NAFTA MONITOR
February 1, 1994
Volume 1, Number 6
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Headlines:
USTR CALLS FOR STATE NAFTA CONTACTS
CANADIAN HUMAN RIGHTS GROUP URGES NEW NAFTA COMMISSION
TEXTILS UNION CALLS FOR U.S. TO TRACK NAFTA
TOP EXECUTIVES SAY NAFTA WILL HELP BUSINESS
U.S.-BASED ELECTRONICS PLANT RELOCATES TO MEXICO
MEXICAN MEATPACKER SETS UP OPERATIONS IN TEXAS
WAL-MART TAKES OVER STORES IN CANADA
PHILIPPINES SAYS NAFTA WILL HURT TEXTILE EXPORTS TO U.S.
RESOURCES, EVENTS
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USTR CALLS FOR STATE NAFTA CONTACTS
The Office of the U.S. Trade Representative asked each state to name
a contact person in charge of coordinating NAFTA implementation.
Under the plan, state contacts would be available to brief their
congressional representatives and senators on the NAFTA
implementation process. Some states are not pleased with the
proposal and are calling for a "more interactive format".
Source: "USTR Proposes Meeting to Brief New State Contacts on
NAFTA," INSIDE NAFTA, January 14, 1994.
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CANADIAN HUMAN RIGHTS GROUP URGES NEW NAFTA COMMISSION
The Canadian International Center for Human Rights and Democratic
Development is calling for the creation of a NAFTA human rights
commission to monitor activities in the United States, Canada and
Mexico. The group, sponsored by the Canadian government, issued
their demands shortly after the January 1 peasant uprising in
Chiapas, Mexico. The rights group also urged the Canadian
government to express public concern to the Mexican government
over the alleged human rights abuses committed by the Mexican
army in suppressing the revolt.
Source: "Canada Group Urges NAFTA Rights Agency," JOURNAL OF
COMMERCE, January 25, 1994.
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TEXTILE UNION CALLS FOR U.S. TO TRACK NAFTA
The Amalgamated Clothing and Textile Workers Union (ACTWU)
recently requested that the Clinton administration follow up on
speculations and assurances made to labor groups during the NAFTA
debate. In a letter addressed to Senator Paul Simon (D-Illinois),
ACTWU Managers James K. Tribble and Ronald M. Willis asked the
senator to accept the following four proposals to track trade trends
under NAFTA:
% introduce legislation mandating that the U.S. Labor Department
track every U.S. plant closing or production move and identify the
reason for and destination of the move;
% pressure the federal government to track and compare foreign vs.
domestic investments by U.S. companies and hold the administration
accountable to its pledge to end tax breaks for firms that invest
overseas;
% mandate that the U.S. Department of Commerce accurately list all
exports by category, those that remain in destination country vs.
those that are shipped abroad for assembly and then shipped back to
the U.S. for sale; and
% demand that international worker rights files be opened to the
public.
Source: ACTWU Letter to Senator Paul Simon, January 18, 1994.
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TOP EXECUTIVES SAY NAFTA WILL HELP BUSINESS
The Harris Executive Poll, conducted by BUSINESS WEEK, surveyed
402 senior executives December 10-20 and found that 51 percent
believe NAFTA will have a positive impact on their business. Only 1
percent said they expect the agreement to have a negative impact on
business, while 48 percent said it would have no affect at all.
Source: "Cautious Optimism in the Corner Office," INDUSTRY OUTLOOK,
January 10, 1994.
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U.S.-BASED ELECTRONICS PLANT RELOCATES TO MEXICO
Key Tronics Corporation of Spokane, Washington announced plans
last month to relocate 100 full-time U.S. jobs to its plant in Juarez,
Mexico. Key Tronics, a manufacturer of computer keyboards, said it
will continue to engineer products in Spokane, but most
manufacturing will shift to Juarez. "This is a trend throughout the
electronics industry," commented John Hatch, a spokesperson with
the American Electronic Association in California. "Companies have
to be more productive with fewer resources. And it's much easier
for a company to do that along the Mexican border than to try to set
up manufacturing in one of the Pacific Rim countries." Key Tronics
insists that the decision to shift its production to Mexico had nothing
to do with NAFTA.
Source: John Davies, "Electronics Firms Shift Operations to Mexican
Border Plants," JOURNAL OF COMMERCE, January 19, 1994.
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MEXICAN MEATPACKER SETS UP OPERATIONS IN TEXAS
Jose Hernandez Estrella, owner of one of Mexico's largest pork-
producing companies, opened a hog-slaughtering plant in San
Antonio, Texas last November. Since then he has hired 40 U.S.
workers to run the Hemco packing plant and says he intends to hire
at least 70 more. Last summer, the San Antonio office of the Texas
Department of Agriculture helped Hernandez set up his operation by
locating producers and securing equipment and tax breaks for
Hemco. Hog producers in Texas hope Hemco will help to regenerate
the hog business in Texas, which has steadily declined over the past
few years. Hernandez said he decided to set up the operation in
Texas because there are not enough pork producers in Mexico to
meet consumer demand there. "The plant in Mexico wasn't putting
out enough pork to satisfy my standards," Hernandez said. "My main
concern is just filling the demand. We're going to grow." Hemco now
slaughters approximately 300 hogs per day -- all for export to
Mexico -- and expects to slaughter 1,000 hogs daily within four to
five months.
Source: Steven H. Lee, "Mexican Meatpacker in Texas Processes U.S.
Hogs for Export," JOURNAL OF COMMERCE, January 26, 1994.
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WAL-MART TAKES OVER STORES IN CANADA
Wal-Mart Stores Inc., the world's largest merchant, announced late
last month that it would purchase 120 Woolco stores in Canada. An
article in the TORONTO GLOBE AND MAIL said Wal-Mart's acquisition
from Woolworth Canada Inc. gives the U.S.-based merchant a
formidable presence North of the border. "This is nothing short of a
revolution," said John Williams, a Toronto retailing consultant. "No
mainstream retailer in Canada will not be affected."
Source: "Wal-Mart Roars Into Canada," TORONTO GLOBE AND MAIL,
January 15, 1994.
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PHILIPPINES SAYS NAFTA WILL HURT TEXTILE EXPORTS TO U.S.
Antonio Basilio, deputy chief at the Philippine embassy in
Washington, said reduced tariffs on Mexican garment exports to the
United States, established under NAFTA, will hurt the Philippine
garment industry. Basilio is calling on the United States to agree to
restructure a bilateral textile agreement which imposes, on average,
an 18 percent duty on Philippine garment exports. Mexican garment
exports are faced with a 6 percent duty. Negotiations to allow the
entry of more high value Philippine garments into the United States
have already begun.
Sources: "Negotiations for New U.S.-Philippines Textile Accord Under
Way," UPI, January 25, 1994; "Philippine Textile Exports Threatened
by NAFTA," REUTER, January 25, 1994.
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RESOURCES:
"The Arthur Anderson North American Business Sourcebook,"
ARTHUR ANDERSON COMPANY, 1994. $150.00. Contact: Triumph
Books, Inc., 644 South Clark Street, Chicago, IL 60605. (312) 939-
3330. Fax: (312) 663-3557.
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EVENT:
"NADBANK and Border Infrastructure Financing: Next Steps,"
February 17, Washington, DC. $275.00. Contact: INSTITUTE OF THE
AMERICAS, Ariela Berkstein, 10111 North Torrey Pines Road, LaJoya,
CA 92037. (619) 453-5560. Fax: (619) 453-2165.
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Editor: Gigi DiGiacomo
The Institute for Agriculture and Trade Policy (IATP)
1313 Fifth Street SE, Suite #303, Minneapolis, MN 55414-1546 USA
Telephone:(612)379-5980 Fax:(612)379-5982 E-
Mail:[EMAIL PROTECTED]
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