(In reality this is v2n9 -- pauls@umich.edu)


TRADE NEWS BULLETIN  Volume II Number 8
Thursday, January 14, 1993
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USTR NOMINEE FACES OPPOSITION FROM ALL SIDES

President-elect Bill Clinton's nomination of Mickey Kantor as U.S. 
Trade Representative (USTR) has sparked criticism from across the 
political spectrum.  Many advocates of free trade say the U.S. is in too 
volatile a situation to have a USTR as inexperienced in trade as 
Kantor.  They say Kantor does not have the necessary background to 
complete the GATT round, negotiate side environmental and labor 
agreements on NAFTA, and deal with disputes on semiconductors, 
autos, steel and oil.

David Rockefeller, the retired chairman of Chase Manhattan Corp., 
last week urged Clinton transition chair Vernon Jordan to seek a 
deputy USTR appointment for Fred Bergsten, director of the Institute 
for International Economics.  "Trade is the most critical immediate 
economic issue the country faces," said Rockefeller.  "We shouldn't be 
going into the fray without people trained in the field."  Bergsten and 
former International Trade Commission chair Paula Stern were often 
mentioned as candidates for USTR, and both have since expressed 
interest in a deputy position.

Opponents of GATT and NAFTA are also worried about Kantor's 
nomination.  They say Kantor's background as a corporate lobbyist 
reveals a bias for big business over environmental and consumer 
concerns.  As evidence, they cite Kantor's past efforts, on behalf of 
corporate clients, to open off-shore oil drilling, repeal smoking bans 
and defeat a recall of Sazuki Samurais, which were considered 
dangerous.

Other contenders for one of three deputy posts include: Barry Carter, 
a law professor at Georgetown University; Robert Kyle, chief trade 
counsel for the Senate Finance Committee; Michael Wessel, trade 
counsel for House Majority Leader Richard Gephardt; and Rufus 
Yerxa, the current deputy trade representative in Geneva.

Source: Bob Davis, "Unlikely Allies Join to Oppose Clinton's Choice of 
Kantor as the New U.S. Trade Representative," WALL STREET 
JOURNAL, January 14, 1993, p. A18; John Maggs, "2 Trade Ex-Front-
Runners Seek Deputy USTR Post," JOURNAL OF COMMERCE, January 
13, 1993, p. 1A.
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NAFTA News Summary
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NAFTA THREATENS MANUFACTURING JOBS IN SOUTHERN U.S.

For years, the southern part of the United States has offered U.S. 
companies cheaper labor and lower production costs than the rest of 
the country.  But stiffer competition from developing countries has 
diminished the attractiveness of the South.  The textile and apparel 
industry -- which lost 270,000 jobs between 1970 and 1989 -- and 
other labor intensive industries expect things to get even worse 
under the North American Free Trade Agreement.  "We cannot 
compete with low-cost labor," said Moncure Crowder, chief economist 
at Atlanta's Wachovia Bank. 

The South is trying to absorb new job losses by investing more in 
service industries, in which NAFTA may bring opportunities.  Others 
warn the South must improve the skills of its workers in order to 
take advantage of the increased opportunities.

Source: Barbara Harrison, "American South Puts Emphasis on New 
Skills," FINANCIAL TIMES, January 13, 1993, p. 4.
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GATT News Summary
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DUNKEL POSTPONES TNC MEETING

A top-level meeting of the General Agreement on Tariffs and Trade 
(GATT) has been postponed until next Tuesday -- one day before U.S. 
President-elect Bill Clinton takes office -- in hopes the additional 
time will enable the United States and European Community to 
establish an industrial tariff agreement.  GATT Director-General 
Arthur Dunkel had originally planned the meeting for Friday, but the 
U.S. and EC have been unable to settle differences on tariff 
reductions.  The biggest obstacle is textiles where the EC wants a 50 
percent cut in the highest US tariffs; the U.S. is pushing for a similar 
cut in the EC's lower tariffs.  The U.S. has also complained the EC is 
not offering enough on wood, aluminum, medical, scientific and 
agricultural equipment and electronic products.

Source: Frances Williams, "Dunkel Puts Off Top-Level GATT Talks," 
FINANCIAL TIMES, January 14, 1993, p. 3; John Zarocostas, "Last-
Ditch Trade Talks Race Deadline," JOURNAL OF COMMERCE, January 
13, 1993, p. 12A.
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Resources:

WORLD POLICY JOURNAL, Fall/Winter 1992.  Includes articles: 
"Mexico's New Politics: Changing Perspectives on Free Trade," by 
Diane E. Davis; and "Another NAFTA: What a Good Agreement Should 
Offer," by Jorge G. Castaneda and Carlos Heredia.  Available from the 
World Policy Institute, New School for Social Research, 65 Fifth 
Avenue, Suite 413, New York, NY 10003. Tel: (212) 229-5808.
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Produced by: 
Kai Mander
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
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