----- Original Message ----- From: info <[EMAIL PROTECTED]> To: [EMAIL PROTECTED] <[EMAIL PROTECTED]> Sent: Thursday, March 08, 2001 9:50 PM Subject: [mobilize-globally] Zoellick Faces U.S., E.U. Trade Challenges This Week Subject: [StopWTORound] Zoellick Faces U.S., E.U. Trade Challenges This Week Date: Thu, 08 Mar 2001 15:10:33 +0100 From: Erik Wesselius <[EMAIL PROTECTED]> To: [EMAIL PROTECTED] Tuesday March 6 1:04 PM ET Zoellick Faces U.S., E.U. Trade Challenges This Week By Doug Palmer WASHINGTON (Reuters) - U.S. Trade Representative Robert Zoellick will come face to face in the next few days with two of his biggest challenges -- persuading a divided Congress to approve new presidential negotiating authority and resolving trade differences with the European Union (news - web sites). After a month of behind the scenes activity, Zoellick will make his first public appearance on Wednesday since taking office to outline the Bush administration's trade agenda to the House of Representative's Ways and Means Committee. Two days later Zoellick will hold his first meeting as U.S. trade representative with EU Trade Commissioner Pascal Lamy. How much progress Zoellick makes on the two fronts could hold the key to launching a new round of global talks this year under the World Trade Organization (news - web sites), trade experts said. HOW QUICK IS QUICK? In a speech last week to a joint session of Congress, President George W. Bush (news - web sites) asked for quick approval of ``president trade promotion authority'' to negotiate new trade agreements. But Bush offered no hint of how he would resolve deep party differences that have blocked that legislation for seven years and many are skeptical of quick progress on the issue. A number of ``thorny issues'' could easily push the impasse over negotiating authority into an eighth year, said Sherman Katz, director of international finance and economic policy at the Center for Strategic and International Studies. Those include the desire of many Democrats for labor and environmental provisions in future trade pacts and a strong protectionist sentiment among House members from steel-producing districts, he said. To get the trade legislation, Bush would have to make so many concessions in other areas ``that I just don't think it's going to happen this year,'' Katz said. That would be disappointing, but not necessarily fatal to efforts to launch a new round at the next WTO ministerial meeting in Qatar in November, said Clyde Prestowitz, president of the Economic Strategy Institute. ``The United States has never had fast track at the moment it launched an international round,'' Prestowitz said. Resolving a number of stubborn trade disputes between United States and the EU could be more important to the launch of new world trade talks. ``We have never had a successful round until the U.S. and EU get on the same page,'' Prestowitz said. At the WTO's last ministerial meeting in Seattle in December 1999, the EU pushed an ambitious agenda that called for multilateral talks on investment and competition. The Clinton administration opposed talks on those issues, arguing they could block an agreement in other areas, such as agriculture, of greater importance to the United States. But Fred Bergsten, director of the Institute for International Economics, said the United States would have to expand its agenda to get a round launched and he placed more emphasis on approval of new negotiating authority. Because U.S. negotiators lacked strong congressional backing, it was difficult for the Clinton administration to agree in Seattle to talks on issues, such as anti-dumping, that would be controversial at home, Bergsten said. Beef, Bananas Meanwhile, U.S. industry officials held out some hope of progress on banana and beef trade spats during Lamy's visit. Steven Warshaw, president of Chiquita Brands International, which has waged an eight-year battle to regain market share in EU, said he expected Lamy to be confronted constantly by the issue in meetings with Bush administration officials and members of Congress on Thursday and Friday. There is still the chance of a negotiated settlement between the United States and the EU, Warshaw said. Similarly, U.S. cattle producers remain open to an agreement that would compensate the industry for the EU's ban on ``hormone-treated'' beef, said Chuck Lambert, economist for the National Cattlemen's Beef Association (news - web sites). ``It has to be something that benefits the industry and recognizes the U.S. did win the case'' against the ban at the WTO, Lambert said. Resolving the two disputes would allow the United States to drop retaliatory duties on $308.2 million of EU goods and remove major irritants from the transatlantic relationship. You can post messages to StopWTORound at this e-mail address: <[EMAIL PROTECTED]> No attachments (Word documents etc.) are allowed on this list. This is a moderated list. It may take some time before your posting is distributed. You can unsubscribe from this group by sending an empty email to: <[EMAIL PROTECTED]> Your use of Yahoo! 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