
From dwiehoff@iatp.org Thu Jan  9 20:51:36 1997
Date: 09 Jan 1997 13:50:32
From: dwiehoff@iatp.org
To: Recipients of conference <trade-news@igc.apc.org>
Subject: Re: NAFTA & Inter-American Trade Monitor

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From: dwiehoff@iatp.org (Dale Wiehoff)
Subject: NAFTA & Inter-American Trade Monitor 1-3-97 

NAFTA & Inter-American Trade Monitor
Produced by the Institute for Agriculture and Trade 
Policy
Wednesday, November 27, 1996
Volume 3, Number 23
__________________________________________
Headlines:
-SUMMIT ON SUSTAINABLE DEVELOPMENT
-CANADA-U.S. DAIRY DISPUTE CONTINUES
-WHEAT HARVEST UP, PRICES DOWN IN SOUTH AMERICA
-MERCOSUR SUMMIT
-RESOURCES/EVENTS
___________________________________________

SUMMIT ON SUSTAINABLE DEVELOPMENT

The Organization of American States-sponsored Hemispheric Summit on
Sustainable Development, which brought representatives from 34 countries,
the Inter-American Development Bank, the United Nations, and environmental
organizations to Santa Cruz, Bolivia on December 7-8, ended with consensus.
The Santa Cruz Declaration and a 65-clause Plan of Action, approved by
applause rather than votes, acknowledged that, "Any attempt to protect our
ecological system while ignoring human needs constitutes a political, moral
and practical impossibility." 

Bolivian President Gonzalo Sanchez de Lozada insisted that the summit
consider what he called the four foundations of sustainable development:
economic development,  social policies to fight poverty, participative
democracy and  respect for nature. 'Without economic development," said
Sanchez de Lozada, "it is not possible to address  social and human needs,
maintain political stability, nor much  less attend to the environment." 

Sanchez de Lozada called the enormous gap between the economic growth and
standards of living of the  northern countries and the rest of the nations
the greatest obstacle to regional integration, reminding summit
participants that the Bolivian economy is 10 percent of the Chilean economy
and one  percent of the Brazilian economy, which is just 10 percent of the
U.S. economy. 

The Summit documents recommended more of the neo-liberal economic policies
that have been the trend of the past decade, including specific
recommendations for moving toward market-based pricing of water, energy
resources, and forest products, and for increased reliance on markets, free
trade, and private property. 

Unions, women's movements, universities, business groups, neighborhood
associations, grassroots organizations, intellectuals and indigenous groups
attending the summit urged that power be returned to communities and warned
that free trade has not been a panacea. "Since the creation of the North
American Free Trade Agreement (NAFTA) and the World Trade Organization
(WTO), the costs of economic globalisation, for both human communities and
ecosystems, have been steadily growing," according to the non-governmental
groups' Summit document. 

Stressing the higher priority that the United States assigns to
environmental issues, U.S. Vice President Al Gore and Sanchez de Lozada met
separately to finalize an agreement to protect 2.2 million acres of
endangered tropical rain forest and promote sustainable development in and
around Noel Kempff Mercado National Park in Santa Cruz, Bolivia. Ohio-based
American Electric Power (AEP) and two non-profit organizations The Nature
Conservancy and Fundaci^×n Amigos de la Naturaleza (FAN) will participate in
the project. 

Under the terms of the 1992 Framework Convention on Climate Change, the
U.S. and more than 150 other countries committed to balancing greenhouse
gas emissions. Protection of rainforests under this agreement may offset as
much as 14.5 million metric tons of carbon over 30 years, benefiting AEP
and the investors to whom it sells shares. 

Juan Carlos Rocha, "NGOs Urge Participation and Responsible Trade,"
INTERPRESS SERVICE, December 6, 1996; Juan Carlos Rocha, "Fragile
North-South Consensus Reached," INTERPRESS SERVICE, December 9, 1996; Peter
McFarren, "Gore Targets the Environment," ASSOCIATED PRESS, December 7,
1996; "Vice President Gore Announces Approval of International Project to
Protect Bolivian Rain Forest," AEP PRESS RELEASE, December 7, 1996; Juan
Carlos Rocha, "Drafts of Declaration Approved Despite Differences,"
INTERPRESS SERVICE, November 27, 1996; Alejandro Chafuen, "A Latin Summit
Plans a Harder Look at Ecopolitics," WALL STREET JOURNAL, December 6, 1996. 

CANADA-U.S. DAIRY DISPUTE CONTINUES

U.S. officials continue to attack Canadian dairy and poultry tariffs in the
aftermath of a NAFTA dispute resolution panel ruling that the tariffs are
consistent with the North American Free Trade Agreement. Agriculture
Secretary Dan Glickman and Acting U.S. Trade Representative Charlene
Barshefsky released a joint statement expressing deep disappointment in the
ruling, and promising that the United States "will do everything possible,
consistent with trade laws, to seek the ultimate elimination of these
duties and to improve U.S. access to the Canadian market for dairy,
poultry, egg, barley and margarine products." Glickman and Barshefsky also
expressed U.S. concern that the Canadian tariffs are inconsistent with
World Trade Organization rules. 

The NAFTA panel ruling came after prolonged negotiations between the United
States and Canada failed to resolve disagreement over Canadian imposition
of tariff rate increases as a substitute for previously existing quotas,
consistent with the World Trade Organization mandate for tariffication. The
United States requested formation of the dispute panel in July 1995, and
the panel's final ruling was issued in November 1996. 

Members of the U.S. President's Advisory Committee for Trade Policy and
Negotiation called attention to an earlier General Agreement on Tariffs and
Trade panel finding that some Canadian restrictions on ice cream and yogurt
were GATT-inconsistent. Warned that the provisions of the U.S.-Canada Free
Trade Agreement and NAFTA, which exclude the dairy and poultry industries
from coverage, may be inconsistent with the World Trade Organization rule
that substantially all trade must be covered if an agreement is to qualify
as a free trade agreement, rather than a preferential agreement prohibited
under WTO rules. 

A WTO review of Canada's trade regime, released November 19, criticizes
Canadian protection of dairy, poultry, and egg industries, but noted that
Canadian government expenditures on agriculture have been reduced by 20
percent since 1993, due to elimination of grain transport subsidies. 

Statement, Secretary Dan Glickman and Acting U.S. Trade Representative
Charlene Barshefsky, December 2, 1996; Press release, "Panel Findings Could
Nullify U.S.-Canada Trade Agreement," U.S. President's Advisory Committee
for Trade Policy and Negotiations Press Release, "Panel Findings Could
Nullify U.S.-Canada Trade Agreement," December 11, 1996; Ian Elliott,
"Canadian Farm Policy Reviewed at WTO," FEEDSTUFFS, December 2, 1996. 

WHEAT HARVEST UP, PRICES DOWN IN SOUTH AMERICA

As crop estimates for the just-begun Argentine wheat harvest put production
up by more than 50 percent over the 1995-96, prices fell from $275 per ton
during the first half of 1996 to $122 in December. Although Brazil's
harvest appears not much changed from last year, Brazilian wheat producers
will also feel the impact of lower prices. Worldwide production of wheat is
expected to reach 575 million tons for the agricultural year that began in
July, according to the International Council of Grains, up from 539 million
tons the previous year. More than 100 million tons are exported annually,
with Brazil the world's second-largest importer, following China. 

Mario Osava, "Wheat Harvest Up, Prices Down," INTERPRESS SERVICE, December
3, 1996. 

MERCOSUR SUMMIT

Overcoming last-minute conflicts with Argentina, Bolivia signed a free
trade agreement with the Southern Cone Common Market (Mercosur) at its
biannual summit in Fortaleza, Brazil on December 16-17, making it the
second country, after Chile, to sign an agreement with the group. 

At a joint news conference at the end of the summit, Argentine President
Carlos Menem claimed that Mercosur has a higher level of internal
integration than that of NAFTA, while Brazilian President Fernando Henrique
Cardoso described Mercosur as a "training ground" for the proposed Free
Trade Area of the Americas. Cardoso dismissed criticism that Mercosur is
growing at the expense of trade with outsiders, pointing out that Mercosur
trade with third countries has more than doubled to $59 billion since
Mercosur's beginning five years ago. 

Although a November meeting between the Andean Community and Mercosur did
not produce a final framework accord for negotiation on a combined free
trade area, negotiators said that the meeting ended in delay rather than
failure. Negotiators had hoped that the presidents of the four Mercosur
nations Ñ Argentina, Brazil, Paraguay and Uruguay Ñ and the five Andean
bloc nations Ñ Bolivia, Colombia, Ecuador, Peru and Venezuela Ñ could sign
a framework agreement at the biannual Mercosur summit in Fortaleza, Brazil
on December 16-17. 

Protesting exclusion of labor issues from the summit, thousands of union
members from the four Mercosur countries stopped traffic in downtown
Fortaleza. 
 
Adrian Dickson, "Mercosur Chiefs Laud Pace of Economic Integration,"
REUTER, December 17, 1996; Adrian Dickson, "Bolivia to Join Booming
Mercosur Trading," REUTER, December 17, 1996; Abraham Lama, "Steady, Slow
Moves Toward Super-Bloc," INTERPRESS SERVICE, November 26, 1996; Juan
Carlos Rocha, "Argentina and Bolivia at Odds Over Mercosur," INTERPRESS
SERVICE, December 3, 1996.

RESOURCES/EVENTS

NAFTA and the Expansion of Free Trade: Current Issues and Future Prospects,
February 26-28, 1997, Tucson, Arizona. Symposium sponsored by the Arizona
Journal of International and Comparative Law will focus on expansion of
free trade in the Western Hemisphere through NAFTA and other agreements,
such as the Southern Cone Common Market (Mercosur.) Specific areas to be
addressed: political and legal considerations relating to near-term
expansion of NAFTA; impact of consumer and business access to credit on
trade expansion; dispute resolution under NAFTA and other international
mechanisms; relationship under NAFTA of freer trade and labor relations;
dealing with trade and environmental conflicts  in the context of regional
economic integration. For information, contact either Arizona Journal of
International and Comparative Law at NAFTA@law.arizona.ed or University of
Arizona College of Law Development Office at 520/621-8430. 

Tracking U.S. Trade, a monthly publication of the Center for the Study of
Western Hemispheric Trade. For free monthly copy, distributed by e-mail or
fax, contact Center for the Study of Western Hemispheric Trade, 3925 W.
Braker Lane/MCC bldg., Ste. 1.900 Austin, TX 78758; telephone 512/475-8679;
fax 512/475-7966; e-mail trade@uts.cc.utexas.edu.

The Morning NAFTA, a newsletter published by the Canadian Labour Congress,
highlights labor issues and free trade agreements, particularly NAFTA and
the new Canada-Chile Free Trade Agreement. For information or subscription,
contact NAFTA Desk, Canadian Labour Congress, 2841 Riverside Drive, Ottawa,
Ontario K1V 8X7.

ENFOQUE, a biannual publication of the Center for U.S.-Mexican Studies,
University of California, San Diego. 16 pp. For subscription information,
contact Center for U.S.-Mexican Studies, University of California- San
Diego, 9500 Gilman Drive, Dept. 0510, La Jolla, CA 92093-0510; telephone
619/534-4503; fax 619/534-6447. Includes research updates, information on
the Center for U.S.-Mexican Studies, listings of publications of the Center. 

Labor in NAFTA Countries, a periodic bulletin of the Commission for Labor
Cooperation, North American Agreement on Labor Cooperation. 8 pp. Order
from Secretariat of the Commission for Labor Cooperation, One Dallas
Center, 350 N. St. Paul, Suite 2424, Dallas, TX 75201-4240; telephone
214/754-1100; fax 214/754-1199; e-mail info@naalc.org. 

Labor and Industrial Relations Law in Canada, the United States, and
Mexico, published by the Secretariat of the Commission for Labor
Cooperation, North American Agreement on Labor Cooperation. 1996. 40 pp.
$10 U.S.; $12 Canada. To order, contact Secretariat of the Commission for
Labor Cooperation, One Dallas Center, 350 N. St. Paul, Suite 2424, Dallas,
TX 75201-4240; telephone 214/754-1100; fax 214/754-1199; e-mail
info@naalc.org. 

Forum on Democratic Alternatives to Structural Adjustment in the Americas.
Summary of papers presented at May 21, 1996 forum organized by The
Development GAP and Equipo Pueblo. 18 pp. For copies of summary or of full
text papers, contact The Development GAP, 927 Fifteenth Street, NW - 4th
Floor, Washington, DC 20005. Telephone 303/898-1566; Fax 202/898-1612.
Email dgap@igc.apc.org. Presentations include "The Oaxaca Initiative": A
Framework for Equitable and Sustainable Development in the Americas; "The
Liberty Referendum": An Alternative Economic Strategy for Mexico; "The
Popular Alternative": A Basis for a New Economic Plan for El Salvador.

Comparison of Mexican and United States Occupational Safety and Health
Legislation, Regulation, and Enforcement, UAW Health and Safety Department.
1993. 12 pp. Order from Health and Safety Department, International Union,
UAW, 2000 East Jefferson, Detroit, MI 48214. Telephone 313/926-5566.
Comparison of worker protection laws concludes that the Mexican system is
substantially deficient and that Mexican enforcement mechanisms are very
limited. Includes examination of health standards for chemical exposure and
key safety standards. 

Free Trade and Economic Restructuring in Latin America, edited by Fred
Rosen and Deidre McFadyen. North American Congress on Latin America, 1995.
288 pp. Order from Monthly Review Press, 122 West 27th Street, New York, NY
10001. $16. Twenty-seven essays focus on free trade as the globalization of
the neo-liberal agenda, examining effects of neo-liberal
structural-adjustment and free trade policies in twelve countries of the
Americas, and the U.S. role in those policies. 

Planting Trouble: The Barz^×n Debtors' Movement in Mexico by Heather L.
Williams. Center for U.S.-Mexican Studies, 1996. To order, contact:
Publications Order Department, Center for U.S.-Mexican Studies, University
of California - San Diego, 9500 Gilman Drive Dept 0510, La Jolla, CA 92093;
telephone 619/534-1160; fax 619/534-6447 e-mail usmpubs@weber.ucsd.edu.
Documents the evolution of El Barz^×n from its beginnings after the currency
devaluation of December 1994 to the present, from the perspective of the
agriculturalists and consumer debtors who built the organization to protest
exorbitant interest charges and lack of credit. 

Regionalization in the World Economy: NAFTA, The Americas, and
Asia-Pacific, edited by Van R. Whiting, Jr. Published by Center for
U.S.-Mexican Studies, 1996 in association with Macmillan India. To order,
contact: Publications Order Department, Center for U.S.-Mexican Studies,
University of California - San Diego, 9500 Gilman Drive Dept 0510, La
Jolla, CA 92093; telephone 619/534-1160; fax 619/534-6447 e-mail
usmpubs@weber.ucsd.edu. Includes seven essays on NAFTA and the Ameicas, six
chapters on Asia-Pacific, several detailed industry studies and overviews
of global regionalization, including contrasting U.S. and Japanese
perspectives. 

Latino Politics in California, edited by An^Òbal Y^Ç^Öez-Ch^Çvez. 139 pp.
Center for U.S.-Mexican Studies. $12.95. To order, contact: Publications
Order Department, Center for U.S.-Mexican Studies, University of California
- San Diego, 9500 Gilman Drive Dept 0510, La Jolla, CA 92093; telephone
619/534-1160; fax 619/534-6447 e-mail usmpubs@weber.ucsd.edu. Analyzes
Latino politics in California, including history, demography, and
contemporary Latino ethnic politics. Chapters are revisions of papers
originally presented at conference on "Latino Politics in San Diego County"
in May, 1996. Includes discussion of shape of age pyramid in Latino
population, immigration status, cross-border population flows, housing
patterns and tenure, employment status and income and education. 

Mexico at the Crossroads: Politics, the Church, and the Poor, Michael
Tangeman. Orbis Books, Maryknoll, NY: 1995. 138 pp. Order from Orbis Books,
Order Department, Box 302, Maryknoll, NY 10545. Telephone 800/258-5838; fax
914/945-0670. Email: orbmarketg@aol.com. $17. Explores history of
interaction between Mexico's rich elite, the church and the poor majority,
including background on Zapatista uprising, debates over NAFTA, and impact
of neo-liberal policies on the poor. 

Stubborn Hope: Religion, Politics and Revolution in Central America,
Phillip Berryman. Orbis Books, Maryknoll, NY: 1994. 276 pp. Order from
Orbis Books, Order Department, Box 302, Maryknoll, NY 10545. Telephone
800/258-5838; fax 914/945-0670. Email: orbmarketg@aol.com. $13.95. Includes
introduction to church involvement in revolution in Central America, growth
of evangelical churches in recent years, and clashing understandings of
Christian faith. 

NAFTA & Inter-American Trade Monitor is produced by the 
Institute for Agriculture and Trade Policy, Mark Ritchie, President.
Edited by Mary C. Turck.  Electronic mail versions are available 
free of charge for subscribers. For information about fax 
subscriptions contact: IATP, 2105 1st Ave. S., Minneapolis, 
MN 55404.  Phone: 612-870-0453; fax: 612-870-4846; e-mail: 
iatp@iatp.org For information on subscribing to this and other IATP 
news bulletins, send e-mail to: iatp-info@iatp.org.  IATP provides 
contract research services to a wide range of corporate and not-for-
profit organizations.  For more information, contact Dale Wiehoff 
at 612-870-0453 or send email to: dwiehoff@iatp.org


