From: harelb@math.cornell.edu (Harel Barzilai)
Subject: TRADE NEWS: CLINTON WILL NOT RENEGOTIATE NAFTA
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: ?
Date: Fri, 6 Nov 1992 04:20:01 GMT

[[Via misc.activism.progressive from PeaceNet's trade.news]
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NAFTA News Summary 
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CLINTON WILL NOT RENEGOTIATE NAFTA, ADVISER SAYS 

Former San Antonio mayor Henry Cisneros, an adviser to President- 
elect Bill Clinton, said Clinton would not seek the renegotiation of the  
North American Free Trade Agreement, the Mexican news agency  
NOTIMEX reported.  According to Cisneros, Clinton will not reopen  
negotiations "because it's too closely related to the sovereignty" of  
Mexico.  Cisneros said Clinton will pursue only "parallel accords" to  
improve NAFTA. 

Source: "Report Says Clinton Will Not Renegotiate NAFTA," November  
4, 1992. 

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Topic 190       TRADE.NEWS 11-5-92 
kmander Updates on GATT & NAFTA Negotiations    12:52 pm  Nov  5, 1992 
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TRADE NEWS BULLETIN 
Thursday, November 5, 1992 
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GATT News Summary 
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US SLAPS PUNITIVE TARIFFS ON EC IMPORTS 

The United States announced punitive taxes on European Community  
imports this morning.   U.S. Trade Representative Carla Hills said  
initial taxes of 200 percent would be placed on US$300 million worth  
of European wine and agriculture exports beginning December 5.   
Hills also announced today that the government would soon release a  
broader list of $1.7 billion worth of EC industrial products facing  
prohibitive tariffs if a settlement to a long-running agriculture  
dispute is not reached.  

The announcement comes after the latest round of EC-US talks on  
European oilseeds subsidies failed to achieve a breakthrough.   The  
U.S. claims EC payments to farmers hurt U.S. soybean producers and  
are illegal under the General Agreement on Tariffs and Trade (GATT).  

The EC has promised "immediate retaliation" which may set off a  
costly trade confrontation.  EC GATT Ambassador Tran van Thinh  
said prior to the announcement that U.S. sanctions would kill the  
Uruguay Round after more than six years of negotiations.   Hills said  
the White House was not seeking a trade war, and implied the 30  
day waiting period was intended to stimulate further talks.  "This  
action will not affect our determined effort to reach an Uruguay  
Round agreement," said Hills.  "The United States remains committed  
to a strong and effective GATT system.  Indeed, failure to take this  
action would undermine the credibility of the GATT system." 

Ninety percent of the tariffs will be placed on white wine imports,  
which mainly come from France.  The other 10 percent will cover  
wheat gluten and rapeseed oil, which primarily come from Germany. 

The U.S. Wednesday failed to receive formal GATT approval to  
impose the sanctions, but farm exporting nations strongly supported  
the announcement. 

Source: "U.S. to Withdraw Trade Concessions in Oilseeds Dispute With  
EC," USTR NEWS RELEASE, November 5, 1992; Martin Crutsinger,  
"Europe-Trade," November 5, 1992; Robert Evans, "GATT Tense As US  
Mulls 'Trade War' Move Against EC," REUTER, November 5, 1992; Bob  
Davis, "U.S.-EC Impasse May Lead to Trade War," WALL STREET  
JOURNAL, November 5, 1992, p. A2; Frances Williams, David Gardner,  
David Dodwell, "GATT Refuses to Support US Sanctions on EC Trade,"  
FINANCIAL TIMES, November 5, 1992, p. 1. 
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US FARM GROUPS SUPPORT US TARIFF ANNOUNCEMENT 

U.S. farm groups, which have been lobbying for retaliatory measures  
against the European Community since 1985, support the U.S. action  
despite the possibility of a trade war.  "Because of the EC's refusal to  
reform its oilseed subsidy system, the EC now must bear the full  
responsibility for any trade skirmishes that may follow," said  
American Farm Bureau Federation President Dean Kleckner.  "The  
burden of jeopardizing the future of the Uruguay GATT Round also  
must fall squarely on European shoulders."  Kleckner said he  
remained hopeful an accord could be struck and a trade war averted. 

In urging the government to impose the tariffs, Craig Weir of the  
American Soybean Association accused EC farmers of "living in a  
dream world," and said the EC had no right to retaliate against the  
United States. 

Sixty U.S. senators had sent a letter urging President Bush to take  
action on the issue, but President-elect Bill Clinton had no immediate  
reaction to the news.  An aide said Clinton generally believes the U.S.  
"must get tough" when foreign countries refuse to open their  
markets. 

Source: Nancy Dunne, "US Farm Groups Stand Firm," FINANCIAL  
TIMES, November 5, 1992, p. 3; "AFBF: EC Responsible for Oilseed  
Stalemate," FARM BUREAU NEWS, November 4, 1992; "Soybean  
Farmers Urge U.S. to Impose Tariffs on EC Imports After Trade Talks  
Dissolve," ASA NEWS RELEASE, November 4, 1992; "Europe-Trade- 
Clinton," AP, November 5, 1992. 
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RIFT BETWEEN DELORS AND MACSHARRY 

The British Broadcasting Corporation reported today that EC  
Agriculture Commissioner Ray MacSharry has become increasingly  
frustrated with EC Commission President Jacques Delors' refusal to  
approve an agriculture settlement.  Delors reportedly called  
MacSharry in Chicago to order him not to complete an agriculture  
deal, leading MacSharry to suggest that Delors handle the negotiations 
himself. 

Delors, a French citizen, has been accused of acting on behalf of France 
over the interests of the European Community.  France is  Western Europe's 
largest agriculture producer, and the powerful farm lobby has taken a strong  
stance against further reforms in EC agriculture policies.  Delors has  
indicated that he's interested in running for president of France. 
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Events: 

November 26- 27 1992 in Brussels.  The International Coalition for  
Development Action (ICDA) is a network of development non- 
governmental organizations in twenty-two industrialized countries.   
As part of its Trade program, ICDA is organizing a "Conference and  
Training Days on Trade and People" with selected experts to equip  
participants from NGOs with ways of understanding and  
communicating trade issues and campaigning on them. For more  
information, contact ICDA, 115 rue Stevin, 1040 Brussels, Belgium.  
Tel: 32-2-230-04-30  Fax: 32-2-230-03-48.  Email: Geo2:icda. 
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Topic 189       TRADE.NEWS 11-4-92 
kmander Updates on GATT & NAFTA Negotiations     3:13 pm  Nov  4, 1992 
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TRADE NEWS BULLETIN 
Wednesday, November 4, 1992 
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Note: 

The election of Bill Clinton will affect U.S. trade policy.  Clinton has  
stated that he supports the North American Free Trade Agreement in  
principle but intends to seek additional protections for labor and the  
environment as part of NAFTA.  Equally important, there were  
significant changes in the Senate and House with a number of new  
members of Congress who stated their opposition to NAFTA and  
GATT in their campaigns.  In an upcoming "Trade News," we will  
provide an overview of what might be expected under Clinton as  
well as a summary of key Congressional results. 

GATT News Summary 
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TRADE WAR LIKELY AS GATT FARM TALKS FAIL 

U.S. Agriculture Secretary Edward Madigan said he will recommend  
to President George Bush that sanctions be imposed on European  
Community imports -- a move that will likely lead to a trade war.   
The U.S. sought approval today from GATT's ruling council to enact  
the sanctions, but the EC blocked the move.  Even without GATT  
approval, the U.S. is expected to impose steep tariffs on EC products  
within days. 

The EC, which has vowed to counter any U.S. action, warned today  
that sanctions would kill the Uruguay Round.  "Why should we  
negotiate with someone who is taking action against us?  Where  
would you see that kind of thing?  --- In the jungle," said EC  
Ambassador to GATT, Tran van Thinh. 

The U.S. is expected to announce initial tariffs on $300-350 million of  
EC wine, cheese and other exports  But the U.S. may decide to give 30  
days notice before the tariffs take effect, enabling negotiators one  
last chance to reach an accord. 

In Chicago yesterday, Madigan and EC Farm Commissioner Ray  
MacSharry were unable to narrow differences over oilseed subsidies.   
Claiming the U.S. has "the moral high ground" because GATT panels  
have twice upheld U.S. complaints against the EC, Madigan said, "We  
are determined to defend our GATT rights and the interests of our  
oilseeds producers."   

MacSharry said the sides came "very close" to an agreement in the  
talks but said the EC refused to go beyond the limits of the EC's  
Common Agricultural Policy.  The U.S. has argued that EC subsidies  
unfairly promote increased oilseeds production.  MacSharry said he  
expected talks with the U.S. to continue soon. 

Bush Administration officials reiterated their commitment to  
reaching a GATT accord.  "We believe very strongly that a successful  
completion of GATT is in the best interest of the U.S. and world  
economy," said Michael Boskin, chairman of the White House Council  
of Economic Advisers. 

Source: David Shribman, Jill Abramson, "Clinton Wins Handily As  
Democrats Reclaim Broad-Based Coalition," WALL STREET JOURNAL,  
November 4, 1992, p. 1; Vicki Allen, "U.S. Threatens EC Trade  
Sanctions After Talks Hit Impasse," REUTER, November 3, 1992;  
"Boskin Says GATT Pact Vital to World Economy," REUTER, November  
3, 1992; Tony Czuczka, "GATT Talks," AP, November 4, 1992; Philippe  
Naughton, "EC Says Oilseeds Row Could Kill Uruguay Round," REUTER,  
November 4, 1992; 

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Produced by: 
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.org 
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Newsgroups: misc.activism.progressive