8566. US$6.00. ________________________________________________________ Published by: Mark Ritchie Produced by: Gigi Boivin, Kai Mander and Chirag Mehta 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 ________________________________________________________