TRADE NEWS BULLETIN Volume 2 Number 135 Tuesday, July 2, 1993 Headlines: DEMOCRATS CONCERNED ABOUT NAFTA; AG FOR NAFTA ANNOUNCED CLINTON'S CHOICE FOR NAFTA COORDINATOR CALLED "PUZZLING" EDITORIALS PROMOTE GATT ________________________________________________________ NAFTA News Summary ________________________________________________________ DEMOCRATS CONCERNED ABOUT NAFTA; AG FOR NAFTA ANNOUNCED About 100 Democratic members of the House of Representatives sent President Clinton a letter warning him that health care reform legislation is in jeopardy if he seeks ratification of the North American Free Trade Agreement this fall. Majority Whip David Bonior (D-Michigan), who drafted the letter, would not comment in advance of a news conference scheduled for today. But House sources said the letter calls for Clinton to "withhold legislation to implement (NAFTA) until we have considered and passed health care legislation." Bonior is the third-ranking member of the House Democratic leadership. Majority Leader Richard Gephardt (D-Missouri) and House Speaker Thomas Foley (D-Washington) neither endorsed nor denounced Bonior's actions. In a speech last week to the U.S. Chamber of Commerce, Gephardt expressed some concerns about NAFTA's timing. "It appears," he said, "that the administration has set its sights on completing NAFTA negotiations before the August congressional recess. I'm not convinced this is a good idea." Meanwhile, NAFTA proponents announced the launching of AG FOR NAFTA, a coalition of 101 farm and agribusiness groups. "Mexico is close to being a $4 billion market for U.S. agriculture," said Representative Kika de la Garza (D-Texas), chair of the House Agriculture Committee, who spoke at a news conference announcing the coalition. AG FOR NAFTA has planned a week of meetings with lawmakers to correct what it called public misconceptions about the agreement. Among those joining the coalition are the American Farm Bureau Federation, the National Cattlemen's Association, ConAgra, Nestle USA and Ralston Purina. Agriculture opponents of NAFTA include the National Farmers Union and the National Association of Wheat Growers. Sources: David S. Broder, "House Democrats Caution Clinton on NAFTA," WASHINGTON POST, July 27, 1993; Cliff Haas, "Coalition to Back NAFTA Formed by Agribusinesses, Farm Groups," MINNEAPOLIS STAR TRIBUNE, July 27, 1993; Robert Greene, "NAFTA-Agriculture," AP, July 26, 1993; "U.S. Lobby Group Touts NAFTA for Grain Exports," REUTER, July 26, 1993. ________________________________________________________ CLINTON'S CHOICE FOR NAFTA COORDINATOR CALLED "PUZZLING" Because President Clinton faces an uphill battle pushing NAFTA through Congress, BUSINESS WEEK calls it "puzzling" that Clinton is offering William Daley the job of gaining congressional support. Some NAFTA supporters say the position should have gone to a Washington insider. "How does this appointment help NAFTA?" asked one Clinton adviser. But Daley defenders cite his long involvement in Presidential politics. Robert Rubin, head of the White House's National Economic Council, says the Clinton administration has plenty of econo-pundits to make the case for NAFTA. "What we need," he said, "is somebody to act as a campaign manager." Daley, the son of former Chicago mayor Richard Daley, ran Clinton's Illinois campaign and was openly bitter about not getting the position of Transportation Secretary in the administration. Source: Douglas Harbrecht, David Greising, "Clinton Picks an Unlikely Soldier for the Trade Wars," BUSINESS WEEK, August 2, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ EDITORIALS PROMOTE GATT As General Agreement on Tariffs and Trade talks drag on after seven years, many GATT supporters are urging negotiators not to give up. In a BUSINESS WEEK commentary, correspondent Paul Magnusson contends the sluggish world economy necessitates a successful completion of the Uruguay Round now more than ever. Magnusson argues completing talks would create "a more efficient trading system that would enrich nations." He says world leaders need to act courageously to reach a deal. "At this late date, politicians can't continue to coddle American clothing makers and peanut growers, French farmers and telecommunications manufacturers, and Japanese glassmakers and sake distillers." An opinion-editorial in today's FINANCIAL TIMES, written by Uruguay's foreign minister, makes many of the same arguments. Dr. Sergio Abreu Bonilla claims a completed GATT package "is needed to achieve economic expansion through world trade." Bonilla encourages all GATT contracting parties to "encourage the growth, development and economic welfare of their own countries as an essential step towards strengthening the supreme values of democracy, social justice, freedom and dignity." Britain's GUARDIAN WEEKLY applauds leaders of the Group of Seven industrialized nations for showing "renewed determination" to complete GATT talks. But the newspaper says there is a long way to go, particularly in reducing tariff barriers in manufacturing, services and agriculture. "It is as if the starting pistol has been fired for the fourth time for a race in which the combatants have been glued to the starting blocks. But at least this time round, there is a greater determination to start and finish the race." Sources: Paul Magnusson, "Now Is Not the Time to Give up on GATT," BUSINESS WEEK, July 19, 1993; Sergio Abreu Bonilla, "GATT Effort Must Not Be Wasted," FINANCIAL TIMES, July 27, 1993; "Between the Sushi and the Spaghetti," GUARDIAN WEEKLY, July 18, 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 ________________________________________________________