From iatp@igc.apc.orgThu Apr 4 20:09:14 1996 Date: Thu, 04 Apr 1996 14:45:38 -0800 (PST) From: IATP To: Recipients of conference Subject: Trade News 4-5-96 TRADE NEWS Produced by the Institute for Agriculture and Trade Policy April 5, 1996 Volume 5, Number 7 _________________________________________________ Headlines: - AGENDA SET FOR SINGAPORE MEETING - U.S. PROPOSES PROCUREMENT DEAL - WTO FORECASTS GROWTH IN EXPORTS - U.S. MARKET TO STAY OPEN TO CHINA - CHINA-U.S. END TEXTILE TALKS - STEEL PRODUCERS PROPOSE TRADE PACT - RECORD JAPANESE SEMICON IMPORTS _________________________________________________ WTO NEWS SUMMARY _________________________________________________ AGENDA SET FOR SINGAPORE MEETING Implementation of the Uruguay Round trade accords will lead the agenda for the first ministerial meeting of the World Trade Organization (WTO), set for December 1996 in Singapore. Other items on the five-point agenda proposed by WTO director general Renato Ruggiero and approved by WTO ambassadors are the current status of WTO negotiations, trade issues related to environmental concerns, possible new subjects for further WTO trade talks, and added steps needed to liberalize trade. In addition, the U.S. said it would press for discussion in Singapore of bribery and corruption in public procurement, as well as the link between trade and labor standards. Developing nations have opposed the linkage between trade and labor standards within the WTO. "Uruguay Round Implementation Leads Agenda," MILLING AND BAKING NEWS, March 26, 1996. U.S. PROPOSES PROCUREMENT DEAL Last month, the United States proposed that the December ministerial of the World Trade Organization (WTO) begin to combat the effects of bribery and corruption on trade flows by launching a process to strike an interim deal on government procurement. The proposal was contained in a "nonpaper" tabled at the first of a series of informal meetings of WTO mission chiefs that will help oversee the preparations for Singapore. "To promote transparency reforms, we believe that all WTO ministers could agree at Singapore to a mandate for examining ways to take initial steps towards a comprehensive approach on procurement in the WTO," said Andrew Stoler, deputy head of the U.S. mission to the WTO. The "nonpaper" noted that worldwide procurement markets account for "trillions of dollars in commercial transactions," and proposed that the Singapore ministerial consider "how to develop an agreement that can be fully incorporated into the WTO's single undertaking and include both goods and services." "U.S. Proposes Interim WTO Procurement Deal to Combat Corruption," INSIDE U.S. TRADE, March 22, 1996. WTO FORECASTS GROWTH IN EXPORTS The volume of world merchandise exports is expected to increase by 7 percent in 1996, or slightly less than last year's rate of 8 percent, the World Trade Organization (WTO) predicted. WTO economists projected growth in trade to be fueled by better prices for commodities, continued above-world-average economic growth rates in Asia's less industrialized countries, and accelerating growth rates in Latin America, eastern Europe and the former Soviet Republics. John Zarocostas, "WTO Sees 7% Growth in World Exports," JOURNAL OF COMMERCE, March 28, 1996. REGIONAL AGREEMENTS U.S. MARKET TO STAY OPEN TO CHINA On March 26, U.S. secretary of commerce Ron Brown announced that the Clinton administration will keep the U.S. market open to China despite trade, human rights and other problems affecting trade relations between the two countries. Brown said president Clinton is expected to maintain "most-favored-nation" benefits for China, thereby ensuring Chinese goods the same access to the U.S. market as products from most other countries. Under U.S. law, the president must decide each year whether to continue China's MFN status. The president's decision is expected to be announced in May. "U.S. Market to Remain Open to China Despite Strained Ties, Brown Says," JOURNAL OF COMMERCE, March 27, 1996. CHINA-U.S. END TEXTILE TALKS On March 28, China and the United States ended three days of talks with little progress in their dispute over illegal third-country transshipment of Chinese textiles. Both sides announced that further negotiations would be held at an unspecified date. The United States claims Chinese firms have avoided U.S. import quota restrictions by selling textiles to the United States via third parties, such as Hong Kong. Although Beijing admits some firms have engaged in malpractice, it has warned Washington not to cut quotas for China's exports of textiles to the United States. During the negotiations, the two sides discussed nine separate cases of illegal transshipment; quota exemptions for China's export of hand-woven carpets to the United States; rearrangement of visas for licenses for Chinese textile exports and issues relating to the text of an agreement on silk. China exported $3.17 billion worth of textiles to the United States is 1995. About 130 categories of Chinese textiles exported to the United States are subject to quota restrictions. "China, U.S. End Textile Talks," JOURNAL OF COMMERCE, March 29, 1996. STEEL PRODUCERS PROPOSE TRADE PACT On March 28, U.S. and European Union (EU) specialty steel producers proposed an international agreement they said would "directly contribute to fair and free trade in specialty steel worldwide." The joint proposal, submitted to U.S. and EU government trade negotiators, won quick praise. Assistant U.S. trade representative Donald Phillips called the agreement "a very big plus" toward finally negotiating an international steel trade agreement. The proposal would not change existing national trade laws, but it does call on steel producers to limit their use of those laws in subsidy disputes. The proposal would bar all new steel subsidies except for environmental and research projects, plant closures and associated social costs; past subsidies would be allowed to continue. Steel producers would be asked to refrain from filing legal challenges under the agreement. For their part, governments would commit to resolve subsidy, dumping or other non-tariff trade disputes through consultations within the agreement. To attract broad participation, developing nations, Russia and other former communist states would be given a transition period for undertaking the agreement's obligations. Richard Lawrence, "U.S., EU Steel Groups Propose Pact to End Tariffs, Other Barriers," JOURNAL OF COMMERCE, March 29, 1996. WORLD TRADE ROUND-UP RECORD JAPANESE SEMICON IMPORTS The foreign share of Japan's semiconductor market reached a new record at 29.6 percent in the fourth quarter of 1995 -- up over 3 percentage points from the previous record of 26.2 percent reached in the third quarter of 1995. "I am gratified by the continuing strong performance of foreign companies in the Japanese semiconductor market," said U.S. trade representative Mickey Kantor. "The gains we have seen demonstrate the progress that is possible when governments commit to a long-term cooperative arrangement on market access." The market share figure was calculated by U.S. and Japanese government officials in accordance with the statistical system established under the 1991 U.S.-Japan Semiconductor Arrangement. The foreign market share averaged 16.7 percent in 1992, 19.4 percent in 1993, 22.4 percent in 1994, and 25.4 percent in 1995. "Foreign Share of the Japanese Semiconductor Market Reaches Record 29.6%," PRESS RELEASE, Office of the United States Trade Representative, March 19, 1996. RESOURCES "1996 Trade Policy Agenda and 1995 Annual Report of the President of the United States on the Trade Agreements Program," United States Trade Representative. This report describes the Clinton administration's trade policy priorities for 1996 and reviews its principal trade policy actions in 1995. It also contains a section covering the activities of the World Trade Organization (WTO) and an Annex listing trade agreements entered into by the United States since 1984 that afford increased market access or reduce barriers and other trade distorting policies by other countries. To order, contact: Anne Luzzatto, Dianne Wildman, or Kirsten Powers at the USTR, ph. 202-395-3230. In addition, the report can be located at USTR's Internet Home Page, http://www.USTR.gov/. "TRADE AND ENVIRONMENT: CHALLENGES FOR 1996," proceedings of the Global Environment and Trade Study (GETS) and New York University Law School conference, "Trade and Environment: Challenges for 1996," held January 19, 1996. This report contains proceedings from plenaries and workshops, as well as the papers prepared for the conference. To order, contact, Steve Charnovitz, Director, GETS, 301 Prospect Street, New Haven, CT, 06511; ph., 203-432-5216; fax, 203-432-5373. __________________________________________________ Produced by the Institute for Agriculture and Trade Policy, Mark Ritchie, President. Editor: Orin Kirshner, e-mail: okirshner@iatp.org Trade News is available electronically free of charge. 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