Trade Week in Review and Resources Friday, May 6, 1994 Volume 3, Number 18 _________________________________________________ Headlines: WHITE HOUSE LAUNCHES GATT CAMPAIGN GATT CHIEF CALLS FOR U.S., EU VOTE DEVELOPING COUNTRIES WILL IMPORT MORE FARM PRODUCTS CEFTA MEMBERS SIGN PROTOCOL AGREEMENT S. KOREA, U.S. EXPLORE TRADE PARTNERSHIP RESOURCES _________________________________________________ GATT NEWS SUMMARY _________________________________________________ WHITE HOUSE LAUNCHES GATT CAMPAIGN U.S. President Bill Clinton kicked off a major campaign this week aimed at securing GATT's passage in Congress. He sent a letter to Congress Monday praising the pact and urging members to pass the trade accord. "For half a century, the United States has led the global effort to reduce trade barriers and expand trade," Clinton wrote. "The Uruguay Round, which is scheduled to enter into force on January 1, 1995, represents the most important step in that effort." At a rally at an Atlanta shopping mall Tuesday, Clinton said, "We cannot withdraw from the world ... This year, the Congress has got to adopt the new world trade agreement." U.S. Trade Representative Mickey Kantor began a series of closed-door talks on GATT with lawmakers this week, and said the Clinton administration "will seek and we intend to obtain ratification of the Uruguay Round in 1994." Observers say growing public and congressional opposition to two key GATT issues may have prompted Clinton to put a GATT campaign into high gear. Funding the global trade accord is one obstacle facing the administration. Clinton has made several suggestions on how to pay for the $14 billion in lost tariff revenues expected during the first five years of the accord, but all proposals have been met with strong disapproval from congressional groups. "They are not $1 closer to finding a way to pay for this this year," said Representative Jim Kolbe (R-Arizona). Kolbe predicts that the Clinton administration will have to waive "pay-as-you-go" budget rules in order to bypass the funding obstacle. The creation of GATT's successor, the World Trade Organization, has also stirred opposition from all corners of the political spectrum. House Republican Whip Newt Gingrich (R-Georgia) and consumer and environmental groups have argued the WTO could undermine U.S. sovereignty. Representatives Ralph Regula (R-Nevada) and Norman Mineta (D- California) introduced a bill April 13 called the GATT Fair Trade Enforcement Act of 1994. While the bill fails to address all sovereignty concerns, it aims to strengthen U.S. anti-dumping legislation, international laws protecting intellectual property rights and the president's power to retaliate against unfair trading practices by foreign countries. Sources: "Clinton Signals Resolve on GATT Passage This Year," REUTER, May 3, 1994; Tom Raum, "Clinton-Rally," AP, May 3, 1994; Peter Behr, "Clinton to Launch Major Drive to Win Passage of GATT Pact," WASHINGTON POST, May 3, 1994; Lyndsay Griffiths, "Clinton, Congress Square Off Over GATT," REUTER, May 3, 1994; "GATT Action Warms Up in Congress," WASHINGTON TECHNOLOGY, April 21, 1994. _________________________________________________ GATT CHIEF CALLS FOR U.S., EU VOTE GATT Director-General Peter Sutherland called on the United States and European Union to quickly ratify the Uruguay Round trade deal. "It is of absolute urgency that leadership now be provided by early ratification in the United States and the European Union," Sutherland said in a speech to Swedish business representatives. "The ratification process required should be completed immediately so that the World Trade Organization could come into existence on January 1." U.S. House Ways and Means Committee Chair Dan Rostenkowski (D- Illinois) said he plans to introduce the GATT pact for a vote next month. Trade issues traditionally pass through the Ways and Means Committee before moving on to the House of Representatives for a full vote. Fifty-five House members have urged Clinton to delay a GATT vote until next year. In Europe, EU members are still wrangling over how to vote on the pact. Some members argue that the 12 governments should vote on the pact individually, rather than as one unified body. Sources: "Sutherland Calls for Urgent GATT Deal Ratification," REUTER, April 27, 1994; "Rostenkowski Plans Vote on GATT Accord in June," WALL STREET JOURNAL, May 5, 1994; Bob Davis, "House Members Ask Clinton for Delay in Vote on GATT," WALL STREET JOURNAL, May 3, 1994. _________________________________________________ DEVELOPING COUNTRIES WILL IMPORT MORE FARM PRODUCTS Developing countries are expected to import more farm products as a result of conditions outlined in the Uruguay Round GATT accord. "In the coming two decades, the developing countries' net imports of agricultural products are expected to expand substantially, benefiting OECD [Organization of Economic Cooperation and Development] countries which retain their export capacity after the Uruguay Round," said the International Federation of Agricultural Producers (IFAP) in a recent study. IFAP represents 80 farmers' organizations from 55 countries. IFAP President Hans Kjeldsen said, "I do not know any farmer who is satisfied with the GATT agreements." But, he added, "The alternative that we were faced with was much worse -- continued trade conflicts in which farmers are the biggest losers." Sources: "GATT Seen Boosting Third World Farm Imports," REUTER, May 3, 1994; Servet Yildirim, "Farmers See GATT Treaty Unsatisfactory, But Needed," REUTER, May 2, 1994. _________________________________________________ OTHER TRADE NEWS _________________________________________________ CEFTA MEMBERS SIGN PROTOCOL AGREEMENT Member countries of the Central European Free Trade Association (CEFTA) signed a supplementary protocol late last week designed to speed up the process of trade liberalization among members. Representatives from Hungary, Poland, Slovakia and the Czech Republic agreed during a meeting held in Budapest to lift duties on all CEFTA goods, except farm and food products, by January 1, 1998. Representatives also agreed to a 50 percent cut in duties on farm products exported from Hungary to Poland by July 1 of this year. The same trade provisions will apply to exports between Hungary, Slovakia and the Czech Republic beginning July 1, 1997. Source: "CEFTA States Sign Trade Protocol," UPI, April 29, 1994. _________________________________________________ S. KOREA, U.S. EXPLORE TRADE PARTNERSHIP According to reports in Japan's leading financial newspaper, the NIHON KEIZAI SHIMBUN, South Korea and the United States will study the possibility of a bilateral free trade pact. The paper said the two countries reached the decision to explore trade opportunities after U.S. Trade Representative Mickey Kantor met separately with South Korean Foreign Minister Han Sung Joo and Trade and Industry Minister Kim Chul Su in late March and early April. U.S. and South Korean officials will begin formal negotiations after studying what kind of trade pact will be appropriate. The two countries reportedly agreed to the plan in hopes of indirectly pressuring Japan to open its markets to more foreign goods. The United States is also prepared to discuss South Korea's possible future participation in the North American Free Trade Agreement, according to the newspaper. Source: "U.S., South Korea Study Trade Pact," UPI, May 3, 1994. _________________________________________________ RESOURCES _________________________________________________ For copies of the following, contact the authors or organizations listed. "Environmental Diplomacy: Negotiating More Effective Global Agreements," Lawrence E. Susskind, OXFORD UNIVERSITY PRESS, 1994. 201 pages. Oxford University Press, 200 Madison Avenue, New York, NY 10016. 800-451-7556. Fax: (919) 677-1303. $14.95/ paperback. $45/hardbound. "First Nations First: The UN Decade of Indigenous Peoples," MOVING PICTURES BULLETIN, Issue 17, February 1994. TVE Centre for Environmental Communication, Prince Albert Road, London NW1 4RZ, United Kingdom. (44 71) 586-5526. Fax: (44 71) 586-4866. This guide to films on development and environment focuses on films and videos by and about indigenous peoples. Another special issue in February 1994 is dedicated to "The Satellite and Cable Revolution." "GATT Could Cost U.S. $40 Billion and Raise Taxes," SAM TRADE, March-April 1994. 4 pages. SAM TRADE, 8901 Lochaven Drive, Gaithersburg, MD 20882. (301) 963-4407. Fax: (301) 963-4426. $75/6 issues per year. "Tax Justice for the Earth," Dena Leibman, FRIENDS OF THE EARTH, March-April 1994. FOE, 1025 Vermont Avenue N.W., Suite 300, Washington, D.C. 20005. (202) 785-7400. Fax: (202) 783-0444. Annual membership dues of $25 includes a 6 issue/year subscription. "A growing number of environmental leaders are turning to tax policy reform to protect the planet." _________________________________________________ The following email services are offered by the Institute for Agriculture and Trade Policy: "trade.news" - includes weekly bulletins NAFTA Monitor and Trade Week "trade.library" - a storehouse of trade related documents, including analyses, reports, fact sheets, White House transcripts ... etc. "trade.strategy" - an open discussion of trade issues and events "eai.news" - a regular bulletin summarizing the latest news in Latin American integration and development "susag.news" - a regular news bulletin pertaining to sustainable agriculture "susag.library" - longer documents, studies and analyses on sustainable agriculture "susag.calendar" - a calendar of events "env.biotech" - a news bulletin about biotechnology If you are on EcoNet/PeaceNet, you may access these services by going to the "conferences" section. 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