Trade Week in Review and Recent Publications Friday, February 18, 1994 Volume 3, Number 7 Headlines: GATT CRITICIZES U.S. PRESSURE ON JAPAN QUAD GROUP LATE ON FINAL TARIFF OFFERS SUTHERLAND NAMES WTO PRIORITIES FRENCH FARMERS' UNION ACCEPTS GATT GATT EXPECTED TO BOOST U.S. MEAT TRADE ICO LEADER CALLS FOR REGULATED COFFEE TRADE ____________________________________________________ GATT NEWS SUMMARY ____________________________________________________ GATT CRITICIZES U.S. PRESSURE ON JAPAN More than 20 GATT members criticized the U.S. for attempting to manage trade bilaterally with Japan. Mexico, Australia, Canada, South Korea, Poland and European Union states claimed U.S. demands for numerical targets for Japanese imports would hurt other nations and the entire multilateral trading system. Tran Van Thinh, EU ambassador to GATT, said U.S. threats of trade retaliation exemplify "the doubtful and disquieting nature" of U.S. intentions. Members argued that trade disputes should be handled through GATT and not through unilateral trade sanctions. The U.S. argues that opening Japan's markets will benefit all GATT members. Although Japan continues to reject numerical targets, Japan Prime Minister Morihiro Hosokawa recently ordered government officials to compile "urgent and real measures" to increase foreign companies' access to the Japanese market. Chief Cabinet Secretary Masayoshi Takemura said measures may include: stepping up efforts to deregulate specific sectors of the economy; bolstering programs to increase imports and foreign direct investment; improving government purchasing practices; and re- examining the need to strengthen antitrust enforcement. An outline of the proposals is expected sometime next week. U.S. officials rejected similar offers during negotiations earlier this month. Sources: Frances Williams, "U.S. Finds Itself Friendless in GATT," FINANCIAL TIMES, February 18, 1994; Paul Blustein, "Japan Seeks Steps to Cool Trade Tensions With U.S.; Hosokawa Calls for 'Urgent and Real' Plan," WASHINGTON POST, February 18, 1994; Steven Greenhouse, "U.S. Weighs Trade Actions on Japan," NEW YORK TIMES, February 14, 1994; Eugene Moosa, "New Japan Trade Package May Come by February 25," REUTER, February 17, 1994. ____________________________________________________ QUAD GROUP LATE ON FINAL TARIFF OFFERS Trade officials representing the United States, Japan, Canada and the European Union said they will submit their final GATT tariff reduction offers within the next few days. GATT Director-General Peter Sutherland originally ordered members to complete Uruguay Round market access offers by February 15. The U.S., Canada and the EU withdrew zero-tariff offers on wood and white spirits after Japan refused to drop its tariffs on wood below six percent. Source: Frances Williams, "GATT Target Eludes Top Traders," FINANCIAL TIMES, February 16, 1994. ____________________________________________________ SUTHERLAND NAMES WTO PRIORITIES GATT Director General Peter Sutherland said the new World Trade Organization (WTO) will have to take anactive role in protecting multilateral trade from the effects of bilateral trade disputes. Sutherland said the U.S.-Japan disagreement "must not be allowed to have any impact on the Uruguay Round." In addition to settling bilateral disputes, Sutherland said the WTO will need to increase cooperation with the World Bank and the International Monetary Fund and place more attention on sub-Saharan Africa. Sutherland was in South Africa for meetings with President F.W. de Klerk, members of the African National Congress and representatives of the National Economic Forum. South Africa agreed during the final stages of GATT negotiations last December to eventually cut tariffs on clothing imports from 100 percent to 45 percent. Textile tariffs will remain at 45 percent, despite pressure from the U.S. and Europe to further reduce the duties. Overall, South Africa will reduce tariffs on manufactured goods by one-third. Current levels are six times the 1990 GATT average. GATT members must still approve the final South Africa proposals. Sources: Matthew Curtin, "WTO Role 'Crucial' in Bilateral Disputes," FINANCIAL TIMES, February 16, 1994; Matthew Curtin, "South African Status Boosted by GATT Talks," FINANCIAL TIMES, February 15, 1994. ____________________________________________________ FRENCH FARMERS' UNION ACCEPTS GATT France's largest farmers' union indicated recently that it approves of the final GATT accord, despite failing to secure some of its demands. The FNSEA had been a vigorous opponent of GATT agriculture provisions during global trade negotiations. "We are very conscious that we did not get all we hoped for, particularly in terms of a rebalancing of export restrictions with similar restrictions on imports, and of dealing with monetary fluctuations of the dollar and with Europe," FNSEA President Luc Guyau told reporters. "But we have a feeling of pride about our combat over the seven years of the GATT negotiations." Source: "French Farm Union Head Accepts GATT, Asks Spurs to Non- Subsidized Exports," MILLING & BAKING NEWS, February 1, 1994. ____________________________________________________ GATT EXPECTED TO BOOST U.S. MEAT TRADE The U.S. Meat Export Federation expects that tariff and quota reduction schedules agreed to under GATT will boost U.S. beef exports. Phil Seng, Federation president, said U.S. exports to Japan could double by the year 2000. Japan currently imposes a 100 percent tariff markup on U.S. beef imports. Seng says the markup could be cut by 30 to 40 percent under GATT. The U.S., however, will also face increased imports of foreign beef. The U.S. is required to admit 1.45 billion pounds of beef imports duty-free. Imports above the GATT-proposed quota level will be subject to a 31 percent tariff. Sources: "GATT and Grading Changes Get Support," CATTLE BUYERS WEEKLY, February 7, 1994; "GATT, NAFTA Expected to Increase Meat Trade," ON-LINE, January 14, 1994. ____________________________________________________ OTHER TRADE NEWS ____________________________________________________ ICO LEADER CALLS FOR REGULATED COFFEE TRADE Imbalances in the world's coffee supply and demand could be smoothed by a return to regulated markets said International Coffee Organization (ICO) Executive Director Alexandre Beltrao during the National Coffee Association's annual conference in Florida. World coffee trade has operated under a free market for the past five years, however, coffee producers recently agreed to voluntarily withold 20 percent of their coffee production in an effort to stabilize prices. Source: "ICO Head Sees Need for Coffee Controls," REUTER, February 15, 1994. ____________________________________________________ RESOURCES ____________________________________________________ For copies of the following, contact the organizations listed: Economy and Environment, GREEN c/o BAUMAN FOUNDATION, 1731 Connecticut Ave. N.W., Washington, DC 20009. (202) 234-8547. Fax: (202) 234-8584. A quarterly newsletter published by GREEN: Grantmakers Network on the Economy and the Environment. Sample issues available only to the first 30 callers. "River Embankments That Rob the Poor," PANOSCOPE: THE ENVIRONMENT AND DEVELOPMENT MAGAZINE FOR THE 1990s. July, 1993. 2 pages. PS Subscriptions, 9 White Lion Street, London, N1 9PD, United Kingdom. Institutions and libraries: $30/year. Individuals and NGOs: $18/year. This issue includes other articles on World Bank dam projects and the costs of resettlement. Development Dialogue: The Record of Change in Southern Africa, The Circulation Manager, DEVELOPMENT DIALOGUE, 102 Samora Machel West, P.O. Box 5725, Harare, Zimbabwe. (263-4) 728376. Fax: (263-4) 728376. Telex: 26528 DMO. Institutions: $50/year. Individuals: $30/year. Third World Resources: A Quarterly Review of Resources From and About the Third World, THIRD WORLD RESOURCES, 464 19th St., Oakland, CA 94612-2297. (510) 835-4692. Fax: (510) 835-3017. U.S. and Canada Organizations: $35/ one year. Individuals: $35/ two years. Foreign (air printed matter): Organizations: $45/ one year. Individuals: $50/ two years. "Rogernomics on a Global Scale," Bill Rosenberg, GATT WATCHDOG, Feb. 3, 1994, 4 pages. Bill Rosenberg, Systems Manager, Center for Computing and Biometics, P.O. Box 84, Lincoln University, Canterbury, New Zealand. E-mail: W. rosenberg @lincoln.ac.nz (64-03) 3252-811. Fax: (64-03) 3253-840. Free. Concerns negative impact of GATT on New Zealand. Japan Environment Monitor, 1941 Ogden Road, Wilmington, OH 45177. $35/ year. Published ten times a year. The October 1993 issue includes reports on Japanese wildlife conservation organizations, government environmental policy, environmental crimes and media coverage of the environment. ____________________________________________________ The following email services are offered by the Institute for Agriculture and Trade Policy: "trade.library" - a storehouse of trade related documents, including analyses, reports, fact sheets, White House transcripts ... etc. "trade.strategy" - an open discussion of trade issues and events "eai.news" - a regular bulletin summarizing the latest news in Latin American integration and development "susag.news" - a regular news bulletin pertaining to sustainable agriculture "susag.library" - longer documents, studies and analyses on sustainable agriculture "susag.calendar" - a calendar of events "env.biotech" - a news bulletin about biotechnology If you are on EcoNet/PeaceNet, you may access these services by going to the "conferences" section.. 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