TRADE NEWS BULLETIN Volume 2 Number 112 Wednesday, June 23, 1993 Headlines: WILSON TELLS U.S. TO IGNORE NAFTA OPPOSITION STEELMAKERS UPSET BY U.S. DUTIES, MAY SEEK GATT RULING FRANCE CANNOT AFFORD TO LIMIT IMPORTS, BALLADUR SAYS FAST-TRACK AUTHORITY APPROVED ________________________________________________________ NAFTA News Summary ________________________________________________________ WILSON TELLS U.S. TO IGNORE NAFTA OPPOSITION Canadian Trade Minister Michael Wilson said U.S. lawmakers should ignore opponents of free trade and approve the North American Free Trade Agreement. Wilson said Canada faced similar problems in 1988 while trying to pass the U.S.-Canada Free Trade Agreement (FTA). "You in the United States are experiencing for the first time the kind of debate that engaged Canadians four years ago," Wilson told a business conference in Chicago. "The NAFTA opponents like the FTA critics before them ... are wrong." Canada ratified the FTA despite strong opposition. Canada will experience small but significant economic gains if NAFTA is approved, according to a report from the C.D. Howe Institute, a private sector think-tank. Economist William Watson of McGill University said, "Mexican products already face very low barriers to entry into the Canadian market, so that removing those that remain is unlikely to make a significant difference." However, he predicted the removal of Mexican barriers would lead to greater Canadian exports. Sources: "Canada to Have Small NAFTA Benefits -- Institute," REUTER, June 22, 1993; "Ignore Trade Foes Like Canada Did, Wilson Tells U.S.," NEWSCAN, June 18, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ STEELMAKERS UPSET BY U.S. DUTIES, MAY SEEK GATT RULING Asian and European steel producers responded angrily to U.S. plans to raise steel tariffs on imports from 19 countries. The U.S. Commerce Department decided to increase penalties because of alleged dumping by other countries. The new duties will more than double the price of some imported steel and raise significantly the punitive duties beyond the level of preliminary penalties announced in January. European countries issued statements urging the United States to push for an international steel agreement rather than imposing duties. Japan and South Korea threatened to take their complaints to a GATT council. "We are now considering what we should do after the Commerce decision," said an official with the Japanese Ministry of International Trade and Industry. "The possibilities include holding more bilateral talks with the U.S. and requesting a set-up of a dispute panel under the GATT." The U.S. will implement the duties, which range from 1.47 percent to 109 percent, after 45 days if the U.S. International Trade Commission finds that foreign producers are dumping steel in the U.S. at unfairly low prices. U.S. steelmakers welcomed the Commerce Department decision. "Today's decision confirms an egregious distortion of the international marketplace by foreign steel producers," said Curtis H. Barnette, chairman of the Bethlehem Steel Corporation. "We applaud the Commerce Department for enforcing the trade laws." Sources: Steven Greenhouse, "Punitive Tariffs Raised Against Foreign Steel," NEW YORK TIMES, June 23, 1993; "Japan, Korea Reject U.S. Steel Anti-Dumping Decision," REUTER, June 23, 1993; "Britain Condemns New U.S. Tariffs on Steel Imports," REUTER, June 23, 1993. ________________________________________________________ FRANCE CANNOT AFFORD TO LIMIT IMPORTS, BALLADUR SAYS France cannot afford to limit global or European imports, said French Prime Minister Edouard Balladur during a radio interview yesterday. "France exports more than a quarter of its production, two-thirds of it within the European Community," Balladur said. "France cannot withdraw into itself because there are millions and millions of jobs here linked to exports." A recent opinion poll showed that 67 percent of French citizens favor limiting imports as a solution to the growing problem of unemployment. "France needs international commerce and must sell to others. To do that, the others must be able to sell here," Balladur added. The United States recently demanded greater access to Europe's audio-visual markets, spurring more debate over global market access issues outlined in the GATT Uruguay Round draft accord. The European Community currently requires that half of all television programs originate in Europe. U.S. Trade Representative Mickey Kantor told reporters in Paris earlier this month that the language in the current Uruguay Round draft applying to audio-visual deal is unacceptable. "We want it improved. It's a major area of concern," Kantor said. "We have already begun the discussion, but we are not satisfied." The U.S. currently maintains an export revenue worth $6.2 billion in the audio-visual market, making it one of the most successful U.S. export industries. Sources: "Balladur Says France Cannot Afford Protectionism," REUTER, June 22, 1993; Keith M. Rockwell, Tara Patel, "Kantor Deems Audio- Visual Deal Critical to Talks," JOURNAL OF COMMERCE, June 4, 1993. ________________________________________________________ FAST-TRACK AUTHORITY APPROVED The U.S. House of Representatives voted yesterday to extend President Clinton's fast-track negotiating authority. The bill, approved by a 295-126 vote, requires Clinton to conclude a global trade agreement and notify Congress by December 15, 1993 if he wants to submit it under fast-track. If Clinton makes the deadline Congress will have 60 days to approve or disapprove the trade pact without amendments to its text. Previous fast-track negotiating authority expired June 1. U.S. and foreign trade officials lobbied hard for an extension of fast-track, which they say is necessary to conclude trade talks. Source: "U.S. House Votes to Extend GATT Talks Authority," REUTER, June 23, 1993. ________________________________________________________ Resources: 1. "House GATT-Fast Track Roll Call," a list of how each representative voted on the bill. 2. "Details on Fast Track Rule and Timing of GATT and NAFTA Votes," by Lori Wallach of Public Citizen. A detailed review of fast-track and its implications for trade agreements. Included is the original fast- track text of the Trade Act of 1974. For copies of either article contact: Gigi Boivin (see address below). ________________________________________________________ Publisher: Mark Ritchie Editors: Gigi Boivin and 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 ________________________________________________________