/* Written 10:15 AM Nov 10, 1994 by kmander in igc:trade.news */ /* ---------- "Trade Week 11-10-94" ---------- */ Trade Week in Review Thursday, November 10, 1994 Volume 3, Number 45 _________________________________________________ HEADLINES: Hollings Seeks Republican Rejection of GATT Republicans May Postpone GATT Retailers, Importers Oppose GATT U.S. Complains to GATT About European Bananas Japan Predicts Quick Passage of GATT China Threatens U.S. Over GATT Entry Resources _________________________________________________ GATT NEWS SUMMARY _________________________________________________ Hollings Seeks Republican Rejection of GATT The day after Republicans won majorities in the House of Representatives and the Senate, Senator Ernest Hollings (D-South Carolina) asked Republicans to keep the deficit down by voting against GATT. "Newt Gingrich, the new speaker-to-be, says he's going to read the Contract for America on January 4 to balance the budget," Hollings said. "Republicans don't have to wait until then. We'll find out if they're acting in good faith on balancing the budget on November 30 when the GATT vote is taken." Hollings said passing GATT would add $30 billion to the U.S. deficit. Hollings, who is chair of the Senate Commerce Committee, will hold hearings on GATT next week. On November 14, the committee will consider the pioneer provisions of GATT. On November 15, European Parliament member Sir James Goldsmith and others will testify about GATT's impact on the U.S. economy. In a new book, "The Trap," Goldsmith argues that global free trade, intensive agriculture and nuclear energy have "profoundly destroyed our social stability by using ill-conceived modern economic tools." Sources: "Hollings Challenges GOP on GATT," HOLLINGS PRESS RELEASE, November 9, 1994; Martin Wolf, "Trapped in a Protectionist World," FINANCIAL TIMES, November 10, 1994. _________________________________________________ Republicans May Postpone GATT Media reports indicate some conservatives are pressuring Senate Minority Leader Bob Dole (R-Kansas) to corral 40 votes to block GATT from coming to the floor of the Senate in the lame-duck session scheduled to begin November 30. They apparently support the agreement, but are opposed to several of its provisions. Pro-GATT business groups have been circulating a list of nine senators who have announced their opposition to GATT, 16 others who oppose waiving budget rules for GATT, and another 17 who will "probably" oppose GATT. That adds up to 42 senators, enough to defeat GATT. In an interview on NBC television Sunday, Dole expressed doubts about ratifying the trade pact. "The big problem in GATT is the World Trade Organization," he said. "I've had more calls and more letters from my state of Kansas on GATT than I've ever had on the North American Free Trade Agreement." Like most Republicans, Senator Phil Gramm (R-Texas) says he'd like to support GATT, but contends the problem is the "President has loaded up the agreement with so much stuff that I find objectionable." Republicans face a difficult choice regarding GATT. Putting off the vote until next year would enable the Republicans to re-write the enabling legislation and take greater credit for passing it. But business interests fear a postponement could make it more difficult to pass the trade pact, thus they are likely to pressure Republicans to help approve the agreement this year. White House officials say the Republicans, who promised Wednesday to work with the administration on a variety of issues, can display good faith by supporting GATT. "If we can have both the Democrats and the Republicans working together to get GATT passed, it could set, certainly, a better framework for the next session," said Chief of Staff Leon Panetta. According to the NEW YORK TIMES, the White House figures it has at least 50 Senate votes for GATT, but perhaps not the 60 it needs to pass the legislation. Many GATT opponents, who argue that a lame-duck session is not the right place to decide an issue of such magnitude, doubt Dole and other Republican leaders will get in the way of GATT. "Dole has a long history on free trade," said Mark Anderson of the AFL-CIO. "I don't think he'll turn his back on the Business Roundtable or agribusiness." Sources: "GATT: Will Majority Leader Dole Rewrite the Pact?" AMERICAN POLITICAL NETWORK, November 8, 1994; "Dole on the Fence Over GATT, But Gore Defends It," AGENCE FRANCE PRESSE, November 6, 1994; David E. Sanger, "Trade Vote Is First Test for Victors," NEW YORK TIMES, November 10, 1994; Helene Cooper, "World Trade Pact's Passage Now May Face Uphill Fight," WALL STREET JOURNAL, November 10, 1994; Nancy Dunne, "Scramble to Get GATT Through," FINANCIAL TIMES, November 10, 1994. _________________________________________________ Retailers, Importers Oppose GATT Retailers, importers and apparel manufacturers are all opposing the Uruguay Round of GATT because of changes to the rules of origin for apparel imports. The U.S. Association of Importers of Textiles and Apparel said it would actively oppose the trade bill. The National Retail Federation and the International Mass Retail Association said they would not actively oppose the bill, but indicated members might take other stances. Source: Jim Ostroff, "Retailers, Importers Yank GATT Support Over Origin Rule Shift; Apparel Industry, General Agreement on Tariffs and Trade," WOMEN'S WEAR DAILY, September 29, 1994. _________________________________________________ U.S. Complains to GATT About European Bananas At a November 3 meeting of the GATT Committee on Import Licensing Procedures, the United States put pressure on the European Union to change its import licensing system for bananas. Barbara Chattin, director of tariff affairs for the Office of the U.S. Trade Representative, said EU banana import policy is "totally contrary to both the letter and spirit" of GATT rules. The EU restricts banana imports from some Latin American countries in favor of imports from former colonies in Africa, the Caribbean and the Pacific. Source: "International Trade, U.S. Raises EU Banana Regime Issue in GATT Import Licensing Committee," BUREAU OF NATIONAL AFFAIRS, November 4, 1994. _________________________________________________ Japan Predicts Quick Passage of GATT Japan will probably ratify the Uruguay Round in its current parliamentary session, but may postpone certain steps due to delays in the U.S. and Europe, legislators said. "We'll be watching other countries' moves, but unless something extreme happens, we'll proceed in parliament," said Atsushi Nishikori, a member of parliament in the Sakigake Party who led the recent government debate on agriculture issues. "GATT ratification by the Japanese parliament will likely come before the United States," Nishikori said. Source: Yoko Kobayashi, "Japan Sees Smooth Road for GATT Ratification," REUTER, November 7, 1994. _________________________________________________ China Threatens U.S. Over GATT Entry China warned it could become an uncontrolled "gorilla" that disregards international trade rules if the United States continues to block China's re-entry to GATT. "Denial of GATT access could turn China into a 900-pound gorilla unbound by the marshalling of a world trading system," the CHINA DAILY BUSINESS WEEKLY quoted a senior trade scholar at Beijing University as saying. The U.S. objects to admitting China as a developing nation and has called for greater trade transparency. Source: "China Warns It Will Become a 'Gorilla' Without GATT," AGENCE FRANCE PRESSE, November 6, 1994. _________________________________________________ RESOURCES _________________________________________________ For copies of the following, please contact the authors or organizations listed: "Trade Challenges to U.S. Environmental and Health Measures," Patti Goldman, SIERRA CLUB LEGAL DEFENSE FUND, INC., October 12, 1994. 12 pages. Institute for Agriculture and Trade Policy, 1313 5th Street S.E., Suite 303, Minneapolis, MN 55414-12546. (612) 379-5980. Fax: (612) 379-5982. $3. A summary of how formal trade disputes or the threat of trade disputes have been used to weaken U.S. health and environment laws and regulations. "Transnational Corporations' Strategic Responses to TSustainable Development'," Harris Gleckman with Riva Krut, BENCHMARK ENVIRONMENTAL CONSULTING, July 1994. 1457 Westbrook St. Portland, ME 04012. (207) 775-9078. Fax: (207) 772-3539. $10. This is a draft of a chapter that will appear in Green Globe 1995 (Oxford University Press, forthcoming). The paper includes a review of the United Nations' Agenda 21 on Transnational Corporate issues. "China," International Agriculture and Trade Reports, Situation and Outlook Series, U.S DEPARTMENT OF AGRICULTURE, August 1994. 63 pages. ERS-NASS, 341 Victory Drive, Herndon, VA 22070. (800) 999-6779 (U.S. or Canada) or (703) 834-0125. Fax: (703) 834-0110. $9/ single issue (domestic); $11.25 (foreign). $20/year (domestic); $25/year (foreign). This six-report yearly series includes, Africa and the Middle East, Asia and the Pacific Rim, China, Europe, Former USSR, and the Western Hemisphere. The reports, based on original foreign source materials, analyze short and long-term production and consumption trends, as well as how macro-economic and trade policies affect food and fiber markets. Summaries and texts of the reports are also available electronically. Call (202) 720-9045. _________________________________________________ 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] _________________________________________________
