Trade Week in Review and Resources July 17-23, 1993 Volume 2 Number 133 Headlines: NEGOTIATORS SAY SUPPLEMENTAL ACCORDS NEARING COMPLETION LABOR UNIONS PROTEST NEW YORK TIMES OFFICES FRANCE LOBBIES TO MAINTAIN RIGHTS UNDER GATT SUTHERLAND VISITS U.S. TO PROMOTE GATT ___________________________________________________________ NAFTA News Summary ___________________________________________________________ NEGOTIATORS SAY SUPPLEMENTAL ACCORDS NEARING COMPLETION U.S. Trade Representative Mickey Kantor, in Mexico City to meet with President Carlos Salinas de Gortari and Trade Minister Jaime Serra Puche, said he expects labor and environmental side accords to the North American Free Trade Agreement to be completed within a month. "We believe they will be wrapped up between now and the first part of August," Kantor said. Analysts believe President Bill Clinton will try to send the free trade accord to Congress before it recesses in early August. Trade Negotiators Meet in Ottawa Chief trade negotiators from Canada, Mexico and the United States met in Ottawa this week to continue the sixth round of supplemental talks. The officials reportedly did not discuss enforcement mechanisms but did report "significant progress in not only narrowing the number of (disputed) issues but narrowing the differences in issues as well." Negotiators may meet in the United States next week to debate sanction rights. U.S. Justice Department Files Court Appeal The U.S. Justice Department filed an appeal to a federal district court ruling requiring that President Clinton prepare an environmental impact statement before submitting NAFTA to Congress. The Justice Department argued the June 30 ruling infringes on the President's authority to negotiate international agreements. Texas Attorney General Dan Morales followed up the Justice Department briefing with a "friend of the court" letter. Morales said in his letter that final action on NAFTA rests with the President who has "virtually sole authority over foreign affairs." The appeals court will hear oral arguments August 24. Sources: "Morales Files Brief Opposing NAFTA Delays," UPI, July 22, 1993; "U.S. Trade Representative Visits Mexico's Salinas," REUTER, July 22, 1993; "U.S. Trade Rep Sees NAFTA Side Pacts By Early August," REUTER, July 22, 1993; Robert Kozak, "North American Free- Trade Pact In Final Push," REUTER, July 21, 1993; "NAFTA- Advertorials," NEW YORK TIMES, July 21, 1993. ___________________________________________________________ LABOR UNIONS PROTEST NEW YORK TIMES OFFICES Hundreds of members of labor and trade unions protested outside major offices of the NEW YORK TIMES this week. The TIMES ran an "advertorial" section in Wednesday's newspaper promoting the benefits of NAFTA. The "advertorials" were contributed by U.S. officials and large corporations including, U.S. Secretary of Treasury Lloyd Bentsen, Braxton Associates, Mobile Telecommunications and Technologies, and the Metropolitan Life Insurance Company. Members of the AFL-CIO had tried to purchase ad space but were refused. In San Francisco, union members inserted a supplement called, "The Other Side of the NAFTA Story" into hundreds of NEW YORK TIMES newspapers. Sources: "Dockers Picket On NAFTA Issue," JOURNAL OF COMMERCE, July 21, 1993; "NAFTA Opponents 'ZAP' New York Times News Racks in S.F.," FAIR TRADE CAMPAIGN NEWS RELEASE, July 21, 1993. ___________________________________________________________ GATT News Summary ___________________________________________________________ FRANCE LOBBIES TO MAINTAIN RIGHTS UNDER GATT France announced several proposals aimed at maintaining its current trade status. France claims that the European Commission, which negotiates trade for the 12 EC members, has strayed beyond its mandate in the Uruguay Round of GATT talks. Ministers Urge EC to Call Meeting Over Farm Deal French Foreign Minister Alain Juppe asked the EC General Affairs Council Monday to call a farm summit aimed at reopening agriculture trade negotiations in GATT. He said France remains firmly opposed to the U.S.-EC farm accord, which was expected to break the GATT impass over agriculture trade. Spain backed Juppe's demand for a meeting of EC foreign and farm ministers. Belgium, current president of the EC and a close ally of France, is expected to grant France's request. France Pushes For Unilateral Anti-Dumping Mechanisms In an effort to broaden the EC's powers against unfair dumping, France will suggest a retaliatory trade proposal modeled after the U.S. Super 301 Trade Law. French Prime Minister Edouard Balladur said the proposal would make the EC's anti-dumping procedures "more rapid and automatic and less prone to political interference." France may seek the elimination of EC law preventing the EC from taking unilateral action against other GATT members. Former Culture Minister Says France Will Veto GATT Unless Arts Respected Jack Lang, France's former culture minister, said the entertainment industry would veto any GATT agreement that included culture and trade. "We won't barter or compromise film and music against maritime or agricultural products," Lang told a group of 7,000 industry representatives in New York. "There will be no compromise on this subject, we won't bargain. We (France) will exercise our veto if necessary." The European Community currently requires that member states produce at least 50% of their television programs, which the United States, led by the Motion Picture Association of America, has tried to eliminate under GATT trade rules. Lang, backed by many major U.S. film producers, argues that artists share a "moral right ... a record, a song, is not a product like a car, toothpaste or a bar of soap." Sources: David Buchan, "Paris to Wheel Out Big Trade Guns for EC," FINANCIAL TIMES, July 22, 1993; "France's Lang Threatens Arts Veto on GATT," WASHINGTON POST, July 22, 1993; Bruce Bernard, "France Pushes EC To Retaliate Against U.S.," JOURNAL OF COMMERCE, July 21, 1993. ___________________________________________________________ SUTHERLAND VISITS U.S. TO PROMOTE GATT Peter Sutherland, GATT director-general, flew to Washington, D.C. Sunday to consolidate White House and Congressional support for the Uruguay Round of GATT talks. "I intend to maintain close contact with governments and legislators in major countries participating in the Round," Sutherland said. He told reporters that Clinton had given "substantial political backing" to the long-stalled trade negotiations. "Much remains to be done and the United States is not the only player. But the attitude of the administration and of Congress will remain one of the biggest single factors in securing a successful conclusion," Sutherland said. Source: Robert Evans, "GATT Chief to Urge U.S. Backing for Trade Treaty," REUTER, July 18, 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. "Facts and Fiction About Free Trade," Don Hazen, ed., INSTITUTE FOR ALTERNATIVE JOURNALISM, 1993. 157 pages. AlterNet Suite 1118, 2025 Eye St. NW, Washington, DC 20006. (202) 887-0022. Fax: (202) 887-0024. $15. "Food Safety and Quality: USDA Improves Inspection Program for Canadian Meat, But Some Concerns Remain," RESOURCES, COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION, August 1992. 29 pages. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20884- 6015. (202) 512-6000. Fax: (301) 258-4066. Free. This report confirms that the Canadian meat inspection system is equivalent to that of the U.S. but the report did not assess the Canadian system's control and testing of drugs approved for use in Canada but not approved for use in the U.S. "FIRR Notes: Fair Trade," Carl Davidson, ed., FEDERATION FOR INDUSTRIAL RETENTION AND RENEWAL, June 1993. 12 pages. 3411 W. Diversey, Suite 10, Chicago, IL 60647. (312) 252-7676. Fax: (312) 278-5918. E-Mail: FIRR@igc.org. Free. Subscriptions are $25. "U.S. Trade Data: Limitations of U.S. Statistics on Trade With Mexico," Allan Mendelowitz, INTERNATIONAL TRADE, FINANCE AND COMPETITIVENESS ISSUES, April 1993. 6 pages. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20884-6015. (202) 512-6000. Fax: (301) 258-4066. Free. "1993 Briefing Book on Environmental and Energy Legislation," THE ENVIRONMENTAL AND ENERGY STUDY INSTITUTE, 1993. 225 pages. 122 C St. NW, Suite 700, Washington, DC 20001-2109. (202) 628- 1400. Fax: (202) 628-1825. $65. This book includes detailed background on current federal legislative status and recent action around more than 30 environmental, energy and natural resource issues. "International Society for Ecological Economics Newsletter," Susan Hunt, ed., Vol. 4, No. 3, July 1993. 16 pages. P.O. Box 1589, Solomons, MD 20688. (410) 326-0794. Fax: (410) 326-7354. Subscriptions are $15. This issue includes articles regarding free trade, the environment and agriculture. "In Defense of Our Dignity and Rights," AMERICAN FRIENDS SERVICE COMMITTEE, Immigration Law Enforcement Monitoring Project, October 1991. 14 pages. 1501 Cherry St., Philadelphia, PA 19102. (800) 226-9816. $3. This report illustrates documented incidents of abuse of authority/violation of women's rights in the enforcement of immigration laws primarily along the U.S.-Mexico border. "NAFTA Threatens the Environment: Greenpeace Proposals for a New Agreement," GREENPEACE, December 1992. 9 pages. 1436 U St. NW, Washington, DC 20009. (202) 462-1177. Fax: (202) 462-4507. Free. ________________________________________________________ Produced by: 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 ________________________________________________________