TRADE NEWS BULLETIN Volume 2 Number 187 Wednesday, October 20, 1993 Headlines: WHITE HOUSE HOSTS NAFTA TRADE FAIR, AFL-CIO COUNTERS CLINTON PLAYS DOWN TRAVELER TAX CONCERNS HOUSTON POLL SHOWS VOTERS LEERY CHINA PRESSURED TO REDUCE FARM TARIFFS FORMER FRENCH PRESIDENT SAYS GATT CONCLUSION LIKELY ________________________________________________________ NAFTA News Summary ________________________________________________________ WHITE HOUSE HOSTS NAFTA TRADE FAIR, AFL-CIO COUNTERS President Clinton today hosted "Product Day," a trade fair for U.S. companies expecting to profit from the North American Free Trade Agreement. Approximately 100 companies displayed their products on the White House South Lawn for Congressional members to view. Manufacturers of Christmas trees, mini-blinds, solar powered skylights and other goods were available to discuss the benefits of NAFTA with the lawmakers. Opponents of NAFTA, meanwhile, set up their own exhibit at the AFL- CIO to display examples of products and jobs they say would be lost under the trade pact. "The big companies see big profits from NAFTA, but for the American taxpayer, it's a losing proposition," said Jim Jontz of the Citizens Trade Campaign, a coalition of environmental, labor, agriculture and citizen groups. Sources: Nancy Benac, "NAFTA," AP, October 20, 1993; "Clinton Hosts NAFTA Trade Show at White House," REUTER, October 19, 1993. ________________________________________________________ CLINTON PLAYS DOWN TRAVELER TAX CONCERNS President Bill Clinton said he would seek a compromise with opponents of his plan to raise traveler taxes to recoup $2.5 billion in lost federal revenues resulting from NAFTA. "We'll come up with a consensus approach for paying for the small loss in revenues," Clinton said. Twenty-seven House Republicans sent Clinton a letter this week, threatening to withdraw their support for NAFTA if he raised international transportation taxes. House GOP Conference Chair Richard Armey (R-Texas) supported Clinton's efforts, saying, "We will resolve this relatively small problem to our satisfaction in such a way as to not lose votes, and we'll pass NAFTA." U.S. Trade Representative Mickey Kantor acknowledged Republican concerns and expressed a willingness to hear alternatives during testimony before the House Ways and Means Committee. "Members may have even better or modified options that we're more than happy to look at," Kantor said. "This is a difficult problem." Sources: "Clinton Seeks to Reassure Members on NAFTA Taxes," CONGRESS DAILY, October 19, 1993; "As Tax Plan Muddies Ways and Means NAFTA Debate," CONGRESS DAILY, October 19, 1993; Nancy Benac, "NAFTA," AP, October 20, 1993. ________________________________________________________ HOUSTON POLL SHOWS VOTERS LEERY A HOUSTON CHRONICLE poll conducted October 9-13 shows only 31 percent of city voters support NAFTA despite strong endorsements from Houston's civic and business leaders. Thirty-three percent of poll participants said they agreed with civic leaders' arguments that Houston's economy would benefit from the free trade agreement. Fifteen percent said they thought the local economy would suffer. Twenty-four percent of those surveyed opposed NAFTA, while 26 percent were unsure and 18 percent failed to respond. Source: "Newspaper Poll: Houston Lukewarm on NAFTA," UPI, October 19, 1993. ________________________________________________________ GATT News Summary ________________________________________________________ CHINA PRESSURED TO REDUCE FARM TARIFFS The United States repeated its call for China to reduce agriculture tariffs on beef, wine and fruit and vegetable imports. "We would certainly like and hope to see those kind of tariffs reduced, especially since China wishes to enter the GATT community," said Agriculture Secretary Mike Espy after five days of talks with Chinese officials. China currently imposes beef tariffs of 50 percent, fruits and vegetable tariffs of 45 percent and wine tariffs of 120 percent. China has also set a ban on U.S. wheat imports suspected of being infected with disease or pests. Espy set a December 31 deadline to resolve the ban. "We are asking our hosts here in China that certain improvements" be made in this area, Espy said. China was a founding member of GATT in 1947 but dropped out after the communist revolution. It has been pending membership renewal since 1987. Espy reportedly told Premier Zhu Rongji that next June's extension of Most Favored Nation (MFN) status for China hinges on a significant improvement in its record on human rights and arms sales. Source: Andrew Quinn, "Senior U.S. Official Urges China to Act on Rights," REUTER, October 20, 1993. ________________________________________________________ FORMER FRENCH PRESIDENT SAYS GATT CONCLUSION LIKELY Former French President Valery Giscard d'Estaing said he believes there is a more than 50 percent chance that France will eventually accept a Uruguay Round agreement. "I believe the situation has been over-dramatized (in France)," he said yesterday on France-2 television. "I do not believe one can help negotiations to progress by conducting them in public." Giscard d'Estaing, who heads the Union for French Democracy (UDF) party, part of France's center-right ruling party, said the government had "taken a wrong turn when speaking of a possible partial agreement. No one wants one and it is contrary to our own policy." France proposed last week excluding agriculture from the Uruguay Round so that a partial accord could be reached by the December 15 deadline. The proposal was rejected by GATT Director-General Peter Sutherland and other GATT members. Source: "Giscard D'Estaing Rates GATT Chances Better Than Even," REUTER, October 20, 1993. ________________________________________________________ Event: "Don't Let This NAFTA Stop the Heartbeat of the American Family Farm," Anti-NAFTA Rally, Thursday, October 21. Garfield Circle, Washington, D.C. 11:45 am. The rally will include the presentation of billboard-sized ANTI-NAFTA petitions to members of Congress, as well as the opportunity to meet with representatives of Florida agriculture and Florida family farmers who would be affected by the agreement. For more information contact: Steven Cohen (202) 225- 1002 or Sean Dougherty (202) 225-5792. ________________________________________________________ Editors: Gigi DiGiacomo and Kai Mander The Institute for Agriculture and3x9ade Policy (IATP) 1313 Fifth Street SE, Suite #303, Minneapolis, MN 55414-1546 USA w3Telephone:(612)379-5980 Fax:(612)379-5982 E-Mail:kmander@igc.apc.org ________________________________________________________