From kmander@igc.apc.org Sat May 28 08:20:07 1994 Date: 27 May 94 08:10 PDT From: Kai Mander Reply to: "Conference trade.news" To: "Recipients of conference trade.news" Newsgroups: trade.news Subject: TRADE WEEK 5-27-94 Trade Week in Review and Resources Friday, May 27, 1994 Volume 3, Number 21 _________________________________________________ Headlines: GATT PANEL RULES AGAINST TUNA BOYCOTT HOUSE NAFTA OPPONENTS SUPPORT GATT SUTHERLAND WANTS EARLY RATIFICATION FARMERS URGING NO VOTE ON GATT TAIWAN IMPORTS FISH FROM CHOLERA-INFECTED AREAS RESOURCES _________________________________________________ GATT NEWS SUMMARY _________________________________________________ GATT PANEL RULES AGAINST TUNA BOYCOTT A GATT panel ruled Friday against a U.S. boycott of tuna caught by fishing methods that kill dolphins. The ruling is the second GATT decision against the U.S. Marine Mammal Protection Act. In 1991, a GATT panel ruled in favor of a Mexican challenge to the boycott on the grounds that nations can not regulate wildlife outside their own borders. Mexico did not pursue the matter out of fear it could hurt the chances of the U.S. Congress passing NAFTA. The new decision recognizes the rights of countries to enact extraterritorial laws, but it found the boycott illegal because GATT prohibits trade bans based on how a product is produced. GATT's critics say the decision displays how the world trade pact could undermine U.S. laws. Senate Environment and Public Works committee Chair Senator Max Baucus (D-Montana) expressed disappointment with the ruling and said it "only reinforces the need to work toward environmental reform in GATT." U.S. Trade Representative Mickey Kantor criticized the secrecy of GATT procedures, saying they denied the U.S. a fair hearing. "This is time to tell countries that want closed proceedings that we don't agree," Kantor said. He promised the U.S. would ask that a review of the decision be held in public and be open to participation from environmental groups and others. The U.S. Citizens Trade Campaign, a coalition of farm, consumer advocacy, labor and environmental groups, called the GATT ruling "a dress rehearsal for what will happen" under the new World Trade Organization. "This action is a clear-cut example of how U.S. sovereignty over highly sensitive issues like dolphin protection will be impeded if the Uruguay Round agreement is approved by the Congress," said Executive Director Jane Danowitz. The group said other U.S. laws at risk include bans on dangerous pesticides, restrictions on cancer-causing chemicals and restrictions on hormones such as bovine growth hormone. The coalition hopes to delay passage of the Uruguay Round until its impact on U.S. laws can be determined. The Citizens Trade Campaign says it has gained the support of over 55 members of Congress. House Minority Leader Newt Gingrich (R-Georgia) hinted last week that he would not support the world trade pact because it could create a "world government." He later modified his remarks, saying, "I see myself working to amend it. Then the Clintonites can decide if they want to defeat it." Sources: Timothy Noah, Bob Davis, "Tuna Boycott Is Ruled Illegal by GATT Panel," WALL STREET JOURNAL, May 23, 1994; "Tuna Decision Criticized," PRNEWSWIRE, May 23, 1994; John Maggs, "Dolphin Law Threatens GATT Pact," JOURNAL OF COMMERCE, May 23, 1994; "Gingrich Expects to Amend GATT," AGRI NEWS, May 19, 1994. __________________________________________________ HOUSE NAFTA OPPONENTS SUPPORT GATT Seven Democratic members of the House of Representatives who had opposed NAFTA announced their support Wednesday for the Uruguay Round of GATT. The members said there were big differences between the two trade pacts, and claimed the U.S. will benefit from lower tariffs abroad and stronger intellectual property rights. "If GATT failed, the consequences would be unmistakable," said Representative Robert Torricelli of New Jersey. "This is not a close question. It cannot even be a question in doubt." Also announcing their support were Majority Leader Richard Gephardt of Missouri, Representatives Sander Levin of Michigan, Jane Harman of California, Louise Slaughter of New York and Connecticut Representatives Barbara Kennelly and Sam Gejdenson. However, Gephardt said he would oppose waiving budget restrictions to pay for GATT. House Speaker Thomas Foley (D-Washington) has argued for the budget waiver. The Clinton administration continues to look for ways to recover the $14 billion in lost tariff revenues during the first five years of GATT. Sources: "NAFTA Foes Announce Support for GATT Legislation," CONGRESSDAILY, May 25, 1994; David Briscoe, "House Members Opposed to NAFTA Endorse GATT Pact," AP, May 25, 1994; Nancy Dunne, "U.S. Test for a 'Dead Fish' Theory -- Uruguay Round Ratification Brings Congress Another 'Crisis,'" FINANCIAL TIMES, May 25, 1994. _________________________________________________ SUTHERLAND WANTS EARLY RATIFICATION GATT Director General Peter Sutherland called on participating nations to make the Uruguay Round agreement work before negotiating new regional agreements. In a speech before the Pacific Basin Economic Council in Kuala Lumpur, Malaysia Wednesday, Sutherland said that "there may be some who believe that regionalism can ... be a substitute for multilateralism. It is a misplaced belief and would inevitably set the scene for trade conflict of a most serious and politically dangerous kind." U.S. House Majority Leader Richard Gephardt hinted recently that a vote on the Uruguay Round could be delayed until next year, a prospect that has Sutherland concerned. "It is vitally important that the Congress of the United States will give the lead in the early ratification in order to ensure that the WTO is in operation on January 1," Sutherland told reporters. He said only 20 to 30 of the 124 countries that signed the accord have ratified it. The White House has promised to seek congressional approval before the August recess. Sources: "Sutherland Says Pressures on Govt, Regional Trade Deals Threaten GATT Accord," AFX NEWS, May 25, 1994; "Nations Should Make GATT Round Work Before Regional Pacts, Sutherland Says," BNA DAILY REPORT, May 25, 1994; "Gephardt Expects Delay in Approving GATT Pact," WALL STREET JOURNAL, May 26, 1994. _________________________________________________ FARMERS URGING NO VOTE ON GATT Nebraska Farmers Union President John Hansen called on Congress to vote against the Uruguay Round accord. Hansen said the Clinton administration betrayed farmers by proposing $3.1 billion in farm program cuts to make up for lost tariff revenues under GATT. Hansen said both the Bush and Clinton administrations promised they would not make further cuts in agriculture. "Now we find out we were lied to and Clinton's implementing legislation would cut $1.5 billion from domestic commodity programs and $1.6 billion from the Export Enhancement Program." Hansen also refuted White House claims that agriculture would be one of the big winners under the Uruguay Round. He cited a USDA study predicting overall farm revenues would drop by 13 percent under the trade pact. Source: "Farmers Can't Afford GATT," NEBRASKA FARMERS UNION NEWS RELEASE, May 20, 1994. __________________________________________________ TAIWAN IMPORTS FISH FROM CHOLERA-INFECTED AREAS As part of its efforts to gain acceptance to GATT, Taiwan has begun accepting imports of seafood from cholera-affected or potential cholera-affected areas. Department of Health official Wu Tsung-neng said a delivery of frozen salmon from Chile, the first shipment of seafood since the government lifted its ban on such imports, has already hit the local market. Wu said the government would carefully test all fishery produce from cholera-affected areas. Meanwhile, China, which is also seeking GATT membership, will receive a renewal of its Most Favored Trading (MFN) status with the U.S. President Clinton will grant the preferential trade treatment even though China has not fully completed the human rights improvements that Clinton had stated were necessary for receiving MFN renewal. Sources: Debbie Kuo, "ROC Opens Door to Fishery Produce From Cholera-Potential Areas," CENTRAL NEWS AGENCY, May 25, 1994; Robert S. Greenberger, Michael K. Frisby, "U.S. Is Expected to Renew China's Trade Privileges," WALL STREET JOURNAL, May 26, 1994. __________________________________________________ RESOURCES For copies of the following, please contact the authors or organizations listed. "The Uruguay Round: Implementation," ECONOMIC STRATEGY INSTITUTE, May 1994. 16 pages. Economic Strategy Institute, 1100 Connecticut Ave. NW, Suite 1300, Washington, D.C. 20036. (202) 728-0993. Fax: (202) 728-0998. $14.95 plus $2.50 shipping and handling. A transcription of a round table discussion among Washington trade experts. "Debating China," FOREIGN POLICY, No. 94, Spring 1994. 15 pages. Carnegie Endowment for Interational Peace, 2400 N Street, N.W., Washington, D.C. 20037-1153 $7.95/ issue. $33/year (special rate of $19.95/year now available). Includes three articles debating trade vs. human rights issues in China. "U.S.-Japan Trade: Get Smart, Not Just Tough," Paula Stern, ASIA PACIFIC ISSUES, No. 12, April 1994. 8 pages. Office of Public Programs, East-West Center, 1777 East-West Road, Honolulu, HI 96848. (808) 944-7197. Fax: (808) 944-7376. Free. 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