TRADE NEWS BULLETIN Volume 2 Number 124 Monday, July 12, 1993 Headlines: U.S. RETREATS ON ENFORCEMENT POWERS FOR SIDE PANELS SURVEY FINDS IGNORANCE, OPPOSITION REGARDING NAFTA EDITORIAL URGES NAFTA ENVIRONMENTAL STATEMENT GATT TALKS RESUME FOLLOWING G7 SUMMIT INDIAN FARMERS ATTACK CARGILL OVER GATT PROPOSALS ________________________________________________________ NAFTA News Summary ________________________________________________________ U.S. RETREATS ON ENFORCEMENT POWERS FOR SIDE PANELS The Clinton administration is no longer insisting that a North American commission on the environment have the authority to enforce tough, commercial sanctions against polluters. "We don't expect the Secretariat or the trilateral commission to be imposing fines, sanctions or penalties," said a U.S. negotiator. In weekend talks in Cocoyoc, Mexico, Canadian and Mexican officials argued that such powers would violate their sovereignty. Environmental advocates criticized the U.S. decision and said, without the enforcement powers, NAFTA faces an uphill battle in Congress. "It will be very hard to sell Congress a commission that doesn't have enforcement responsibilities," said Jim Jontz, a former congressman who heads the Citizens' Trade Campaign. NAFTA negotiators, however, say enforcement will be at a national level and appear confident they will complete the parallel environmental and labor accords by the end of July. "I feel much better after these meetings that we will be in a position to finish these (accords) at the end of the month," said one official. He said the next full session of talks, starting July 19 in Ottawa, could be the last before trade ministers gather to finalize the deal. Sources: Dianne Solis, "NAFTA Negotiators Clear a Hurdle on Environmental Side Accord," WALL STREET JOURNAL, July 12, 1993; "U.S. NAFTA Negotiator Sees Accord Near by End-July," REUTER, July 9, 1993; "Negotiators Report Progress on NAFTA Side Accords," UPI, July 9, 1993 ________________________________________________________ SURVEY FINDS IGNORANCE, OPPOSITION REGARDING NAFTA Forty-four percent of Americans surveyed by a NEW YORK TIMES/CBS NEWS poll said they had not heard or read anything about the North American Free Trade Agreement. Twenty-three percent of the respondents said they oppose the pact, compared to 22 percent in favor. Five percent of those polled said they were not sure if they had heard of NAFTA. Some Clinton administration officials see the public's ignorance as an opportunity to extol the benefits of the trade liberalization scheme. Geoffrey D. Garin, a Democratic pollster, said the lack of understanding "is definitely to Clinton's advantage, because he still has an opportunity to frame the issue for the people." White House officials are currently looking for a NAFTA coordinator whose job it would be to do just that. Source: Keith Bradsher, "Free Trade Pact Is Still a Mystery to Many in U.S.," NEW YORK TIMES, July 12, 1993; "Trade Poll," AP, July 11, 1993. ________________________________________________________ EDITORIAL URGES NAFTA ENVIRONMENTAL STATEMENT In an editorial, the NEW YORK TIMES advises the Clinton administration to proceed with an environmental impact statement for NAFTA even it is not required to do so. The newspaper contends that even if a lower court ruling is reversed, the impact statement serves democracy by helping shape the public and congressional debate. The newspaper claims that since some environmental data are already available and Clinton will have to provide information to House and Senate committees anyway, he would be wise to create the best environmental impact statement possible. The TIMES also claims the statement should not delay the process of submitting the agreement to Congress because much of NAFTA's impact is unknown. "If much of the agreement's environmental impact is unknowable, the impact statement can say just that," the editorial says. "Whether Judge Richey is affirmed or reversed, he has not wrecked the trade agreement process. He has issued a wake-up call, telling the Clinton administration it had better prepare a world-class statement on NAFTA's environmental implications." Source: "NAFTA, Meet the Environment," NEW YORK TIMES, July 12, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ GATT TALKS RESUME FOLLOWING G7 SUMMIT GATT diplomats will reconvene in Geneva in hopes of setting a framework for completing the Uruguay Round of trade talks by the end of the year. In a press conference in Geneva today, Sir Leon Brittan, the EC's top trade official, said, "The results of Tokyo were met with relief and satisfaction, for the package includes both substance and process." He said GATT negotiators had returned to "begin the multilateral process immediately." Although many trade analysts say the tariff-cutting accord reached at the Group of Seven meeting in Tokyo rescued the round from failure, major problems remain and there appears to be little chance for a real breakthrough in the next six months. One analyst said, "Domestic political concerns make it difficult (for Japan, the European Community and the United States) to do more than prepare the groundwork before September." Japan's entire political system could change in upcoming elections, possibly increasing or decreasing the clout of Japanese rice farmers who are strongly opposed to lifting Japan's ban on rice imports. European officials may want to delay an agriculture agreement out of fear that anti-GATT French farmers will disrupt the summer tourist traffic. And the Clinton administration will be in a better negotiating position later in the year when Clinton's budget is probably through Congress. Source: Robert Evans, "GATT Talks Resume in Geneva After Tokyo Tariff Deal," REUTER, July 11, 1993; Sir Leon Brittan's Press Conference in Geneva, July 12, 1993. ________________________________________________________ INDIAN FARMERS ATTACK CARGILL OVER GATT PROPOSALS More than 50 Indian farmers attacked a Cargill Inc. plant and damaged buildings before being arrested. The Karnataka Farmers Association says proposals being considered under the Uruguay Round of GATT would increase the prices of the latest hybrids, often reproduced in India without royalty payments. Source: "Indian Farmers Attack Cargill Seed Plant," REUTER, July 12, 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 ________________________________________________________