TRADE NEWS BULLETIN Volume II Number 16 Wednesday, January 27, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ CANADA DOES NOT EXPECT PROBLEMS WITH SIDE AGREEMENTS Canadian Trade Minister Michael Wilson said he did not expect side agreements between Canada, the United States and Mexico to slow the passage of the North American Free Trade Agreement. Speaking at a ceremony marking the opening of a Canadian consulate in Monterrey, Mexico, Wilson said, "We still have to see what the Clinton Administration has in mind with these supplementary agreements ... If there is any delay, I don't believe it will be significant." President Bill Clinton has expressed support for NAFTA, but he has also stated a desire to establish additional trilateral accords to shield the environment and workers from some of the consequences of NAFTA. The cabinet of Canadian Prime Minister Brian Mulroney will meet this week to decide how to introduce the enabling legislation necessary to implement NAFTA. "We want to proceed as soon as possible," said a spokesperson for Mulroney. Source: "Canada's Wilson Sees Smooth NAFTA Sidecar Talks," REUTER, January 26, 1993; "Canadian Government Planning Passage of NAFTA Laws," REUTER, January 26, 1993; _________________________________________________________ BUSINESS COALITION FORMED TO PROMOTE NAFTA About 400 major trade associations, corporations and business coalitions, including the National Association of Manufacturers, the Business Roundtable and the U.S. Chamber of Commerce, have joined a new group called USA*NAFTA. The coalition, which was initiated by Eastman Kodak and American Express, hopes to raise $2 million to promote NAFTA through a national public education and grass-roots lobbying drive. The businesses apparently did not expect as many Americans to be informed about trade issues. "This is the first time in recent memory that a trade issue has been given this kind of national attention," said Willard A. Workman, a Chamber of Commerce vice president. Anti- NAFTA coalitions, comprised of environmental, labor and consumer advocacy groups, have undoubtedly helped raise public awareness about NAFTA. Besides lobbying members of Congress, USA*NAFTA hopes to reverse public opinion polls showing a majority of Americans in opposition to the trade liberalization pact. The group has already formed alliances with a number of people with close connections to President Clinton. Paula Stern and her husband Paul A. London, who have been advisers to Clinton, recently released a pro-NAFTA study for USA*NAFTA member, the U.S. Council of the Mexico-U.S. Business Committee. The council has also released 50 detailed summaries of how NAFTA will affect each of the 50 states. Source: Eliza Newlin Carney, "Suiting Up For on Trade Pact," NATIONAL JOURNAL, January 2, 1993, p. 31. _________________________________________________________ GATT News Summary _________________________________________________________ FRENCH MINISTER SAYS MUCH WORK REMAINS IN GATT French Industry and Trade Minister Dominique Strauss-Kahn said the agriculture disagreement between the European Community and the United States has been unjustly blamed for delaying the Uruguay Round of the General Agreement on Tariffs and Trade. He said much work remains in GATT on 14 other issues between the U.S. and EC, as well as topics of interest to other GATT nations. Strauss-Kahn said he thought the chances for a new GATT are better now that the United States "is out of its electoral period," but that it is "not impossible" that the world will move instead toward regional free trade zones. Source: "French Minister Hopeful on GATT Talks Now That New U.S. Team in Place," BUREAU OF NATIONAL AFFAIRS, January 27, 1993. _________________________________________________________ Other Trade News INDIA PROPOSES SOUTH ASIA FREE TRADE ZONE India and other South Asia countries -- Sri Lanka, the Maldives, Pakistan, Bangladesh, Nepal and Bhutan -- should create a regional free trade zone to promote trade and cooperation between the nations, said India's new commerce minister, Pranab Mukherjee. "We need regional cooperation not just to promote trade but to ensure the overall development of all nations within this region," Mukherjee said in an interview in the ECONOMIC TIMES. However, trade analysts predict continuing hostility between India and Pakistan will probably impede a quick agreement. Source: "Indian Minister Proposes South Asia Trade Zone," REUTER, January 26, 1993. _________________________________________________________ Resources: THE DEBT CRISIS: AN UNNATURAL DISASTER, a video written and directed by Cynthia Wilmot, looks at the consequences of debt and structural adjustment on the English-speaking Caribbean. A 28- minute video with either English or Spanish subtitles and attached music video, "There's got to be a better way," sells for US$35 plus $5 shipping. Make checks payable to SAC Ltd. (Social Action Centre), 56 Old Hope Road, Kingston 5 Jamaica. For further information, call or fax (809) 978-1646. _________________________________________________________ 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.apc.org _________________________________________________________