Trade Week in Review and Recent Publications July 24-30 1993 Vol. 2 No. 138 Headlines: NAFTA OPPOSITION STRENGTHENS AS SIDE TALKS CONTINUE GATT ON TIGHT TIMETABLE, MEMBERS EDGE TOWARD COMPROMISE ___________________________________________________________ NAFTA News Summary ___________________________________________________________ NAFTA OPPOSITION STRENGTHENS AS SIDE TALKS CONTINUE Opponents of the North American Free Trade Agreement rallied this week as top-level trade representatives attempted to work out differences over side accords. The FINANCIAL TIMES reported the trade pact may be in serious political trouble. -Mexican Lawmakers Launch Attack on NAFTA- Six Mexican lawmakers visiting the United States said NAFTA will lead to political oppression and economic inequality in their country. "There is a misperception created by the (Mexican President Carlos) Salinas government's public relations campaign here that somehow approving NAFTA is good for Mexican people," said Enrique Rico, leader of the Democratic Revolution Party delegation. "The truth is that if NAFTA has any effect, it would be to intensify our economic and political problems by locking in a system of political oppression and inequitable economic distribution," added Miguel Leon. -Ontario Will Push NAFTA Opposition During Fall Elections- The Ontario government vowed to convince voters during this fall's federal elections that NAFTA is a threat to Canada's environment, its workers and standard of living. "The debate on NAFTA is not over," said Economic Development Minister Frances Lankin. Ontario may challenge in court the federal government's jurisdiction to implement NAFTA. Lankin also said the Ontario government, concerned that NAFTA will supersede national and provincial laws, will pursue measures to protect its energy and water resources. Prime Minister Kim Campbell announced she would promote NAFTA in the upcoming elections. -Kaptur Releases Environmental Findings, Study Cites Major Polluters- U.S. Representative Marcy Kaptur (D-Ohio) released data showing that soil and water samples collected during her recent trip to the U.S.-Mexican border were contaminated with industrial pollutants. The Institute for Policy Studies (IPS) also released a report accusing 10 of NAFTA's largest corporate backers of dumping chemical waste into Mexican rivers. The report charges the General Motors Matamoros plant with dumping a chemical called methylene chloride at more than 216,000 times the allowable U.S. standard. In addition, the study concludes that 35 companies belonging to the USA*NAFTA coalition transferred more than 10,000 U.S. jobs to Mexico over the past two years. -House Members Urge Clinton to Put Health Care First- More than 100 Democratic members of the House of Representatives sent President Clinton a letter asking him to delay ratification of NAFTA until after Congress has had a chance to review Clinton's health care reform package. Representatives argued that it would become difficult to build support for health care as the free trade debate heats up. "NAFTA is not our priority ... health care is," states the letter. "The debate over NAFTA will be divisive ... it will split our country." Clinton plans to send NAFTA to Congress before the end of August. "NAFTA and health care are proceeding on separate tracks," said Dee Dee Myers, White House press secretary. "There's been no change in our timetable ." -Conyers Says NAFTA Could Eliminate 'Buy American' Provisions- Michigan Democrat John Conyers, chairman of the House Government Operations Committee, warned that NAFTA could supersede state procurement laws and open up the $65 billion U.S. federal civilian procurement market to Mexican and Canadian producers. Deputy Trade Representative Rufus Yerxa agreed that the congressional "Buy American" measure, which encourages government agencies to purchase U.S. goods and services, could be eliminated under NAFTA. Sources: Nancy Dunne, "NAFTA Ministers Hunt for Consensus," FINANCIAL TIMES, July 30, 1993; "Mexican Lawmakers Launch Attack on NAFTA in U.S.," REUTER, July 29, 1993; Richard Mackie, "Ontario May Ask Courts to Block Free-Trade Pact," TORONTO GLOBE & MAIL, July 29, 1993; Michelle Mittelstadt, "Free Trade," AP, July 28, 1993; Anthony DePalma, "Report on Trade Treaty Is Critical of Companies," NEW YORK TIMES, July 28, 1993; "Over 100 Members of Congress Sign Letter: Health Care Reform Before NAFTA," BONIOR PRESS RELEASE, July 27, 1993. ___________________________________________________________ GATT News Summary ___________________________________________________________ GATT ON TIGHT TIMETABLE, MEMBERS EDGE TOWARD COMPROMISE Trade envoys representing more than 100 General Agreement on Tariffs and Trade members agreed to a working timetable drafted by Director-General Peter Sutherland. Sutherland called on "major players," the United States, Canada, Japan and the European Community, to negotiate new concessions by mid-October. Despite domestic opposition, the United States has already compromised in several key sectors, including agriculture and steel. -U.S. Will Eliminate Oilseed Tariffs- According to the U.S. Department of Agriculture, the United States is willing to eliminate import duties on oilseeds and oilseed products if other GATT members do the same. Acting Deputy Undersecretary Charles O'Mara estimates that elimination of trade barriers would boost world vegetable oil use by 17% and protein meal use by 5%. Several U.S. soybean producers reacted angrily to yesterday's announcement. "Unless the remaining negotiations are able to substantially improve these terms, ASA (American Soybean Association) will withdraw its support for the Uruguay Round, and may be forced to actively oppose its ratification by the Congress," said Steve Yoder, ASA president. -U.S. Repeals Half of Steel Duties, Eases Some Tension With Europe- The U.S. International Trade Commission (ITC) rejected over half of U.S. steel producers' complaints concerning foreign steel imports from 20 countries. The independent federal agency ruled that, in most cases, foreign steel imports did not represent a large enough portion of the American market to significantly hurt American steel companies. Leon Brittan, EC trade chief, welcomed the ITC decision, saying, "It is already clear that the ITC determinations ... will do much to improve the atmosphere, not only in discussions on steel, but with regard to the Uruguay Round itself." However, a number of countries, including Brazil, Japan, Britain, Canada and Mexico were reportedly upset by the final ruling since they still face tariffs of up to 109% on some steel exports. -British, French Leaders Remain Locked Over Farm Issue- British and French leaders failed to resolve differences over the U.S.- EC farm accord during a meeting in London this week. French President Francois Mitterand met with British Prime Minister John Major to discuss a wide range of issues, including a proposed summit to examine the EC's negotiating position in the Uruguay Round of GATT talks. Major said Britain remains committed to the farm deal negotiated by EC ministers with the United States last fall, despite French demands to change the pact. "They have their position and we have ours, and there is a very big difference on agriculture," Major said. Sources: "U.S. Proposes Eliminating Oilseed Duties in GATT," REUTER, July 29, 1993; Lyndsay Griffiths, "No End in Sight to Trade War After Ruling," REUTER, July 28, 1993; Keith M. Rockwell, "UK, France Fail to Break Farm Subsidy Impasse," JOURNAL OF COMMERCE, July 27, 1993; "Mexico to Appeal U.S. Steel Decision to GATT," REUTER, July 27, 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. "Frontier Injustice: Human Rights Abuses Along the U.S. Border with Mexico Persist Amid Climate of Impunity," AMERICAS WATCH, Vol. 5, No. 4, May 1993. 47 pages. Human Rights Watch, Publications Department, 485 Fifth Ave., New York, NY 10017-6104. (212)972- 8400. Fax: (212) 972-0905. $6. "Free Trade and Environmental Sustainability: An Ecological Economics Perspective," Johnathan M. Harris, TUFTS UNIVERSITY, Program for the Study of Sustainable Change and Development, July 1993. 6 pages. 474 Boston Ave., Medford, MA 02155. (617) 627- 3486. Fax: (617) 627-3084. Free. "The Uruguay Round: A GATTastrophe," Michael Northrop, ALTERNATIVES, Vol. 18, 1993. 29 pages. Lynne Rienner Publishers, 1800 30th St., Boulder, CO 80301. (303) 444-6684. $9. "World Food System Restructuring Under a GATT Regime," Phillip McMichael, POLITICAL GEOGRAPHY, Vol. 12, No. 3, May 1993. 16 pages. Institute for Agriculture and Trade Policy. $2.50. This study argues that while the formal issues of agricultural re- regulation are necessary to stabilize international trade, the GATT may in fact institutionalize a new regime of global accumulation in a world economy privileging transnational companies. "Health Care, Jobs, and the Environment: Unrecognized Connections," THE HUMAN ECONOMY, Vol. 14, No. 2, June 1993. 11 pages. The Human Economy Newsletter, Economics Department, MSU 14, Mankato State University, P.O. Box 8400, Mankato, MN 56002-8400. (507) 389-5249. Contact publisher for prices. "The Transnationalization of Service Industries: An Empirical Analysis of the Determinants of Foreign Direct Investment by Transnational Service Corporations," TRANSNATIONAL CORPORATIONS MANAGEMENT DIVISION, Department of Economic and Social Development, United Nations, 1993. 62 pages. Sales Section, DC2-0853, Dept. 363, New York, NY 10017. (212) 963-8302. Fax: (212) 963-4116. $18.50. This study investigates the reasons for foreign direct investment by transnational service corporations in both developed and developing countries. Foreign-direct-investment decisions of 210 of the largest transnational service corporations in 11 service industries are analyzed here. "Cargill: The New East India Company," RESEARCH FOUNDATION FOR SCIENCE, TECHNOLOGY, AND NATURAL RESOURCE POLICY, 1993. 17 pages. A-60, Second Floor, Haus Khas, New Delhi 110016, India. $15. "Third World Resources," Tom Fenton and Mary Heffron, ed., THIRD WORLD RESOURCES, Vol. 9, No. 3, July-September 1993. 24 pages. 464 19 St., Oakland, CA 94612-2297. (510) 835-4692. $35 for a yearly subscription. Back issues are available. This resource list is published quarterly to alert educators and activists to new resources related to Third World issues. This issue focuses on children in crisis in the Third World. ________________________________________________________ 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 ________________________________________________________