Trade News and Recent Publications for June 19-25, 1993 Volume 2 Number 114 Headlines: CANADA APPROVES TRADE PACT U.S. NAFTA SUPPORT STILL DIVIDED OVER LABOR, ENVIRONMENT FAST TRACK FORMALLY APPROVED TRADE ROWS CONTINUE TO CLOUD G-7 MEETING ___________________________________________________________ NAFTA News Summary ___________________________________________________________ CANADA APPROVES TRADE PACT Canada became the first country to approve the North American Free Trade Agreement after the Senate passed the deal by a 47 to 30 vote. The Canadian people, however, remain strongly against NAFTA and it could face problems this fall if the Conservatives fail to hold a majority in Parliament. New Prime Minister Kim Campbell is a strong NAFTA supporter, but the opposition Liberal Party is ahead in the polls. The Liberals have vowed to make changes to the pact, including a more effective dispute resolution process, if they are put into power. U.S. and Mexican legislatures still must approve the pact. Sources: John Urquhart, "Canadian Senate Gives Approval to Trade Pact," WALL STREET JOURNAL, June 24, 1993. ___________________________________________________________ U.S. NAFTA SUPPORT STILL DIVIDED OVER LABOR, ENVIRONMENT -Labor Unions Demand Strong Supplementals- In a letter to President Clinton last week, labor representatives said they would support NAFTA only if side accords are as strong as Clinton promised. Thomas R. Donahue, Secretary Treasurer of the AFL-CIO, criticized the language of the Administration's proposed supplemental accord on labor. Donahue contends that "the proposal actually represents a weakening of existing remedies available under U.S. law." President Clinton promised AFL-CIO members that he would negotiate strong and enforceable side accords, but labor leaders worry the labor accord does not provide adequate enforcement mechanisms. -Black Caucus Rejects Free Trade Accord- The Congressional Black Caucus formally announced opposition to NAFTA yesterday, saying the proposed trade pact is fundamentally flawed and will bring more harm than good to U.S. workers and the environment. Representative Kweisi Mfume (D-Maryland), who chairs the 39-member group, said NAFTA's job creating potential has been "overstated at the very least." Caucus members said side accords would not correct the problems. "This is a union-busting, environmentally detrimental program that cannot be remedied by side agreements," said Representative John Conyers (D-Michigan). The caucus includes 38 House members and Senator Carol Moseley Braun (D-Illinois). -Group of Lawmakers Backs NAFTA- A group of 10 Western governors vowed to challenge the anti- NAFTA views of Texas billionaire Ross Perot. The Western Governors Association, which formally endorsed the trade pact last year, said it will also initiate a dialogue between the United States and Mexico on environmental issues. Meanwhile, a U.S. conference of mayors passed a resolution in favor of the trade pact if supplemental accords protect workers and the environment. Sources: "Black Caucus-Trade," AP, June 24, 1993; Arthur H. Rotstein, "Western Governors Blast Perot For Misinformation," ANCHORAGE DAILY NEWS, June 22, 1993; Richard Walker, "Labor Won't Fight NAFTA With Side Pacts-CWA," REUTER, June 20, 1993; "Letter to Mickey Kantor," AFL-CIO, June 17, 1993. ___________________________________________________________ GATT News Summary ___________________________________________________________ FAST TRACK FORMALLY APPROVED The House of Representatives approved the renewal of fast-track negotiating authority by a vote of 295-126. President Clinton now has until December 15 to conclude a General Agreement on Tariffs and Trade package under fast-track. Once Clinton submits a global trade accord, Congress will have 60 days to vote "yes" or "no" on the pact, without amendments. Source: "U.S. House Votes to Extend GATT Talks Authority," REUTER, June 23, 1993. ___________________________________________________________ TRADE ROWS CONTINUE TO CLOUD G-7 MEETING Trade rows continued as representatives of the United States, European Community, Japan and Canada met in Tokyo for preliminary talks aimed at formalizing an agenda for next month's Group of Seven (G-7) meeting. But rade disputes dominated the two- day meeting, and trade ministers failed to reach any agreements on tariff and market access issues. U.S. Imposes Steel Sanctions, Angers Trade Partners The U.S. Commerce Department announced it would impose $3.2 billion worth of duties on steel imports from 19 countries. Twelve U.S. steel producers had complained that foreign companies were dumping steel in the U.S. at unfairly low prices. The duties range from 1.47 percent to 109 percent and are equal to the alleged dumping by foreign producers. Japan, Europe, Brazil, and Argentina reacted angrily to the announcement. Several countries threatened to take their complaints to GATT. EC steelmakers said the U.S. decision could launch a full-scale trade war, and urged the EC to use all legal and political powers to retaliate. Negotiators from 37 nations will gather in Geneva July 6-9 to craft a new Multilateral Steel Agreement (MSA). -Textiles Row Continues- Market access talks this week between the United States, Canada, the European Community and Japan were clouded by a recent textiles row. Sir Leon Brittan, the EC's trade commissioner, withdrew earlier market-opening commitments because he said the U.S. textiles package, aimed at reducing tariffs, was not what he had hoped for. EC negotiators said they had expected the United States to reduce tariffs on textile imports by 20 to 40 percent. -U.S.-EC Farm Accord Faces New Opposition, Cairns Group Proposal- Belgium joined France this week in opposing the U.S.-EC farm accord. Belgium Farm Minister Andre Bourgeois demanded Wednesday that the farm pact be improved and told reporters that a number of countries are now opposed to the farm accord. The Cairns Group of agricultural exporting nations called for a global farm pact to resolve agricultural concerns in the Uruguay Round of GATT talks. The Cairns Group, which represents 14 nations, argues that the U.S.-EC farm accord has been used as a basis for a GATT agreement. Cairns Group representatives will meet this weekend in hopes of concluding the framework for a global farm deal. . Sources: D. Dodwell, M. Nakamoto, "Tariff Row Threatens Free Trade Hopes," FINANCIAL TIMES, June 24, 1993; "European Steelmakers Hit Out at 'Trade War'," FINANCIAL TIMES, June 24, 1993; S. Nebehay, "Global Steel Talks Set For July in Geneva," REUTER, June 23, 1993; "Mexico, Brazil Seek GATT Review of U.S. Steel Ruling," UPI, June 24, 1993; R. Lawrence, "U.S. Steps Up Threat of Duties on Steel Imports," JOURNAL OF COMMERCE, June 23, 1993; "Belgium to Seek Changes to Blair House Deal," REUTER, June 23, 1993; "Cairns Group to Appeal to G-7 Over GATT," UPI, June 23, 1993. ___________________________________________________________ Recent Publications on International Trade ___________________________________________________________ For copies of the following resources, contact the authors or organizations listed. All prices in U.S. dollars unless otherwise indicated. "Biodiversity Prospecting: Using Genetic Resources for Sustainable Development," Walter Reid, et al., WORLD RESOURCES INSTITUTE, May 1993. 345 pages. 1709 New York Ave, NW, Washington, DC 20006. (800) 822-0504. $29.95. "Harmonization, Trade, and the Environment," Candice Stevens, INTERNATIONAL ENVIRONMENTAL AFFAIRS: A JOURNAL FOR RESEARCH AND POLICY, Vol. 5, No. 1, Winter 1993. 8 pages. University Press of New England, 23 South Main St., Hanover, NH 03755. (603) 643-7111. $15. "International Agricultural Research and Intellectual Property Rights," Pat Mooney, RURAL ADVANCEMENT FUND INTERNATIONAL, November 1992. 5 pages. Institute for Agriculture and Trade Policy. Free. "Dislocated Workers: Implementation of the Worker Adjustment and Retraining Notification Act (WARN)," Linda G. Morra, Human Resources Division, February 1993. 8 pages. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20884-6015. (202) 512-6000. First publication is free, $2 for each copy thereafter. The author concludes that as WARN is written, many major layoffs are not covered and the use of the courts as an enforcement mechanism does not appear to be working. She suggests giving the Department of Labor the responsibility for enforcing the law's provisions. "The Toxic Threat to Indian Lands," Bradley Angel, GREENPEACE, 1991. 18 pages. 1436 U St., NW, Washington, DC 20009. (202) 462- 1177. $5. "Forging International Agreement: Strengthening Inter- Governmental Institutions for Environment and Development," Lee A. Kimball, WORLD RESOURCES INSTITUTE, 1992. 85 pages. 1709 New York Ave., Washington, DC 20006. (800) 822-0504. $12.95. Third World Network, ed., THIRD WORLD RESURGENCE, No. 34, June 1993. 45 pages. Michelle Syverson and Associates, P.O. Box 680, Manzita, OR 97130. $10. This issue features articles regarding the movement of clorine industries to the Third World. "Political Economy of North American Free Trade," Ricardo Grinspun, Max Cameron, ed., St. Martin's Press, New York, 1993. 175 5th Ave., New York, NY 10010-7848. (212) 674-5151. $19.95. "The Clash of Civilizations?" Samuel P. Huntington, FOREIGN AFFAIRS, Vol. 72, No. 3, Summer 1993. 27 pages. P.O. Box 420235, Palm Coast, FL 32142-0235. (800) 829-5539. $10.00 per back issue. The author's hypothesis is that the great divisions among humankind will be cultural and although nation states will remain the most powerful actors in world affairs, the principal conflicts of global politics will occur between nations and groups of different civilizations. ________________________________________________________ Editors: Gigi Boivin, Chirag Mehta 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 ________________________________________________________