TRADE NEWS BULLETIN Volume 2 Number 167 Tuesday, September 21, 1993 Headlines: GEPHARDT REJECTS NAFTA, CLINTON TO INTRODUCE TRAINING BILL FLORIDA FARMERS, REPS REJECT NAFTA EC, FRANCE REACH BLAIR HOUSE COMPROMISE JAPAN MAY OPEN RICE MARKETS IF GATT TALKS NEAR CONCLUSION ________________________________________________________ NAFTA News Summary ________________________________________________________ GEPHARDT REJECTS NAFTA, CLINTON TO INTRODUCE TRAINING BILL U.S. House Majority Leader Richard Gephardt (D-Missouri), who represents a key labor vote in Congress, announced formal opposition to the North American Free Trade Agreement today. "Now is the time for an open, honest, candid debate in this country," Gephardt said during an hour-long speech. "I will participate actively in this debate. I will engage those who argue this is the best agreement we could achieve. We could, and we can, do better." Gephardt warned the Clinton administration during labor supplemental negotiations last month that he would vote against the free trade pact unless adequate U.S. and Mexican worker rights provisions were included. U.S. and Mexican unions contend the labor accord fails to protect worker rights, wages, and safety. President Clinton is expected next month to introduce a worker retraining bill aimed at appeasing labor concerns over anticipated job losses under the NAFTA. The proposal, which requires $5 billion annually in funding, would overhaul the unemployment compensation program and include financial aid as well as career counseling, job training and job search assistance to dislocated workers. Clinton will not allocate funds for NAFTA-specific training programs as labor advocates had wanted. "The president has been against sector-specific training programs, and he wants a broad, comprehensive change in the work force," explained William Daley, who heads the White House campaign to promote NAFTA. Bill Cunningham, a tax and trade lobbyist for the AFL-CIO, said Clinton's plan to create a general retraining program puts labor unions, who oppose NAFTA but want to support worker retraining programs, in a difficult political position. So far the administration is $2.3 billion short in its effort to fully fund the program's first year. Sources: Jeff Bater, "Gephardt Gives Thumbs-Down on NAFTA," UPI, September 21, 1993; Michael K. Frisby, Kevin G. Salwen, "Clinton Seeks Funds for Job Training Considered Vital to NAFTA's Approval," WALL STREET JOURNAL, September 21, 1993; "Gephardt Expected to Declare NAFTA Opposition," REUTER, September 20, 1993. ________________________________________________________ FLORIDA FARMERS, REPS REJECT NAFTA Florida Agriculture Commissioner Bob Crawford joined other state leaders Monday in calling for NAFTA's rejection. "To say that it's a devastating agreement for Florida agriculture is probably a misunderstatement," Crawford said. "This is a matter of life and death." Florida's agriculture industry, primarily composed of citrus and vegetable growers, argues that NAFTA would allow Mexican producers to export cheaply produced fruits and vegetables, forcing American growers out of business while posing significant health risks to U.S. consumers. "In Mexico, you do not have the enforcement on pesticides and other types of chemicals," Crawford warned. He announced plans for a statewide ad campaign against NAFTA. Sources: Al Schoch, "Florida Growers Call For Rejection of NAFTA," UPI, September 20, 1993; "Farmers Fear NAFTA's Impact on Livelihood," ORLANDO SENTINEL, September 18, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ EC, FRANCE REACH BLAIR HOUSE COMPROMISE EC foreign and farm ministers emerged from a 12-hour meeting today prepared to renew talks with the United States over the EC- U.S. Blair House farm accord. But plans to save the long-stalled Uruguay Round of the General Agreement on Tariffs and Trade were thwarted by the U.S., which still refuses to discuss the 10 month-old farm package. "We will not reopen the Blair House agreement either directly or indirectly," said U.S. Trade Representative Mickey Kantor. EC officials tried to reassure Washington by saying that they did not seek renegotiation of Blair House, only further talks. "The Commission is not closed to clarification or interpretation but there will be no renegotiation," said EC Farm Commissioner Rene Steichen. EC ministers had hoped the compromise to renew talks would remove a major stumbling block in the current GATT Round by satisfying French farmers who have been calling for a renegotiation of Blair House. But Paul Drazek of the American Farm Bureau Federation criticized the EC proposal, saying it was "simply a compromise to paper over the fact that the French want to reopen Blair House, and others haven't been able to convince the French that that's probably going to spell the doom of the Uruguay Round." Sources: Vicki Allen, "U.S. Says Will Not Reopen Farm Deal With EC," REUTER, September 21, 1993; "EC Farmers Welcome Farm Trade Accord," REUTER, September 21, 1993; Roger Cohen, "Britain Vows Action on French Trade Stand," NEW YORK TIMES, September 21, 1993; David Gardner, Lionel Barber, "EC Battles to Save GATT After Food Import Objections," FINANCIAL TIMES, September 21, 1993; "EC and France Strike Compromise Over Farm Talks," WALL STREET JOURNAL, September 21, 1993; "EC Strikes Compromise on GATT, Blair House," SPARKS COMPANIES INC., September 21, 1993; Jeremy Gaunt, "EC Reaches Farm Deal, Says Will Speed GATT," REUTER, September 20, 1993; "Steichen Says Little Margin to Change EC-U.S. Farm Deal," REUTER, September 20, 1993; Robert Evans, "Farm Trade States Insist EC Must Cut Subsidies," REUTER, September 20, 1993. ________________________________________________________ JAPAN MAY OPEN RICE MARKETS IF GATT TALKS NEAR CONCLUSION Japanese Prime Minister Morihiro Hosokawa hinted yesterday during talks in Tokyo with British Prime Minister John Major that Japan would open its rice markets if other GATT members were nearing a conclusion in the Uruguay Round. Hosokawa said he and Major "mutually reaffirmed" the need for countries facing "difficult" agricultural problems to override differences. Today's FINANCIAL TIMES indicates that Hosokawa gave private assurance to Major that Japan would move quickly to ensure that the rice market conflict does not constitute a last-minute stumbling block in GATT talks. "We agreed that immense damage would be done to international confidence and trade were there not to be an agreement in the Uruguay Round," Major said. "We share the determination that it should be concluded by December 15." Source: K. Brown, "Japan To Open Rice Market By Year-End," FINANCIAL TIMES, September 21, 1993. ________________________________________________________ Editors: Gigi DiGiacomo 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 ________________________________________________________