TRADE NEWS BULLETIN Volume 2 Number 40 Wednesday, March 3, 1993 _________________________________________________________ NAFTA News Summary _________________________________________________________ MEXICAN-AMERICANS PROPOSE CHANGES IN NAFTA Despite heavy lobbying by the Mexican government, a coalition of U.S. Hispanic groups is demanding changes to the current text of the North American Free Trade Agreement. "We think the current pact is tilted too far toward big business interests," said Antonio Gonzalez, a project director with the Southwest Voter Registration and Education Project in Los Angeles. In a position paper, the groups say the U.S. and Mexico need to allot six billion dollars to train displaced workers and commit $10.3 billion over the next decade to build up infrastructure and protect the environment. They also want the governments to create a trinational commission to liberalize migration between the three countries. "Immigration is really the paramount linkage between the United States and Mexico," says Gonzalez, "more so than trade and foreign investment." The Mexican government has spent millions of dollars promoting NAFTA to the Mexican-American community. Source: Dianna Solis, "U.S. Hispanics Flex Political Muscles As Mexico Lobbies For NAFTA Support," WALL STREET JOURNAL, March 3, 1993. _____________________________________________________________ MEXICO URGED TO PRIVATIZE GAS INDUSTRY UNDER NAFTA Mexico will continue importing natural gas into the next decade unless it privatizes its petroleum industry, industry officials told a Canadian Energy Research Institute conference. "The North American Free Trade Agreement opens the door through which Mexico can become a major player in the North American gas market," said Peter Milne, president of an Ottawa-based consulting firm. Mexico has an abundance of cheaply produceable gas, but will not be able to take advantage of opportunities without privatization, Milne said. "It can be very difficult politically for a government- owned company to be seen to be offering the lowest prices in foreign markets, particularly if export prices are lower than domestic prices," he told the conference. The implementation of NAFTA could increase demand for natural gas in Mexico to one trillion cubic feet by the year 2000, said Wayne Rousch, vice president of gas supply for Pan-Alberta Gas Ltd. Source: "Mexico Seen As Gas Importer Without Privatization," REUTER, March 2, 1993. _________________________________________________________ GATT News Summary _________________________________________________________ EC STEPS UP PRESSURE ON U.S. OVER STEEL DUTIES Calling U.S. steel duties "unjustified," the European Commission announced it had formally requested talks under the General Agreement on Tariffs and Trade (GATT). EC Trade Commissioner Leon Brittan said the duties "send the wrong political signal at a time when the world needs reassurance of America's intention to stand by its commitment to free global trade." In January, the U.S. imposed anti-dumping duties on steel imports from 19 countries, including seven EC nations. U.S. officials said the announcement does not represent a downturn in U.S.-EC relations. "Brittan's rhetoric is for local consumption," said Anne Luzzatto, a spokeswoman for U.S. Trade Representative Mickey Kantor. But she said the U.S. is "very willing to talk." The time and location for a meeting will be announced next week. Sources: Lionel Barber, "EC Asks GATT to Probe Steel Row," FINANCIAL TIMES, March 3, 1993; "EC Asks GATT to Look at U.S. Anti-Dumping Duties," REUTER, March 2, 1993; Lyndsay Griffiths, "Tough EC Steel Talk Is 'Rhetoric,'" REUTER, March 2, 1993. _________________________________________________________ JAPANESE ACADEMICS SUPPORT RICE IMPORTS A group of 21 Japanese economic and political science professors announced support for GATT's plan to open rice markets. The Forum for Policy Innovation said allowing rice imports would save consumers an estimated 540 billion yen ($4.65 billion). "It would be a good investment for the future if the government gave up one of its most evil policies, the rice acreage-control program, and if Japanese agriculture became more competitive," said Yujiro Hayami, co-chair of the group. Japan currently bans rice imports for national food security reasons and also controls planting to avoid oversupply and price plunges. The group of top academics said Japan should accept GATT Director-General Arthur Dunkel's plan to replace all farm import barriers with tariffs. Source: "Japan Should Import Rice, Subsidize Farmers," REUTER, March 3, 1993. _________________________________________________________ Events: FOOD SECURITY AND THE RIGHT TO FOOD: LEGAL RESOURCES AND GRASSROOTS ACTION, a lecture by Dr. Clarence Dias, President of the International Center for Law in Development. Friday, March 5, 12:20 to 1:30, University of Minnesota, West Bank Union Auditorium. Free. For more information, call (612) 624-0832. _________________________________________________________ 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 _________________________________________________________