From kmander@igc.apc.org Fri Aug 12 14:51:02 1994 Date: 12 Aug 94 06:58 PDT From: Kai Mander Reply to: "Conference trade.news" To: "Recipients of conference trade.news" Newsgroups: trade.news Subject: Trade Week 8-12-94 Trade Week in Review and Resources Friday, August 12, 1994 Volume 3, Number 32 _________________________________________________ HEADLINES: Economists Seek Passage, Others Want Delay Clinton Continues to Seek Fast Track Authority Helms Argues GATT Should Be Considered As Treaty Time, BusinessWeek Differ on GATT Predictions AFL-CIO Urges Congress to Reject GATT Cattle Producers Say GATT Benefits Corporations Lawyers Seek Liberalized Trade in Legal Services RESOURCES _________________________________________________ GATT NEWS SUMMARY _________________________________________________ Economists Seek Passage, Others Want Delay President Bill Clinton received a letter last week from 446 economists urging Congress to approve the Uruguay Round of GATT immediately. In their letter, the economists warned against postponing ratification of the agreement until next year: "We believe that implementing this legislation will provide substantial benefits to most Americans. Postponing the legislation until 1995 will delay these benefits and will burden the efforts of U.S. firms to expand their foreign markets. Delay will also weaken the international leadership position of the United States." President Clinton welcomed their support, saying "Economists know that the GATT agreement will help ensure long-term economic growth for America." Clinton also received a letter from consumer advocate Ralph Nader calling for a delay in introducing GATT implementing legislation until next year in order to give the American people time to discuss and evaluate the proposed trade pact. The letter was signed by a diverse group of Americans, including Gloria Steinem, Jerry Brown, Tom Hayden and Kurt Vonnegut on the left and Phyllis Schlafly, Pat Buchanan, Lyn Nofziger and Paul Weyrich on the right. In sharp contrast to the statements of the economists, Sir James Goldsmith, one of the richest men in the world, lobbied against the trade pact last week in Washington, saying it would create vast unemployment in the industrial world and cause farmers in the developing world to lose their land. He said it would increase the migration of jobs from expensive North America and Europe to cheap Asia. "You can employ 47 Vietnamese for the price of one Frenchman," Goldsmith said. "If you move out, you become intensely rich ... If you stay, you go bust." Sources: "President Clinton Receives Letter From 450 Economists Urging Prompt Ratification of GATT Agreement Welcomes Support for Quick Passage," WHITE HOUSE NEWS RELEASE, August 4, 1994; "Economists Urge U.S. Congress to Approve GATT," REUTER, August 4, 1994; "Diverse Americans, Often at Odds, Call for GATT Vote Deferral; Press Conference Monday to Release Letter to Clinton," U.S. NEWSWIRE, August 8, 1994; Robert Manor, "Billionaire Sees Free Trade as a No-Win Situation," ST. LOUIS POST-DISPATCH," August 7, 1994. __________________________________________________ Clinton Continues to Seek Fast Track Authority President Clinton met with business leaders this week to seek their support for extending fast track negotiating authority as part of GATT implementing legislation. Republicans and business leaders generally oppose the extension because Clinton has stated he would like to include environmental and labor provisions in future trade agreements. Congressional sources say Clinton's insistence on fast track may be delaying the passage of GATT legislation through congressional committees. The Senate Finance Committee killed the administration's previous proposal for a seven-year extension of the authority. Fast track prohibits Congress from making amendments to trade agreements negotiated by the president. The White House is now working with the House Ways and Means Committee on a shorter extension of fast track. Sources: Nancy Dunne, "Clinton Perseveres With 'Fast Track' Request," FINANCIAL TIMES, August 10, 1994; Jenny Tomkins, "Clinton Lobbies to Include Fast Track in GATT Bill," REUTER, August 9, 1994. __________________________________________________ Helms Argues GATT Should Be Considered As Treaty Last week Senator Jesse Helms (R-North Carolina) submitted an amendment that would have required the Uruguay Round to be considered as a treaty by Congress, requiring a two-thirds vote by the Senate. Helms later withdrew the amendment saying he had "made his case." Helms said Senators are becoming increasing concerned about the World Trade Organization's impact on U.S. laws. Source: "Helms Submits, Withdraws Measure Requiring Vote on GATT as a Treaty," BNA, August 5, 1994. __________________________________________________ Time, BusinessWeek Differ on GATT Predictions The current editions of TIME and BUSINESSWEEK magazines contain one paragraph updates on GATT legislation. In its "Informed Sources" box, TIME states: "It is looking more and more likely that Congress might fail to approve legislation that would put GATT into effect." It says Republicans oppose the trade pact because of the new taxes required to pay for it, while unions are against it for the same reasons they opposed NAFTA. BUSINESSWEEK says the Clinton administration's successful lobbying of GATT to delay its ruling on the European Union's challenge to U.S. fuel-efficiency standards "should give the President time to win congressional approval" of GATT. The magazine says an adverse ruling might have "doomed" the trade pact. Sources: "GATT's Last Gasp?" TIME, August 15, 1994; "Break From GATT," BUSINESSWEEK, August 15, 1994. ___________________________________________________ AFL-CIO Urges Congress to Reject GATT In an August 9 statement, the AFL-CIO urges Congress to reject implementing legislation for the Uruguay Round. "The Uruguay Round offers little, if anything, positive to working people and their communities," the statement says. " Millions of Americans have already suffered greatly from the damaging effects of unfair and inequitable trade. For many Americans, the agreements will mean enormous economic disruption and job loss." The labor federation says the trade pact fails to address the suppression of worker rights by governments seeking a "competitive advantage" on the world market. The AFL-CIO also said it opposes extending fast track, granting "NAFTA parity" for Caribbean countries, and renewing the Generalized System of Preferences as part of GATT legislation. Source: Statement by the AFL-CIO Executive Council on Uruguay Round Implementing Legislation, August 9, 1994. __________________________________________________ Cattle Producers Say GATT Benefits Corporations More than 440 cattle producers from 13 states sent Congress a letter last month asking for the right to ship state-inspected meat and poultry products across state lines. They said prohibitions on interstate shipments put small U.S. operations at a competitive disadvantage because, under NAFTA, Mexican-inspected meat can be shipped into the U.S. and moved across state lines. The letter adds: "It is important to understand that passage of the General Agreement on Tariffs and Trade agreement will make this situation even worse if this legislated economic advantage for large corporations and foreign competitors is not corrected." Source: "Taking it to the Top," AGWEEK, July 11, 1994. __________________________________________________ Lawyers Seek Liberalized Trade in Legal Services Several attorneys attending the American Bar Association's annual meeting called for expanded trade in legal services as part of future trade negotiations. Attorney Steven C. Nelson said more could have been accomplished in Uruguay Round talks but that U.S. lawyers realized too late that legal services were a subject of discussion. Source: "Countries Seen Continuing to Seek Liberalized Trade in Legal Services," BNA, August 9, 1994. __________________________________________________ RESOURCES __________________________________________________ For copies of the following, please contact the organizations or authors listed: "The MIT Encyclopedia of the Japanese Economy," Robert C. Hsu, THE MIT PRESS, May 1994. 406 pages. The MIT Press, 55 Hayward Street, Cambridge, MA 02142. (800) 356-0343 or (617) 253-5643. $45. One hundred and fifty topical essays plus more than two hundred definitions concerning banks, corporate groups, labor organizations, international trade and investment, and government economic policies. Includes names and addresses of major Japanese business associations and government ministries. Cross-referenced for further reading. "Africa Make or Break: Action for Recovery," OXFAM UK AND IRELAND, May 1993. 38 pages. Oxfam House, 274 Banbury Road, Oxford OX2 7DZ, United Kingdom. (44-71) 865-311-311. Fax: (44- 71) 865-312-417. A trenchant analysis of the causes of Africa's "lost decade" for development, and of the kinds of international support needed for Africa's recovery. "From GATT to the Multilateral Trade Organization: A New World Order," Hector-Leon Moncayo, FREE OR FAIR TRADE?, Vol. 2, No. 8-9, May 1994. 6 pages. ILSA, Calle 38, No. 16-45, A.A. 077844, Bogota, Colombia. E-mail: ILSABOG@ax.apc.org. "Jammy Protectionism?" THE NETWORK, Vol. VII, Issue 3, July- September 1994. 6 pages. TWIN, Fourth Floor, 5-11 Worship Street, London, EC2A 2BH, United Kingdom. (44-71) 628-6878. Fax: (44-71) 628-1859. Quarterly. #10/year in U.K. #12/year overseas. Free to subscribers in developing countries. "A newsletter for the equal exchange of information on trade and technology." This issue features articles on the production and trade policy of jam. _________________________________________________ For more information about the Institute for Agriculture and Trade Policy, send email to iatp-info@igc.apc.org. Trade Week in Review is produced by: Kai Mander Institute for Agriculture and Trade Policy (IATP) 1313 5th Street, SE, Suite 303 Minneapolis, MN 55414-1546 USA tel: (612) 379-5980 fax: (612) 379-5982 email: kmander@igc.apc.org _________________________________________________