TRADE NEWS BULLETIN Volume II Number 19 Monday, February 1, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ GOVERNORS WILL ENDORSE NAFTA The U.S. National Governors' Association is expected to endorse the North American Free Trade Agreement during its winter meeting this week in Washington, D.C. Although the endorsement will likely be unconditional, the governors will probably encourage the Clinton Administration and Congress to address concerns in four areas: standards, dispute settlement, adjustment costs, and representation on NAFTA commissions. In standards, the NGA wants NAFTA's implementing legislation to declare that states will have the right to set environmental, health and safety standards that exceed either federal minimum standards or international standards. Wisconsin Governor Tommy Thompson and Texas Governor Ann Richards are developing the NGA trade policy. The association will vote on the issue February 2. Source: "Governors to Endorse NAFTA, But Seek Assurances on Implementation," INSIDE U.S. TRADE, January 15, 1993. _________________________________________________________ COMMUNICATIONS WORKERS DENOUNCE NAFTA The North American Free Trade Agreement will hurt the U.S. communications industry by moving capital abroad, causing job losses and preempting state public utility commissions, leaving workers and consumers with little input, according to the Communications Workers of America (CWA). In a document titled, "What's Wrong With NAFTA," CWA says NAFTA lacks: measures to ensure the rights of workers; a plan to raise standards of living; and protection for consumers and the environment. The CWA, a division of the AFL-CIO, says NAFTA will not create new high-skilled jobs in the U.S. as supporters claim, nor will it create new consumers for U.S. products because Mexico's standard of living will not improve. The CWA has organized a petition drive against NAFTA. Source: "What's Wrong With NAFTA," Communications Workers of America. _________________________________________________________ GATT News Summary _________________________________________________________ CLINTON URGED TO CALL G7 SUMMIT Fred Bergsten, director of the Institute for International Economics, called on President Clinton to summon the leaders of the Group of Seven leading industrial countries to address the world's economic problems. Speaking to business leaders, ministers, officials and academics at the World Economic Forum in Davos, Switzerland, Bergsten said the special meeting should be held soon after Clinton releases his economic program in March or April. Bergsten and others emphasized the need for a quick conclusion to the Uruguay Round of GATT, but GATT chief Arthur Dunkel was not optimistic about the chances of completing the agreement under U.S. fast-track negotiating authority, which expires in March. "There is still a hell of a technical job to be done, not just by the US and EC but by all the others," Dunkel said. "What we need is a decision to conclude." French Trade Minister Dominique Strauss-Kahn agreed that GATT was far from concluding, and blamed the delays on the preoccupation with agriculture. Bergsten said if an entire GATT package cannot be finished by March, the agriculture accord and other sections which are finished should be signed. The annual G7 summit will be held in Tokyo in July. Source: Andrew Gowers, Ian Rodger, "Clinton Urged to Call Summit," FINANCIAL TIMES, January 30, 1993, p. 2; Bob Davis, "Trade Issues Crowd in on Clinton as Industries Line Up for Protection," WALL STREET JOURNAL, February 1, 1993, p. 1; "French Minister Echoes GATT Gloom," REUTER, January 30, 1993; Keith Grant, "Clinton Urged to Take Initiative on Trade, Extend Blocs," REUTER, January 31, 1993. _________________________________________________________ U.S. WILL RESUME TALKS WITH CHINA ON ENTERING GATT China's official newspaper reported Sunday that the United States has agreed to resume bilateral talks on China's efforts to rejoin the General Agreement on Tariffs and Trade. The CHINA DAILY said U.S. officials would visit China sometime before the next GATT session on China beginning March 15 in Geneva. China's application to rejoin the world trade body has been suspended since the 1989 Tiananmen Square massacre. Japan announced Friday that it would impose duties of 4.5 percent to 27.2 percent on steel imports from one hundred Chinese steel companies. Japan said the companies were dumping the steel- making material, ferro-silicon manganese, at unfairly low prices. The action would be the first time Japan has ever imposed anti-dumping duties. Just last week, Japan criticized a U.S. Commerce Department decision to enact anti-dumping duties on steel from 19 countries. Japanese officials said the move is not hypocritical because Japan, unlike other countries that have imposed anti-dumping measures, was consistent with GATT. "The decision was a result of transparent and fair investigations based on GATT rules," said Trade and Industry Minister Yoshiro Mori. Source: "U.S., China to Resume Talks on GATT, Paper Says," UPI, January 31, 1993; Paul Blustein, "Japan Imposes 1st Duties on Firms for Dumping," WASHINGTON POST, January 30, 1993. __________________________________________________________ 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 _________________________________________________________