TRADE NEWS BULLETIN Volume 2 Number 152 Tuesday, August 24, 1993 Headlines: EPA BRIEFS GROUPS ON NAFTA U.S. FARM GROUPS SPLIT OVER NAFTA JAPAN WILL KEEP RICE IMPORT BAN, HOSOKAWA SAYS FRENCH, INDIAN FARMERS DENOUNCE GATT ________________________________________________________ NAFTA News Summary ________________________________________________________ EPA BRIEFS GROUPS ON NAFTA Environmental Protection Agency (EPA) officials yesterday tried to persuade representatives of U.S. environmental and consumer groups that NAFTA would help protect the North American environment. "Some important things have been achieved that could contribute to a better environment," said Douglas Siglin, legislative director of the World Wildlife Fund, which has received criticism from some U.S. environmental groups for their support of NAFTA. The briefing failed to dissuade Public Citizen, Greenpeace USA and Friends of the Earth from strongly opposing NAFTA. Public Citizen's Lori Wallach said negotiators from Canada, the United States and Mexico blew an opportunity to address some of NAFTA's shortcomings through side agreements. "This was their chance and they didn't do it," Wallach said. The cost of cleaning up the U.S.-Mexico border is estimated at $6.5 billion - $20 billion over a 10-year period. Source: Peter Behr, "For Some, NAFTA Isn't an Easy Call: Environmental Groups Still Sharply Divided," WASHINGTON POST, August 24, 1993. ________________________________________________________ U.S. FARM GROUPS SPLIT OVER NAFTA U.S. farmers are divided on the North American Free Trade Agreement. Carl Schwensen, executive vice president of the National Association of Wheat Growers, says NAFTA fails to offer opportunities to expand U.S. wheat sales to Mexico. National Barley Growers President Gerald Lacey said his group voted to support NAFTA, but since last spring, "Several things have happened that have again raised U.S. barley growers' apprehension level." The National Farmers Union is decidedly against NAFTA, saying 1989's Canada-U.S. Free Trade Agreement should never have been the model on which to base NAFTA negotiations. Many wheat, potatoes, tomatoes, dry beans, citrus and sugar growers in the United States are opposed to NAFTA. Over 100 food companies, farm organizations, banks, chemical companies and cooperatives have joined a coalition to lobby support for the controversial trade pact. AG FOR NAFTA members say NAFTA will help U.S. agriculture producers by increasing exports by as much as $2.0 billion-$2.5 billion within the pact's first 10 years. "We are confident farm exports will increase because of our competitive advantages in farm production, our highly efficient processing industries and our more advanced infrastructure," said a statement released at the coalition's unveiling last month. AG FOR NAFTA members include the National Corn Growers Association, the American Farm Bureau Federation, ConAgra, Archer Daniels Midland and Dupont. Some have accused AG FOR NAFTA of representing corporate agriculture interests over family farmers. "They round up a bunch of food processors and call them agriculture," said Senator Byron Dorgan (D-North Dakota). Dorgan and members of the House anti-NAFTA caucus, eight of whom sit on the Agriculture Committee, are increasing their attacks on NAFTA to show that farmers are not united behind the trade pact. Sources: "Agriculture Mobilizing to Show Support for NAFTA," FEEDSTUFFS, July 26, 1993; Gordon S. Carlson, "Farm Groups in Washington Split Over NAFTA," FEEDSTUFFS, July 26, 1993; Robert Greene, "Ag Support for NAFTA Is Far From Unanimous," AP, August 5, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ JAPAN WILL KEEP RICE IMPORT BAN, HOSOKAWA SAYS Japan will not lift its ban on foreign rice imports despite pressure from GATT, Prime Minister Morihiro Hosokawa said in his first policy speech to parliament since being sworn in two weeks ago. "On agriculture, each country has its own difficult issue," Hosokawa said. "Our country will do the utmost to resolve (farm issues) through mutual cooperation." In Tokyo, U.S. Representative Wally Herger (R-California) criticized the announcement. "It is inexcusable that we're not allowed to export one grain of rice to Japan when the United States is suffering such a huge trade deficit," Herger said. Japanese rice farmers have held a series of demonstrations against lifting the ban. Source: "Hosokawa Signals Japan Rice Stance Will Not Change," REUTER, August 23, 1993; Eugene Moosa, "Hosokawa Apologizes for War, Vows to Cut Trade Gap," REUTER, August 23, 1993. ________________________________________________________ FRENCH, INDIAN FARMERS DENOUNCE GATT French farmers are organizing a massive protest against their government's agricultural policies. The farm group Rural Coordination plans to join with small shop owners and workers to blockade Paris on September 15. "We hope there will be two million demonstrators," said spokeswoman Annie Morin. LE MONDE reported 200 groups of 30 protesters would block roads leading into Paris. Rural Coordination opposes EC plans to reduce farm prices and limit acreage, and wants parliament to hold a debate on France's position in GATT talks. Meanwhile, Indian farmers are continuing to protest GATT's provisions on intellectual property rights. On August 15, India's independence day, farmers marched with drums and carried branches of the neem tree to challenge the efforts of U.S. corporations to gain patenting rights in GATT. The farmers say U.S. corporations want to hold patents for neem-based biopesticides. "Biological resources like neem, and knowledge of its utilization in health care and agriculture are the collective heritage of Indian farmers and healers, built up over centuries of collective innovation," said a statement. The farmers also are insisting that disputes between multinational corporations and Third World farmers be settled in farmers village organizations instead of by GATT panels. Source: "Radical Farmers Plan to Blockade Paris on September 15," REUTER, August 23, 1993. ________________________________________________________ Editor: 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 ________________________________________________________