Trade Week in Review and Recent Publications November 13-19, 1993 Volume 2 Number 209 Headlines: U.S. Senate, Mexico, Canada Unlikely to Pose Problems for NAFTA Businesses Applaud Passage of NAFTA NAFTA Opponents Vow to Remember Come Election Time Chile Next in Line? U.S. Officials Say NAFTA Only First Part of "Triple Play" Asian Nations Concerned About Future of APEC Sutherland Optimistic Following NAFTA Vote France Says U.S. Must Make Concessions Japan Maintains Rice Ban for Now ___________________________________________________________ NAFTA News Summary ___________________________________________________________ -U.S. Senate, Mexico, Canada Unlikely to Pose Problems for NAFTA- An Associated Press poll predicts the North American Free Trade Agreement will face an easier time in the U.S. Senate than it did in the House of Representatives, where it passed by a 234-200 vote on Wednesday. NAFTA faces an even easier time in the Mexican Senate, where the ruling PRI party has a commanding majority. Canadian Prime Minister Jean Chretien has conditioned his support for the trade pact on the creation of a mechanism to negotiate new anti- dumping and subsidy rules under NAFTA. Trade Minister Roy MacLaren said, however, that Canada is unlikely to delay NAFTA's implementation. -Businesses Applaud Passage of NAFTA- The U.S. business community welcomed the House vote on NAFTA, saying it would boost U.S. exports and create jobs. John Smith, chief executive of General Motors, said: "By saying yes to NAFTA, the House has made good on a great window of opportunity for America. For the first time, American-made products will be able to compete fairly in Mexico without the burden of tariffs and other barriers." -NAFTA Opponents Vow to Remember Come Election Time- William Bywater, head of the Electrical Workers Union, accused the White House of bribing members of Congress to pass NAFTA. "President Clinton opened up the biggest candy store in the world ... and he got the vote," he said. He warned Democrats who had voted in favor of NAFTA: "We're gonna make sure we get even at the polls." Jim Jontz, director of the Citizens' Trade Campaign, said, "I feel we already won because clearly NAFTA could not be sold on its merits and the president had to start dealing to get votes." -Chile Next in Line?- Chilean Finance Minister Alejandro Foxley said yesterday the conditions are in place for Chile to join the North American Free Trade Agreement. Foxley said President Clinton told him personally two weeks ago that Chile would be the next in line to join the free trade area. Sources: Bernard Simon, "Canada Gives Priority to Anti-Dumping Issues," FINANCIAL TIMES, November 19, 1993; Jurek Martin, "Jubilant Clinton Pledges to Liberalise World Trade," FINANCIAL TIMES, November 19, 1993; Laurence McQuillan, "Clinton Hails NAFTA as Unions Vent Ire," REUTER, November 18, 1993; Stephen Fidler, "Chile 'Ready to Join NAFTA,'" FINANCIAL TIMES, November 19, 1993. ___________________________________________________________ GATT News Summary ___________________________________________________________ -U.S. Officials Say NAFTA Only First Part of "Triple Play"- The Clinton administration is hoping the passage of NAFTA is the first step in a "triple play" that culminates in the completion of the Uruguay Round of GATT talks next month. "You're apt to see 30 days that shook the economic world," said U.S. Assistant Secretary of State Winston Lord in a television interview. Lord is in Seattle for what he sees as the second part of the triple play -- a successful meeting of the Asia-Pacific Economic Cooperation (APEC) group, which accounts for half the world's output. The United States and other nations are seeking a strong statement from APEC backing completion of GATT by the end of the year. Lord said passing NAFTA, combined with a successful APEC meeting and completing GATT all within one month's time, would amount to "the most important brief period in international economic relations since Bretton Woods after World War II." -Asian Nations Concerned About Future of APEC- Indonesia and several other nations expressed objections to specific proposals to turn APEC into a formal trade organization, with free- trade zones, dispute settlement procedures and rules governing foreign investment. "It's fair to say that there are a variety of concerns, especially among the developing nations, that we proceed with some caution," said Nobuo Matsunaga, Japan's special envoy to the forum. Sensing the concerns, the U.S. is backing away from earlier efforts to use the meeting to create an Asian-Pacific Community. Secretary of State Warren Christopher said the U.S. is looking for "building blocks, not trading blocks." -Sutherland Optimistic Following NAFTA Vote- Global trading partners expressed optimism that the long-stalled round of GATT talks could be completed by mid-December. GATT Director-General Peter Sutherland said President Clinton had "won half the battle" in passing NAFTA. "I'm not here to tell you that the Uruguay Round is now in the bag," he said. "It isn't. But it's almost within our grasp." Of the NAFTA vote, Italian Prime Minister Carlo Azeglio Campi said, "Italy hopes the same commitment will be shown by all sides to allow a positive and fair conclusion by the end of the year of the Uruguay Round." -France Says U.S. Must Make Concessions- In a message clearly aimed at France, U.S. Secretary of State Warren Christopher told APEC delegates Wednesday that if GATT members don't complete current negotiations by the December 15 target date, "There'll be no December 16." Christopher said the NAFTA vote "sends a message to Geneva on GATT that the U.S. remains fully committed to opening markets" through the Uruguay Round. French officials, however, do not seem inclined to make further concessions in farm subsidies, audiovisual trade and services. They say the NAFTA vote allows Clinton to be more flexible in negotiations. "It's now up to Washington to come up with new propositions, which alone will enable the GATT negotiations to be successfully concluded," said Industry Minister Gerard Longuet. Chief EC trade negotiator Leon Brittan, who meets with U.S. Trade Representative Mickey Kantor next week in Washington, welcomed the NAFTA vote but said he wants to look at the "small print" to see what the White House offered to members of Congress to get their approval. -Japan Maintains Rice Ban for Now- Japanese Prime Minister Morihiro Hosokawa will tell President Clinton in Seattle today that Japan intends to keep its ban on foreign rice imports, said Agriculture Minister Eijiro Hata. Hata denied existence of a secret U.S.-Japan deal on rice. The financial daily NIHON KEIZAI SHIMBUN reported today the two countries had agreed that Tokyo would convert its ban to tariffs after a six-year moratorium and allow minimum access to its rice market during the six-year period. Meanwhile, Japanese farmers protested a Thai vessel carrying the first shipment of emergency rice imports. Japan plans to import 1.1 million tons of rice this year as it faces the worst rice crop in post-war history. Japan will not include farm products in the list of proposed tariff cuts it will present to GATT this week. "We will submit a list of industrial products later this week," said a Ministry of International Trade and Industry official. "But we have no clear ideas about a list on farm trade." Sources: Rich Miller, "U.S. Seeks to Parlay APEC Meet Into Global Trade Pact," REUTER, November 18, 1993; Roger Cohen, "France Is Now Facing U.S. in Dispute on Trade," NEW YORK TIMES, November 19, 1993; "After NAFTA, the Priority Is GATT, Italy Says," REUTER, November 18, 1993; David Dodwell, Lionel Barber, "Trade Heads Hope for Impetus on Uruguay Round," FINANCIAL TIMES, November 19, 1993; David Buchan, "France Urges U.S. to Make Fresh GATT Proposals," FINANCIAL TIMES, November 19, 1993; "Japan Farm Minister Says No Deal With U.S. on Rice," REUTER, November 18, 1993; "Japan GATT List to Omit Farm Products," REUTER, November 18, 1993; Emiko Terazono, "Farmers Protest at Rice Imports," FINANCIAL TIMES, November 19, 1993. ___________________________________________________________ Recent Publications on International Trade ___________________________________________________________ For copies of the following, contact the authors or organizations listed. "Expanding the North American Free Trade Agreement," John Whalley, INSTITUTE FOR POLICY REFORM, September 1992. 54 pages. 1400 16th St., NW, Suite 350, Washington, DC 20036. (202) 939-3450. $5. The author concludes that the incentives on all sides to expand the agreement to other countries are small, expansion will dilute the benefits obtained by previous entrants, and modifying the existing agreement to accommodate new entrants is virtually impossible. "The Politics of Corruption and the Corruption of Politics," NORTH AMERICAN CONGRESS ON LATIN AMERICA, Vol. 27, No. 3, November/December 1993. 48 pages. 475 Riverside Dr., Suite 454, New York, NY 10115. (212) 870-3146. $4.75. "The Multilateral Trading System: Analysis and Options for Change," Robert M. Stern, ed., UNIVERSITY OF MICHIGAN PRESS, 1993. 564 pages. 839 Greene St., P.O. Box 1104, Ann Arbor, Michigan 48106. (313) 764-4388. Fax: (313) 936-0456. $65. "Campaign for Canada: Stop Free Trade," CANADIAN PERSPECTIVES, Autumn 1993. 15 pages. Council of Canadians, 904-251 Laurier Ave. West, Ottawa, Ontario K1P 5J6, Canada. (613) 233-2773. Fax: (613) 233-6776. Contact organization for prices. "Setting A People's Agenda: Free Trade Alternatives," ACTION CANADA NETWORK DOSSIER, No. 39, Autumn 1993. 60 pages. 804- 251 Laurier Ave. West, Ottawa, Ontario K1P 5J6, Canada. (613) 233- 1764. Fax: (613) 233-1458. $6.50. "Free Trade's Hidden Secrets: Why We Are Losing Our Shirts," NATIONAL LABOR COMMITTEE, November 10, 1993. 190 pages. 15 Union Square, New York, NY 10003. (212) 242-0700. Fax: (212) 255- 7230. $5. "Agricultural Policy and Sustainability: Case Studies From India, Chile, the Philippines and the United States," WORLD RESOURCES INSTITUTE, Paul Faeth, ed., September 1993. 113 pages. WRI Publications - Dept. APS, P.O. Box 4852, Hampden Station, Baltimore, MD 21211. (202) 638-6300. $14.95. "What's the Cost of Your Blouse?" Sydney Brown and Betty McAfee, OPEN WINDOW IMAGES, 1993. 18 minutes. 1921 Oregon St., Berkeley, CA 94703. (510) 841-6892. $35. This video production focuses on the human cost of free trade to women garment workers on both sides of the U.S.-Mexican border. "The Environmental Implications of Trade Agreements," CANADIAN ENVIRONMENTAL LAW ASSOCIATION, August 1993. 353 pages. 517 College St., Suite 401, Toronto, Ontario M6G 4A2, Canada. (416) 960- 2284. Fax: (416) 960-9392. $30. ___________________________________________________________ Editors: Kai Mander and Chirag Mehta 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 ___________________________________________________________