TRADE NEWS BULLETIN Volume II Number 22 Thursday, February 4, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ MULRONEY WILL MEET WITH CLINTON; NAFTA ON AGENDA Canadian Prime Minister Brian Mulroney will be the first foreign leader to meet with President Bill Clinton since the inauguration. Canadian officials have said they hope this Friday's meeting in Washington, D.C. will offer an opportunity to ease trade frictions between the two nations. "Given the importance of the relationship, it is crucial now to ensure trade is managed properly, and that there is a level of political overview where minor irritants don't turn into major irritants," a Mulroney spokesperson said. Despite widespread disapproval of the Canada-US Free Trade Agreement, and growing pressure from Canada's opposition politicians, labor leaders and environmentalists to withdraw from the North American Free Trade Agreement, Mulroney remains committed to the pact and plans to discuss with Clinton ways to speed up its implementation. Source: Robert Kozak, "Mulroney Seeks to Ease U.S.-Canada Trade Tension," REUTER, February 3, 1993. _________________________________________________________ UAW SAYS NAFTA MUST BE TOTALLY RENEGOTIATED The North American Free Trade Agreement must be totally renegotiated unless the gigantic wage disparity between the U.S. and Mexico can be resolved quickly, said United Auto Workers President Owen Bieber recently. Bieber denied NAFTA would, as the Bush Administration claimed, benefit U.S. companies by opening Mexico's consumer markets. He said only ten percent of Mexico's population can afford to purchase U.S. products. Bieber said NAFTA provides protection for the Canadian and Mexican auto industries but leaves the U.S. industry unshielded, an arrangement that will allow cars made in Canada and Mexico to be sold duty-free in the U.S. In addition, Bieber criticized a proposal for a new U.S. gasoline tax as yet another benefit to Mexico. As consumers demand smaller, more fuel- efficient cars, auto companies will set up new production facilities in Mexico where wages are much lower, Bieber said. The Big Three U.S. automakers support NAFTA in its current form. Source: INSIDE U.S. TRADE, January 22, 1993. _________________________________________________________ GATT News Summary _________________________________________________________ EC FARM MINISTERS WILL DISCUSS GATT NEXT WEEK European Community agriculture ministers will meet next week in Brussels to review the status of General Agreement on Tariffs and Trade negotiations. The Special Committee on Agriculture, which has been studying the EC-US farm trade deal's compatibility with the reform of the EC's Common Agricultural Policy (CAP), will report back to the farm Council meeting February 9-10. Member states are frustrated at the European Commission's refusal to make available a complete text of the EC-US deal. The ministers will reportedly not discuss a Commission proposal to endorse a parallel oilseeds accord with the U.S. French farmers, who are seeking a renegotiation of the deal, had hoped the ministers would discuss the issue. France's center-right opposition is expected to take power after March elections, primarily because of its opposition to the farm deal with the United States. UDF party leader and former president Valery Giscard d'Estaing criticized the current government of Francois Mitterand for failing to denounce the EC agreement on agriculture in GATT. Meanwhile, ruling and opposition leaders continue to denounce the Clinton Administration for slapping new duties on steel imports and threatening to prohibit European bids on government contracts. Source: "EC Farm Ministers to Review GATT, Not Oilseeds," REUTER, February 3, 1993; "French Centre-Right Targets Clinton Over Trade Row," REUTER, February 3, 1993; "Giscard Calls for Halt to GATT Farm Talks," REUTER, February 3, 1993. _________________________________________________________ Events: "Forum on Mexican Environmental and Health Issues: Options for North American Solutions," hosted by Senator Dennis DeConcini (D-Arizona). Leading health and environmental experts will present overviews of critical issues facing Mexico and propose options for international agreements to safeguard Mexico's environment and public health. February 19, 1993, 9am to 4pm, Russell Senate Office Building, Room 325, Washington, D.C. Open to the public. For more information, contact Lynn Fischer, Natural Resources Defense Council, at (202) 783-5917; or Geof Land, Border Ecology Project, at (602) 432-7456. _________________________________________________________ Resources: NAFTA EXPOSED, an "action dossier" produced by Action Canada Network. Contains more than 25 articles covering every aspect of the agreement, plus pieces on child labor in Mexico, Canada's trade deficit and intellectual property rights. Also includes a resource list of books, periodicals and videos on NAFTA. Available for C$6.50. For more information, contact Action Canada Network, 804-251 Laurier Avenue. W., Ottawa ON K1P 5J6. Tel: (613) 233-1764 Fax: (613) 233-1458. _________________________________________________________ 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 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 _________________________________________________________