TRADE NEWS BULLETIN Volume 2 Number 125 Tuesday, July 13, 1993 Headlines: KANTOR DENIES U.S. BACKED DOWN ON SIDE ACCORDS CALIFORNIA NAFTA ADVOCATES LOBBY FOR TRADE PANELS U.S.-MEXICAN CABINET MEMBERS WILL MEET BRITTAN SAYS QUAD PREPARED TO MAKE MORE CONCESSIONS STEEL TALKS FAIL TO PRODUCE BREAKTHROUGH ________________________________________________________ NAFTA News Summary ________________________________________________________ KANTOR DENIES U.S. BACKED DOWN ON SIDE ACCORDS Calling previous press reports "inaccurate," U.S. Trade Representative Mickey Kantor insisted yesterday that the United States will continue to seek sanctions to enforce side accords to the North American Free Trade Agreement. Kantor denied the United States had backed down from its "tough" trade stance. "We have not changed our position at all ... We want real teeth, real enforcement," Kantor said. U.S. negotiators said last week that commissions overseeing labor, the environment and import surges would not have the power to impose sanctions, fines or penalties. Canada and Mexico firmly oppose the use of sanctions. Sources: David Haskel, "U.S. Insists NAFTA Side Deals Must Have Teeth," REUTER, July 13, 1993; "U.S. Says Position Unchanged on NAFTA Environmental Plan," WALL STREET JOURNAL, July 13, 1993. ________________________________________________________ CALIFORNIA NAFTA ADVOCATES LOBBY FOR TRADE PANELS California trade advocates and business leaders want California to house a secretariat or one of the commissions under NAFTA. Susan K. Ross, a Los Angeles trade attorney, said, "I think that the addition of a secretariat here in Southern California would go a long way towards focusing on the NAFTA ... and aiding the ailing Los Angeles- area and California economies." The proposed free trade accord calls for a secretariat to oversee implementation of the agreement. Trade advocates began the campaign because they say California state officials are reluctant and uninterested in housing NAFTA panels. "There was kind of a yawn," said Robert Sharp, former president of the American Chamber of Commerce in Japan who approached state officials with a proposal to host the secretariat. Sharp hinted that USTR Mickey Kantor and Budget Director Leon Panetta, both Californians, may support placing the commission in their home state if local officials step up lobbying efforts. The San Diego Economic Development Corporation has also formed a task force to seek locating the NAFTA environmental commission in San Diego. "We're extremely environmentally sensitive, having to live under California Environmental Protection Agency regulations," said Keith Whiteley-Ross, associate vice-president for the corporation. Source: Kevin Hall, "California Urged to Seek NAFTA Secretariat, Panels," JOURNAL OF COMMERCE, July 9, 1993. ________________________________________________________ U.S.-MEXICAN CABINET MEMBERS WILL MEET Five U.S. Cabinet officials and some of their Mexican counterparts will attend a conference in San Antonio, TX July 15-16 to discuss financing a number of U.S.-Mexico border infrastructure projects. Project plans range from water treatment facilities to highways, housing projects and power stations. U.S. Commerce Secretary Ron Brown and Mexican Secretary of Social Development Luis Donaldo Colosio will co-chair the conference. U.S. Transportation Secretary Federico Pena, Energy Secretary Hazel O'Leary, Housing and Urban Development Secretary Henry Cisneros and EPA Administrator Carol Browner will also attend. Source: "Five Cabinet Members to Attend Meeting on U.S.-Mexico Projects," JOURNAL OF COMMERCE, July 9, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ BRITTAN SAYS QUAD PREPARED TO MAKE MORE CONCESSIONS EC Trade Commissioner Sir Leon Brittan described last week's Tokyo summit as "a first step" toward the conclusion of the Uruguay Round of the General Agreement on Tariffs and Trade. "We have more to offer if others have more to offer," said Brittan after meeting with new director-general of GATT, Peter Sutherland. Brittan and senior U.S., Japanese and Canadian trade officials -- Quad leaders -- also held talks with representatives from 30 countries yesterday to explain the terms of last week's tariff reduction package, which eliminates import duties in eight trade sectors. Brittan said in order for talks to move forward, U.S. textiles tariffs must be cut and east Asian countries must open access to their financial services markets. Sutherland will chair discussions tomorrow when GATT's Trade Negotiations Committee meets to outline ways to conclude global trade talks by December 15. Sources: Frances Williams, "Brittan Seeks Bigger World Trade Accord," FINANCIAL TIMES, July 13, 1993; "GATT-Trade," AP, July 12, 1993. ________________________________________________________ STEEL TALKS FAIL TO PRODUCE BREAKTHROUGH Negotiators from more than 30 nations failed to achieve significant progress when they met in Geneva last week to discuss a Multilateral Steel Agreement (MSA). Officials said they could not agree on subsidies, anti-dumping codes and countervailing procedures. One official said the political will "is still not there to clinch an MSA deal." A successful MSA is important to the conclusion of the Uruguay Round of GATT talks. Trade ministers from the United States, Canada, Japan and the European Community agreed last week to eliminate all tariff and non-tariff measures in steel, providing an MSA was reached. EC Trade Commissioner Sir Leon Brittan reportedly hosted a dinner yesterday for members of Eurofer, the European Steelmakers Association, to "exchange views" on the planned restructuring of the European steel industry and to discuss MSA complications. International steel talks are scheduled to resume in September. Source: Frances Williams, "Brittan Seeks Bigger World Trade Accord," FINANCIAL TIMES, July 13, 1993; "EC Officials Meet Steel Chiefs to Discuss Crisis," REUTER, July 12, 1993; John Zarocostas, "Global Steel Trade Talks Are Stymied in Geneva," JOURNAL OF COMMERCE, July 9, 1993. ________________________________________________________ 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 ________________________________________________________