From: harelb@math.cornell.edu (Harel Barzilai)
Subject: TRADE NEWS 8/17 -- BUSH ADMINISTRATION'S SECRECY ON NAFTA CHALLENGED 
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: ?
Date: Thu, 20 Aug 1992 03:46:13 GMT


Topic 144       TRADE.NEWS 8-17-92 
kmander Updates on GATT & NAFTA Negotiations     1:41 pm  Aug 17, 1992 
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TRADE NEWS BULLETIN 
Monday, August 17, 1992 
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NAFTA News Summary 
_________________________________________________________ 
BUSH ADMINISTRATION'S SECRECY ON NAFTA CHALLENGED 

U.S. Senator Daniel Patrick Moynihan (D-New York) issued a  
statement criticizing the secrecy surrounding the details of the  
North American Free Trade Agreement.  "If NAFTA is such a  
good deal for the American people, why does the administration  
insist that it would be a threat to our national security if they  
were allowed to read it?" he asked.  U.S. Trade Representative  
Carla Hills has said the full text would be released early next  
month.  Moynihan said there is no reason to wait, arguing the  
administration is keeping the text secret so it can "parcel out the  
information as they please."  House Majority Leader Richard  
Gephardt (D-Missouri) called on Bush to declassify the text. 

Source: Stuart Auerbach, "Secrecy Is Challenged On Trade  
Agreement," WASHINGTON POST, August  15, 1992. 
_________________________________________________________ 
NAFTA'S UNCERTAIN FUTURE IN CANADA 

The North American Free Trade Agreement is expected to pass  
easily through Canada's Parliament where Prime Minister Brian  
Mulroney's  Conservative Party has a sizable majority.  But as  
the Conservatives and Mulroney continue to sag in opinion polls,  
the future of the agreement is in jeopardy.   

Opposition leaders have promised to make NAFTA an important  
issue in the next federal election, which must be held by  
November 1993.  Jean Chretien, leader of the Liberal Party and  
ahead in the polls with 44 percent of the vote, says if elected he  
will renegotiate the trade agreement.  Audrey McLaughlin, head  
of the New Democratic Party and polling 16 percent, says she  
would pull out of the treaty completely.  Mulroney says he's  
confident he can regain the public's support, but polls reveal he  
has only 12-16 percent of the vote when stacked against his  
rivals. 

In defense of NAFTA, Canadian Trade Minister Michael Wilson  
has argued that NAFTA will benefit Canada.  "This isn't just a  
trade deal.  It's a prosperity deal," he said.  "Canadians should be  
confident that this agreement will eventually create more jobs,  
better jobs," he said.  Wilson promoted the agreement in  
speeches in Vancouver, Toronto, Montreal and Ottawa. 

The TORONTO STAR, Canada's largest newspaper, ran an editorial  
Thursday criticizing the Canada-U.S. free trade deal as well as  
the NAFTA.  "Canadians are still wondering what became of the  
free-trade payoff they promised in 1988," the newspaper states.   
"Before (Mulroney) enacts another deal with the Americans and  
Mexicans, he should first seek a mandate from Canadians." 

Source: Jeffrey Ulbrich, "Canada-Free Trade," AP, August 15,  
1992; "Canada's Wilson Takes NAFTA Sales Pitch On The Road,"  
REUTER, August 14, 1992. 
_________________________________________________________ 
LATIN AMERICA'S MIXED REACTIONS TO NAFTA 

The announcement of a completed NAFTA agreement led to  
mixed reactions in Latin America.   

Chile, which appears to be next in line for a free trade deal,  
welcomed the announcement, saying it clears the way for Chile  
to start talks immediately, and that it hopes to join the pact next  
year. 

Colombia also greeted NAFTA warmly.  President Cesar Gaviria  
has indicated that Colombia is seeking to establish free trade  
agreements with Mexico, Chile and eventually with the U.S.   
Colombian exporters hope to gain access to NAFTA through  
Mexico. 

Argentine and Venezuelan government officials also appeared  
receptive to the announcement, hoping that a hemispheric free  
trade zone will soon follow. 

Brazil and Central American countries were much less  
enthusiastic.  Brazilian exporters said NAFTA could decrease the  
volume of its trade with the U.S.  Coffee exporters, orange juice  
manufacturers and the auto industry expressed much concern  
about the deal. 

El Salvador Foreign Minister Jose Manuel Pacas said access to the  
North American market would stimulate El Salvador's production  
and productivity, but he expressed concern that Central America  
could suffer economically if greater access is not obtained.   
Honduras Economy Minister also warned of problems, saying  
that investment could drift from Central America to Mexico. 

Source: Paul Mylrea, "NAFTA Trade Pact Causes Mixed Feelings  
In Latin America," REUTER, August 14, 1992. 
_________________________________________________________ 
__ 
GATT News Summary 
_________________________________________________________ 
US-EC TRADE DEADLINE EXPIRES TUESDAY 

The August 18 deadline for settling the U.S.-EC trade dispute  
over oilseeds subsidies expires tomorrow.  The U.S. had promised  
to impose punitive tariffs on $1 billion worth of EC imports if an  
accord were not reached by the deadline, which would likely set  
off a trade war.  The EC has indicated it would retaliate if the U.S.  
follows through with the tariffs, but U.S. trade sources say they  
doubt either side will act immediately.  "I think the deadline is  
probably going to come and go," the source said.  "They are  
talking in Geneva." 

EC and U.S. negotiators have met many times this summer to  
discuss the U.S. complaint that EC oilseed subsidies violate  
General Agreement on Tariffs and Trade (GATT) rules.  GATT  
panels have ruled in favor of the U.S. twice.  Most trade sources  
said they expect the negotiations to continue at least until after  
France's September 20 referendum on closer European unity. 

Source: "U.S., EC Expected to Keep Talking on Oilseeds," REUTER,  
August 14, 1992. 
_________________________________________________________ 
LATIN AMERICAN COUNTRIES MEET OVER EC BANANA POLICY 

Eight Latin American trade and agriculture ministers will meet  
in Bogota, Colombia Tuesday to establish a joint position toward  
the EC's banana policy.  In a statement, Colombia's Foreign Trade  
Ministry said ministers from Costa Rica, Ecuador, Guatemala,  
Honduras, Nicaragua, Panama, Venezuela and Colombia will "seek  
a joint line of action towards the common banana policy which  
the European Community plans to adopt from 1993 and which is  
considered harmful to these nations."  The statement said the EC  
plan, which sets a basic 1993 quota for Latin American bananas  
of two million tons, threatens the conclusion of the Uruguay  
Round of GATT talks.  The EC plan is designed to protect the  
banana exports of former colonies in Africa, Asia and the  
Caribbean. 

Source: "Latin American Banana Producers Seek Joint Stance,"  
REUTER, August 14, 1992. 
_________________________________________________________ 
Other Trade News 

1. The U.S. and China will begin high-level trade talks this week  
in Beijing.  The U.S. has threatened to place high tariffs on a wide  
range of Chinese goods if China does not agree to open its market  
to U.S. products by October 10.  Ira Wolf, the new Assistant U.S.  
Trade Representative, told the U.S. Senate several weeks ago that  
China "like many Third World countries...has erected multiple,  
overlapping non-tariff barriers, has prohibitively high tariffs in  
many instances, and uses them to protect weak domestic  
industries and control imports."  Many members of Congress  
have called for trade sanctions against China until civil rights  
reforms are made in the country, but the Bush Administration  
has rejected such appeals.  Source: "Crucial Round of U.S. China  
Trade Talks to Resume," REUTER, August 17, 1992. 
_________________________________________________________ 
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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