From: Andrew Lang <lang@igc.apc.org>
Subject: TRADE.NEWS 11-10-92
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: ?
Date: Wed, 11 Nov 1992 00:58:38 GMT

/* Written  4:01 pm  Nov 10, 1992 by iatp@igc.apc.org in igc:trade.news */
/* ---------- "TRADE.NEWS 11-10-92" ---------- */

TRADE NEWS BULLETIN
Tuesday, November 10, 1992
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GATT News Summary
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EC SPLITS HINDER OILSEED DEAL, DUNKEL TO INTERVENE

European Community ministers yesterday called for the immediate 
resumption of talks with the U.S. on farm subsidies and held off from 
drawing up a list of U.S. goods to hit with retaliatory measures. The 
U.S. said last week it will impose 200% tariffs on European white 
wine,  rapeseed oil and wheat gluten if a deal on oilseeds is not 
reached by December 5.  U.S. soybean growers fear their products 
would be targeted if the EC retaliates.

Leading trade envoys indicated yesterday that General Agreement 
on Tariffs and Trade (GATT) chief Arthur Dunkel appears likely to be 
given formal approval today by the Trade Negotiations Committee 
(TNC)  to intervene in the dispute.  The TNC is  made up of top 
envoys from the 108 GATT member states.

The GATT has twice ruled against the EC's subsidy policy,  but 
FEDIOL,  a Brussels-based seed crushers and oil processors 
federation,  says the GATT rulings don't stipulate production volume 
cuts.  The U.S. is demanding guaranteed volume production cuts, 
while the EC prefers to make cuts in acreage.  FEDIOL, a large buyer 
of U.S. soybeans,  contends the EC has already made considerable 
concessions to the U.S.  While U.S. soybean growers blame their 
falling market share in Europe mainly on EC subsidies,  part of the 
decrease is also due to increased European imports from countries 
such as Brazil.

U.S. Department of Agriculture spokesman Roger Runnigan said U.S. 
negotiators are ready to meet with the EC any time,  and that "We do 
hope that whoever is the (EC) negotiator has the authority that 
parallels that which secretary Madigan has from President Bush."  
Madigan claims unlimited authority to strike a deal.  

Deep divisions remain in the EC over how far to go in order to reach 
an agreement.  Spain,  Belgium,  Portugal and Greece all rallied 
behind France's stance favoring retaliation over concessions to the 
U.S. in Monday's meeting of EC ministers.  The UK,  Germany,  the 
Netherlands and Denmark were the countries most opposed to 
retaliation.  

Divisions between industry and agriculture cross borders.  Although 
German and French leaders disagree,  the German farm minister has 
been one of France's strongest allies in opposing U.S. demands.  The 
EC farmers body,  COPA, said the EC should stand united against 
further concessions.  Meanwhile, a German industry group head said, 
"... there is a threat that European industry could be held hostage to 
mistakes in EC agriculture policy."  

The international reaction to the U.S.-EC row has been impatience 
and worry over the effects of a trade war.  Canada criticized the U.S. 
for acting outside the GATT rules in leveling sanctions,  and Japan 
said the EC should not take counter-measures.  U.N. Conference on 
Trade and Development (UNCTAD) chairman Juan Manuel Santos said 
"A trade war would be suicidal for the industrialized countries ... But 
for the developing world a trade war would be catastrophic ..."  

U.S. President-elect Bill Clinton has not made clear what his stance on 
the oilseed negotiations would be,  but on agriculture in general has 
said,  "Until the EC and others play by fair trade rules,  I would play 
by their rules."

Source:  Frances Williams,  David Gardner,  "GATT Chief Dunkel to 
Intervene in Europe-U.S. Row,  FINANCIAL TIMES,  November 10,  
1992;  Robert Evans,  "GATT Envoys Mandate Dunkel Act to Save 
Trade Talks,"  REUTER,  November 9,  1992;  Craig Forman,  Peter 
Gumbel, "Trade Talks Expose Disarray in the EC,"  WALL STREET 
JOURNAL,  November 10,  1992;  Peter Blackburn,  "FOCUS - EC Wants 
GATT Talks,  France Softens Stance,"  REUTER,  November 9,  1992;  
"EC Wants to Avoid Provoking Trade War With U.S.,  UP,  November 
10,  1992;  "EC Oilseed Lobby Says Wants GATT,  US Must Move Too,"  
REUTER,  November 11,  1992;  Richard Murphy,  "German Industry,  
Slamming Delors,  Calls for Trade Deal,"  REUTER,  November 9,  1992;  
"Trade,  Infrastructure Need Quick Action,"  JOURNAL OF COMMERCE,  
November 5,  1992;  Sharon Schmickle,  "Soybean Growers Wary of 
Sanctions,"  MINNEAPOLIS STAR-TRIBUNE,  November 7,  1992;  " EC 
Should Not Retaliate vs U.S. on Oilseeds - MITI,  REUTER,  November 
9,  1992;  "Canada Disapproves if U.S. Trade Sanctions,"  UP,  
November 6,  1992,  "U.N. Body Says Trade War Would Crush Poor 
Nations,"  REUTER,  November 9,  1992.
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CANADIAN BREWERS WANT GATT ARBITRATION

Some Canadian brewers are calling for binding arbitration under 
GATT to end their beer trade war with the U.S.  The dispute started 
when the U.S. imposed retaliatory duties on Canadian beer for an 
environmental levy on cans it claimed was discriminatory.  More U.S. 
beer than Canadian beer is sold in cans.  Third party arbitration of 
the dispute could occur under the U.S.-Canada Free Trade Agreement 
rather than GATT.

Source:  Jason Szep,  "Canadians Push to Cap Costly Beer Trade War,"  
REUTER,  November 6,  1992. 
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NAFTA News Summary
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BORDER POLLUTION MONITOR FEARS NAFTA

Currently allotted a $250,000 annual budget to enforce 
environmental standards over an 8,800 square mile region along the 
U.S.-Mexico border,  Hector Villa is concerned about the prospect of 
increased industrial growth resulting from the North American Free 
Trade Agreement (NAFTA) without adequate funds to control it. Villa 
is the district manager for the Texas Water Commission,  the state's 
main evironmental enforcement agency.  His inspectors currently 
face massive levels of illegal dumping without the protective gear to 
handle toxic materials.  The minimal level of environmental 
regulation in the region is indicated by the fact that more than 25 
years after maquiladoras have begun operating on the Mexican side 
of the border,  no agency does testing for heavy metals or other 
industrial effluents in the Rio Grande.

Source:  Robert Tomsho,  "Environmental Posse Fights Lonely War 
Along the Rio Grande,"  WALL STREET JOURNAL,  November 10,  
1992. 
__________________________________________________
Other Trade News
1. China has threatened to stop buying planes from Boeing if the 
Clinton Administration revokes China's most-favored-nation trading 
status.  Clinton has said he would approve the preferential status -- 
which allows goods otherwise facing 70% tariffs to enter the U.S. with 
3% tariffs --only if China enacts human rights and economic reforms.  
China's threats not to buy Boeing aircraft could influence Clinton's 
decision. Boeing is the largest U.S. exporter.  

Source:  "Boeing Fears Clinton Will Reverse China's Most-Favored-
Nation Status,"  JOURNAL OF COMMERCE,  November 9,  1992. 
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Resources:
1.  A package of reports on the U.S.-EC dispute on agriculture 
subsidies: "GATT:  U.S.-EC Brinkmanship,  Again,"  THIRD WORLD 
ECONOMICS,  October 16-31,  1992,  Published by the Third World 
Network.  87 Cantonment Road, 10250 Penang Malaysia.
__________________________________________________
Produced by:
Hannah Holm   
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

Other On-line Confrences:
trade.strategy - a discussion of trade issues
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eai.news - a news summary of Latin American trade topics
susag.news - a news summary of sustainable agriculture issues
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