Trade Week in Review and Resources Friday, July 1, 1994 Volume 3, Number 26 _________________________________________________ Headlines: FULL WAYS AND MEANS COMMITTEE TO CONSIDER GATT CHANGES WHITE HOUSE SOLICITS HELP FOR GATT FIGHT BORK ENLISTED TO COUNTER REPUBLICANS CONGRESS, STATES CONCERNED ABOUT GATT CHINA ACCESSION TALKS HELD RESOURCES _________________________________________________ GATT NEWS SUMMARY _________________________________________________ FULL WAYS AND MEANS COMMITTEE TO CONSIDER GATT CHANGES The House Ways and Means Trade Subcommittee completed a "mock" GATT markup session Wednesday by approving a number of amendments to GATT implementing legislation. However, the subcommittee decided to leave a number of difficult issues to the full committee to resolve. Representative Robert Matsui (D-California), the acting chair of the subcommittee, identified four "contentious" issues that will be discussed by the full committee: antidumping and countervailing duties; fast track negotiating authority; Section 301 trade law; and the World Trade Organization. The markup was designed to highlight members' concerns about GATT before the White House actually submits implementing legislation to Congress. Under fast-track, Congress will not be able to make any changes to GATT legislation once it is submitted. Sources: "Ways and Means Backs Extension of China MFN," CONGRESSDAILY, June 29, 1994; "House Subcommittee Acts on GATT Bill But Sends Tough Issues to Full Committee," BNA, June 30, 1994. _________________________________________________ WHITE HOUSE SOLICITS HELP FOR GATT FIGHT Vice President Al Gore and other administration officials met with representatives of the construction, aerospace and agricultural equipment industries Thursday to encourage their active participation in efforts to ratify the Uruguay Round this year. The briefing was the first in what could be three or four such sessions with industries that already support the trade pact. "One of the biggest challenges we face is those who say, 'Oh sure, the Uruguay Round is going to get through Congress,'" said one administration official. " Now is the time to focus on it." Business representatives acknowledge they haven't been as active in their support for GATT as they were for the North American Free Trade Agreement. "We don't have all our troops -- they're caught up in this drafting [legislation] exercise," said Robert Morris, a trade analyst with the National Association of Manufacturers. Many big U.S. companies are lobbying Congress to add on provisions to the trade pact. Among the additions companies are seeking is a $200 million fund to finance antidumping trade actions and breaks for Caribbean textile plants. There are also battles over paying for lost federal revenue resulting from GATT's lower tariffs. Supporters of GATT are concerned that further delays in key countries could block its passage this year, which would in turn give opponents time to mount a strong campaign against the trade pact. GATT Director General Peter Sutherland says if the major trade countries delay ratifying the Uruguay Round it would slow the approval process in other countries as well. The International Chamber of Commerce has urged the Group of Seven Industrialized nations to pass the Uruguay Round this year or face stiff opposition from groups already opposed to the Round. But the delay in the U.S., coupled with the change of government in Japan and a legal dispute between the European Commission and the European Union Member States pose serious threats to ratification of the Uruguay Round. The European dispute concerns whether the Commission has the exclusive right to negotiate with the WTO on behalf of the entire European Union. Sources: "White House Gears Up to Push for Passage of Uruguay Round," BNA, June 27, 1994; "If U.S. Delays GATT Ratification, Other Countries May Also, Sutherland Says," BNA, June 29, 1994; "GATT/WTO: Court Ruling on EU Competences Could Delay WTO Ratification," EUROPEAN INFORMATION SERVICES, June 29, 1994; Helene Cooper, "Corporate America Finds Devil Is in the Details as Its Lobbyists Press Congress to Change GATT," WALL STREET JOURNAL, June 27, 1994. _________________________________________________ BORK ENLISTED TO COUNTER REPUBLICANS The White House is seeking the support of everyone it can to pass the Uruguay Round, as evidenced by recent reports indicating that former Supreme Court nominee Robert Bork has been recruited for the GATT fight. Bork's involvement is surprising not only because of the sharp political differences between him and Clinton, but because Clinton testified against Bork during 1987 confirmation hearings for the Supreme Court. Bork taught constitutional law to Clinton at Yale. Bork will apparently be used to provide legal responses to counter Republican critics such as House Minority Whip Newt Gingrich (R- Georgia) who claim the Uruguay Round would create "one world government" and threaten U.S. sovereignty. Source: "Clinton Enlists Bork for GATT Fight," LIBERAL OPINION, June 20, 1994. _________________________________________________ CONGRESS, STATES CONCERNED ABOUT GATT In its latest survey of Congress, the U.S. Chamber of Commerce found that many members are concerned about GATT's potential threat to U.S. sovereignty. In addition, members expressed concern about how to offset lost federal revenues and problems surrounding agriculture, textiles, intellectual property rights, antidumping/countervailing duty measures, environmental protection and labor standards. Meanwhile, state attorneys general will ask President Clinton to call a summit to clarify how GATT and NAFTA will affect state laws and regulations. In a letter signed at the National Association of Attorneys General summer meeting June 24 the attorneys general asked the administration to explain how states will be able to defend their laws from foreign challenges submitted to the World Trade Organization. Sources: "Survey Shows Congress Still Concerned Over WTO, Other Issues in GATT Bill," BNA, June 27, 1994; "State Officials to Ask Clinton for Trade Consultation Summit," BNA, June 27, 1994. _________________________________________________ CHINA ACCESSION TALKS HELD GATT negotiators began four days of talks in Geneva this week to consider China's application to join the world trade body. China is hoping to gain admittance this year, in time to become a founding member of the World Trade Organization. However, several officials close to the talks said China must still overcome several obstacles before it can join. Several GATT officials called on China to clarify its new foreign trade law to make sure it is consistent with GATT rules. GATT members also disagree on how much flexibility to grant China in meeting GATT regulations. Diplomats from Europe and the United States also urged China to drop its insistence on being classified as a less developed country. Sources: Guy de Jonquieres, Tony Walker, "Beijing Optimistic Over New Talks on Rejoining GATT," FINANCIAL TIMES, June 28, 1994; Guy de Jonquieres, "China Urged to Clarify Trade Rules," FINANCIAL TIMES, June 29, 1994; "China Hopes to Settle GATT Status," UPI, June 25, 1994. _________________________________________________ RESOURCES _________________________________________________ For copies of the following, please contact the organizations or authors listed: "Ecofeminism," Maria Mies and Vandana Shiva, ZED BOOKS, 1993. 328 pages. Humanities Press, 165 First Avenue, Atlantic Highlands, NJ 07716-1289. (908) 872-1441. Fax: (908) 872-0717. $19.95. Chapter topics include "The Myth of Catching-up Development," "The Impoverishment of the Environment: Women and Children Last," "Women's Indigenous Knowledge and Biodiversity Conservation," "GATT, Agriculture and Third World Women," "Liberating the Consumer," and "Decolonizing the North." "Vital Signs 1994: The Trends That Are Shaping Our Future," Lester R. Brown, Hal Kane and David Malin Roodman, WORLDWATCH INSTITUTE, 1994. 159 pages. W.W. Norton & Co., Inc., 500 5th Ave., New York, NY 10110. (212) 354-5500. $10.95. A summary of trends in agriculture, energy, economics, environment, transportation, health, population and the military. Plans are to publish the "Vital Signs" series in 27 languages. "GATT and Democracy," David Korten, TRANET, No. 88, May 1994. 1 page. Tranet, Box 567, Rangely, ME 04970-0567. (207) 864-2252. email: tranet@igc.org. Bimonthly. $30/year membership includes subscription. This magazine reviews books, magazines and conferences concerning social institutions, education, humanist economics, energy, food and agriculture, environment, transportation, communication and regions of the world. There is also a "Members' Bulletin Board." "The Politics of Human Rights, Work Hours and Trade," William McGaughey, INSTITUTE FOR AGRICULTURE AND TRADE POLICY, 1994. 7 pages. Institute for Agriculture and Trade Policy, 1313 Fifth Street .S.E., Suite 303, Minneapolis, MN 55414-1546. (612) 379-5980. Fax: (612) 379-5982. $2. _________________________________________________ For information on obtaining this or other news bulletins produced by the Institute for Agriculture and Trade Policy, send email to kmander@igc.apc.org. Trade Week in Review is produced by: Kai Mander Institute for Agriculture and Trade Policy (IATP) 1313 5th Street, SE, Suite 303 Minneapolis, MN 55414-1546 USA tel: (612) 379-5980 fax: (612) 379-5982 email: kmander@igc.apc.org _________________________________________________