>From iatp@igc.apc.org Tue Sep 28 21:01:05 1993 TRADE NEWS BULLETIN Volume 2 Number 172 Tuesday, September 28, 1993 Headlines: BUSINESSES ACCUSED OF UNFAIR NAFTA LOBBYING FARM DEAL DISCUSSED BUT NOT RESOLVED DURING BRITTAN VISIT JAPAN TO MAINTAIN TOUGH STANCE ON TRADE WITH U.S. ________________________________________________________ NAFTA News Summary ________________________________________________________ BUSINESSES ACCUSED OF UNFAIR NAFTA LOBBYING Large U.S. corporations have been accused of pressuring employees, suppliers and shareholders to support the North American Free Trade Agreement. Through letters, Wal Mart Stores Inc., Chrysler Corp. and others have called on managers and suppliers to lobby in favor of the free trade pact. Chrysler chair Robert Eaton asked plant mangers to write members of Congress and follow up with phone calls supporting NAFTA. "Please put a high priority on completing these assignments," Eaton wrote in an April memo. Wal-Mart chief executive David Glass wrote last month to all suppliers encouraging them to "become involved" in the pro-NAFTA campaign. "Also I would be grateful if you could keep me posted on these matters," Glass wrote in the memo. Many NAFTA opponents say the companies are placing inappropriate pressure on workers and smaller businesses. Charles Lewis, executive director of the Center for Public Integrity, a nonprofit Washington organization that has studied NAFTA lobbying, said of the corporate plea for support, "There's nothing illegal or wrong, but if there's enough money flowing and the stakes are that high, it could slightly distort the process." Donald Shinkle, a Wal Mart spokesperson, called the letter by Glass a "low-key" attempt to inform suppliers of Wal Mart's support. "The decision as to whether any of our vendor partners should be supportive of NAFTA is strictly their decision, not ours," Shinkle said. More than 2,700 companies and trade associations belong to the pro- NAFTA lobbying group, USANAFTA. In Washington, USANAFTA is running prime-time television spots and half-page newspaper ads claiming the free trade accord will be "Good for jobs. Good for U.S." Mexico's Ministry of Commerce and Industrial Development joined the campaign earlier this year, and spent more than $25 million to hire former U.S. congressional members to sell the accord to U.S. citizens. Labor, environmental and consumer groups are also spending millions of dollars to battle the Clinton administration on NAFTA. For example, the AFL-CIO is spending $4 million to fight Clinton against NAFTA. "It's very expensive and most unfortunate," said Rex Hardesty, AFL-CIO spokesperson. "We will support the president on a whole host of initiatives with the same vigor with which we oppose him on NAFTA." Sources: Stefan Fatsis, "NAFTA-Business," AP, September 27, 1993; Jill Lawrence, "Balancing Acts," AP, September 28, 1993; Michael Weisskopf, "U.S. Companies Unite in the Business of Promoting NAFTA; For Virginia Lawmaker Pressure Keeps Building," WASHINGTON POST, September 28, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ FARM DEAL DISCUSSED BUT NOT RESOLVED DURING BRITTAN VISIT Top European and American trade officials met in Washington yesterday to discuss the controversial Blair House farm accord in an attempt to secure progress in the Uruguay Round of the General Agreement on Tariffs and Trade. Officials insisted that they remain committed to a GATT conclusion, but said they failed to break the impasse over agriculture subsidies. A recent meeting of EC foreign and farm ministers ended when Leon Brittan, the EC's trade chief, agreed to seek "clarifications" of the global farm accord with the United States. "Sir Leon forcefully presented his proposed clarifications to the Blair House agreement," said U.S. Trade Representative Mickey Kantor. "And I responded with equal force that we would not reopen or renegotiate the Blair House Agreement." Trade representatives agreed to meet again during October in Brussels, two months before the target completion date of the Uruguay Round. Sources: Keith Bradsher, "U.S. and Europe Unable to Resolve Farm Issue," NEW YORK TIMES, September 28, 1993; "U.S. and EC Fail to Settle Rift Over Agricultural Aid," WALL STREET JOURNAL, September 28, 1993; John Gapper, George Graham, "Sutherland Warns of Impasse on Farm Talks," FINANCIAL TIMES, September 27, 1993. ________________________________________________________ JAPAN TO MAINTAIN TOUGH STANCE ON TRADE WITH U.S. Japanese Prime Minister Morihiro Hosokawa met with U.S. President Bill Clinton Sunday to discuss the opening of Japan's government procurement system, Japan's compliance with past trade deals, liberalizing Japan's insurance industry and the opening of its automobile and auto-parts markets to more imports. Hosokawa, who took office two months ago and who is committed to domestic policy reform, argued that many of the changes he is trying to make would eventually accomplish some of the U.S. trade goals. The United States has been pressuring Japan to reduce its $47 billion trade surplus with the U.S., which Hosokawa called "the natural outcome of free- market activities." Prior to leaving for the U.S., Hosokawa said Japan would not agree to set numerical targets with the U.S. He was also quoted as saying Japan would need to decide this year whether or not to open up its rice market to imports. The deadline to conclude GATT global trade talks is December 15, 1993. Sources: David E. Sanger, "Japan's Premier Stands Firm on Trade," NEW YORK TIMES, September 25, 1993; "U.S. Says it Took a Strong Line in Japan Trade Talks," INTERNATIONAL HERALD TRIBUNE, September 24, 1993; Linda Sieg, "Rice Import Issue, GATT Implications Dog Japan PM," REUTER, September 28, 1993. ________________________________________________________ Resource: NAFTA Packet, CENTER FOR POLICY ALTERNATIVES, $15.00. Contact: Takako Ugaya, 1875 Connecticut Avenue, NW, Suite 710, Washington, D.C. 20009. Tel: (202) 387-6030. Fax: (202) 986-2539. The packet includes the following summaries and position paper: "Will NAFTA Attack the Constitutional Powers of States?" "Summary of State and Municipal Actions Relating to the North American Free Trade Agreement" "Model State Legislative Resolution on NAFTA" ________________________________________________________ Editor: Gigi DiGiacomo 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 ________________________________________________________