TRADE NEWS BULLETIN Volume 2 Number 34 Tuesday, February 23, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ MEXICAN LABOR LEADER DENOUNCES NAFTA Mexico's largest independent labor federation joined the AFL-CIO in denouncing the North American Free Trade Agreement (NAFTA). Manuel Garcia, leader of the Authentic Labor Front, which represents 40,000 industrial and farm workers throughout Mexico, called NAFTA an "instrument" to allow multinational corporations to take advantage of Mexican labor. Garcia proposes replacing NAFTA with a development pact that would recognize the inequality between the U.S. and Mexico. Calling NAFTA a threat to worker rights and living standards, Garcia said, "We can't support NAFTA, not even its renegotiation." Mexican President Carlos Salinas de Gortari continues to promote NAFTA as an "historic window of opportunity " to improve U.S.-Mexican relations. "The region as a whole would feel rejected" if NAFTA is defeated by Congress, Salinas said recently. He has also minimized the importance of establishing separate bilateral labor and environmental agreements. In a meeting last week between Mexican and Canadian officials, Canadian Trade Minister Michael Wilson said it is possible there would be no new labor and environmental legislation, only "agreements and understandings" among the three countries. Sources: Tod Robberson and Jackson Diehl, "U.S. Urged to Act on Trade Pact," WASHINGTON POST, February 23, 1993; Tim Shorrock, "Mexican Labor Leader Denounces Trade Pact," JOURNAL OF COMMERCE, February 22, 1993; Deborah Charles, "Canadians, Mexicans Insist That NAFTA Will Not Be Reopened," REUTER, February 16, 1993. __________________________________________________________________ U.S. TO INSPECT MEAT IMPORTS MORE STRICTLY U.S. Agriculture Secretary Mike Espy has ordered a review of the meat inspection program after some Australian meat imports routed through Canada were found to be "unsafe." Espy promised to hire 150 more inspectors to help enforce U.S. standards for meat and poultry. Mark Manis, director of the USDA's import inspection division, said only limited checks on Canadian meat have been made since the two countries signed an agreement last year to strengthen and impose similar inspection standards. The problem has raised concerns regarding meat imports under NAFTA. "How can we be sure that, under NAFTA, we will continue the same level of safety inspections of Mexican beef, or that, like the Australian meat, third-country products will not go through the Mexican border?" asked U.S. Rep. Cardiss Collins (D-Illinois) chair of the House Energy and Commerce subcommittee. Sources: "Meat Imported Through Canada Poses Dangers, U.S. Inspector Warns," JOURNAL OF COMMERCE, February 22, 1993; Robert Green, "U.S. Meat Inspector Warns of Danger," REUTER, February 18, 1993. ________________________________________________________ GATT News Summary _________________________________________________________ FRANCE WILL CONTINUE TO OPPOSE FARM OILSEED DEAL As French elections near, Prime Minister Pierre Beregovoy is vowing to veto the U.S., EC oilseed accord, and wants it dropped from the agenda at a meeting of agricultural ministers on March 8. Under Community rules a member state has the right to block a decision it considers contrary to its vital interests. Beregovoy went beyond rejecting the proposed oilseed deal, which will reduce subsidies and cut land in use. "The GATT negotiations must start from scratch with a firm European position," Beregovoy told a campaign rally Monday. "It is time for Europe to send a warning to the world, to the U.S. in particular, on aerospace, agriculture and steel." Sources: "Beregovoy Wants GATT Talks to Start From Scratch," REUTER, February 23, 1993; "France Threatens to Veto Accord on Agricultural Sub..," UPI, February 23, 1993; Francois Raitberger, "France Wants Oilseed Deal Off EC Agenda, Pledges Veto," REUTER, February 22, 1993. __________________________________________________ NEW EC TRADE MINISTER BACKS GLOBAL ANTI-TRUST RULE Even though the Uruguay Round is still stalled, European Community (EC) Trade Commissioner Sir Leon Brittan has already suggested that global competition policy should be on the agenda for the next round of GATT discussions. Brittan envisions GATT acting as a large court system "trying" governments that fail to penalize companies that form cartels. "Perhaps a rule could be devised whereby governments would have to show that they have used their best endeavors...to prevent or punish illegal behavior," Brittan writes in WORLD LINK magazine. An impartial panel should have the authority to implement "countervailing measures against a recalcitrant country," Brittan says. Brittan's proposal is similar to the current EC system, which prohibits any agreement or arrangement that distorts competition. Source: "Playing By The Rules," WORLD LINK, Volume 5, Number 2. _________________________________________________________ Events: "Hands Across The Border," Saturday March 6, 12:00 noon at Pembina Civic Center, Pembina, North Dakota. An International rally against the North American Free Trade Agreement. Speakers include Jean-Claude Parrot, Ex. VP, Canadian Labour Congress and Presidents of Minnesota and North Dakota AFL-CIO. For more information: (612) 627-9445. _________________________________________________________ Produced by: Kai Mander and Gigi Boivin The Institute for Agriculture and Trade Policy 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 _________________________________________________________