>From kmander@igc.apc.org Fri Oct 15 18:33:16 1993 Trade Week in Review and Recent Publications October 9-15, 1993 Volume 2 Number 184 Headlines: Ontario Government Will Challenge NAFTA in Court Mexican Unions Say Social Clause Needed in NAFTA U.S. Congressional Members Report on Mexico Tour GATT Members Grow Anxious for Conclusion France Proposes Partial GATT Deal Negotiators Watchful of Quad 'Market Access' Group Japan and U.S. Struggle Over Rice Deal Conflicting Reports Over EC Unity on Culture Protection in GATT ___________________________________________________________ NAFTA News Summary ___________________________________________________________ -Ontario Government Will Challenge NAFTA in Court- The Ontario government announced Wednesday a series of six specific measures it would take to challenge the North American Free Trade Agreement, including a court challenge to the Ontario Court of Appeal claiming that NAFTA violates the Canadian Constitution. "The government believes that NAFTA violates the division of powers in the Canadian Constitution," Ontario Premier Bob Rae told the Ontario legislature. "The federal government is exceeding its jurisdiction. It is using a trade negotiation to intrude directly into important powers of provincial jurisdiction." Canadian Trade Minister Tom Hockin called the court challenge a "futile and transparent ploy." In a statement he said, "This is at least the third time Rae has 'announced' the court challenge ... If it ever actually happens, I am confident the courts will find our actions were constitutional." Meanwhile, Canadian Liberal Party leader Jean Chretien denied reports made last week that his party would not press for changes to NAFTA. Chretien called the reports "absolutely false" and vowed to renegotiate the free trade accord if his party is elected later this month. Liberals lead the ruling Conservative Party by 15 percentage points according to a recent national poll. Canadian analysts suggest that the combination of Ontario court action and political renegotiation by Liberals would "present major hurdles to the implementation of NAFTA ... even if NAFTA is passed by the U.S. Congress." -Mexican Unions Say Social Clause Needed in NAFTA- Enzo Friso, secretary general of Mexico's International Confederation of Free Union Organizations (CLOS), said a social clause should have been included in the NAFTA text, and called on trade unions in the United States, Canada and Mexico to negotiate the inclusion of a clause once the accord is passed. Friso said a social clause is needed to ensure that "corporations cannot take advantage of the low cost of labor so that there be benefits for the workers in the three countries." -U.S. Congressional Members Report on Mexico Tour- On a four-day Mexican tour, six members of the U.S. House Government Operations Committee met with Mexican President Carlos Salinas de Gortari and talked with workers employed in foreign- owned maquiladora manufacturing plants. "It's one thing to be aware of the squalid conditions from reading," said Representative Bernard Sanders (I-Vermont). "It's another thing to see people living in these kind of huts." After the tour, only two of the six representatives, William Zeliff (R-New Hampshire) and Gary Condit (D-California) said they would vote for NAFTA. The remaining four said that the labor and political situation in Mexico, combined with the anticipated loss of U.S. jobs and the potential ecological damage, would force them to vote against NAFTA. Sources: OFFICE OF THE PREMIER NEWS RELEASE, October 13, 1993; Ken Traynor, "Briefing Note Regarding Ontario Government Challenge to NAFTA," COMMON FRONTIERS , October 13, 1993; "Chretien Denies Liberals Would Let NAFTA Through," NEWSCAN, October 8, 1993; "Mexican Unions Call for Social Clause in NAFTA," RMALC NEWS BULLETIN, October 14, 1993; "Mexico-Tour," AP, October 10, 1993; "Six Members of Congress Visit Mexico," RMALC NEWS BULLETIN, October 14, 1993. ___________________________________________________________ GATT News Summary ___________________________________________________________ GATT MEMBERS GROW ANXIOUS FOR CONCLUSION As the global trade deadline nears, members of the General Agreement on Tariffs and Trade are growing more exasperated with France's decision to reject the Blair House farm accord. "For God's sake get on with it and get it over," said Peter Cook, Australia's trade minister and chairperson of the Cairns group of agricultural exporters. German Finance Minister Theo Waigel claimed that almost $500 billion worth of economic benefits would be lost if the Uruguay Round failed. "It would be irresponsible to sacrifice these benefits, which would primarily benefit the developing countries, on the altar of individual interests," Waigel said. -France Proposes Partial GATT Deal- France proposed temporarily excluding agriculture from the Uruguay Round of GATT talks in order to conclude a partial global trade pact on time. GATT Director-General Peter Sutherland rejected the proposal and repeated warnings that failure to conclude talks by December 15 could prevent any agreement from taking place. -Negotiators Watchful of Quad 'Market Access' Group- Negotiators from the Quad Group (Canada, the European Community, Japan and the United States) failed to conclude a market access package on industrial goods during talks this week in Geneva. Trade diplomats from other GATT member countries said a market access, or tariff-reducing, plan should have been completed months ago when Quad leaders met in Tokyo. "We thought they had that more or less wrapped up and three months later they still can't agree," said a trade envoy. -Japan and U.S. Struggle Over Rice Deal- U.S. and Japanese negotiators in Geneva circulated a number of offers aimed at opening Japan's rice market to foreign imports, however an agreement was not reached as was rumored in Japanese newspapers earlier this week. According to the WALL STREET JOURNAL, none of the Japanese proposals came close to matching provisions outlined in the GATT Dunkel draft. Under the Dunkel draft, Japan would be required immediately to allow imports equal to three percent of its rice crop and eventually to increase that level to five percent over six years. In addition, Japan would be expected to lift its ban on other rice imports and replace it with tariffs. Instead Japanese negotiators said they would be willing to increase Japan's initial minimum import level to four percent of its market, and to raise that level to eight percent over time. But they said Japan would not drop the ban on other rice imports until six years after an agreement takes effect. -Conflicting Reports Over EC Unity on Culture Protection in GATT- The European Community said it would not back France in its call for a cultural exemption in a GATT accord despite earlier reports that the Community as a whole opposed the removal of EC film and television quotas under the services sector of the Uruguay Round. But top EC trade negotiator Leon Brittan pressed for an alternative services plan during talks this week with U.S. Trade Representative Mickey Kantor. Brittan suggested that a "cultural specificity" clause be included in the final GATT text to ensure that government aid to film producers and quotas on foreign programs be allowed to continue. European artists and producers argue that the services accord outlined in GATT draft texts would require the EC to deregulate its culture industry, thereby allowing other countries, like the U.S., to have free access to their markets. U.S. President Bill Clinton rejected Brittan's proposal, saying, "Fairness and justice must apply to audiovisual works as well as other elements of the final GATT deal ... This is a vital jobs issue as well as a fairness issue for America." Sources: Peter Blackburn, "Cairns Chief Tells GATT Nations 'Get on With It'," REUTER, October 14, 1993; "Don't Sacrifice GATT for National Interests-Waigel," REUTER, October 14, 1993; Robert Evans, "Trade Round Date Shaky But Hope Remains for Treaty, " REUTER, October 14, 1993; Bob Davis, "Japan Offers to Allow Some Importing of Rice, but U.S. Remains Unsatisfied," WALL STREET JOURNAL, October 15, 1993; "Japan Denies Secret Deal on Rice Ban With U.S.," REUTER, October 14, 1993; Andrew Pollack, "U.S. Cites Progress in Talks on Opening Japan's Rice Market," WALL STREET JOURNAL, October 15, 1993; "France Isolated in Demand to Exclude Culture From GATT," REUTER, October 14, 1993; Frances Williams, "Audio-Visual Trade Fears 'Unfounded'," FINANCIAL TIMES, October 15, 1993; "Clinton Rejects French Bid for GATT Concession," REUTER, October 14, 1993. ___________________________________________________________ Recent Publications on International Trade ___________________________________________________________ For copies of the following, please contact the authors or organizations listed. "For NAFTA, More Than Free Trade at Stake in This Debate," THE NEW REPUBLIC, Vol. 209, No. 15, October 11, 1993. 1220 19th St. NW, Washington, DC 20036. (212) 702-4882. $3.50. This issue includes several articles on NAFTA. "Trading Off the Future: Making World Trade Environmentally Sustainable," Paul Ekins, THE NEW ECONOMICS FOUNDATION, September 1993. 9 pages. 88/94 Wentworth St., London E1 7SA. (44) 071 377 5696. #15. "Free Trade and the American Dream," David Korten, PEOPLE- CENTERED DEVELOPMENT FORUM, October 5, 1993. 2 pages. Institute for Agriculture and Trade Policy. $1. "The New Supremacy of Trade: NAFTA Rewrites the Status of States," CENTER FOR POLICY ALTERNATIVES, October 1993. 23 pages. 1875 Connecticut Ave. NW, Suite 710, Washington, DC 20009. (202) 387- 6030. Fax: (202) 986-2539. $10. "Beyond Social Conscience,"R.J. de la Rosa, PHILIPPINES DEVELOPMENT BRIEFING, No. 6, August 1993. 16 pages. CIIR, Unite 3 Canonbury Yard, 190a New North Rd., London N1 7BJ, UK. (44) 071 354 0883. Fax: (44) 071 359 0017. E-Mail: Geo2:CIIR. Free of charge on the basis of publication exchange. This briefing explains why the use of a social contract remains an inadequate tool to regulate transnational corporate activity in the Philippines. "World Bank/IMF: 50 Years Is Enough," BANKCHECK, Vol. 3, No. 1, September 1993. 24 pages. International Rivers Network, 1847 Berkeley Way, Berkeley, CA 94703. (510) 848-1155. Fax: (510) 848- 1008. $2.50. "NAFTA and America's Cultural Crisis," BULLETIN OF CULTURAL CRITICISM, Vol. 2.1, Spring/Summer 1993. 35 pages. Box #262, 1212 Bellflower Blvd., Room 256, Long Beach, CA 90815. $10. "Reconceptualizing Economic Development: Brown Economics vs. Green Economics," THE HUMAN ECONOMY NEWSLETTER, Vol. 14, No. 3, September 1993. 11 pages. Human Economy Center, Box 14, Department of Economics, Mankato State University, Mankato, MN 56001. (507) 389-5249. $15 annual subscription fee. "Environmental Justice," UNITY IN A MULTICULTURAL U.S.A., Vol. 16, No. 1, Summer 1993. 42 pages. Unity/La Unidad, P.O. Box 29293, Oakland, CA 94604. $12 annual subscription fee. Published quarterly, this issue includes articles on environmental justice and NAFTA. ___________________________________________________________ Editors: Gigi DiGiacomo, Chirag Mehta 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 ___________________________________________________________