TRADE NEWS BULLETIN Volume 2 Number 102 Wednesday, June 9, 1993 Headlines: SUPPLEMENTAL TALKS RESUME IN WASHINGTON THIS WEEK FRANCE SIGNS OILSEED AGREEMENT SUTHERLAND APPOINTED NEW GATT CHIEF RUSSIA WILL SUBMIT GATT APPLICATION THIS WEEK ________________________________________________________ NAFTA News Summary ________________________________________________________ SUPPLEMENTAL TALKS RESUME IN WASHINGTON THIS WEEK Discussions on side accords to the North American Free Trade Agreement will resume in Washington this week. Trade representatives from the United States, Canada and Mexico will meet to discuss enforcement powers for trinational labor and environmental commissions. During the last meeting of trade officials in May, the United States proposed limited enforcement mechanisms, but Canada and Mexico rejected the idea. Mexican Trade Secretary Jaime Serra Puche said the sidebar negotiations should be completed by the end of June. However, U.S. Trade Representative Mickey Kantor indicated in an earlier report that supplemental talks could stretch into July. Kantor and Commerce Secretary Ron Brown said they expect NAFTA to be approved eventually, despite congressional opposition. "My guess is that one-third (of Congress) is for, one-third is against and about one-third is undecided," Brown said yesterday. "I believe we are going to win." Sources: "Mexico Trade Minister Says NAFTA Talks Going Well," REUTER, June 8, 1993; "U.S. Officials Defend NAFTA, Expect Approval," REUTER, June 8, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ FRANCE SIGNS OILSEED AGREEMENT France signed the U.S.-EC oilseed accord yesterday, boosting optimism among world trade partners that a market access package, needed to conclude the Uruguay Round of the General Agreement on Tariffs and Trade, could be reached. The oilseed accord, which reduces the amount of oilseed production within the 12-member European Community, is part of a larger U.S.-EC farm deal negotiated last November. France had firmly opposed the deal until recently when the EC compromised on French demands. The European Commission awarded French farmers compensation for lost oilseed production and established a "more equitable" distribution of the affected oilseeds area, according to Alain Lamassoure, France's minister for European affairs. The Commission also promised to begin a study aimed at utilizing the land taken out of oilseed production for growing nonfood products, such as biofuels. "We have obtained from our partners and the Commission a certain number of clarifications which enable us to participate in the accord," said Lamassoure. French ministers said acceptance of the oilseed deal will not lead to an immediate resolution of the agriculture chapter of GATT. Reaction to the announcement was mostly positive. U.S. Trade Representative Mickey Kantor said, "We're delighted with the French action ... We've taken yet another step towards a successful market access package." British Prime Minister John Major said France's decision "removes one of the roadblocks toward moving to a comprehensive GATT agreement." Most French farmers' unions responded with caution, saying they were suspicious about the deal's implementation. "The agreement is too vague to reassure us," said Jean-Claude Sabin, president of the oilseed producers association FOP. The young farmers' union CNJA and Coordination Rurale reacted negatively, calling for a nationwide protest. Sources: Julie Wolf, "France Gives Lift to World Trade Talks by Dropping Opposition to Oilseed Pact," WALL STREET JOURNAL, June 9, 1993; Roger Cohen, "Yielding, French Accept Farm Pact," NEW YORK TIMES, June 9, 1993; David Gardner, David Buchan, "France Agrees to Ratify EC-U.S. Deal on Oilseeds," FINANCIAL TIMES, June 9, 1993; "French Farm Unions Divided Over U.S.-EC Oilseed Deal," REUTER, June 8, 1993. ________________________________________________________ SUTHERLAND APPOINTED NEW GATT CHIEF GATT officials have appointed Peter Sutherland, former EC competition commissioner, as the new GATT director-general. Sutherland, who will replace current GATT chief Arthur Dunkel on July 1, said he will work to achieve "a quick, comprehensive and far- reaching conclusion" to the Uruguay Round. Sutherland said July's summit of the Group of Seven (G-7) leading industrialized countries will be crucial to a successful conclusion of the long-stalled global trade round. "But we will need deeds, not words," he said. Sutherland is the fourth successive European director-general. He was appointed despite weeks of protest from several Latin American countries which argued that GATT officials had not seriously considered their candidates. Latin American officials said they never sought to build a "North-South dispute" over the post but wanted to establish a more transparent selection process. "We've helped the process to be more transparent and more multilateral," said a Latin American ambassador. Sources: Frances Williams, "Sutherland on Course to be New GATT Chief," FINANCIAL TIMES, June 9, 1993; Robert Evans, "EC Candidate Sutherland Set to Take Top GATT Post," REUTER, June 9, 1993; "July G7 Summit Crucial to GATT Success-Sutherland," REUTER, June 9, 1993; "GATT, Covering 90 Percent of Trade, Has New Chief," REUTER, June 9, 1993. ________________________________________________________ RUSSIA WILL SUBMIT GATT APPLICATION THIS WEEK Russia is expected to formally apply for GATT membership as it proceeds with plans to join the world economy. "They will have to try to integrate themselves in the world economy," said a GATT official. "GATT will offer a great opportunity." USTR Mickey Kantor said Washington is working with Moscow to prepare Russia's application. "It's part of moving from a command economy to a market economy," Kantor said. "You set up a system of tariffs. You regularize trade. You have a system of rules that people can rely on." To gain admission to GATT a country must make a general commitment to removing trade barriers. Russian President Boris Yeltsin will present GATT Director-General Arthur Dunkel with Russia's application Friday when they meet in Moscow. A GATT ruling council will be assigned next week to review the application, a process which could take more than two years. Sources: Steven Greenhouse, "Russia Will Formally Seek Full Status in Trade Group," NEW YORK TIMES, June 9, 1993; Stephanie Nebehay, "Yeltsin to Make Russian Application to GATT," REUTER, June 8, 1993. ________________________________________________________ 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 ________________________________________________________