>From kmander@igc.apc.org Mon Sep 27 19:55:08 1993 TRADE NEWS BULLETIN Volume 2 Number 171 Monday, September 27, 1993 Headlines: DIFFERENT VIEWS ON NAFTA'S IMPACT ON DAIRY PRODUCERS SALINAS SAYS TOO MUCH PASSION IN NAFTA DEBATE GATT, WORLD BANK, IMF CALL FOR URUGUAY ROUND CONCLUSION BAD WEATHER MAY FORCE JAPAN TO IMPORT RICE ________________________________________________________ NAFTA News Summary ________________________________________________________ DIFFERENT VIEWS ON NAFTA'S IMPACT ON DAIRY PRODUCERS There is mixed opinion concerning what impact the North American Free Trade Agreement would have on U.S. dairy farmers. Nowhere is the debate heating up more than in the state of Wisconsin. Republican Governor Tommy Thompson, a strong supporter of NAFTA, recently argued before the House Ways and Means Committee that excessive import licensing restrictions keep Mexican consumers from buying Wisconsin cheese and that NAFTA would allow significant increases in exports of Wisconsin Cheddar Cheese. Democratic Senator Russ Feingold, a member of the Senate Agriculture Committee, disagrees, saying Thompson failed to "take into account significant differences in consumer preferences in the two countries." Feingold added that NAFTA would eliminate few of the barriers to increased exports and could lead to a flood of surplus commodities in the U.S. market. Feingold cited an International Trade Commission (ITC) study which found that NAFTA would have little impact on the U.S. dairy industry. At a public conference September 13, Stewart G. Huber, president of the Farmers Union Milk Marketing Cooperative, argued NAFTA would lead to lower milk prices and a reduction in farm income for family dairy farmers in the Midwest. A National Farmers Union official said many farm groups oppose the NAFTA package. In contrast, Representative Steve Gunderson (R-Wisconsin) told the conference in a video address that there is no way he can represent the largest dairy district in the United States and not support NAFTA. The Milk Industry Foundation, the National Milk Producers Federation and the International Ice Cream Association are some of NAFTA's supporters. Sources: SENATOR RUSS FEINGOLD NEWS RELEASE, September 23, 1993; "NAFTA Dairy Concerns Debated at Conference," MILK MATTERS, September 15, 1993. ________________________________________________________ SALINAS SAYS TOO MUCH PASSION IN NAFTA DEBATE Mexican President Carlos Salinas de Gortari told reporters in Amsterdam Sunday that the U.S. NAFTA debate was based too much on emotion and not enough on reason. "The position in the U.S. seems to stand more on passion than on reason ... I hope that arguments from serious studies will prevail," he said on the first day of a three- day official visit to the Netherlands. Salinas said NAFTA would help create jobs in Mexico, the United States and Canada. He also denied manufacturers in Mexico would have an advantage because of lax environmental laws. "I try to understand these concerns ... But there is a strong conscience among Mexicans about the environment," Salinas said. Source: "Mexican President Says Too Much Passion in NAFTA Debate," REUTER, September 26, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ GATT, WORLD BANK, IMF CALL FOR URUGUAY ROUND CONCLUSION The heads of the General Agreement on Tariffs and Trade (GATT), the World Bank and the International Monetary Fund (IMF) called on political leaders to take the "courageous and visionary" decisions necessary to complete the Uruguay Round of trade talks. "Failure to conclude would validate the rising wave of protectionist rhetoric and increase the danger of a vicious cycle in which heightened protectionism impedes economic recovery and the lack of recovery in turn feeds protectionist pressure," said a joint statement issued Sunday at the IMF's annual meeting. The appeal came the day before European Community Trade Commissioner Leon Brittan and U.S. Trade Representative Mickey Kantor were scheduled to meet in Washington, D.C. over differences between the EC and U.S. on agriculture. The World Bank released a report Sunday claiming that an additional $213 billion would pump into the world economy annually by the year 2002 from a new GATT accord. World Bank economists said $135 billion would go to industrialized nations and $85 billion would go to developing countries. Sources: Martin Crutsinger, "Trade Fight," AP, September 27, 1993; "IMF, World Bank, GATT Urge Action on Trade Talks," REUTER, September 27, 1993; David Gardner, "Brittan and Kantor to Meet Today," FINANCIAL TIMES, September 27, 1993; Peter Norman, "IMF Chief Warns of GATT Danger," FINANCIAL TIMES, September 24, 1993; Keith Bradsher, "Farm Subsidies Still Threaten GATT Talks," NEW YORK TIMES, September 27, 1993. ________________________________________________________ BAD WEATHER MAY FORCE JAPAN TO IMPORT RICE Japanese Agriculture Minister Eijiro Hata said Japan may be forced to make emergency rice imports next year if poor weather and growing conditions persist. "The most difficult time for us is going to be if and when we hear that next year's crop will be as bad as this year's," Hata said. Japan is under pressure from GATT to end its ban on imports of foreign rice. "Self-sufficiency in staple foods is of dire importance to all countries of the world," Hata said. "This is one of the things Japan will try to argue within the framework of the GATT Uruguay Round and seek the understanding of other nations." The mass-circulated YOMIURI newspaper reported Japan will import at least 300,000 to 400,000 tons of mainly processed or glutinous rice for use in crackers and other processed foods. Source: "Japan May Need Emergency Rice Imports," REUTER, September 27, 1993; "Japan-Rice Imports," AP, September 26, 1993. ________________________________________________________ Event "Stop Free Trade," a rally at Niagara Falls, October 2, 1993. Canadian and American participants will demonstrate in favor of labor rights and a healthy environment. Speakers include: Jesse Jackson, Maude Barlow (Council of Canadians), Michelle Swenarchuk (Canadian Environmental Law Association), Bob White (President, Canadian Labor Congress), Mexican Senator Ifigenia Martinez, and Ron George (Native Council of Canada). For more information, contact the Ontario Coalition for Social Justice (416) 441-3714. ________________________________________________________ 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 ________________________________________________________