TRADE NEWS BULLETIN Volume 2 Number 140 Tuesday, August 3, 1993 Headlines: WHITE HOUSE TALKING WITH LABOR UNION LEADERS AD ACCUSES MEXICO, U.S. OF BREAKING ENVIRONMENTAL PROMISES U.S. FARMERS UNSURE OF GATT BENEFITS BRAZIL MAY COMPLAIN TO GATT OVER U.S. TOBACCO MEASURE ________________________________________________________ NAFTA News Summary ________________________________________________________ WHITE HOUSE TALKING WITH LABOR UNION LEADERS Clinton administration officials have been asking labor union leaders for their suggestions on improving the supplemental labor accord to the North American Free Trade Agreement. U.S. Trade Representative Mickey Kantor said he spoke by telephone with United Auto Workers President Owen Bieber yesterday. In the past week Kantor has met with several other labor leaders. "I've asked what can we do that will address what (the unions) perceive to be the weaknesses," Kantor said. In a recent meeting, William Bywater, president of the International Union of Electrical Workers, scoffed at Kantor's promises to enforce labor rights. Bywater told Kantor that many union members who voted for Clinton are shifting their support to Ross Perot, a vocal opponent of NAFTA. Bywater told Kantor, "They keep asking me: 'Why don't you go with Perot?'" Kantor and other White House officials also met with Teamsters President Ronald Carey earlier this summer. The Teamsters, one of America's largest labor unions, sent President Clinton a petition with 200,000 signatures asking him to scrap the current free trade proposal. Labor unions believe NAFTA would lead to job loss, lower wages and worse working conditions in the United States. Negotiators from the United States, Canada and Mexico recently agreed in principle to a labor charter that would encourage the formation of unions and wage increases commensurate with productivity growth. Source: Kevin G. Salwen, Bob Davis, "Clinton Aides Meet With Union Leaders in Effort to Soften Opposition to NAFTA," WALL STREET JOURNAL, August 3, 1993. ________________________________________________________ AD ACCUSES MEXICO, U.S. OF BREAKING ENVIRONMENTAL PROMISES An advertisement appearing in today's NEW YORK TIMES accuses Mexican President Carlos Salinas de Gortari of reneging on promises to protect endangered sea turtles. In the ad, Earth Island Institute says the Mexican government has twice failed to meet deadlines to make its shrimp fleets "turtle-safe." Mexican shrimpers are killing thousands of endangered sea turtles by refusing to install relatively inexpensive Turtle Excluder Devices on their boats. The ad also criticizes the U.S. State Department for not complying with national environmental laws banning shrimp imports until the killing stops. Environmentalists worry that NAFTA will allow similar environmental violations to occur. "U.S. negotiators, eager to complete the North American Free Trade Agreement, don't want to rock the boat ... There is no sign that Mexico will honor any agreement in the future," states the ad. Mexican and U.S. negotiators have repeatedly promised to provide environmental protection under the free trade accord, but the ad states the governments have already broken many environmental promises. "If 'free' trade means the extinction of gentle giant sea turtles, you can imagine what other environmental horrors await animals and human beings alike," the ad concludes. Source: "Can We Stop Mexico's Shocking Slaughter of Endangered Sea Turtles?" NEW YORK TIMES, August 3, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ U.S. FARMERS UNSURE OF GATT BENEFITS According to a recent Iowa State University survey, nearly 67 percent of Iowa farmers are familiar with the General Agreement on Tariffs and Trade. Forty percent said they support the pact and 45 percent were unsure. Similar results were posted concerning NAFTA. "It is striking that nearly two-thirds of Iowa producers have some or a great deal of awareness about these two trade proposals, yet almost half indicate they are 'not sure' about their level of support," said Paul Lasley, director of the poll. Respondents reportedly believe that better markets and international competition will have the greatest impact on the profitability of American farming. Meanwhile, USTR Mickey Kantor reported that minimal progress was made during July GATT talks on agriculture trade. "We made some progress, not a lot," Kantor told a USDA farm trade forum yesterday. Agriculture trade issues between the United States and the European Community remain at an impasse, but negotiators said talks will proceed through August. Kantor said it was "precedent-shattering" that GATT negotiations were continuing in August, a traditional European holiday. Source: "Kantor Cites Some Progress in July GATT Talks," REUTER, August 2, 1993; "Farmers Not Sure About Benefits of Trade Agreements," IOWA STATE UNIVERSITY EXTENSION NEWS, July 19, 1993. ________________________________________________________ BRAZIL MAY COMPLAIN TO GATT OVER U.S. TOBACCO BILL Brazil's Foreign Ministry criticized a U.S. bill to limit tobacco imports. The measure, which would limit the content of foreign tobacco in U.S. cigarettes to 25 percent, is currently before a Congress conference committee. Brazil said it may appeal to GATT in "defense of our legitimate interests." The United States buys twenty percent of Brazil's annual $600 million worth of tobacco exports. Source: "Brazil Hits U.S. Congress on Tobacco Measure," REUTER, August 2, 1993. ________________________________________________________ Resource: "The Social Implications of the North American Free Trade Agreement," The United Nations Association of the United States, March 29, 1993. Tel: (212) 697-3232 , ext. 338. Fax: (212) 682- 9185, attn. EPC. $10.00. ________________________________________________________ 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 ________________________________________________________