TRADE NEWS BULLETIN Volume II Number 14 Monday, January 25, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ OFFICIAL: EAEC NEEDED TO COMPETE WITH NAFTA, EC The formation of the proposed East Asia Economic Caucus (EAEC) would dissuade Europe and North America from adopting the "closed and unyielding stance that recently characterizes their actions," said Malaysian Finance Minister Datuk Seri Anwar Ibrahim. Speaking at the two-day Asian Forum Malaysia, Anwar said the EAEC will be a forum for free trade, and it should not be considered a regional bloc or fortress. "It makes rational sense for East Asian countries to group together so that they can face whatever problems that will emerge from the creation of NAFTA and the single market in the European Community." Anwar stated that if current growth rates continue, the East Asian economy should exceed the size of those in North America and Europe by the year 2020. Conference attendees considered a plan to place EAEC as a subgroup under the Asia Pacific Economic Cooperation (APEC). Another option discussed was for East Asian countries to enter into preferential agreements with North America, with open regionalism as an objective. Source: Noorzita Samad, "Anwar: EAEC Is Set to Take Shape," NEW STRAITS TIMES (Malaysia), January 19, 1993, p. 14. _________________________________________________________ GATT News Summary _________________________________________________________ EC AG CHIEF SEES GATT COMPROMISE WITHIN CAP REFORM Speaking at the official opening of Berlin's Green Week January 21, Rene Steichen, the new agriculture commissioner for the European Community, rejected the claims of many farmers who contend an EC- United States agriculture accord is inconsistent with the EC's Common Agriculture Policy (CAP). "The analyses I have seen show that overall the concessions which the Community has made as well as those made to it, and which are all too often passed over in silence, fall within the framework of the reform of the CAP," Steichen said. Steichen said the long-stalled Uruguay Round of the General Agreement on Tariffs and Trade should be completed this year, and that the next few weeks could be "decisive." New EC External Affairs Commissioner Leon Brittan hopes to meet with U.S. Trade Representative Mickey Kantor next week in Washington, DC. Brittan said if Clinton does not take a "fundamentally different view" from Bush, a GATT accord would be possible this year." Everything depends on the attitude of the US administration," Brittan said over the weekend. "What we have to establish is how high a priority it is for Clinton." Source: Rene Steichen, "Steichen Speech at Opening of Green Week in Berlin," REUTER, January 22, 1993; Andrew Gowers, Ian Hargreaves, "EC Trade Supremo Has to Hit the Ground Running," FINANCIAL TIMES, January 25, 1993, p. 3. _________________________________________________________ Other Trade News _________________________________________________ HINDUS DEMAND TRADE POLICY CHANGES IN INDIA India's main opposition Bharatiya Janata Party, which favors a greater emphasis on Hindu culture, and rejects the constitution's tolerance for other religions and peoples, is gaining momentum, according to an article in the NEW YORK TIMES. India has endured a month and a half of religious and ethnic violence, beginning with the destruction of a 16th century mosque. The Bharatiya also advocates increasing nuclear weapons production and restructuring the Indian economy by reducing foreign investment and loans and restricting imports. "Foreign companies can come in if they bring technology and capital only in those areas we do not have technology," said Jay Dubashi, author of the party's economic policy. "We want them in high-tech areas: oil exploration, modern urban transportation. But for example, Kelloggs is coming in to manufacture breakfast foods. This is something we don't like at all. Coca-Cola and Pepsi are something we can do without." Source: Edward A. Gargan, "Hindus Now Demanding the Leadership of India," NEW YORK TIMES, January 24, 1993, p. 3. _________________________________________________________ Resources: The Economic Strategy Institute (ESI) has produced two new documents on GATT and NAFTA respectively: "The Uruguay Round and the United States: A Critical Analysis" and "NAFTA: Making It Better." Each is available for $9.95 from ESI, 1100 Connecticut Ave NW, Suite 1300, Washington, D.C. 20036. _________________________________________________________ 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 _________________________________________________________