TRADE NEWS BULLETIN Volume 2 Number 28 Monday, February 15, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ NWF SUGGESTS ENVIRONMENTAL TEXT FOR NAFTA PACKAGE The National Wildlife Federation (NWF) has released detailed suggestions for creating a North American Commission on the Environment (NACE) and other side environmental agreements to the North American Free Trade Agreement. The NWF says the report was created to assist the Clinton Administration in determining its policy, and to provide the basis for determining whether Congress supports or rejects the existing NAFTA text. The report discusses the need for more effective enforcement and adoption of environmental funding mechanisms. For a copy of "The North American Commission On Environment And Other Supplemental Environmental Agreements: Part Two Of The NAFTA Package," contact: NWF, 1400 16th Street NW, Washington, DC 20036-2266, telephone: (202) 797- 6600. _________________________________________________________ GATT News Summary _________________________________________________________ FRANCE UPSET ABOUT FARM DEAL, WHEAT, AIRCRAFT France's largest farm union, the FNSEA, sent a letter to parliamentary candidates asking them to veto November's U.S.-EC farm trade agreement. The farm deal, which was supposed to speed the completion of the General Agreement on Tariffs and Trade (GATT), would cut subsidized EC exports and oilseeds production. "If we are let down on GATT, all the ministers will be banned from visiting farming regions," said FNSEA President Luc Guyau. In January, after the U.S. complained to GATT that EC oilseed subsidies cost foreign exporters $2 billion annually, the European Commission asked EC member states to approve the oilseed deal to avert a trade war. Since then the ruling socialist party in France, the center-right opposition, and the FNSEA have strongly opposed the deal, demanding an oilseed deal separate from GATT. The French Cereals Office (ONIC) said it is concerned about the potential impact of the farm deal on EC wheat production. The ONIC said the deal, which will cut Europe's exports by 21 percent, will increase total wheat stocks by 14 million tons in 1999. Also under attack are EC subsidies for Airbus aircraft. U.S. President Bill Clinton said recently, "The Europeans are going to have to quit subsidizing Airbus and trying to deny us access to those contracts. I am not going to roll over and play dead." In response, France's Foreign Ministry spokesman Daniel Bernard accused Clinton of jeopardizing transatlantic trade relations. Sources: "France Criticises Clinton For Airbus Comments," REUTER, February 12, 1993; "French Farmers Set Veto To Farm Deal As A Priority," REUTER, February 11, 1993; "France Cautions EC Against Rushing Oilseed Deal," REUTER, February 11, 1993; "GATT and CAP reform incompatible," REUTER, February 10, 1993; "French Right To Reject EC Farm Deal If Elected," REUTER, February 10, 1993. _________________________________________________________ CANADA, UK REACT TO FAST TRACK ANNOUNCEMENT Canada welcomed U.S. Trade Representative Mickey Kantor's announcement last week that the Clinton Administration would seek an extension of fast track negotiating authority to finish GATT talks. "This is very important in that it will allow the negotiators for the Americans and Europeans to get back to the table," said Canadian Trade Minister Michael Wilson. "We've had a good week on trade issues. There is progress here on both the Uruguay Round and the NAFTA and I think that's good news as far as the Canadian economy is concerned," Wilson said after meeting with European Community Trade Commissioner Leon Brittan in Washington last week. However, British farmers expressed concern regarding the length of time fast-track would be extended. "Three to six months would allow completion of the technical work necessary, without a major re-opening of issues. It would be a bad signal if it was 18 months to two years," said Robert Wise, advisor to the UK Agricultural Supply Trade Association. Trevor Hayes, a spokesman for the UK National Farmers Union said, "The extension of the deadline is constructive and could be of help, but Kantor's remarks implying there may need to be renegotiations seem to be a little worrying." Sources: "Canada Trade Minister Happy With GATT Fast-Track," Michael Ellis, REUTER, Feb. 12, 1993; "British Farm Sector Wary of U.S. GATT Stance," REUTER, Feb. 12, 1993. _________________________________________________________ EAGER TO JOIN GATT, TAIWAN OPENS MARKETS In hopes of joining GATT this year, Taiwan will further open its markets to imports of wine, spirits and cigarettes. "As we are applying to enter GATT, we have to remove trade barriers as much as possible," said Tsai Lien-sheng, director of the Board of Foreign Trade. Private importers, who were previously limited to buying from 58 countries, will now be able to purchase wine, spirits and cigarettes from all GATT members, except Japan. The board would consider removing the restrictions on Japanese products if the trade deficit with Japan decreases, Tsai said. Taiwan will also need to respond quickly to alleged copyright violations. On Friday, a coalition of U.S. trade groups submitted to USTR Mickey Kantor a list of seven nations accused of violating U.S. copyright laws. If Kantor agrees with the allegations, each nation must act to end unfair practices within six months or face punitive tariffs on exports. The International Intellectual Property Alliance (IIPA) asked for quick action against Taiwan and Thailand. "IIPA is urging such action be taken on April 30 if commitments made are not adhered to," said an IIPA spokesperson. Italy, Korea, Poland, the Philippines and Turkey were also listed as violators. Source: "Taiwan To Allow More Imports Of Wine, Cigarettes," REUTER, February 13, 1993; "U.S. Groups Call Seven Nations Copyright Abusers," REUTER, February 12, 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 _________________________________________________________