TRADE NEWS BULLETIN Volume II Number 10 Tuesday, January 19, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ MILWAUKEE CITY COUNCIL OPPOSES NAFTA Declaring that the North American Free Trade Agreement would hurt workers and the environment, the Milwaukee city council unanimously passed a resolution in opposition to the pact. The Common Council directed the city's lobbyists to encourage members of Congress to reject the agreement. The 12-0 vote marks the first rejection of NAFTA by a city government this year. Source: Erik Gunn, "City Council Opposes NAFTA," MILWAUKEE JOURNAL, Jan. 18, 1993. _________________________________________________________ FARMERS SAY CLINTON SHOULD NEGOTIATE DAIRY ACCORD A union representing more than 10,000 Midwest dairy farmers has called on President-elect Bill Clinton to negotiate a parallel agreement on dairy with Mexico and Canada to "correct serious flaws" in the North American Free Trade Agreement. The Farmers Union Milk Marketing Cooperative (FUMMC) said the current draft of NAFTA poses more risks than opportunities to U.S. dairy producers and consumers. In a letter, FUMMC President Stewart Huber asked Clinton to "fix the flaws in the dairy provisions of NAFTA at the same time and in the same manner you have pledged to do with your concerns about labor and the environment." Source: "Clinton Should Negotiate NAFTA Side Pact on Dairy, FUMMC Urges," FUMMC NEWS RELEASE, January 14, 1993. _________________________________________________________ CANADIAN MINISTER: JOBS WILL NOT BE LOST UNDER NAFTA Canadian Trade Minister Michael Wilson denied the North American Free Trade Agreement would result in a decline in manufacturing jobs in Canada. Speaking in Joliette, Quebec, Wilson rejected the claims of NAFTA opponents who argue many companies will move to Mexico to take advantage of cheaper wages. "If the salary was the sole criterion of competition, all of the American businesses would install their factories in Haiti," Wilson said. Canada enjoys technological, transportation and other advantages over Mexico that will keep companies in Canada, Wilson claimed. Meanwhile, the Canadian government indicated it may revise its standards for review of trade dispute decisions with the United States. John Coleman, chairman of the Canadian International Trade Tribunal (CITT), said the countries need more uniform judicial review standards in preparation for NAFTA. The change will make it easier for the U.S. to overturn CITT anti-dumping and countervailing duty rulings against U.S. companies. Some Canadian trade lawyers contend that current U.S. and Canadian standards are very similar and that the change will allow the U.S. to dictate the rules in Canada. Source: "Free Trade Foes Wrong on Mexico, Wilson Says," TORONTO STAR, January 12, 1993; Leo Ryan, "Canada May Revise Standards Governing Review of Trade Rulings," JOURNAL OF COMMERCE, January 11, 1993; "Canada Cites Trade Policy as Priority with U.S.," REUTER, January 18, 1993. _________________________________________________________ GATT News Summary _________________________________________________________ GATT'S TRADE NEGOTIATIONS COMMITTEE MEETS TODAY Director-General Arthur Dunkel hoped today's meeting of the Trade Negotiations Committee (TNC) would lead to a conclusion of the Uruguay Round before the Clinton Administration takes office. Today's meeting will not result in a breakthrough in the six-year old GATT talks, but some officials expressed confidence that a settlement could be reached in the near future. "There is now a very good chance the negotiations can be concluded in the coming months. The basis is there. The beginning of March or some weeks after is a realistic hypothesis," one senior EC official told reporters. Outgoing U.S. Trade Representative Carla Hills said last week that a new GATT deal could be reached before U.S. fast track negotiating authority expires March 2 if Clinton makes it a priority. However, resistance from France will make it very difficult to achieve a completed deal prior to general elections in late March. The ruling socialist government fears concessions to the U.S. on agriculture trade policy could further alienate the party from the powerful French farm lobby. On Monday, EC farm ministers asked a special committee on agriculture to study the recent EC-US farm trade deal to determine whether it is compatible with the EC's Common Agricultural Policy (CAP). France, Italy, Ireland and several other member states have said the pact goes beyond CAP reforms and that it will hurt European farmers. The committee will report to the next farm council on February 9-10. Source: Robert Evans, "EC Confident World Trade Treaty Can Be Clinched," REUTER, January 18, 1993; "EC Ministers Refer U.S. Farm Deal to Experts," REUTER, January 18, 1993; Frances Williams, "Uruguay Round Talks Await Signal," FINANCIAL TIMES, January 19, 1993, p. 6. _________________________________________________________ Resources: DISLOCATED WORKERS: IMPROVEMENTS NEEDED IN TRADE ADJUSTMENT ASSISTANCE CERTIFICATION PROCESS, an October 1992 report by the U.S. General Accounting Office. The report, which was prepared in response to Al Gore's request, found flaws in the Department of Labor's process for determining worker eligibility for the Trade Adjustment Assistance program. For a free copy of the report, call (202) 275-6241. _________________________________________________________ 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