From: harelb@MATH.CORNELL.EDU (misc.activism.progressive co-moderator)
Newsgroups: alt.activism,misc.headlines,talk.politics.misc
Subject: NAFTA WILL NOT DECREASE FOOD PRICES FOR CONSUMERS
Date: 21 Aug 92 23:38:39 GMT
Organization: misc.activism.progressive on UseNet ; ACTIV-L@UMCVMB

[Via misc.activism.progressive from PeaceNet's trade.news]
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Topic 146       TRADE.NEWS 8-19-92 
kmander Updates on GATT & NAFTA Negotiations    12:52 pm  Aug 19, 1992 
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TRADE NEWS BULLETIN 
Wednesday, August 19, 1992 
_________________________________________________________ 
NAFTA News Summary 
_________________________________________________________ 
NAFTA WILL NOT DECREASE FOOD PRICES FOR CONSUMERS 

Since the announcement of a North American Free Trade  
Agreement, U.S. officials have touted potential lower prices to  
U.S. consumers as one of the many benefits of the agreement.   
However, according to several analysts who have studied the  
still secretive text, food prices could rise overall.   

Forty-five percent of the $5.5 billion in farm trade between the  
U.S. and Mexico will face special quotas and other provisions for  
15 years, which will restrict competition and increase prices,  
according to sources.  A spokeswoman for the U.S. trade  
representative's office said the office had not studied the  
possible savings to consumers in particular sectors.  "Our job is to  
get barriers down so U.S. companies can be more competitive.   
We can't make companies pass on savings to consumers, but that  
would be a good benefit." 

While some people criticize NAFTA for not going far enough to  
open all sectors to free trade and lower prices, others are trying  
to protect the industries that would be suffer under NAFTA.   
Mark Ritchie, executive director of the Institute for Agriculture  
and Trade Policy, criticized the elimination of U.S. restrictions on  
Mexican cattle imports.  Ritchie predicts the U.S. would face 10  
times more cattle shipments under NAFTA, which would send  
cattle prices plummeting in the U.S. and harm producers of dairy  
goods, cattle and corn. 

U.S. National Farmers Union President Lee Swenson said the NFU  
will not pass judgment on NAFTA until all the details are  
released.  Swenson expressed concern over the agreement's  
impact on dairy, sugar and peanut growers, and cattle producers.   
The current agreement allows the  U.S. to maintain tariffs on  
orange juice, sugar, peanuts, dairy, fruits and vegetables for 10  
to 15 years.  

Source: Bob Davis, "Trade Pact Would Curb Competition in Farm  
Products, Costing Consumers," WALL STREET JOURNAL, August  
19, 1992, p. A2; Don Peterson, "Midwest Farm Report," UPI,  
August 18, 1992. 
_________________________________________________________ 
Other Trade News 

1.  Leaders of 10 African nations signed the Treaty of the  
Southern African Development Community (SADC), designed to  
establish mechanisms for cooperation and integration among the  
community, which has a population of 80 million.  The countries  
signing the deal were Angola, Botswana, Lesotho, Malawi,  
Mozambique, Namibia, Swaziland, Tanzania, Zambia and  
Zimbabwe.  Source: "African Leaders Sign Treaty," FINANCIAL  
TIMES, August 18, 1992, p. 3. 
_________________________________________________________ 
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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