TRADE NEWS BULLETIN Volume II Number 24 Tuesday, February 9, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ U.S.-CANADIAN OFFICIALS FAIL TO RESOLVE DISPUTES Top U.S. and Canadian trade officials failed to reach agreements on autos, steel, wheat, lumber and other issues during meetings in Washington, DC yesterday. Canadian Trade Minister Michael Wilson reportedly urged U.S. Commerce Secretary Ron Brown to discourage the U.S. auto industry from including Canada among the countries from which it is seeking higher import duties on cars. In the wheat dispute, Wilson said a U.S.-Canada free trade panel would release its decision today on charges the Canadian Wheat Board "dumped" wheat at less than fair value. U.S. farmers, who claim that Canadian shipping subsidies undercut U.S. grain prices, asked the panel to require Canada to disclose how wheat prices are determined. U.S. Trade Representative (USTR) Mickey Kantor discussed the issue with Congressional members from North Dakota, Minnesota and Montana last week and said he would consider taking action against Canada. "He recognizes our concern and he is going to work on it, which is more than we got out of [former USTR Carla Hills]," said Representative Colin Peterson (D-Minnesota) after the meeting last week. Source: "U.S.-Canada Trade Talks," NEW YORK TIMES, February 9, 1993; "Canada Says U.S. Wheat Decision Set for Tuesday," REUTER, February 8, 1993; "Kantor Considering Action on Canadian Grain," CANADIAN PRESS WIRE SERVICE, February 4, 1993. _________________________________________________________ GATT News Summary _________________________________________________________ CLINTON URGED TO KEEP MFN FOR CHINA, BACK GATT REENTRY U.S. President Bill Clinton should continue Most Favored Nation (MFN) trade status for China because it is the best means of encouraging human rights improvements, concluded a report by the Atlantic Council and the National Committee on U.S.-China Relations. The study advocates resuming high-level talks with China instead of restricting trade, and urges Clinton to support China's efforts to rejoin the General Agreement on Tariffs and Trade. John Whitehead, study co-chair and former deputy secretary of state in the Reagan administration, said, "More can be accomplished in improving human rights practices in China through dialogue than by additional sanctions." Former World Bank president Barber Conable was the other co-chair of the study. During the presidential campaign, Clinton called for restrictions in MFN status for China, and last week indicated he would impede sales of advanced jet engines and a super computer to China, stating he was concerned about possible military repercussions of the sale. Source: Carol Giacomo, "New Study Challenges Clinton's Position on China" REUTER, February 8, 1993. _________________________________________________________ MIXED REACTIONS TO COMMON MARKET PROPOSAL Australian Prime Minister Paul Keating's proposal for a pan-Pacific integrated market was welcomed by Japan, Australia's largest trade partner. "The general direction of the prime minister's suggestions are entirely appropriate," said a senior official at the Ministry of International Trade and Industry (MITI). Australia's conservative parties were critical of the plan. "Clearly we are not doing well in trade in the region and the prime minister's plan announced today, apart from being very much belated, is not going to deliver immediate or short-term results," said opposition trade spokesman Andrew Peacock. Keating said his proposal would not conflict with current GATT negotiations on global trade liberalization as long as trade groups do not exclude non-members, are consistent with the rules of GATT, and encourage multilateral trade. Recognizing the diversity among the pan-Pacific economies, Keating said it would not be possible to eliminate internal barriers in the short-run, but he did suggest that smaller trade associations, such as the ASEAN Free Trade Area and the North American Free Trade Agreement, "would operate within the grander Pacific Rim agreement." Source: Bradley Perrett, "Australia Proposes Integrating Asia, North America" REUTER, February 8,1993; "Japan Greets Keating Pacific Market Proposal" REUTER, February 8, 1993. _________________________________________________________ Resources: AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS: Vol 74, #5, 1992. Included in this issue are four articles detailing current studies on trade and environmental issues: "Environmental Degradation and Economic Openness in LDC's: The Poverty Linkage," "Environmental Aspects of Economic Relations Between Nations," "Trade Institutions, and Preference for Living Marine Resources," "Trade and the Environment: Discussion." _________________________________________________________ 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 _________________________________________________________