TRADE NEWS BULLETIN Volume 2 Number 111 Tuesday, June 22, 1993 Headlines: GOVERNORS, MAYORS PRAISE NAFTA G.M. RELOCATES MEXICAN PLANT TO MICHIGAN POLL: FRENCH POPULATION FAVORS TOUGH TRADE STANCE JAPAN SAYS POLITICAL UNCERTAINTY WILL NOT HURT G-7 MEETING ________________________________________________________ NAFTA News Summary ________________________________________________________ GOVERNORS, MAYORS PRAISE NAFTA At their annual meeting, western governors vowed to challenge Texas billionaire Ross Perot on NAFTA and to initiate a dialogue between the United States and Mexico on environmental issues. Arizona Governor Fife Symington, chair of the Western Governors' Association, said the group feels it is important "that the NAFTA discussion not descend into a pit of demagoguery and misinformation which I think is really characterized by the type of statements that Ross Perot has been making." Perot contends NAFTA will result in a net loss of American jobs. Colorado Governor Roy Romer told the group that NAFTA should not be debated on the basis of whether jobs will be gained or lost to Mexico because the "transfer of jobs outside the country has been primarily not to Mexico but to the Far East." The association endorsed the free trade agreement last year. Meanwhile, the U.S. Conference of Mayors passed a resolution backing NAFTA if strong supplemental accords adequately protect workers and the environment. U.S. Trade Representative Mickey Kantor and Commerce Secretary Ron Brown applauded the decision. "We believe the NAFTA is a winning proposition for American workers and American companies and look forward to future consultations with the mayors on this and other trade matters," Kantor and Brown said in a prepared statement. U.S. President Bill Clinton expressed confidence Congress will pass NAFTA. Clinton told the annual U.S.-Mexico Binational Committee meeting that he would continue lobbying Congress in support of the trade pact while working to negotiate acceptable side accords. At the same conference, U.S. Secretary of State Warren Christopher said NAFTA was of "overriding national interest" to the United States. "Through the NAFTA agreement, the United States has a once-in-a- lifetime chance to open up a new frontier of trade with our neighbor to the south," Christopher said. Sources: "Clinton Predicts NAFTA Approval This Year," Farming Today, UPI, June 22, 1993; "NAFTA in U.S. National Interest, Christopher Says," REUTER, June 21, 1993; Arthur H. Rotstein, "Western Governors," AP, June 21, 1993; "Top Officials Applaud Mayors' Support For NAFTA," REUTER, June 21, 1993. ________________________________________________________ G.M. RELOCATES MEXICAN PLANT TO MICHIGAN General Motors Corporation announced it would move some of the production of its Chevrolet Cavalier car from Mexico to Lansing, Michigan. The move will create up to 1,000 jobs at G.M.'s Lansing assembly plant. G.M. made the decision after meeting yesterday with members of the United Automobile Workers (UAW) union. Relations between the union and the Big Three automakers (G.M., Chrysler and Ford) have soured since the beginning of negotiations to create a North American Free Trade Agreement. Auto workers and other labor unions generally oppose NAFTA because they fear U.S. companies will move production south of the border to take advantage of cheap labor. Stephen P. Yokich, UAW vice- president, said, "This is the kind of mutually beneficial, problem solving and cooperative atmosphere we need throughout the corporation." G.M. will continue to produce in Mexico, and may create a plant in Ramos Arizpe, Mexico, to support local demand there. Source: Doron P. Levin, "Mexican G.M. Jobs Shift to U.S.," NEW YORK TIMES, June 22, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ POLL: FRENCH POPULATION FAVORS TOUGH TRADE STANCE French citizens favor greater protection of their markets as a solution to Europe's recession, according to a survey released yesterday. Approximately 67 percent of those polled for the LE PARISIEN newspaper said France and Europe should limit non-French or non- European imports, and 62 percent thought Europe should be tougher with the United States in GATT talks. Nearly 79 percent of those polled believed the recession would last for at least another year or two. French Foreign Minister Alain Juppe said yesterday that France was ready to conclude a GATT deal by the end of the year provided it respected European Community policies. He did not suggest any measures to resolve the dispute over the U.S.-EC farm deal. Juppe hinted that a solution could become clearer by next month's summit of the Group of Seven (G-7) leading industrial nations in Tokyo. Juppe said he favors crafting a global trade deal to cover market access, trade in services and intellectual property issues. Sources: "French Seen as More Protectionist," FINANCIAL TIMES, June 22, 1993; "French Are Protectionist, Gloomy About Recession," REUTER, June 21, 1993; "France Says Open to GATT Deal by End of Year," REUTER, June 21, 1993. ________________________________________________________ JAPAN SAYS POLITICAL UNCERTAINTY WILL NOT HURT G-7 MEETING High-ranking Japanese officials said parliament's no confidence vote against the government will not jeopardize this week's free trade talks between the United States, Canada, Japan and the European Community. "Japan's politics is in disarray over what to do with political reforms but there is no disagreement in Japan on its trade policy," said Yoshihiro Mori, International Trade and Industry minister. The four-way talks are intended to jump-start long-stalled GATT talks ahead of July's annual summit of industrialized nations. Despite assurances from Japan that a GATT conclusion will be possible amidst the political turmoil, London's FINANCIAL TIMES reports that "substantive" talks between the United States and Japan on supercomputers and auto parts, which could open up global negotiations, "will have to be shelved." Sources: "Political Uncertainty Won't Affect GATT Talks, Say Officials," UPI, June 22, 1993; Jacob M. Schlesinger, "Japan's Factions Coalesce Amid Political Crisis," WALL STREET JOURNAL, June 22, 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 ________________________________________________________