TRADE NEWS BULLETIN Volume 2 Number 115 Monday, June 28, 1993 Headlines: CAMPBELL SWORN IN; NEW TRADE MINISTER WARNS U.S. BELGIUM SAYS EC MUST MAKE GATT CONCESSIONS MARKET ACCESS TALKS IN TORONTO THIS WEEK U.S., JAPAN RESUME BILATERAL TRADE TALKS ________________________________________________________ NAFTA News Summary ________________________________________________________ CAMPBELL SWORN IN; NEW TRADE MINISTER WARNS U.S. Kim Campbell was sworn in Friday as Canada's first woman prime minister and immediately cut the number of cabinet ministers to 25, from 35 under her predecessor, Brian Mulroney. Thomas Hockin was named the new Minister for International Trade, replacing Michael Wilson. Following his swearing in, Hockin warned the United States that trade disputes between the two countries were reaching a "friction overload." The U.S. decision to subsidize wheat sales to Mexico is the most recent in a series of disputes. "We can look at each issue on its merits but if too many issues merge at once then it is difficult for the overall climate," Hockin said. Some of the other ministers in Campbell's cabinet: Jean Charest: Deputy Prime Minister. Gilles Loiselle: Minister of Finance. Perrin Beatty: Secretary of State for External Affairs. Charles Mayer: Minister of Agriculture, Small Communities and Rural areas. Sources: Anne Swardson, "Campbell Takes Over in Ottawa; New Prime Minister Promises a 'Streamlined Government,'" WASHINGTON POST, June 26, 1993; "Canada's Campbell Cuts Cabinet by Almost One Third," REUTER, June 25, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ BELGIUM SAYS EC MUST MAKE GATT CONCESSIONS Belgian Prime Minister Jean-Luc Dehaene said the European Community will have to make concessions, probably in agriculture, in order to complete GATT talks this year. But, Dehaene argued, concessions would be "offset by gains we will make in other areas." In a separate interview, Belgian Foreign Minister Willy Claes said, "Personally I think we must do everything possible to reach a global accord under the Belgian presidency for the simple reason that the U.S. Congress does not seem ready to grant fast-track authority to the president in 1994." Belgium takes over the six-month rotating presidency of the EC on July 1. France wants the United States and Japan to lower their trade barriers before Europe does the same. French Economy Minister Edmond Alphandery told French television that the EC is the world's least protectionist zone. "Our partners, notably the Japanese and Americans, must realize that Europe is in a very serious economic crisis ... and Europe is the least protected zone in the world," Alphandery said. Sources: "EC Must Make GATT Concessions -- Belgium's Dehaene," REUTER, June 28, 1993. ________________________________________________________ MARKET ACCESS TALKS IN TORONTO THIS WEEK U.S, EC, Canadian and Japanese officials will meet in Toronto this week to discuss market access issues, said Hideaki Kumano, vice minister of Japan's ministry of international trade and industry. Kumano said the officials would try to set a framework for a four- way trade meeting of their countries' top trade representatives on July 6 in Tokyo. They hope to have an outline package to present to the July 7-9 summit of the Group of Seven. In Tokyo, Indian Finance Minister Manmohan Singh called on the G-7 nations to provide "regular and informal" dialogue with the Group of 15 developing nations. Singh gave Japanese Prime Minister Kiichi Miyazawa a list of requests from the developing countries. Singh reportedly expressed concerns that G-7 countries could channel aid designated for the developing world to countries of the former Soviet Union. Singh also said developing countries are worried about increased protectionism among the G-7 nations and said they wanted to see a quick conclusion to the Uruguay Round of GATT. The G-15, which was formed in 1989 from members of the Non- Aligned Movement and the Group of 77 developing countries, consists of Algeria, Argentina, Brazil, Chile, Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria, Peru, Senegal, Venezuela and Zimbabwe. Sources: "France Wants U.S., Japan to Ease Trade Barriers," REUTER, June 27, 1993. ________________________________________________________ Other Trade News ________________________________________________________ U.S., JAPAN RESUME BILATERAL TRADE TALKS Tokyo's Fair Trade Commission said that Japan should not set import targets or impose voluntary export restraints as a way of reducing Japan's huge trade surplus with the United States. In a report released Monday, the commission states, "The U.S. government has pressed the Japanese government to set import targets. Such a request, as well as voluntary export restraint, limits free trade." Japanese and American officials began two days of trade talks Sunday aimed at establishing a basis for trade and economic talks ahead of the second meeting between U.S. President Bill Clinton and Japanese Prime Minister Kiichi Miyazawa on July 5. The Japanese argue that the U.S. "results-oriented" approach is unrealistic since Japan is a free-market economy in which the government can do little to influence trade. "Will the U.S. tell its consumers not to buy so much foreign goods? asked one Foreign Ministry official. "Just as it cannot do that, so we cannot influence our economic activity to that extent." Many U.S. businesses claim the Japanese government is highly involved in managing the economy. "There isn't a grain of rice in Japan that isn't managed," said a U.S. businessperson with extensive experience in Japan. Sources: "Japan Commission Rejects Import Targets," REUTER, June 28, 1993; Andrew Pollack, "U.S. and Japan Clash on Trade Benchmarks," NEW YORK TIMES, June 28, 1993; David P. Hamilton, "Japan Unveils Plan for Talks on Trade," WALL STREET JOURNAL, June 28, 1993; Michiyo Nakamoto, "Kantor Will Need Tact and Firepower in Tokyo," FINANCIAL TIMES, June 28, 1993. ________________________________________________________ Produced by: 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 ________________________________________________________