From kmander@igc.apc.org Date: 22 Jul 94 09:53 PDT From: Kai Mander Reply to: "Conference trade.news" To: "Recipients of conference trade.news" Newsgroups: trade.news Subject: Trade Week 7-22-94 Trade Week in Review and Resources Friday, July 22, 1994 Volume 3, Number 29 _________________________________________________ Headlines: GOVERNORS ENDORSE GATT FUNDING PLAN CRITICIZED FORMER TRADE REPS LOBBY CONGRESS ANTI-GATT RALLY AT CAPITOL GATT MEMBERS CRITICIZE MMPA CHINA CRITICIZES U.S. DEMANDS ON TRADE VIETNAM GRANTED OBSERVER STATUS RESOURCES _________________________________________________ GATT NEWS SUMMARY _________________________________________________ GOVERNORS ENDORSE GATT After being reassured by U.S. Trade Representative Mickey Kantor that states' rights will be protected under GATT, the National Governors' Association endorsed the Uruguay Round and urged Congress to approve it quickly. At the annual governors meeting in Boston earlier this week, Governor George Allen (R-Virginia) expressed concern that state laws could be undermined by GATT, a worry that has also been voiced by state Attorneys General and Treasurers in recent weeks. But Kantor claimed that no country or state could be forced to change laws without approval. "Our sovereignty is much more protected under this agreement than it has ever been in the past," Kantor said. Sources: "50 Governors for Trade Pact," NEW YORK TIMES, July 19, 1994; "Governors Call for GATT Approval, But Some Worry About Impact on States," BNA, July 19, 1994. _________________________________________________ FUNDING PLAN CRITICIZED The White House outlined a $12.3 billion package of spending cuts and new taxes to help pay for implementing GATT. Most of the revenue comes from cutting support programs to farmers and by drawing on a $2-3 billion budget accounting surplus. The plan was criticized by Republicans who expressed doubt it would cover the lost tariff revenues resulting from GATT. Senator Bob Packwood (R-Oregon), the ranking Republican on the Senate Finance Committee, called the spending cuts "illusory" and insisted the administration come up with a plan that meets Senate budget rules and emphasizes spending cuts over new taxes. "Most of the Administration's proposed financing are accounting gimmicks," Packwood said. "If these concerns are not addressed ... I don't think this agreement is going to pass this year ... or next year." In response to the criticism, U.S. Treasury Secretary Lloyd Bentsen sent Finance Committee Chair Pat Moynihan (D-New York) a letter stating the administration's willingness to consider changes to the funding plan, saying "it is imperative that a bipartisan majority of the Congress approve GATT this year." The Finance Committee began considering GATT implementing legislation this week. The White House hopes to introduce final GATT legislation to Congress in early August and have a vote by August 15, according to a senior administration official. The official predicted disputes over paying for the agreement and other issues would be resolved very soon. Sources: "Bentsen Details 12.3 Bln Dlr GATT Funding Package," AFX, July 19, 1994; "Administration Says GATT Funding Proposals Open to Modification," BNA, July 20, 1994; "Packwood Calls GATT Funding Proposal A 'Shell Game,'" NEWS FROM BOB PACKWOOD, July 15, 1994; Richard Lawrence, "Clinton GATT Funding Plan Might Hinder U.S. Exports," JOURNAL OF COMMERCE, July 15, 1994; Martin Crutsinger, "Trade Agreement," AP, July 20, 1994. __________________________________________________ FORMER TRADE REPS LOBBY CONGRESS Seven former U.S. trade representatives sent the 535 members of Congress a letter July 18 asking them to quickly approve the Uruguay Round. "As former U.S. Trade Representatives," the letter stated, "we know the value to U.S. businesses, workers, and consumers of open markets and increased trade and investment." The former negotiators said "delay simply means dollars out of the pockets of the American people." Meanwhile, the Small Business Exporters Association, which supports the Uruguay Round, will seek the establishment of a small business advocacy office as part of the World Trade Organization. "Small and midsized exporters comprise the largest group of America's traders and they must have a continuing voice in the ongoing processes of the WTO," said SBEA President Don Cassil. Source: "Former U.S. Trade Representatives Urge Congress to Ratify GATT Accord," BNA, July 19, 1994. __________________________________________________ ANTI-GATT RALLY AT CAPITOL At a rally on the steps of the U.S. Capitol attended by several hundred people, consumer advocate Ralph Nader accused the Clinton administration of railroading GATT through Congress. "The only reason for the Clinton administration's rush is to get it through before the American people find out what's in it," Nader said. Jane Danowitz, director of the Citizens Trade Campaign, which organized the rally, said GATT would be a threat to U.S. environmental, consumer and food safety laws. John Stevens of Greenpeace added: "We'd like Congress to really sit back and consider exactly what they're voting themselves into, rather than hurry the vote through." Source: "Nader Says Clinton Rushing GATT," UPI, July 20, 1994. __________________________________________________ GATT MEMBERS CRITICIZE MMPA GATT member nations criticized the U.S. trade ban on tuna caught by methods that kill dolphins. At a meeting of the GATT Council, Mexico argued that the main effect of the U.S. Marine Mammal Protection Act has been to hinder its efforts to protect dolphins. The Council, on which every GATT member sits, was considering a GATT panel report which found the MMPA to be in violation of GATT rules. In addition to Mexico, trade diplomats from Japan, south-east Asia, several Latin American states and the European Union urged the Council to adopt the report. Under current GATT rules, the United States could block consensus on the report. GATT opponents argue that the Uruguay Round, and the World Trade Organization it would create, would change that by prohibiting a country from blocking a decision, thereby forcing that country to change its laws or face stiff trade sanctions. Source: Robert Evans, "GATT States Condemn U.S. Tuna Boycott," REUTER, July 20, 1994. __________________________________________________ CHINA CRITICIZES U.S. DEMANDS ON TRADE China, which is seeking full membership in GATT, criticized the United States for making excessive demands on China's application to GATT. Chinese officials say they will present a final package of concessions to GATT on July 29, at which point the world trade body "can take it or leave it." The U.S. is calling on China to open its markets, remove trade barriers and enforce intellectual property rights. Deputy U.S. Trade Representative Charlene Barshefsky said Thursday in Beijing that U.S. industry is losing $1 billion a year because of Chinese intellectual property rights violations. She demanded the closing of 26 factories capable of manufacturing 75 million compact discs for exports to Hong Kong, Southeast Asia and Canada. Sources: "U.S. Official Demands China Clean Up Trade Act," REUTER, July 21, 1994; "U.S. Downplays Chinese GATT Threat," UPI, July 21, 1994. __________________________________________________ VIETNAM GRANTED OBSERVER STATUS The GATT ruling Council granted Vietnam observer status in recognition of the steps Vietnam has taken towards an open economy. GATT's other observer states include Iran, Macedonia and the former Soviet republics of Uzbekistan, Azerbaijan, Kazakhstan, Kyrgyzstan and Turkmenia. Source: "GATT, Seeing Reforms, Grants Vietnam Observer Role," REUTER, July 20, 1994. _________________________________________________ RESOURCES _________________________________________________ For copies of the following, contact the organizations or authors listed: "We Speak for Ourselves: Population and Development" PANOS INSTITUTE, 1994. 32 pages. Panos Institute, 1717 Massachusetts Avenue, NW, Suite 301, Washington, DC 20036. (202) 483-0044. $8.95. Available in English and Spanish. A set of articles presenting a range of views and analyses that seek to broaden the discussion of population issues to include development, human rights and women's status. "U.S. Trade and Development Agency: Limitations Exist in its Ability to Help Generate U.S. Exports," GENERAL ACCOUNTING OFFICE, October 1993. 44 pages. GAO, P.O. Box 6015, Gaithersburg, MD 20884-6015. (202) 512-6000. Fax: (301) 258-4066. First copy is free. Additional copies $2 each. "Measuring U.S.-Canada Trade," GENERAL ACCOUNTING OFFICE, January 1994. 87 pages. GAO, P.O. Box 6015, Gaithersburg, MD 20884-6015. (202) 512-6000. Fax: (301) 258-4066. First copy is free. Additional copies $2 each. _________________________________________________ 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 _________________________________________________