TRADE NEWS BULLETIN Volume 2 Number 206 Tuesday, November 16, 1993 Headlines: RULES COMMITTEE MAY LIMIT HOUSE DEBATE CLINTON'S VOTE-BUYING SPREE CONTINUES NAFTA COULD DEPLETE CANADIAN WATER SUPPLY CANADA MAY SEEK BILATERAL TRADE PACT WITH MEXICO ________________________________________________________ NAFTA News Summary ________________________________________________________ RULES COMMITTEE MAY LIMIT HOUSE DEBATE House Speaker Thomas S. Foley (D-Washington) said the Congressional Rules Committee is working to shorten tomorrow's floor debate on the North American Free Trade Agreement. Fast-track rules provide for 20 hours of debate, but he said that by waiving potential budget points of order, lawmakers might spend only eight hours clamoring over the controversial free trade accord. The vote is scheduled for 8:00 p.m. Wednesday. Both NAFTA backers and foes have claimed they have enough votes to push NAFTA their way. But House Majority Leader Richard Gephardt (D-Missouri) cautioned there "still are enough undecided votes (that) it could go either way." According to the most recent survey by CONGRESS DAILY, 42 House members list themselves as undecided. Sources: "As Foes Claim Victory, Backers Say It's Close," CONGRESS DAILY, November 15, 1993; Mary Ann Akers, "More 'Yes' Than 'No' in Latest Rash of NAFTA Announcements," UPI, November 15, 1993; "U.S. House to Debate NAFTA for Eight Hours Wed," REUTER, November 16, 1993; "NAFTA Backers Say They Have Votes to Win-Paper," REUTER, November 15, 1993; "Many House Members Add Their Backing to NAFTA," CONGRESS DAILY, November 15, 1993. ________________________________________________________ CLINTON'S VOTE-BUYING SPREE CONTINUES President Bill Clinton continued his efforts to sway undecided lawmakers by offering several new deals yesterday. "They've done a deal with everybody but working people," observed House Whip David Bonior (D-Michigan). Added to the list of deals is a White House promise to impose quotas on durum wheat if Canada does not change its pricing policies within 60 days. Representative Larry Combest (R- Texas) announced support for NAFTA based on the promise. Barbara Webb of the National Farmers Union confirmed after meeting with Representative Glenn English (D-Oklahoma) that Clinton may agree, in writing, to a few additional proposals, including: the elimination of the 30-day notice required prior to inspections of Mexican meat packing plants, the appointment of additional meat inspectors to ensure that transshipments of Mexican beef are free of disease, and the intent to file a Section 22 complaint against Canada for its exports of peanut butter and peanut paste processed from non- Canadian grown peanuts. Three previously undecided lawmakers said they would vote for NAFTA if Clinton agrees to the proposals. Members of the House Agriculture Committee reportedly support NAFTA by a narrow margin of 24 to 20. Clinton may also be prepared to reduce his proposed $.75 federal tax hike on cigarettes in exchange for NAFTA support from lawmakers in key tobacco producing states. Although Clinton denied earlier reports that a deal was in the making, he did not rule out the possibility. Tobacco-state lawmakers "would like to see the tobacco tax come down and, at the same time, would like to make a decision on NAFTA," said an aide to Representative Stephen Neal (D-North Carolina). Tobacco industry executives are hopeful Craig Fuller's role in NAFTA lobbying will encourage Clinton to reduce the proposed tax. Fuller, who is vice-president and chief lobbyist for Philip Morris, was a top White House aide in the Reagan and Bush administrations and headed last year's Republican convention. Meanwhile, AFL-CIO President Lane Kirkland criticized Clinton for promising to defend Republicans who are attacked in congressional races because they voted for NAFTA. "The president has clearly abdicated his role as leader of the Democratic Party," Kirkland said. He also denied a NAFTA defeat would hurt Clinton and said congressional rejection would be the "best thing that could happen for the Clinton administration "because it would allow Clinton "to put people first for a change." Sources: Keith Bradsher, "Administration Cuts Flurry of Deals," NEW YORK TIMES, November 16, 1993; "NAFTA Narrow Winner Among Farm-State Lawmakers," REUTER, November 15, 1993; "Agriculture Key NAFTA Issue for Florida Lawmaker," REUTER, November 15, 1993; Terence Hunt, "Clinton Pressing to Pick Up Needed NAFTA Votes," AP, November 15, 1993; "Tax Policy, Clinton Does Not Rule Out Tobacco Tax Swap If White House Short on NAFTA Votes," BUREAU OF NATIONAL AFFAIRS, November 15, 1993; James Ridgeway, "Where There's Smoke," VILLAGE VOICE, November 9, 1993. ________________________________________________________ NAFTA COULD DEPLETE CANADIAN WATER SUPPLY Conservationists and lawmakers say NAFTA would lead to large exports of fresh water from Canada and the Pacific Northwest to Mexico and southern U.S. states. "NAFTA will open the door to massive shifts of fresh water all over the continent, between countries and between states," said Representative Peter DeFazio (D-Oregon). "Our only chance to stop this theft of Northwest water is to stop NAFTA in its tracks." Conservationists argue that pipeline and dam projects, like the $4 billion pipeline project launched last year to carry water from British Columbia to California, would increase under NAFTA. Conservationists' fears were confirmed late last month when U.S. Trade Representative Mickey Kantor wrote in a letter to the Northwest Environmental Advocates that "under the Canadian Free Trade Agreement and NAFTA when water is traded as a good, all agreements governing trade in goods apply." But Canadian Prime Minister Jean Chretien said Canada is under no obligation in NAFTA to export large volumes of water to the United States. NAFTA does not specifically address bulk water treatment, but includes provisions for bottled water. Canadian International Trade Minister Roy MacLaren has suggested adding a trilateral declaration stating that NAFTA excludes bulk water transfers. Canada is the source of nine percent of the world's renewable fresh water. Sources: C. Osterman, "Water Fires Passions in NAFTA Debate," REUTER, November 15, 1993; Gordon Hamilton, "NAFTA Covers Canada's Water, U.S. Says," VANCOUVER SUN, November 9, 1993. ________________________________________________________ CANADA MAY SEEK BILATERAL TRADE PACT WITH MEXICO Canadian officials announced they may seek a bilateral trade agreement with Mexico if NAFTA fails. Trade Minister Roy MacLaren told reporters yesterday that if the U.S. Congress rejects NAFTA "we would certainly want to do everything we could with our Mexican friends to improve our trade on the basis of the free trade agreement." President Clinton and Canadian Prime Minister Jean Chretien are scheduled to meet later this week to discuss clarification of NAFTA trade terms. Sources: BJ Del Conte, "Canada May Seek Trade Deal With Mexico, More Trade With Asia," UPI, November 15, 1993; Tom Raum, "APEC-Beyond NAFTA," AP, November 15, 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 ________________________________________________________