/* Written 1:44 PM Oct 13, 1994 by kmander in igc:trade.news */ /* ---------- "Trade Week 10-14-94" ---------- */ Trade Week in Review Friday, October 14, 1994 Volume 3, Number 41 _________________________________________________ HEADLINES: Hollings Getting Support for Delay American Soybean Association Opposes GATT Philippines Far From Ratifying Uruguay Round GATT Will Raise Some World Food Prices WTO Candidate Pushes Uruguay Round Newspapers Promote Uruguay Round Resources _________________________________________________ GATT NEWS SUMMARY _________________________________________________ Hollings Getting Support for Delay Senator Ernest Hollings (D-South Carolina), who was roundly criticized by many of his colleagues after he single-handedly managed to postpone a GATT vote in the Senate, is now receiving praise from some Senators. Nebraska Senators J.J. Exon and Bob Kerrey, both Democrats, say they still have many questions about the Uruguay Round, including the cost of implementing the pact and the powers granted to the World Trade Organization. "These are some of the reasons a lot of us are now saying that Fritz Hollings had a point," Kerrey said. Senators are now expected to vote on the GATT on December 1, only one month before many of them will be replaced by newly elected senators. Senator Exon said, "Although I don't like lame-duck sessions, this is probably the best way to handle this." Senator Tom Harkin (D-Iowa) also praised Hollings for the delay, but said he would have preferred postponing the vote until the new Congress comes in. Senator Charles Grassley (R-Iowa) welcomed Hollings' postponement because it makes President Clinton look bad. "Republicans think GATT would be good for the country, but they would say 'amen' to what Senator Hollings is doing because it doesn't give the president a victory before the election," Grassley said. Source: David C. Beeder, "Senators From Iowa, Nebraska Support GATT Vote Delay," OMAHA WORLD HERALD, October 9, 1994. _________________________________________________ American Soybean Association Opposes GATT The American Soybean Association (ASA) has announced its opposition to the Uruguay Round. "By allowing unfair practices by other countries to continue in oilseed trade, the Uruguay Round fails to correct conditions that have proven detrimental to the interests of U.S. soybean growers," said ASA President John McClendon. "We are not convinced that GATT will create the level playing field U.S. soybean producers need to compete for future growth in global demand for oilseeds and oilseed products." Source: "Soybean Assn. Opposes GATT," THE NEIGHBOR, October 7, 1994. _________________________________________________ Philippines Far From Ratifying Uruguay Round The GATT ratification process in the Philippines continues to be blocked by substantial opposition to the trade pact. The Philippine Senate has been studying the Uruguay Round text for over three months but the 23-member chamber is still far from acting on the pact. The Senate hopes to vote on the bill by November 21, but those efforts are complicated by the fact that half the country's Senate seats, and all the seats in the Philippine House of Representatives, will be contested in an election scheduled for May 1995. A two-thirds vote is needed to pass the pact and many senators are concerned that their GATT vote could influence their chances of reelection. The Senate halted public hearings for a week after Senator Ernesto Maceda, a member of the opposition Nationalist People's Coalition, said he would block efforts to move GATT unless "safety nets" are added to the legislation to protect agriculture and other sectors. Farm leaders have been among the most vocal in their opposition to GATT, saying that up to 600,000 workers would be dislocated as domestic agriculture producers are forced to compete with cheap imports. The Farmers' Movement of the Philippines and the National Coalition of Citizens Against GATT have organized anti-GATT rallies this week in Manila and other cities. The contentious debate has many thinking the Philippines may never ratify GATT. "What seemed to be a long shot just a few weeks ago now appears to be a possibility: the non ratification of GATT," said Walden Bello, a professor at the University of the Philippines. In response to all the criticism, President Fidel Ramos has increased his efforts to promote the pact. Speaking at the 22nd Asia-Pacific Regional Conference of the Food and Agricultural Organization (FAO) last week, Ramos said liberalization and more open markets would allow economies to participate fully in world trading and improve living standards at home. Agriculture Secretary Roberto Sebastian admitted that the Philippines had made a mistake in committing itself to allowing large amounts of certain imports. He said the government would seek lower ceilings when the World Trade Organization takes effect. Source: Johanna Son, "Philippines-Trade: Looking for Guts to Approve GATT," INTER PRESS SERVICE, October 10, 1994. _________________________________________________ GATT Will Raise Some World Food Prices An economist with the Food and Agriculture Organization said that some food prices could increase by as much as 10 percent if the Uruguay Round goes into effect. Speaking at an FAO Asia-Pacific conference in Manila, Ti Teow said the impact would be felt the most in south Asian countries which import more basic foodstuffs from western economies. An international forum on GATT's impact on food prices has been scheduled for next April in Rome. Source: "GATT Pact Seen Raising Some World Food Prices," REUTER, October 5, 1994. _________________________________________________ WTO Candidate Pushes Uruguay Round In an opinion editorial in Singapore's STRAITS TIMES PRESS, Renato Ruggiero, a former Italian trade minister and candidate to head the World Trade Organization, argues that increased trade would help avoid future conflicts and lead to political stability. "'If goods cannot cross borders, soldiers will.' This familiar thought vividly depicts the strong influence trade exercises on politics," Ruggiero writes. He advocates coordinating the work of the WTO with the International Monetary Fund and the World Bank to take advantage of the "unified and strong" dispute settlement system outlined in the Uruguay Round. While most European countries have endorsed Ruggiero for the WTO post, Hong Kong this week joined several other Asian nations in endorsing South Korean Trade Minister Kim Chul Su for the job. The United States has promoted Mexican President Carlos Salinas de Gortari to head the WTO. Sources: Renato Ruggiero, "World Trade Organization to Defend and Expand Free Trade," STRAITS TIMES, October 9, 1994; "H.K. Backs S. Korean Candidate to Head World Trade Body," KYODO NEWS SERVICE, October 11, 1994. _________________________________________________ Newspapers Promote Uruguay Round Many U.S. newspapers have been running editorials and letters in support of the Uruguay Round. The October 6 SAN FRANCISCO EXAMINER argued the U.S. will benefit under the Uruguay Round and that concerns that U.S. laws will be overturned are unfounded. "The United States, it happens, is the dominant force in the world economy, and smaller trading nations have much more to be concerned about than we do when it comes to having national policies overridden by international pressures." The October 10 USA TODAY carried a letter from Rathindra Chakraborti of Atlanta. "The individual in a free society has a fundamental right to seek the best products at the best price. He must not be forced to subsidize wages of his uncompetitive compatriots or profits of domestic businesses." Sources: James Heavey, "Free Trade Must Prevail," SAN FRANCISCO EXAMINER, October 6, 1994; "Drop All Barriers to Trade," USA TODAY, October 10, 1994. _________________________________________________ RESOURCES _________________________________________________ For copies of the following, please contact the authors or organizations listed: "The Uruguay Round Deal: An Outline of the New Multilateral Trading System," NEWS OF THE URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS, April 1994. 32 pages plus appendices. Information and Media Relations Division of the General Agreement on Tariffs and Trade, Centre William Rappard, 154 rue de Lausanne, CH-1211 Geneva 21, Switzerland. (41-22) 739-5111. A 32-page press summary of the "Final Act of the Uruguay Round" is also available. "GATT, The World Trade Organization and Sustainable Development," Nevin Shaw and Aaron Cosbey, INTERNATIONAL ENVIRONMENTAL AFFAIRS, Vol. 6, No. 3, Summer 1994. 27 pages. International Environmental Affairs, 6182 Steele Hall, Room 306, Dartmouth College, Hanover, NH 03755-3577. (603) 646-3701. Fax: (603) 646- 1682. Quarterly. $50/year for individuals; $75/year for institutions. Foreign subscriptions add $10; airmail add $10. "Dolphins and Tuna: An Analysis of the Second GATT Panel Report," Steven Charnovitz, ENVIRONMENTAL LAW REPORTER, October 1994. 20 pages. Environmental Law Institute, 1616 P Street NW, Station 20, Washington, DC 200036. (202) 328-5150. $20. $849/year subscription includes monthly issues and special reports. _________________________________________________ For more information about the Institute for Agriculture and Trade Policy, send email to [EMAIL PROTECTED] 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: [EMAIL PROTECTED] _________________________________________________
