TRADE NEWS BULLETIN Volume 2 Number 103 Thursday, June 10, 1993 Headlines: MULRONEY URGED TO REJECT NAFTA BASED ON RIGHTS ABUSES TRUCKING ASSOCIATION WANTS SEAT ON NAFTA PANEL EC IMPOSES COUNTER-SANCTIONS U.S. ADMINISTRATION TO BEGIN TRADE STUDY U.S. MAY RETALIATE AGAINST JAPANESE CONSTRUCTION INDUSTRY ________________________________________________________ NAFTA News Summary ________________________________________________________ MULRONEY URGED TO REJECT NAFTA BASED ON RIGHTS ABUSES A member of the Canadian Parliament called for Prime Minister Brian Mulroney to reject the North American Free Trade Agreement because of human rights abuses in Mexico. An opposition member of the lower house of Parliament said the new human rights commissioner in Mexico had received more than 9,000 complaints during the past year. But Mulroney argued yesterday that NAFTA will help accelerate Mexican reforms. "North American free trade is not necessarily a panacea, but it is a step forward in helping all peoples to confront the new demands of globalization, thereby raising the prosperity level for all citizens of this continent, including Mexico," Mulroney said. Source: "Canadian Prime Minister Praises NAFTA, Salinas," REUTER, June 9, 1993. ________________________________________________________ TRUCKING ASSOCIATION WANTS SEAT ON NAFTA PANEL The American Trucking Association demanded a seat on a panel assigned to consider how to implement NAFTA transportation standards. Currently, only government officials hold seats on the technical standards committee, which will deal with matters related to truck weight and capacity. Thomas Donahue, president of the American Trucking Association, contends NAFTA will favor Mexican truckers and told panel officials that he would go over their heads to obtain a seat from the Clinton Administration. "I think our negotiators made a terrible mistake during the negotiations on the agreement by keeping the industry at a very long arm's length," Donahue said. "The transportation business is a very technical business and you need to have some skilled hands around to figure out what you are agreeing to." U.S. negotiators say they were bound to certain mandates from U.S. Trade Representative Mickey Kantor and were therefore unable to consult directly with the trucking industry. "This was a confidential negotiation; it was governed by those rules," said one official. The source said also that if they allowed trucking associations to participate in the implementation talks, they would then be forced to grant other groups similar representation. Source: Kevin Hall, "Donahue Demands Seat on NAFTA Transport Panel," JOURNAL OF COMMERCE, June 4, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ EC IMPOSES COUNTER-SANCTIONS European Community foreign ministers agreed on Tuesday to impose $15 million worth of sanctions against U.S. exporters. The measures, which will apply to U.S. firms bidding for EC works, service and supply goods contracts, are in retaliation for $20 million worth of U.S. sanctions announced two weeks ago. EC officials said they deliberately imposed sanctions lower than those of the U.S. in an attempt to maintain good negotiating terms for the upcoming Group of Seven (G-7) summit in July. A trade war between the United States and the European Community could further delay the Uruguay Round of the General Agreement on Tariffs and Trade. The United States and European Community have been engaged in a public procurement dispute since last year. Source: "EC Slaps Minor Trade Sanctions on U.S.," REUTER, June 8, 1993. ________________________________________________________ U.S. ADMINISTRATION TO BEGIN TRADE STUDY The Clinton Administration will undertake a two-year study of U.S. trade laws and their impact on U.S. exports. U.S. Trade Representative Mickey Kantor assigned the International Trade Commission to head the study, scheduled for completion by mid- 1995. The review will focus on U.S. trade laws that have been criticized as internal barriers to investment and exports. Under examination are the U.S. export control regime and the foreign corrupt practices act, which forbids U.S. companies from bribing local officials. The Administration will work closely with the business sector to examine these alleged trade obstacles and to coordinate the more than 150 export promotion programs. Sources: Nancy Dunne, "Clinton Embarks on Broad Review of U.S. Trade Laws," FINANCIAL TIMES, June 10, 1993; "Trade-Law Study Sought," NEW YORK TIMES, June 10, 1993. ________________________________________________________ U.S. MAY RETALIATE AGAINST JAPANESE CONSTRUCTION INDUSTRY The Clinton Administration is threatening Japan with retaliation if it doesn't reform its construction industry by the end of the month. American and Japanese officials will discuss the matter next week when they meet in Washington over market access issues. Tight ties between Japan's government regulators and steel industry have allegedly kept U.S. construction firms out of Japan. Foreign companies have grabbed only one percent of Japan's public works construction market despite an effort by the Japanese government to encourage more foreign bidders. Japan promised in 1989, after much pressure from the United States, to open its construction market by creating a set-aside program. The program, which involved 17 new construction projects ranging from airports to restaurants, was set up to give foreign construction companies experience in the Japanese industry. Officials had hoped that after winning government projects, American companies would be able to establish working relationships and more easily enter the market on their own. Thirty U.S. companies have gained licenses to participate in Japan's public works projects, compared to three before it began. But the value of the public works projects awarded to U.S. companies fell 36 percent last year to $175 million, while at the same time government public works spending rose by five percent. Source: Jacob Schlesinger, "U.S. Contractors Find They Rarely Get Work on Projects in Japan," WALL STREET JOURNAL, June 10, 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 ________________________________________________________