TRADE NEWS BULLETIN Volume II Number 15 Tuesday, January 26, 1993 __________________________________________________ GATT News Summary __________________________________________________ US, EC OFFICIALS TO MEET FEBRUARY 11 European Community External Economic Affairs Commissioner Leon Brittan and new U.S. Trade Representative Mickey Kantor will meet for the first time February 11. Brittan had originally hoped to meet with Kantor this week, but the meeting was delayed to allow Kantor time to assemble his negotiating team. Some in the U.S. have accused Brittan of pressuring Kantor for a quick meeting before Kantor is fully prepared. Source: Nancy Dunne, "U.S. and EC Negotiators Make a Date," FINANCIAL TIMES, January 20, 1993. __________________________________________________ U.S.-JAPAN TENSIONS LEAD TO TALK OF ASIAN COOPERATION Japan has threatened retaliation if the U.S. revives the Super 301 trade statute, and U.S. auto-makers are calling for punitive tariffs on all imported cars. The American Chamber of Commerce in Japan claims "the Japanese economy remains under-penetrated by foreign firms," and U.S. President Bill Clinton's administration is trying to figure out how to reverse the Bush Administration's approval of a Japanese firm's purchase of a U.S. computer equipment company. The U.S. and the EC, both major grain exporters, continue to criticize Japan's ban on rice imports, while Japan is becoming increasingly frustrated with the uncertainty surrounding Clinton's trade policy. "I want to go to the U.S. to discuss (trade) with my counterpart, but there is no counterpart," one Japanese trade official said. In the midst of these tensions, Japanese cooperation with the Association of Southeast Asian Nations (ASEAN) has been proposed to counter other regional trade blocs, such as the EC and the North American Free Trade Agreement (NAFTA), and as a means to work jointly for a successful conclusion of the Uruguay Round of General Agreement on Tariffs and Trade. The ASEAN nations of Singapore, Malaysia, Thailand, Indonesia, the Philippines and Brunei have initiated the ASEAN Free Trade Area (AFTA), with the goal of reducing mutual tariffs on all non- agriculture goods to five percent or lower within 15 years. Currently about five percent of all ASEAN trade is conducted within the AFTA bloc. Under AFTA, countries are allowed to exclude industries they want to protect. Meanwhile, Japanese farmers are seeking worldwide support for their opposition to rice imports. The Central Union of Agricultural Cooperatives (Zenchu) plans to host the world's first "farmers' summit" in Tokyo. The summit will coincide with the July 7-9 annual meting of the leaders of the Group of Seven (G7) industrialized countries. Source: Paul Blustein, "Japanese Official Warns of Trade Retaliation; Minister Says Nation Would Act If Clinton Unilaterally Imposes Sanctions," WASHINGTON POST , January 26, 1993; Jacob M. Schlesinger, "Japan Trade Official Urges Retaliation If U.S. Revives Law Requiring Sanctions," WALL STREET JOURNAL, January 26, 1993; Keith Bradsher, "Detroit to Seek Punitive Duties on Car Imports," NEW YORK TIMES, January 26, 1993; "U.S. Tries to Reopen Japan Deal," REUTER, January 25, 1993; Kartini Abd. Kadir," Call to Make Joint Appeal for GATT Talks Success," BUSINESS TIMES, January 21, 1993; Kieran Cooke, William Keeling, Jose Galang, Victor Mallet, "ASEAN Free Trade Zone Sputters Into Action," FINANCIAL TIMES, January 26, 1993; "Japanese Farmers Plan Agricultural Summit in Tokyo," REUTER, January 25, 1993. __________________________________________________ NAFTA News Summary __________________________________________________ WILSON: HEMISPHERIC FTA BY YEAR 2000 UNLIKELY Canadian Trade Minister Michael Wilson recently said the creation of a hemispheric trade bloc stretching from Alaska to Chile is unlikely in this decade. According to Wilson, some southern governments are not yet prepared to implement the economic reforms required to join the proposed North American Free Trade Agreement between Canada, Mexico and the U.S. He predicted Chile would be the first to join. Wilson cited current trade barriers as an impediment to freer trade, and said intra-regional agreements such as the Andean Pact and Mercosur must "move to a higher state of fruition," before they could join NAFTA. Source: Gary Regenstreif, "Canada Sees Hemispheric Trade Pact Unlikely Soon," REUTER, January 25, 1993. __________________________________________________ TEAMSTERS MAKE TRADE TOP PRIORITY The International Brotherhood of Teamsters recently listed fair trade among its top five political action priorities. Citing Clinton's campaign statement that there would be no new trade agreement with Mexico unless it would "require the Mexicans in return for increasing trade to raise their labor standards and raise their environmental standards," the Teamsters list the following priorities: "Withdraw George Bush's North American Free Trade Agreement; Negotiate international trade agreements that will close the gap in wages and environmental and consumer standards between the U.S. and countries like Mexico; and rescind Bush's order requiring states to honor Mexican commercial drivers licenses." Source: "Putting People First: New Teamsters Political Action To Focus on Five Key Issues," NEW TEAMSTERS NEWS. __________________________________________________ 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 _________________________________________________________