From: Andrew Lang <lang@igc.apc.org>
Subject: TRADE.NEWS 11-17-92
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: ?
Date: Wed, 18 Nov 1992 02:01:39 GMT

/* Written  3:43 pm  Nov 17, 1992 by kmander@igc.apc.org in igc:trade.news */
/* ---------- "TRADE.NEWS 11-17-92" ---------- */

TRADE NEWS BULLETIN
Tuesday,  November 17,  1992
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GATT News Summary
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FRENCH CONCERNS BRUSHED ASIDE BY EC, TALKS TO 
RESUME

EC Farm Commissioner Ray MacSharry yesterday called French 
claims that getting a U.S. - EC farm deal would require EC 
farmers to idle more than one third of their land "absolute 
nonsense." Other EC ministers gave MacSharry the go-ahead to 
resume talks despite French objections that a deal would be 
inconsistent with the EC's Common Agricultural Policy (CAP).  
British Farm Minister John Gummer said,  "There was a very 
clear agreement by the ministers that they want a successful 
conclusion in the (General Agreement on Tariffs and Trade)."  
French Farm Minister Jean-Pierre Soisson disagreed with 
Gummer's assessment of the talks, calling it "political 
manipulation."

EC farmers presented the farm ministers with bags of wheat to 
protest what they fear will be an unfair deal.  "The proposed 
deal is completely unbalanced in favor of big farmers who 
produce the surpluses dumped on world markets,"  said Paul 
Nicholson of the European Farmers Coordination,  an 
organization representing family-owned farms in 11 countries.  
The farmers are concerned that cereal substitutes from the U.S. 
will not be adequately addressed in negotiations,  tipping the 
deal in favor of the U.S.

GATT chief Arthur Dunkel met yesterday with U.S. Trade 
Representative Carla Hills and Agriculture Secretary Edward 
Madigan in preparation for Wednesday's resumption of talks.  
Dunkel claimed he would serve not as a mediator but as a 
representative of third parties in the GATT negotiations stalled 
by the dispute.  In the meeting,  Madigan sipped French white 
wine of the sort the U.S. has threatened with 200% duties if the 
talks fail.  Dunkel ordered a California red.

Source:  Jeremy Lovell, "France Tries But Fails to Stall EC-US 
Talks,"  REUTER,  November 16,  1992;  "French Minister Says 
Deal With U.S. Would Harm EC," REUTER,  November 17,  1992;  
"EC Farmers Give Farm Ministers Wheat in GATT Deal Protest,"  
REUTER,  November 17, 1992;  "GATT Chief in U.S. Talks,"  NEW 
YORK TIMES,  November 17,  1992; "U.S. Farm Secretary Sips 
French Wine at Trade Meet,"  REUTER,  November 16,  1992.  
__________________________________________________
EC TO COMPLETE BANANA DEBATE

EC farm ministers were scheduled to complete their debate on 
a new trade regime for bananas today.  Germany is among the 
opponents of a proposal which would impose quotas designed 
to favor bananas produced in the EC,  Africa, the Caribbean and 
the Pacific over cheaper bananas from Latin America.  Many of 
the favored countries are former colonies  and produce 
bananas in smaller production units than the Latin American 
countries.  France,  Spain and Britain are among the proponents 
of the plan,  which honors commitments made to banana-
dependent developing countries under the Lome Convention.  
According to sources, no progress was made in talks held 
Monday.

Source:  "EC Farm Ministers Mark Time on Bananas,"  REUTER,  
November 16,  1992.
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JAPAN KEEPS RICE IMPORT BAN, U.S. MAY CHALLENGE

Japan will increase rice production to build its reserves up to 
acceptable levels rather than lift its rice import ban.  Japan 
defends the ban on national food security grounds,  a position 
that could create an obstacle to the conclusion of the GATT 
talks even if the U.S. and EC resolve their differences on 
agriculture subsidies.  The U.S. Rice Millers Association may file 
a complaint against the ban if the GATT talks fail.

Source:  "Japan to Keep Rice Import Ban,  U.S. May Move,"  
REUTER,  November 13, 1992. 
__________________________________________________
NAFTA News Summary
__________________________________________________
MULRONEY TO WORK WITH CLINTON ON FAST NAFTA 
APPROVAL

Canadian Prime Minister Brian Mulroney said President-elect 
Bill Clinton has expressed support for the Canadian-U.S. free 
trade agreement negotiated in 1989.  Mulroney said, "We will 
now be working with the new Clinton administration to ensure 
the NAFTA is implemented as quickly as possible."

Although Mulroney said the North American Free Trade 
Agreement will aid the Canadian economy, the pact is 
unpopular among Canadians, where the U.S.- Canada free trade 
agreement is blamed for the loss of hundreds of thousands of 
jobs.  Higher prices for drugs is one of the effects Canadians 
would feel under the NAFTA.  An intellectual property rights 
provision of the agreement would require harmonization of 
Canadian drug patenting laws with those in the U.S., which 
allow companies to produce a drug exclusively for 17-20 years 
rather than the 7-10 allowed under Canadian law.  The 
resulting rise in prices will further increase costs for Canada's 
already financially strapped universal health care system.

Source:  "Canada to Work with Clinton on Fast NAFTA 
Approval,"  REUTER,  November 16,  1992;  Milt Freudenheim, 
"For Canada,  Free Trade Accord Includes Higher Prices for 
Drugs,"  NEW YORK TIMES,  November 16,  1992.
__________________________________________________
Other Trade News
__________________________________________________
WEB OF PACIFIC TRADE ALLIANCES COMPLICATED 

Amid doubts over the future of GATT talks, countries around 
the Pacific rim are looking to regional alliances to secure their 
places in the world economy.  Australia has said it would back 
Japan in any future trade dispute with the U.S. at the same 
time as it promotes the formation of the Asia Pacific Economic 
Co-operation (APEC) process.  APEC includes the U.S., Canada,  
Japan, Taiwan, Hong Kong and China as well as Southeast Asian 
nations working to set up the ASEAN Free Trade Area (AFTA) 
by 2008.  The ASEAN countries, Brunei, Indonesia, Malaysia, 
the Philippines, Singapore and Thailand, would not include 
Australia in the AFTA.  Indonesian officials have complained 
that Apec is overly dominated by the U.S.  To be implemented, 
the AFTA will have to overcome problems created by the 
volatility of several ASEAN currencies.  

Japan has chosen to stay distant from regional agreements as it 
concentrates more on North American and European markets, 
while the U.S. is seeking to extend the NAFTA east as well as 
south.  The economies of China and South Korea are more 
linked in spite of recent protectionist moves by South Korea.  
Meanwhile, the recent election of Bill Clinton makes the future 
of relations between the U.S. and China uncertain. Clinton has 
threatened to revoke China's Most Favored Nation status if 
China does not address human rights concerns. 

Source:  Kevin Brown,  "All Eyes on GATT Outcome," FINANCIAL 
TIMES, November 16,  1992;  Ho Kay Tat, "Currency Volatility 
May Scuttle ASEAN Free Trade,"  REUTER,  November 13, 1992;  
Gerald F. Seib, "Clinton Could Get Tough With China Without 
Hurting Ties, Analysts Say," WALL STREET JOURNAL, November 
17, 1992; Damon Darlin, "No Trade Relationship With China Is 
Changing South Korea's Economy,"  WALL STREET JOURNAL, 
November 17,  1992. 
__________________________________________________
Other On-line Conferences:

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

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The Institute for Agriculture and Trade Policy (IATP)
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Telephone:(612)379-5980 Fax:(612)379-5982 
E-Mail:kmander@igc.org
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