TRADE NEWS BULLETIN Volume 2 Number 27 Friday, February 12, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ CANADA'S LIBERAL PARTY WILL REOPEN NAFTA IF ELECTED Jean Chretien, leader of Canada's Liberal Party, said his government will seek changes in the North American Free Trade Agreement if elected later this year. Chretien said NAFTA needs a subsidies code, an anti-dumping code, a more effective dispute resolution mechanism, and uniform labor and environmental standards. Chretien said Canada would also seek the same energy protection as Mexico under NAFTA. The Liberal Party enjoys a substantial lead over the ruling Conservatives. Source: "Canada Opposition Calls for Changes to NAFTA," REUTER, February 11, 1993. _________________________________________________________ PHARMACEUTICAL INDUSTRY PRAISES NAFTA In a report, the Pharmaceutical Manufacturers Association (PMA) praised the North American Free Trade Agreement (NAFTA) for its strong commitment to protecting intellectual property rights, and urged Congress to pass the accord. "The intellectual property provisions contained in chapter 17 of the NAFTA will benefit the U.S. research-based pharmaceutical industry and other technology- intensive industries significantly," said Harvey Bale, Jr. a PMA senior vice-president and author of the report. Bale said NAFTA is superior to GATT because it provides "a fair arena for research and development in the industry." The PMA recommended some changes in NAFTA, such as expanding protection for biotechnology inventions. The PMA represents more than 100 research-based pharmaceutical companies Source: "Significance of The North American Free Trade Agreement for the Protection of Intellectual Property in the Pharmaceutical Industry," Harvey E. Bale, Jr., Ph.D., Pharmaceutical Manufacturers Association. _________________________________________________________ GATT News Summary _________________________________________________________ CLINTON WILL SEEK 'FAST TRACK' EXTENSION In an effort to speed up global trade talks, U.S. President Bill Clinton will ask Congress for an extension of 'fast track' negotiating authority. U.S. Trade Representative Mickey Kantor, who made the announcement yesterday after separate meetings with EC Trade Commissioner Leon Brittan and Japanese Foreign Minister Michio Watanabe, said decisions about the timing and duration of fast-track would be established after the Administration consults with Congress and the private sector. European and Japanese trading partners welcomed the decision. "We consider the announcement of the Administration's willingness to extend the fast track to be a very positive sign that the Clinton Administration is placing GATT high up its trade agenda," an EC spokesperson said. Japanese Agriculture Minister Masami Tanabu said it was a sign of "goodwill." Clinton's decision indicates there is little chance of completing GATT before March 2, fast track's current expiration date. Kantor said his meeting with Brittan did little to ease growing trade tension between Europe and the United States. They discussed recent U.S. - EC trade clashes but failed to settle disputes over steel duties and government contracts. Kantor said he and Brittan agreed that Japan must open its rice markets and play a more active role in completing the Uruguay Round. Clinton later met with Watanabe and promised to "tackle environmental problems, promote democracy in Russia and coordinate to ensure global economic growth with the Japanese government." Japan's deputy minister for foreign affairs, Koichiro Matsuura, recently called on GATT or a similar group to review the North American Free Trade Agreement to determine whether it is consistent with GATT. In a speech in Australia, Matsuura said he objected to the idea of selectively expanding NAFTA to Asia-Pacific nations. He argued an expansion of Asia Pacific Economic Cooperation should be the framework for expanding economic growth in the region. Sources: Nancy Dunne, "Clinton Wants Renewed Trade 'Fast Track'," FINANCIAL TIMES, February 12, 1993; Keith Bradsher, "Clinton Wants Fast-Track Rule Extended," NEW YORK TIMES, February 12, 1993; Peter Behr and Daniel Williams, "Clinton to Ask Congress for Time to Rekindle," WASHINGTON POST, February 12, 1993; "EC Commission Welcomes U.S. Fast Track Move," REUTER, February 12, 1993; "Japanese Aide Wants GATT to Review N. America Pact," JOURNAL OF COMMERCE, February 9, 1993. _________________________________________________________ CHINA TO ELIMINATE SPECIAL ECONOMIC ZONES In compliance with previous GATT demands, China's special economic zones (SEZ), which have set open economic policy for 14 years, will gradually be eliminated. A 12-point plan was issued by GATT demanding that China abolish special tax and investment policies because they offer unfair advantages. GATT will soon set a deadline for meeting this commitment. China has applied to rejoin the world trade body. In other news, the U.S. Commerce Department decided to impose anti-dumping duties on China's iron waterworks industry. Alhough the decision is preliminary, China is now required to make a deposit equal to the estimated dumping margin of 127 percent on all exports. Sources: "GATT Re-Entry Expected to Kill China's Special Economic Zones," JOURNAL OF COMMERCE, February 10, 1993; "Commerce Ruling Says China Dumping Iron," JOURNAL OF COMMERCE, February 10, 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 _________________________________________________________