TRADE NEWS BULLETIN Volume 2 Number 35 Wednesday, February 24, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ MULRONEY WILL RESIGN; CANADA SEEKS NAFTA APPROVAL Canadian Prime Minister Brian Mulroney announced he will step down as leader of Canada and the Tory Party sometime in mid-June. A new party leader, who will automatically serve as Prime Minister, will be chosen at a party leadership convention at that time. Mulroney's approval rating has dropped to record lows in recent months, partly because of the massive unpopularity of the Canada- U.S. Free Trade Agreement and the North American Free Trade Agreement. A date for Canadian national elections, which must be held this year, will also be scheduled at the convention. Meanwhile, the Canadian government is expected to submit legislation to Parliament this week that will start the NAFTA approval process. On Monday, the government gave the required forty-eight hours notice to introduce implementing legislation. Canada and Mexico are expected to pass NAFTA easily as ruling parties enjoy substantial majorities in the legislatures. Most trade experts say NAFTA's fate lies with the U.S. Congress and whether its members will be satisfied with President Clinton's pledge to negotiate supplemental environmental and labor accords. Labor unions continue to speak out against NAFTA. At a meeting in Mexico City this week, Canadian and U.S. labor unions voiced strong opposition to the trade pact. "The NAFTA as it stands, will mainly benefit multinationals," said James Clancy, president of Canada's National Union of Public and General Employees. American labor leaders echoed Clancy's remarks. Said Bill Lucy of the American Federation of State and Municipal Employees, "We estimate 500,000 (U.S.) jobs will be lost by the year 2000." Mexico's largest trade unions, which are controlled by the government, support NAFTA. But Mexico's largest independent trade union, the Authentic Labor Front, has strongly criticized the pact. Sources: "Canada Could Introduce NAFTA Legislation Wednesday," REUTER, Feb. 23, 1993; "U.S., Canadian Unions Clash With Mexicans Over NAFTA," REUTER, Feb. 23, 1993. ___________________________________________________ RURAL COALITION EXAMINES STATUS OF WOMEN IN NAFTA The Rural Coalition has created a chart comparing the health, employment and legal rights of women in the U.S., Canada, and Mexico. The Coalition found that on average 43% of women work in the U.S., compared to 38% and 20% in Canada and Mexico respectively. The minimum hourly wage in the U.S. and Canada is equal to the minimum daily wage earned in Mexico. Mexican women have nearly five times as many children and almost ten times as many die from maternal complications than U.S. or Canadian women. In the U.S. and Canada women are given unemployment and health insurance whereas Mexican women receive nothing to compensate unemployment and rely on ill-equipped clinics to serve their needs. Source: Jennifer Cude, "Status of Women," RURAL COALITION, P.O. Box 53202, Washington, D.C. 20009-3202. _________________________________________________________ GATT News Summary _________________________________________________________ EC TO DISCUSS FARM DEAL; VOTE NOT EXPECTED The European Community announced it will not remove the oilseed issue from its meeting of farm ministers on March 8. "I don't know if there will be a vote but we would like to have a decision rapidly," EC Farm Commissioner Rene Steichen said at a conference. "It would be a sign to the U.S. that we stick to the agreement." French Prime Minister Pierre Beregovoy had asked for a delay in the discussion and threatened to veto the deal if it went to a vote. The ministers are expected only to debate the agreement; a vote is unlikely before French elections in March. British Prime Minister John Major will meet with U.S. President Bill Clinton in Washington today. He has stressed that a farm agreement is an absolute pre-condition to completing the Uruguay Round of General Agreement on Tariffs and Trade (GATT). The two leaders are expected to discuss European steel exports, public procurement policies and the GATT during their scheduled six-hour meeting. Sources: "EC/U.S. Oilseed Deal Needs Urgent Approval," REUTER, February 24, 1993; "Denmark Says EC Oilseeds Vote Could Be Delayed," REUTER, February 23, 1993; David Gardner, "Brussels Defies Oilseeds Threat," FINANCIAL TIMES, February 23, 1993; "French Veto Threat On Oilseeds Irks EC," UPI, February 23, 1993. _________________________________________________________ Events: "Mexico/U.S. Border Conference," March 5-7 in Tijuana, Mexico. For a registration form or information, contact: Fuera de Linea, P.O. Box 86479, San Diego, CA 92138. $30.00 fee to cover meals and materials. _________________________________________________________ Resources: The AMERICAN FRIENDS SERVICE COMMITTEE has put together a packet of speeches, articles and other materials detailing some of the consequences of NAFTA for Mexicans. Available from AMERICAN FRIENDS SERVICE COMMITTEE, 1501 Cherry Street, Philadelphia, PA 19102-1479, Tel: (215) 241-7000. _________________________________________________________ Produced by: Kai Mander and Gigi Boivin 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 _________________________________________________________