From: Andrew Lang <lang@igc.apc.org>
Subject: TRADE.NEWS 11-16-92
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: ?
Date: Mon, 16 Nov 1992 23:45:05 GMT

/* Written  2:48 pm  Nov 16, 1992 by kmander@igc.apc.org in igc:trade.news */
/* ---------- "TRADE.NEWS 11-16-92" ---------- */

TRADE NEWS BULLETIN
Monday, November 16, 1992
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GATT News Summary
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LEAKED REPORT INDICATES MACSHARRY GOING BEYOND CAP

In agriculture negotiations with the United States, European 
Community Agriculture Commissioner Ray MacSharry is going 
beyond the price and production cuts agreed under the EC's recently 
reformed Common Agricultural Policy (CAP), according to a document 
obtained by a French newspaper.

The Paris-based LIBERATION newspaper said the document, which 
was obtained from a European Commission official, reveals that the 
10 million ton limit on oilseeds production offered to the U.S. by 
MacSharry would require 21 percent of land to be taken out of 
production compared to the 15 percent under CAP.  Further, if the 
U.S is successful in its demand for an output ceiling of 9 million tons, 
"set-aside" land could reach 38 percent.

MacSharry briefly resigned as EC agriculture negotiator last week, 
claiming that Commission President Jacques Delors was blocking a 
deal.  Delors and others had accused MacSharry of offering more 
concessions than he was authorized in searching for a deal.  The 
Uruguay Round of the General Agreement on Tariffs and Trade 
(GATT) is stalled over the EC and U.S. failure to reach an agriculture 
agreement.  The U.S. recently announced it would impose $300 
million in retaliatory tariffs on European products if the EC does not 
reduce its farm subsidies by December 5.

Meanwhile, the heads of 27 leading European industrial companies 
called on Delors to seek an EC-U.S. accord on agriculture.  "Business 
leaders do not find it acceptable that the prospects of recovery for 
the whole range of manufacturing and service industries should be 
endangered by the continued failure to reach a mutually satisfactory 
agreement on trade in agriculture products," members of the 
European Round Table (ERT) told Delors in a meeting.

But European farm leaders applauded Delors for his "clear and 
unbending" position in EC-US negotiations. The farm lobby 
organization COPA called on Delors to continue "to defend the 
interests of agriculture to the benefit of the whole Community."  

Source: David Gardner, "Dispute Over Trade Talks Revived By Leaked 
Report," FINANCIAL TIMES, November 16, 1992, p. 1; "European 
Farm, Industry Chiefs Pull on Opposite Ends," REUTER, November 16, 
1992.
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DUNKEL MEETS US OFFICIALS TODAY

GATT Director-General Arthur Dunkel will talk with Bush 
Administration officials today in an attempt to settle the long-
running dispute over European farm payments.  Dunkel, who arrived 
in Washington Sunday after talks with European officials, will meet 
with U.S. Trade Representative Carla Hills and Agriculture Secretary 
Edward Madigan.

"I think there is now a real political will (to reach a solution) and I 
hope this time it will work," Dunkel said.  He said he would tell USTR 
Hills that the EC seemed ready to reach an agreement.  EC External 
Affairs Commissioner Frans Andriessen and Agriculture 
Commissioner Ray MacSharry will meet with Hills and Madigan 
Wednesday to work on a compromise.

Source: Peter Blackburn, "EC Farm Meeting to Review World Trade 
Deal Prospects," REUTER, November 15, 1992; Robert Trautman, 
"Talks to Open Amid Signs Trade War May Be Averted," REUTER, 
November 16, 1992.
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GATT THREATENS WORLD ENVIRONMENT, GROUPS SAY

While politicians and business officials are promoting the economic 
benefits of GATT, environmentalists say it may be the single-greatest 
threat to laws protecting the world's environment.  Roger Wilson of 
Greenpeace in Amsterdam argues that because GATT endorses free 
trade as its number one priority, environmental laws will be 
overturned.  "We have already seen situations where environmental 
regulations have been determined by GATT to be illegal barriers to 
trade and we fear this will be the trend for the future," Wilson said.

As evidence, environmentalists point to a GATT ruling that U.S. bans 
on tuna imports caught in dolphin-unsafe methods are unfair trade 
barriers.  They say that ruling could set a dangerous precedent which 
could stifle efforts of other countries to protect animal and plant 
species.

Most environmentalists welcome the impasse in concluding the 
Uruguay Round of GATT as an opportunity to remind people of 
GATT's environmental consequences.  "As long as we don't have a 
massive trade war, then I think this delay could be beneficial," said 
Charles Arden-Clarke of the World Wide Fund for Nature in 
Switzerland.

Source: Ben Hirschler, "Why GATT Makes Greens See Red," REUTER, 
November 16, 1992.
_________________________________________________________
NAFTA News Summary
_________________________________________________________
NAFTA COULD END CLINTON'S "HONEYMOON" WITH CONGRESS

An article in Saturday's WASHINGTON POST asserts that if Bill Clinton 
tries to force the North American Free Trade Agreement on skeptical 
Democrats, "whatever honeymoon he  enjoys with Congress could 
turn sour early."

A number of Democrats are opposed to the trade pact, believing it 
will lead to U.S. job losses because of cheaper labor and looser 
environmental enforcement in Mexico.  "We just had a jobs election - 
that was clearly the overriding issue," said Senator Donald W. Riegle 
Jr. (D-Michigan), a strong opponent of NAFTA.  "Something as 
potentially destabilizing as this (agreement) has to be dealt with 
very carefully."

Clinton has said he supports NAFTA if "supplemental agreements" on 
the environment, labor standards and import safeguards are 
submitted to Congress. He told Mexican President Carlos Salinas de 
Gortari that he would not try to renegotiate the trade pact itself.

Source: Guy Gugliotta, "North American Free Trade Pact Should 
Shorten Clinton Honeymoon; Some Democrats in Congress, Labor 
Oppose Accord as Job Destroyer," WASHINGTON POST, November 14, 
1992.
_________________________________________________________
REPORT TRIES TO EASE PUERTO RICAN CONCERNS ABOUT NAFTA

Puerto Rican government officials and economists have expressed 
concern that a more competitive Mexico under the North American 
Free Trade Agreement would reduce Puerto Rico's earnings from 
exports.  But a study commissioned by the island's development 
bank concludes that, if NAFTA were implemented, Puerto Rico would 
enjoy advantages over Mexico in pharmaceuticals, electronic 
components and accessories, professional instruments, electronic 
computing and rum distilling.  The report, undertaken by KPMG Peat 
Marwick of the U.S., said Puerto Rico will have a more difficult time 
competing in other sectors such as clothing, textiles, tuna and leather 
footwear industries.

Source: Canute James, "Puerto Rico Sees Gains in NAFTA," FINANCIAL 
TIMES, November 13, 1992, p. 3.
_________________________________________________________
Events:

The American Conference Institute has organized a two-day 
conference December 2-3 in Washington, DC to look at "business 
implications and legal rules" for the North American Free Trade 
Agreement.  Among the speakers are U.S. Trade Representative Carla 
Hills, Mexican Secretary of Commerce and Industry Jaime Serra-
Puche and Canadian Trade Minister Michael Wilson.  For a complete 
agenda or a registration form, call (416) 926-8200.  The registration 
fee is only $895 per person.  For government employees and 
academics the fee is $595.
_________________________________________________________
Other On-line Conferences:

trade.strategy - a discussion of trade issues
trade.library - a repository of trade information
eai.news - a news summary of Latin American trade topics
susag.news - a news summary of sustainable agriculture issues

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
_________________________________________________________
Newsgroups: misc.activism.progressive,alt.activism