TRADE NEWS BULLETIN Volume 2 Number 37 Friday, February 26, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ NAFTA PUT BEFORE CANADIAN PARLIAMENT FOR APPROVAL Canada began the approval process of the North American Free Trade Agreement (NAFTA) this week by submitting several thousand pages of implementing legislation to Parliament. Some have speculated that NAFTA could face delays due to Prime Minister Brian Mulroney's resignation in June. However, Michael Wilson, Canada's trade minister, is confident there will be no disruptions in the process. "The NAFTA is an initiative of the government, and not an initiative of one minister or another," Wilson said. Former U.S. Trade Representative Carla Hills predicted Parliament would approve the pact. "I think because the analysis (of the agreement) is all growth--jobs, exports--they will come to that decision," Hills told reporters. Sources: Robert Kozak, "Canada Files Legislation To Ratify Free-Trade Pact," REUTER, February 25, 1993; "Canada Leadership Race Not To Affect NAFTA-Wilson," REUTER, February 25, 1993; "NAFTA Not Endangered By Mulroney Resignation-Hills," REUTER, February 25, 1993. ___________________________________________________ CANADIAN TELECOMMUNICATIONS OPPOSE NAFTA Canada's telecommunications workers union has announced its opposition to NAFTA. Unitel President George Harvey said, under NAFTA, Canada's currently regulated communications industry would be open to stiff competition from the U.S. He said AT&T, for example, could price phone service at levels below cost as part of a strategy to gain market share in Canada. Unions, consumers, community groups and provincial governments have fiercely fought deregulation in the past. Source: "Telecommunications Workers' Union Position Paper On The North American Free Trade Agreement And Its Implications For The Telecommunications Industry In Canada," February 1993. _________________________________________________________ GATT News Summary _________________________________________________________ MULRONEY A CANDIDATE TO HEAD GATT Canadian Prime Minister Brian Mulroney may become a candidate to replace Arthur Dunkel as Director-General of the General Agreement on Tariffs and Trade (GATT). Following Mulroney's announced resignation Wednesday, some have suggested him because of his strong commitment to free trade and his close relationship with fellow G7 leaders. Mulroney was responsible for pushing through the U.S.-Canada Free Trade Agreement and the NAFTA. Other candidates include former EC Competition Policy Commissioner Peter Sutherland and even Mexican President Carlos Salinas de Gortari though he's not expected to step down until next year. Sources: "Problem For The GATT Pack," FINANCIAL TIMES, February 26, 1993. __________________________________________________________________ VALENTI WANTS EC BARRIERS REMOVED IN GATT Motion Picture Association of America (MPAA) President Jack Valenti urged the European Community (EC) to remove barriers to U.S. movies and TV programs. The American film business relies on the EC for 20 percent of its $18 billion annual revenues. Valenti said the EC has targeted Hollywood studios for trade restrictions, and he is concerned that barriers will continue under GATT. "It is now becoming clear that the end game of the EC is to plant barriers so thickly that the only way for American producers to immunize themselves against the infection of restrictions is to produce more and more movies and TV programs in Europe," said Valenti. He warned that if EC directives enter GATT the entire entertainment industry could "slip into a kind of unamiable chaos." Source: "MPAA Seeks To Knock Down European Barriers On U.S. Movies," UPI, February 25, 1993. _________________________________________________________ JAPAN MAY OPEN RICE MARKET IF U.S. WILL BEND ON TRADE Masami Tanabu, Japanese agriculture minister, suggested on Friday that Japan would be willing to allow some rice imports if the U.S. reduces farm export subsidies on dairy products and peanuts. The U.S. has protected these and other food products since GATT agreed to exempt them from free trade rules in 1955. Tanabu said Tokyo will not act soon. "Those who speak first usually lose," he said. "We must go together." Source: "Japan May Move On Rice If U.S. Offer Is Similar," REUTER, February 25, 1993. _________________________________________________________ Resources: "Report of the FDA Task Force on International Harmonization," provides an overview of Food and Drug Administration's (FDA) International activities and describes harmonization efforts affecting safety, effectiveness and quality of products regulated by FDA. Available for $52.00, order # NTIS PB93-128155, National Technical Information Service, U.S. Department of Commerce, 5285 Port Royal Rd., Springfield,VA 22161. _________________________________________________________ Produced by: Kai Mander and Gigi Boivin 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 _________________________________________________________