From: harelb@math.cornell.edu (misc.activism.progressive co-moderator)
Subject: _Trade News_ Oct 2, 1992
Organization: misc.activism.progressive on UseNet ; ACTIV-L@UMCVMB
Date: Sat, 3 Oct 1992 05:47:10 GMT

    "The lead story dealt with US government programs that encourage
    companies to move their operations to other countries to take
    advantage of lower wages."

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[Via misc.activism.progressive from PeaceNet's trade.news]
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Topic 169       TRADE.NEWS 10-2-92 
kmander Updates on GATT & NAFTA Negotiations    11:18 am  Oct  2, 1992 
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TRADE NEWS BULLETIN 
Friday, October 2, 1992 

Resources: 

1.  Transcripts and videos are available from last Sunday's 60  
MINUTES program.  The lead story dealt with US government  
programs that encourage companies to move their operations to  
other countries to take advantage of lower wages.   

For a written transcript, send a US$5.00 check made out to Burrelle's  
Transcripts, PO Box 7, Livingston, NJ, 07309.  Credit card orders are  
accepted by calling 1-800-777-8398. 

For a VHS video of the program, send US$29.95 plus $3.50 shipping  
and handling to 60 MINUTES, PO Box 2054, South Burlington, VT,  
05407.  Credit card orders: 1-800-848-3256.   

Specify on all orders that you would like to purchase the segment,  
"Hire Rosa Martinez."  Also be sure to include your name and return  
address. 

Sales tax must be added if you order from New York, New Jersey or  
Vermont. 
_________________________________________________________ 
NAFTA News Summary 
_________________________________________________________ 
IMMIGRATION WILL INCREASE REGARDLESS OF NAFTA 

An Office of Technology Assessment study concluded that Mexican  
immigration to the United States will continue with or without the  
North American Free Trade Agreement.  The Congressional agency  
concluded that NAFTA will put many Mexicans in agriculture and  
other industries out of work, increasing immigration.  "There is little  
reason to expect a NAFTA, by itself, to slow migration to the United  
States," the report said.  U.S. President George Bush and Mexican  
President Carlos Salinas de Gortari have long argued that NAFTA  
would stop the flow of illegal immigrants to the U.S. 

The 200-page report also found that "because Mexico's future growth  
will depend heavily on foreign investment, failure to reach a free  
trade agreement would ensure more immigration to the United  
States." 

To obtain a copy of the report, send a US$12 check payable to the  
Superintendent of Documents to: Superintendent of Documents,  
Publications Order, OTA, US Congress, Washington, DC 20510-8025.   
Specify that you would like to purchase, "US-Mexico Trade," and  
include a return address.  If you only want a summary statement,  
call OTA at (202) 224-8996 and they will send you  one free of  
charge.  Leave your name and address on the voice-mail and state  
that you want the summary of the report, "US-Mexico Trade." 

Source: "NAFTA Or No NAFTA, More Mexicans Seen Going to U.S.,"  
REUTER, September 30, 1992. 
_________________________________________________________ 
GEPHARDT SAYS NAFTA COULD DECREASE COMPUTER JOBS IN U.S. 

The North American Free Trade Agreement could allow an erosion of  
high-technology manufacturing jobs in the computer industry, wrote  
House Majority Leader Richard Gephardt (D-Missouri) in a letter to  
Congress' General Accounting Office (GAO). 

Gephardt said in the letter to Charles Bowsher, GAO comptroller  
general, that a unique origin rule included in the NAFTA text  
"appears to promote assembly, rather than production" of the  
computers in North America and "might result in further  
disinvestment and job loss in the industry."   

The NAFTA text provides duty-free treatment of computers that  
have a mother board that was made in North America.  U.S. display  
screen manufacturers and others have argued that this will allow  
computer companies to sell as "North American" computers with as  
little as 20 percent of their parts and labor originating on the  
continent. 

Source: John Maggs, "Rep. Gephardt Attacks Rules for Computers  
Under NAFTA," JOURNAL OF COMMERCE, September 30, 1992, p. 5A. 
_________________________________________________________ 
GATT News Summary 
_________________________________________________________ 
EC REFUSES TO ACCEPT US PROPOSAL OF ARBITRATION PANEL 

The European Community refused to accept a U.S. proposal to form a  
binding arbitration panel in GATT to settle the oilseeds subsidies  
dispute with the United States.  The EC expressed willingness to  
create a GATT working party whose recommendations would not be  
binding.  The U.S. promptly rejected the plan as a "non-solution." 

Two GATT panels have ruled in favor of U.S. complaints against the  
EC's subsidy system, but so far the EC has refused to change its  
policies.  The EC has offered other farm trade concessions, but the  
U.S. and other oilseeds producers have called them unacceptable.   

After yesterday's rejections, other GATT member countries  
expressed concern the U.S. will begin turning away from the GATT  
system of resolving trade disputes, and will instead begin retaliating  
unilaterally.  Australia's ambassador to GATT, David Hawes fears "the  
escalation of a subsidy war between the United States and the EC at  
this critical stage could put the whole global endeavor of the Uruguay  
Round, taken over six years, at risk."   

Earlier this week, deputy US trade representative Rufus Yerxa said,  
"If the proposal is rejected, that pretty much exhausts the GATT  
process and we will have to draw appropriate conclusions."  Yerxa  
told reporters the U.S. will not proceed immediately with threats to  
impose tariffs on $1 billion of EC food imports.  Such action would  
surely lead to EC retaliation and set off an all-out trade war. 

Believing that a conclusion to the Uruguay Round of GATT will help  
President Bush in the November elections, administration officials  
are still actively seeking a solution to the agriculture dispute.  But  
yesterday's action revealed the EC is not prepared to make drastic  
changes in agriculture in order to reach a deal.  Diplomats warn that  
the currency crisis and the split over economic union has hurt the  
chances of a compromise. 

Top EC and US trade officials are tentatively scheduled to meet  
October 10 or 11 in Brussels.  Among those attending the meeting are  
US Trade Representative Carla Hills, US Agriculture Secretary Edward  
Madigan, EC External Affairs Commissioner Frans Andriessen and EC  
Agriculture Commissioner Ray MacSharry.  In addition, trade  
ministers from the EC, US, Canada and Japan  are scheduled to meet  
October 17 and 18 near Toronto in what some feel is the last chance  
to achieve a breakthrough on agriculture issues. 

Source: Frances Williams, "GATT Faces Crisis Over Oilseeds Row,"  
FINANCIAL TIMES, October 2, 1992, p. 4; "US-EC Trade War Fears  
Grow," FINANCIAL TIMES, October 1, 1992, p. 20; WALL STREET  
JOURNAL, October 2, 1992, p. 1; David Gardner, "EC, US Push for GATT  
Deal by Mid-Month," FINANCIAL TIMES, October 1, 1992, p. 8; Keith  
Bradsher, "U.S. Presses for an End to European Trade Rift," NEW YORK  
TIMES, October 1, 1992, p. C2; John Zarocostas, Keith M. Rockwell,  
"Meeting Seen Last Chance for GATT," JOURNAL OF COMMERCE,  
September 30, 1992, p. 14A. 
_________________________________________________________ 
Other Trade News 

1.  China will retain its most favored nation status (MFN) with the  
United States after the US Senate failed to overturn President Bush's  
veto of legislation placing conditions on China's status.  The Senate's  
59-40 vote was short of the two-thirds majority needed to overturn  
a presidential veto.  The House of Representatives voted Wednesday  
345-74 in favor of placing the restrictions.  The legislation was  
intended to force China to improve its human rights policies in order  
to maintain close trade ties with the U.S. 

Source: Nancy Dunne, "Beijing to Retain Favored Status," FINANCIAL  
TIMES, October 2, 1992, p, 4. 
_________________________________________________________ 

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 
_________________________________________________________