From: harelb@math.cornell.edu (Harel Barzilai)
Subject: NAFTA: National and International Reactions
Followup-To: alt.activism.d
Originator: daemon@pencil.cs.missouri.edu
Organization: misc.activism.progressive on UseNet ; ACTIV-L@UMCVMB
Date: Sun, 16 Aug 1992 06:38:53 GMT

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Topic 142       TRADE.NEWS/NAFTA SPECIAL 8-13-92 
kmander Updates on GATT & NAFTA Negotiations     7:48 pm  Aug 13, 1992 
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TRADE NEWS BULLETIN  
Thursday, August 13, 1992 
_________________________________________________________ 
NAFTA News Summary 
_________________________________________________________ 
REACTIONS TO NAFTA MIXED 

Reaction to the announcement of a completed agreement was  
varied.  In general, economists say that the pact should help the  
economies of the three countries in the long run, but many also  
believe it could widen the growing gap between the wealthy  
and the poor.  "This is not the silver bullet that is going to solve  
all of our economic problems.  But it's a good starting point,"  
said Willard Workman of the U.S. Chamber of Commerce.   

Jeff Schott of the Institute for International Economics  
countered that "the impact on overall growth won't be that  
great." 

Labor 

Much of the U.S. reporting on the agreement has focussed on  
how the NAFTA will effect the U.S. labor force.  President Bush  
insists NAFTA will create 20,000 jobs for every $1 billion in  
exports.  James Coons, president of Huntington Bancshares  
believes NAFTA is "going to be a net benefit overall, if it stays  
in effect."  Texas Governor Ann Richards said the agreement will  
put her state "in the geographic center of a trade zone and make  
South Texas the front door to a $6 trillion market." 

Other reaction has been much less optimistic.  Senator John  
Glenn (D-Ohio) said he was concerned with the drift of  
investment dollars south of the border. "Investment means jobs  
and we need both in this country," he said.  William Bywater of  
the AFL-CIO agreed with Glenn.  "American laborers will be  
hurt by over-the-border job flight and displacement of  
families," he said. 

The Environment 

President Bush maintains that U.S. environmental standards will  
be preserved under NAFTA and that, eventually, standards will  
be harmonized upward.  Bush said the agreement "encourages  
all three countries to seek the highest possible standards."   

Environmentalists are skeptical, however.  John Adams, of the  
Natural Resource Defense Council, said he believed NAFTA  
lacked an enforcement and funding strategy for correcting some  
of Mexico's environmental problems, especially in the border  
region.  Lori Wallach, of Public Citizen, said, "What the  
Administration has done is just rank with cynicism.  They've  
basically put some environmental frosting on the same old  
rotten piece of bread." 

Agriculture 

NAFTA will eliminate tariffs on agricultural commodities traded  
between the three countries within 15 years.  The Bush  
Administration said the removal of tariffs will increase the  
supply of agricultural commodities and lower prices consumers  
have to pay, but these provisions are being met with criticism.   

Florida Agricultural Commissioner Bob Crawford said fruit and  
vegetable operations in his state are "top of the list of segments  
of the American economy being sold-out."  He predicted that  
thousands of jobs would be lost in southern Florida, including  
15,000 in the sugar and vegetable industries.  Crawford also  
expressed concern about news that a U.S. official who helped  
negotiate the sugar deal in NAFTA has decided to leave his post  
to become a sugar buyer for Kraft. 

Energy 

The Mexican government will not privatize Pemex, the  
nationally owned oil company, nor will U.S. and Canadian  
companies be allowed to explore for oil, operate refineries or  
open gas stations in Mexico.  But, investment will be allowed in  
other Mexican petrochemical production areas and natural gas  
trade between the three will increase.   

Negotiators say that the energy sectors of all three countries  
will benefit.  Bill Elton of Canada West Foundation said, "There is  
a potential to export pipeline technology, drilling techniques  
and petroleum services across the board."  U.S. Energy Secretary  
James Watkins echoed Elton's sentiments and called the NAFTA  
"a giant step forward in the creation of a North American  
integrated energy market." 

Source:  Rich Miller, "NAFTA Will Aid U.S., But Gains Will Be  
Uneven," REUTER, August 12, 1992; "Bush Says Free-Trade  Pact  
Means Jobs; Labor Scoffs," UPI, August 13, 1992; "Florida  
Agriculture Commissioner Slams Free Trade," UPI, August 12,  
1992; Donna Smith, "Jobs To Be The Focus In U.S. Debate On  
NAFTA," REUTER, August 12, 1992; "Reaction Mixed to Free  
Trade Agreement," UPI, August 13, 1992; Harihar Krishnan,  
"Texas Could Benefit Immensely From NAFTA," UPI, August 12,  
1992; "Pemex Open Wider But Not For Sale," FINANCIAL TIMES,  
August 13, 1992; "DOE Says NAFTA Offers Big Chances for U.S.  
Firms," REUTER, August 12, 1992; Chris Reese, "Canadian Energy  
Sector Sees Long Run NAFTA Benefit," August 12, 1992; Andrea  
Shalal-Esa, "Green Groups Say NAFTA Insufficient on  
Environment," REUTER, August 12, 1992; Douglas Levy, "NAFTA  
Could Be Boon for Polluters," UPI, August 12, 1992. 
_________________________________________________________ 
REACTIONS FROM OTHER COUNTRIES 

Reaction from other regions of the world has proved to be as  
mixed as domestic reaction.  Filipino Finance Secretary Ramon  
del Rosario expressed confidence the goods from his country  
could compete with those from North America.  Industrialized  
Asian countries like Malaysia, Singapore and Thailand are  
concerned that U.S. investment in their countries will now move  
to North America.  "Although the single European Market and  
NAFTA are claimed to be non-protectionist, they will cause their  
business men to look inward at least for the short term," said  
Lin Boon Heng, Singapore's trade minister. 

Japan also greeted the NAFTA with caution and said that the  
accord is inconsistent with the free trade policies espoused by  
countries such as the U.S.  

The EC also expressed caution over the announcement of a  
completed NAFTA.  One European commissioner said that the EC  
welcomes the creation of free trade zones as long as they follow  
the rules of GATT.  "The rules of GATT do not allow a free trade  
zone to apply more restrictive rules to third countries, which is  
why we welcome them in general," the official said. 

Source:  "Philippines Not Worried By NAFTA Trade Accord,"  
REUTER, August 13, 1992; "Asia Fears NAFTA May Harm Inward  
Investment," REUTER, August 13, 1992; Scott Miller, "Japan  
Views North American Trade Pact With Suspicion," REUTER,  
August 13, 1992; "Commission Cautiously Welcomes NAFTA  
Accord," REUTER, August 14, 1992. 
_________________________________________________________ 
Produced by: 
Kai Mander and Michelle Thom   
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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