From: lang@igc.apc.org (Andrew Lang)
Newsgroups: misc.activism.progressive
Subject: TRADE.NEWS 11-9-92
Date: 10 Nov 92 01:46:04 GMT
Followup-To: alt.activism.d
Organization: ?
Originator: daemon@pencil.cs.missouri.edu

/* Written  2:52 pm  Nov  9, 1992 by kmander@igc.apc.org in igc:trade.news */
/* ---------- "TRADE.NEWS 11-9-92" ---------- */

TRADE NEWS BULLETIN
Monday, November 9, 1992
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GATT News Summary
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DUNKEL MAY MEDIATE US-EC TRADE DISPUTE

General Agreement on Tariffs and Trade (GATT) chief Arthur Dunkel 
will probably receive full authority to serve as a mediator in the 
trade crisis developing between the United States and the European 
Community.  After a Friday meeting with senior officials from more 
than 30 nations, Dunkel scheduled a meeting for Tuesday of the 
Trade Negotiations Committee (TNC) at which he is expected to ask 
GATT member nations for permission to intervene.

Several countries have been asking Dunkel for months to act as a 
mediator in the long-running dispute over agriculture payments, but 
until now Dunkel has refused, hoping the two sides would reach a 
settlement on their own.  Apparently, Dunkel changed his mind after 
the Bush Administration announced it would slap $300 million worth 
of punitive tariffs on EC goods entering the United States.

EC trade ministers met informally near London over the weekend in 
an attempt to avoid an ensuing trade war with the United States.  
The ministers agreed not to announce counter-measures against the 
U.S., and instead urged that new talks on the issue be held.  EC 
foreign ministers will meet today in Brussels; they are also expected 
to refrain from announcing retaliatory measures.

British Prime Minister John Major has been working hard to solve 
the agriculture dispute and complete the Uruguay Round of GATT.  
The British Chambers of Commerce and other business groups have 
urged Major to use Britain's position as EC president to work for a 
breakthrough.  Major and European Commission President Jacques 
Delors talked privately in London Friday and released a joint 
statement calling on agriculture negotiators to "re-engage without 
delay" to reach a compromise.  Major also telephoned German 
Chancellor Helmut Kohl to enlist his support, but Kohl was hesitant to 
put pressure on France.

U.S. and EC officials said they were generally optimistic a settlement 
could be reached.  U.S. Trade Representative Carla Hills said she 
expected the two sides to return to the negotiating table and that a 
trade war would be averted.  Agriculture Secretary Edward Madigan 
sounded less optimistic however, saying the U.S. and EC were still far 
from a deal.  "I must have an honorable deal, a responsible deal, and 
a deal that is going to be perceived as being fair to the entire world, 
and we're not anywhere near that," Madigan said Friday.

EC External Affairs Commissioner Frans Andriessen said he was 
hopeful a pact could be reached but warned that each side must be 
prepared to compromise.  He rejected a German proposal for a 
summit between Major, Delors and U.S. President George Bush, saying 
it would create "an unpredictable situation from which no one will 
benefit."

Source: John Zarocostas, "GATT Director May Intercede in EC-US 
Fight," JOURNAL OF COMMERCE, November 9, 1992, p. 1; Jill Serjeant, 
"EC Trade Ministers Attempt to Revive Trade Talks," REUTER, 
November 7, 1992; Michael Cassell, "Threat of Trade War Upsets UK 
Business," FINANCIAL TIMES, November 7,8 1992, p. 2; "Andriessen 
Says Both Sides Must Compromise on GATT," REUTER, November 8, 
1992;
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US PREPARING SECOND RETALIATION LIST

In announcing punitive tariffs on European products last week, U.S. 
Trade Representative Carla Hills also released a new list of EC goods 
that face new taxes if a settlement is not reached soon.  The new list 
includes tires, perfumes, paper, ceramics, glassware, pipes and tubes, 
records and tapes, and furniture.  

John McInespie, a trade analyst with a Washington, DC law firm, said 
the tariffs will not hurt U.S. consumers.  "The Americans were quite 
clever in this," McInespie said.  "There are American alternatives for 
every one of these (proposed targets)."

Source: Nancy Dunne, "Washington Prepares Its Second Volley," 
FINANCIAL TIMES, November 7,8 1992, p. 2.
_________________________________________________________ 
OTHER TRADE DISPUTES ERUPTING IN GATT

During two days of meetings of the GATT Governing Council, a 
number of issues unrelated to the EC-U.S. dispute over agriculture 
subsidies were raised.

The six-member Association of Southeast Asian Nations (ASEAN) 
called a new Austrian law "a unilateral and discriminatory action."  
The measure, which went into effect September 1, requires that eco-
labels be used to identify tropical timber and products that come 
from "sustainable forests."  Argentina, Canada, Brazil and others 
backed the complaint, noting that the Austrian law does not require 
similar labeling for timber from temperate climates imported into or 
produced in Austria.

Meanwhile, the 22 developing nations that form the International 
Textiles and Clothing Bureau complained that U.S. fees on imported 
cotton products are discriminatory because non-cotton fibers are 
exempt from the duties.  Rufus Yerxa, deputy U.S. trade 
representative, said the tariff, which has been in effect since July 31, 
is intended to help research aimed at increasing domestic 
consumption of cotton.

Mexico criticized the recent Venezuelan move to ban the import of 
Mexican cement.  Venezuela's decision, which resulted in the return 
of a shipment to Mexico, came after Venezuelan producers asked for 
protection from Mexican competition.

Source: John Zarocostas, "Disputes Load GATT Agenda As New Rules 
Prove Elusive," JOURNAL OF COMMERCE, November 9, 1992, p. 14A.
_________________________________________________________

NAFTA News Summary
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CANADIAN FARMERS OPPOSE NAFTA

An editorial in Canada's UNION FARMER newspaper argues the North 
American Free Trade Agreement will not be the "pathway to 
prosperity" that Prime Minister Brian Mulroney promises.  In fact, 
the newspaper states, a document intended to drum up support for 
NAFTA actually "confirms the worst scenarios predicted by free-
trade critics."  The newspaper contends that under NAFTA, fruit and 
vegetable growers "are going to be given between five and ten years 
to adjust to producing commodities at a loss while protective tariffs 
are steadily reduced every year."  

The Canadian government claims that increased opportunities in 
Mexico will make up for any decrease in domestic sales.  But the 
Canadian National Farmers' Union has argued the Canadian 
horticultural sector will not survive without import restrictions that 
prevent corporations from dumping American or Mexican products 
into the Canadian markets at depressed prices.

Source: "NAFTA Not the Promised 'Pathway to Prosperity,'" UNION 
FARMER, November 1992, p. 4.
_________________________________________________________
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

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
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Newsgroups: misc.activism.progressive