From iatp@igc.apc.org Fri Jan 3 00:56:13 1997 Date: Thu, 21 Mar 1996 14:26:56 -0800 (PST) From: IATP To: Recipients of conference Subject: Trade News 3-20-96 TRADE NEWS Produced by the Institute for Agriculture and Trade Policy March 20, 1996 Volume 5, Number 6 ________________________________________ - SINGAPORE CALLS FOR NEW TRADE ROUND - TALKS START OVER LATIN BANANAS - U.S. OFFERS TO OPEN TELECOM MARKET - BUSINESS WILL PARTICIPATE IN APEC MEETING - PORK PRODUCERS CHARGE DISCRIMINATION - U.S. TRADE DEFICIT HITS RECORD IN 1995 ________________________________________ WTO NEWS SUMMARY ________________________________________ SINGAPORE CALLS FOR NEW TRADE ROUND On February 22, Singapore's international trade minister called on members of the World Trade Organization (WTO) to launch preparations for a new round of global trade liberalization talks at the first ministerial meeting of the WTO in Singapore in December 1996. Yeo Cheow said the new round could embrace the "built-in agenda" of the WTO as negotiated in the Uruguay Round, which calls for preparations for new negotiations in the services and agricultural sectors. He also pointed out that the Uruguay Round agreements call for a review of the investment, intellectual property rights and dispute settlement provisions, as well as the most-favored-nation (MFN) exemption in the General Agreement on Trade in Services (GATS). According to Yeo, a new round of negotiations would give stronger impetus to liberalization because it would allow trade-offs among parties to the negotiation. "Singapore Trade Minister Calls for New Round Based on WTO Agenda," INSIDE U.S. TRADE, March 1, 1996. TALKS START OVER LATIN BANANAS On March 14, European Union (EU) officials began talks with four Latin American countries and the United States on ending EU import restrictions on so-called "dollar" bananas. But Latin American diplomats said they had little hope the meetings would produce any movement, or head off the eventual formation of a World Trade Organization (WTO) dispute settlement panel. U.S. officials said they were hopeful that the consultations could produce results. However, they indicated they shared the view of the Latin American banana producers involved in the dispute -- Guatemala, Honduras, Mexico and Ecuador -- that it would have to go to the WTO for arbitration. The EU's banana import regime limits the amount of Latin American bananas that can be sold in the EU market in order to help banana producers in the African, Caribbean and Pacific (APC) group states. The majority of APC countries are former European colonies. Robert Evans, "EU Starts Talks with U.S., Latins Over Banana Row," REUTERS, March 14, 1996. U.S. OFFERS TO OPEN TELECOM MARKET On February 26, the United States offered to open its entire telecommunications market, including local services, to unrestricted foreign competition in a bid to accelerate progress toward an international telecommunications deal. However, deputy U.S. trade representative Jeffrey Lang said success in the World Trade Organization (WTO) negotiations, due to end April 30, required other nations to follow the U.S. example with their own improved offers. The revised U.S. offer grants unrestricted access to local U.S. telecommunications services, as well as long distance and international traffic. The previous offer proposed only to maintain existing access rules for local services, which vary by state. Lang said the change signaled Washington's intention to "roll back" current restrictions on competition at the local level, in line with the new U.S. telecommunications law signed by President Clinton in February. The revised U.S. offer also clarifies proposals on foreign ownership of "common carrier" radio licenses often needed to supply basic telecommunications services. Washington is offering up to 100 percent foreign ownership of these licenses, provided ownership or control is exercised through a U.S. based holding company. Lang stressed that the U.S. offer is contingent on agreement by a "critical mass" of WTO members to grant foreign access to their telecommunications markets and to give overseas competitors equal treatment with domestic firms. The United States has not defined this "critical mass," but it is said to be aimed at Japan and Latin American nations. "WTO Telecoms Deadline Stays," FINANCIAL TIMES, February 28, 1996; Francis Williams, "U.S. Offers Full Access to Telecoms Market," FINANCIAL TIMES, February 27, 1996. ________________________________________ REGIONAL AGREEMENTS ________________________________________ BUSINESS WILL PARTICIPATE IN APEC MEETING U.S. and other business leaders will get a chance this year to participate more directly in the annual meeting of the 18- member Asia Pacific Economic Cooperation (APEC) forum. For the first time, President Clinton and other national leaders at the APEC summit will confer with business executives, said Tomas Alcantara, a special APEC envoy for the Philippine government, which will chair the November 22-25 meeting in Manila. Business executives from the 18 APEC nations have met with each other at previous summits but without the chance of a "direct dialogue" with government leaders. According to Alcantara, this time business leaders and high government officials will sit at the same table. Richard Lawrence, "Business Leaders to Participate Directly in Next APEC Meeting," JOURNAL OF COMMERCE, March 8, 1996. PORK PRODUCERS CHARGE DISCRIMINATION Last month, U.S. pork producers told U.S. trade representative Mickey Kantor that the European Union (EU) is violating a 1992 agreement to open its markets to imports from the United States. Meat industry officials are charging that European bureaucrats are abusing health and safety rules to fend off foreign competition. Under the 1992 agreement, the EU and the United States were supposed to work out differences in health and safety rules that have stood in the way of certification for U.S. slaughterhouses to export pork to the EU. At that time, the EU accepted the idea that U.S. rules could be different but still equivalent to European standards. But little progress has been made in working out the details of the agreement. The National Pork Producers Council claims its members are losing $60 million a year in exports to the EU market, where pork consumption is the highest in the world. John Maggs, "U.S. Pork Producers to Kantor: EU Market Is Far >From Open," JOURNAL OF COMMERCE, March 4, 1996. ________________________________________ WORLD TRADE ROUND-UP ________________________________________ U.S. TRADE DEFICIT HITS RECORD IN 1995 The U.S. merchandise trade deficit climbed last year to a record $174 billion, as exports and imports hit all time highs of $575 billion and $749 billion respectively. Pacing U.S. exports gains were capital goods, agricultural products and industrial supplies. Semiconductors scored the biggest dollar advance, up nearly $9 billion to $34.1 billion. Other sizable gains were in computer accessories, telecommunications gear, industrial machines, automotive products, chemicals, textiles, plastics, pulpwood, grains, soybeans and meat. Imports were up 12 percent from 1994. The biggest advances were in two high-tech items: semiconductors, up nearly $13 billion, and computer accessories, which posted a $10.5 billion gain. Crude oil imports rose by $4.3 billion. Smaller but still significant gains came in apparel, chemicals, industrial machines and electric apparatus. Richard Lawrence, "U.S. Trade Deficit Hits High; Drop Forecast," JOURNAL OF COMMERCE, February 29, 1996. ________________________________________ RESOURCES ________________________________________ THE BRETTON WOODS-GATT SYSTEM: RETROSPECT AND PROSPECT AFTER FIFTY YEARS, edited by Orin Kirshner, Institute for Agriculture and Trade Policy. This book provides twenty-one articles about the international economic regime created in the post-war period. The issues covered include currency stabilization, development, trade and investment. Readers of this volume will learn a lot about why our international economic organizations have the strengths and weaknesses that they do. To order: call M.E. 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To order the paperback contact: TWIN, Ltd, 5-11 Worship Street, London, England, EC2A 2BH; or email, twin@gn.apc.org for details. __________________________________________ Trade News is produced by the Institute for Agriculture and Trade Policy, Mark Ritchie, President. Editor: Orin Kirshner. E-mail versions of Trade News are available free of charge for Econet/IATP Net subscribers. For more information about fax or mail subscriptions, contact: Institute for Agriculture and Trade Policy, 1313 Fifth Street S.E., Suite 303, Minneapolis, MN, 55414 Phone 612-379-5980. To learn more about IATP's contract research services, please contact Dale Wiehoff at dwiehoff@igc.apc.org