TRADE NEWS BULLETIN Volume II Number 7 Tuesday, January 12, 1993 __________________________________________________ GATT News Summary __________________________________________________ EC CALLS US TARIFF OFFER INSUFFICIENT A U.S. proposal for cutting industrial tariffs is "not sufficient" and "does not go as far as was initially announced," said a spokesman for European Community Commissioner Leon Brittan. The proposal, a response to an EC list presented in December, is part of a hurried effort to achieve a breakthrough in the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) talks before U.S. President George Bush's term ends January 20. Negotiations on market access for industrial goods, farm products and services are "going on all over" Geneva, said one senior official. The EC is reportedly dissatisfied with U.S. tariff cuts in import- sensitive sectors such as textiles, and is unwilling to go along with U.S. "zero-for zero" offers on paper and wood products, non-ferrous metals, electronics, fish and alcoholic beverages. The EC prefers a formula approach, applied to all sectors, that makes steeper cuts on high tariffs than low ones. The U.S. wants to achieve the Uruguay Round target of an overall one-third reduction in tariffs through variable tariff reductions. Under this strategy, import-sensitive sectors would undergo only slight duty reductions, and reciprocal duty-free access would be arranged for other sectors. Meanwhile, France continues to vow it will block final approval of any agreement that is unfavorable to French and European farmers. French Prime Minister Pierre Beregovoy said yesterday he did not want the "food weapon" to end up being monopolized by the U.S. Despite the obstacles, some officials remain optimistic a deal can be reached in the near future. "I think there is a chance of moving it far enough to present a lusty infant to the (U.S. President-elect Bill) Clinton team instead of still-born child," said one GATT ambassador. Source: "EC Disapproves of U.S. Proposals on Tariff Reduction," UP, January 11, 1993; Robert Evans, "GATT Diplomats Driving for New Trade Treaty," REUTER, January 11, 1993; Frances Williams, "EC, US Go for Broke on Tariff Reductions," FINANCIAL TIMES, January 12, 1993; "EC Says U.S. GATT Industry Offer Insufficient," REUTER, January 11, 1993; "Beregovoy Reaffirms Position on Franc, GATT," REUTER, January 11, 1993. __________________________________________________ NAFTA News Summary __________________________________________________ US - PANAMA TRADE TALKS U.S. and Panamanian trade officials opened two days of trade talks yesterday. The two parties intended to draw up a rough draft of a trade pact that would allow Panama to join the North American Free Trade Agreement (NAFTA). Intellectual property rights, the GATT talks, privatization of state enterprises and structural adjustments to Panama's economy were to be discussed. Source: "Panama, U.S. Discuss Extension of NAFTA," REUTER, January 11, 1993; "U.S. Trade Officials to Visit Panama," REUTER, January 7, 1993. __________________________________________________ Other Trade News __________________________________________________ JAPAN LIMITS CAR EXPORTS; US MAKERS WANT MORE Japan announced last Friday that it would maintain a voluntary limit on car exports to the U.S. In a meeting earlier in the week, U.S. auto makers asked U.S. President-elect Clinton to reduce the current limit of 1,650,000 vehicles. The auto makers also sought regulations requiring Japanese cars assembled in the U.S. to contain a higher percentage of U.S. parts to qualify as domestically made. Clinton didn't comment specifically on the requests, but called the meeting a "fresh start on how business, government and labor can work together." Senior Japanese Foreign Ministry official Yukio Sato last week urged his government to take a new approach in negotiating with the U.S. government, signaling that his country might not continue routine compliance with U.S. policy considerations. "Japan, no longer in a position to see world issues primarily through the prism of the Japan-U.S. alliance, should address both economic and political issues through its own eyes and make its own opinions known to the world," said Sato. Source: Thomas L. Friedman, "Auto Makers Ask Clinton to Limit Imports of Mini-vans from Japan," NEW YORK TIMES, January 7, 1993; Michael K. Frisby, "Auto Makers All Smiles After Clinton Meeting," WALL STREET JOURNAL, January 7, 1993; "Japan-Auto Exports," AP, January 8, 1993; "Japanese Official Urges Japan to Seek New Relationship with Clinton," UP, January 11, 1993. __________________________________________________ RESOURCES: Press Summary of THE DRAFT FINAL ACT OF THE URUGUAY ROUND, in NEWS OF THE URUGUAY ROUND, December 3, 1992, issued by the Information and Media Relations Department of the General Agreement on Tariffs and Trade, Centre William Rappard, 154, rue de Lausanne, CH-1211 Geneva 21. Phone: 739 51 11. __________________________________________________ Other On-line Conferences: trade.strategy - a discussion of trade issues trade.library - a repository of trade information eai.news - a news summary of Latin American trade topics susag.news - a news summary of sustainable agriculture issues Produced by: Hannah Holm 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.org __________________________________________________