
From nafta_monitor@iatp.org Fri Feb  5 17:22:04 1999
Date: Fri, 5 Feb 1999 15:15:29 -0600
From: NAFTA Monitor <nafta_monitor@iatp.org>
To: nafta-news@igc.org
Subject: NAFTA & Inter-American Trade Monitor Vol. 6, Number 2

================================							
Date Posted: 02/05/1999
Posted by: nafta_monitor@iatp.org		
================================



------------------------------------------------------------------------
NAFTA & Inter-American Trade Monitor - Vol. 6, Number 2    February 05, 1999
------------------------------------------------------------------------


                            Table of Contents                           

	   - PROBLEMS WITH NAFTA-NEWS LIST
	   - CANADIAN BGH BAN CONTINUED
	   - U.S. BLINKS ON BANANAS
	   - YANOMAMI CHARGE BIO-PIRACY
	   - TRADE AND BIO-SAFETY AGREEMENTS
	   - MEXICAN BUDGET CUTS AG EMPHASIS
	   - CORN TRQ EXCEEDED
	   - TOUGH TIMES FOR TRADE LEGISLATION
	   - RESOURCES



PROBLEMS WITH NAFTA-NEWS LIST

Dear Nafta-News subscribers:

Last week there were some problems with the list serve that distributes 
the electronic version of our news bulletin. We apologize for any 
inconvenience this may have caused.

To unsubscribe to Nafta News send email to:

Majordomo@igc.apc.org

In the body of the message say: unsubscribe nafta-news

Thanks for your patience.

Cordially yours,

The List Administrator






CANADIAN BGH BAN CONTINUED

In mid-January, Health Canada officials ruled that 
a ban on the use of recombinant bovine 
somatotrophin, the bovine growth hormone 
known as BGH or rBST, will continue. The 
Canadian ruling came three months before a 
temporary European Union ban on rBST is due to 
expire. 

While the panel considering BGH health risks to 
humans found no conclusive evidence of risk, 
another panel found that BGH does adversely 
affect the health of dairy cows, causing a 50 
percent increase in lameness, an 18 percent 
increase in infertility, and a 25 percent increase in 
mastitis. "It's a decision that's based on more than 
nine years of comprehensive review," said Joel 
Weiner, an acting director of the Health Protection 
Branch.

The Canadian government asked for reports from 
two outside panels after its own scientists testified 
before a Canadian Senate committee that they had 
been pressured by the chemical industry and 
politicians to approve BGH. Health Canada 
scientists agreed with the findings of the two 
panels and with the continuance of the ban on 
BGH. 

Ray Mowling, a vice president of Monsanto 
Canada said that his company, which has invested 
millions in BGH research and development, will 
respond to the decision and charged that the 
investigative reports were full of errors. Mowling 
noted that Monsanto has the right to appeal the 
decision to the department or to take the case to 
court or to challenge the ruling under NAFTA. 

BGH was approved for use in the United States in 
1993 and has been used in Mexico and Brazil 
since 1988. The U.S. Center for Food Safety 
(CFS) and other consumer groups have petitioned 
the U.S. Food and Drug Administration to reverse 
its 1993 decision. The Codex Alimentarius, an 
international food standards agency, will meet this 
summer to consider approval of BGH.  

"Canada Upholds Hormone Ban; Could Rekindle 
Debate With US," ASSOCIATED PRESS, 
January 19, 1999; Mark Bourrie, "Canada Rejects 
Bovine Growth Hormone," INTERPRESS 
SERVICE, January 17, 1999; Kelly Morris, 
"Who's Crying Over Spilt Milk?" THE LANCET, 
January 23, 1999; Barry Wilson, "BST Decision 
Called Good and Bad," WESTERN 
PRODUCER, January 28, 1999; Scientists' 
Complaints About BST Dismissed," WESTERN 
PRODUCER, January 7, 1999; Barry Wilson, 
"BST Rejected; Issue Not Dead," WESTERN 
PRODUCER, January 21, 1999; Barry Wilson, 
"Dairy Producers Call BST Rejection a Victory," 
WESTERN PRODUCER, January 21, 1999; 
"Hormone Refused Over Cow Health Issues," 
WESTERN PRODUCER, January 21, 1999; Ed 
Maixner, "U.S., Canada Divided on Safety of 
BST to Cows," FEEDSTUFFS, February 1, 
1999.






U.S. BLINKS ON BANANAS

Half a billion dollars in U.S. trade sanctions 
against half a billion dollars of European Union 
exports, scheduled for implementation on 
February 1, have been postponed until at least 
March 3. The delay, characterized as a victory by 
U.S. officials, came after a week of lobbying by 
Japan, Canada, India and other countries not 
directly involved in the U.S.-EU banana dispute. 
The other countries argued that the U.S. request 
for sanctions could not be considered until after a 
WTO panel had ruled that the EU's amended 
banana regime was illegal. 

The United States says that the European Union's 
new banana regime, adopted after WTO rulings 
ordering the EU to end unfair discrimination 
against U.S. distributors of Latin American 
bananas, does not constitute full compliance with 
WTO rulings. The EU says it does. 

The European Union formally notified the WTO 
disputes settlement panel that it intends to ask for 
a ruling on U.S. imposition of sanctions under 
Section 301 (of the U.S. Trade Act) at the 
February meeting of the dispute settlement body. 
The EU move came after the United States sought 
WTO approval of its sanctions in late January.

Frances Williams, "US Postpones EU Sanctions," 
FINANCIAL TIMES, January 30, 1999; "EU 
Mounts WTO Challenge to U.S. Trade Sanctions 
Law," REUTERS, January 29, 1999; "Legal Gaps 
in WTO Fan Flames of EU/US Banana Dispute," 
INTERPRESS SERVICE, January 13, 1999; 
Chakravarti Raghavan, "US-EC Raise Stakes in 
Banana War," INTERPRESS SERVICE, January 
22,1999; Chakravarti Raghavan, "US-EC Banana 
Saga Continues With No Compromises," 
INTERPRESS SERVICE, January 28,1999; Earl 
Moxam, "Caribbean Bands Together in Banana 
Dispute," REUTERS, January 28, 1999; Robert 
Evans, "WTO Chief Pushes for End to Banana 
Trade Deadlock," REUTERS, January 29, 1999; 
"WTO Members Avert Procedural Crisis on 
Bananas; Will Meet Again Today," INSIDE US 
TRADE, January 29, 1999.






YANOMAMI CHARGE BIO-PIRACY

The Venezuelan Ministry of the Environment 
signed a contract with the University of Zurich in 
January, permitting the university access to 
genetic resources in the Yanomami area. 
Guillermo Guevara, coordinator of the 
Organization of Indigenous Peoples of the 
Amazon State (ORPIA), denounced the 
agreement because it was arrived at without 
notification to or approval of the Yanomami 
population that lives in the zone. Guevaro said 
that the agreement amounts to theft of the 
ancestral knowledge and bio-diversity of the 
community, because the university plans to patent 
life forms developed by the indigenous people 
over generations. 

"ORPIA hasn't endorsed the agreement because it 
considers that it's another version of plundering 
our land's bio-diversity and our people's ancestral 
heritage," said Guevaro. "Amazon Basin 
Indigenous Community (COICA) groups have 
taken a decision against the westernized patent 
system. (Cartagena Decision No. 391)."

The agreement provides for payments to 
indigenous groups that cooperate with the 
university's activities and to the Ministry of the 
Environment.  

Mireya Tabuas, "Biopirataria Suiza en Area 
Yanomami," EL NACIONAL (Caracas), January 
26, 1999; "Yanomami Indian Elders Accuse Swiss 
University of Hidden Agenda," VENEWS, 
January 27, 1999.






TRADE AND BIO-SAFETY AGREEMENTS

Some 150 signatories to the Convention on 
Biological Diversity are negotiating a Biosafety 
Protocol that would affect trade in products 
containing genetically modified organisms. The 
United States has not ratified the Convention on 
Biological Diversity, so it cannot vote on the 
Protocol, which is scheduled for adoption in 
February. 

The United States wants to keep the scope of the 
protocol narrow, so that it applies only to GMOs 
that might be planted in the environment, not to 
food or other products that will be consumed 
directly by animals or humans. A number of 
developing countries want the protocol to provide 
for labeling of any products containing GMOs.

The purpose of the protocol is ensuring the safety 
of existing species by restricting import of 
agricultural products that might threaten those 
species.  A December 14 industry letter to 
President Clinton objects to the inclusion of food, 
beverage and consumer products in the biosafety 
protocol, alleging that such inclusion would 
conflict with WTO rules proscribing any 
regulation not based on science. 
A December 21 letter signed by more than 70 
NGOs and individuals advocated agreement to a 
"rigorous protocol based on the Precautionary 
Principle, which the United States endorsed at the 
1992 Earth Summit." 

"U.S. Fights to Reduce Impact of Biosafety 
Protocol on GMO Trade," INSIDE US TRADE, 
January 8, 1999.






MEXICAN BUDGET CUTS AG EMPHASIS

Measured as a percentage of the country's Gross 
Domestic Product, Mexico's 1999 agriculture 
development budget is at the lowest level in the 
last 25 years and is 20% less the 1998 agricultural 
development budget. The 1999 Mexican federal 
budget calls for agriculture to receive 
approximately four percent of total expenditures, 
compared to 5.18 percent in 1998 and up to 10 
percent in past decades. 

The lower agricultural development budget comes 
as staple food prices are being allowed to rise. The 
quasi-public company LICONSA, which assists 
the poor with low-cost milk, increased its milk 
prices from 2.00 to 2.50 pesos per liter in mid-
January. Lifting of price controls resulted in tortilla 
prices increasing from 3 pesos per kilogram to as 
much as 7 pesos at the beginning of January. Corn 
tortillas account for about half of the daily caloric 
intake of poor Mexicans. By late January, corn 
flour producer and tortilla association 
representatives said they would voluntarily limit 
the price of tortillas to 3.5 pesos per kilogram. 

"Lower Ag Budget for 1999," FUTURES 
WORLD, January 21, 1999; "LICONSA 
Increases Milk Prices to the Poor," FUTURES 
WORLD, January 21, 1999; Ginger Thompson, 
"Tortilla Rises: Must Belts Tighten?" NEW 
YORK TIMES, January 4, 1999; John Ward 
Anderson, "Tortilla Price Hike Hits Mexico's 
Poorest: Five Years After NAFTA, Trickle-Down 
Has Yet to Trickle," WASHINGTON POST, 
January 12, 1999; Dudley Althaus, "Malnutrition 
Gnaws at the Children of Mexico," HOUSTON 
CHRONICLE, December 27, 1998; Robert 
Randolph, "Mexico Untethers the Price of Corn 
Tortillas," JOURNAL OF COMMERCE, January 
8, 1999; "Voluntary Pact Ends Tortilla Price 
Surge in Mexico," MILLING AND BAKING 
NEWS, January 19, 1999.






CORN TRQ EXCEEDED

According to Mexico's Secretariat of Commerce 
and Industrial  
Development (SECOFI), import certificates for 
5.862 million metric tons (MMT) of U.S. corn 
were issued for 1998. The NAFTA tariff rate 
quota (TRQ) is only 2.815 MMT of U.S. corn. 
Not all of the import certificates were used, 
however. SECOFI said that 4.375 MMT of corn 
was imported from January-November and 
estimates that the final 1998 figure will be no 
more than 5 MMT. The United States was 
apparently the sole supplier of imported corn to 
Mexico in 1998. 

On December 11, SECOFI's Corn Allocation 
Committee decided to delay the initial allocation of 
1999 import permits until January, in order to 
obtain more information on the results of Mexico's 
corn harvest, which was delayed due to late rains. 

According to the Foreign Agricultural Service of 
the U.S. Department of Agriculture, U.S. corn 
exports are expected to increase by about 5.8 
million tons in 1999 to a global total of 43.5 
million tons, but the average price for export corn 
for 1998-1999 will probably fall 13 percent to $98 
a ton.

"Mexico Reports 1998 Corn Imports Exceed 
NAFTA TRQ," FUTURES WORLD, January 13, 
1999; "Farmers Seek Spark in Grain Export 
Bottom Line," JOURNAL OF COMMERCE, 
January 27, 1999.






TOUGH TIMES FOR TRADE LEGISLATION

In addition to seeking fast-track trade negotiating 
authority, the Clinton administration trade agenda 
for 1999 includes initiatives ranging from new 
trade preferences for Africa and the Caribbean 
Basin to the opening of a new round of global 
trade negotiations to reduce tariffs in Seattle in 
November. Fast-track authority would allow the 
president to negotiate trade deals that the Senate 
would have to accept or reject without 
amendment.

U.S. public opposition to expanded trade has 
increased with recent expansion in steel imports 
from Japan, Russia, Korea and Brazil. Japan's 
steel exports to the United States grew 500 
percent last year. The 1998 U.S. trade deficit is 
forecast at a record-breaking $170 billion, and 
some analysts predict a1999 deficit approaching 
$300 billion. 

Fast-track negotiating authority still faces an uphill 
battle in Congress, where Democrats and a few 
Republican allies want to see inclusion of labor 
and environmental protection provisions. Even if 
the fast track legislation authorized inclusion of 
such provisions in trade agreements, other 
countries could be expected to oppose their 
inclusion. Mexico, for example, continues to 
oppose any environmental protection provisions in 
trade agreements, arguing that dialogue with 
environmental and other groups is best done on a 
domestic level and has no place in international 
trade accords. 

Jim Lobe, "Clinton Faces Tough Fight for Trade 
Agenda," INTERPRESS SERVICE, January 27, 
1999; Kevin G. Hall, "Mexico Adamant About 
Keeping Environment Out of Trade Talks," 
JOURNAL OF COMMERCE, January 26, 1999; 
Kevin Galvin, "Clinton Seeks Trade Authority," 
ASSOCIATED PRESS, January 28, 1999; 
"Industry Groups Cautious on Push for Fast 
Track This Year," INSIDE US TRADE, January 
29, 1999; "Lott Urges CBI Action This Year; 
USTR to Hold Off on Proposal," INSIDE US 
TRADE, January 29, 1999; William Roberts, 
"Executives Lobby to Pass Fast-Track," 
JOURNAL OF COMMERCE, January 28, 1999; 
William Roberts, "Clinton Seeks Consensus on 
Freer Trade," JOURNAL OF COMMERCE, 
January 21, 1999.






RESOURCES

The AGRIBUSINESS EXAMINER: Monitoring 
Corporate Agribusiness From a Public Interest 
Perspective. A.V. Krebs, Editor\Publisher. 
Weekly newsletter available by email. Send 
request to: avkrebs@earhlink.net. No subscription 
fee, but donations may be sent to A.V. Krebs, 
P.O. Box 2201, Everett, Washington 98203-0201.







------------------------------------------------------------------------
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. 

The Spanish version of this news bulletin, El Monitor de 
NAFTA y Comercio Interamericano, and a searchable archive 
of all back issues is available at: 
http://www.newsbulletin.org 

To subscribe/unsubscribe to the email version of this news 
bulletin, send email to: Majordomo@igc.org. Leave the 
subject blank. In the body of the message say either: 
subscribe nafta-news or unsubscribe nafta-news.
------------------------------------------------------------------------
		




================================
How to Use this Mailing List
================================

You received this e-mail as a result of your registration on the nafta_monitor mailing list.

To unsubscribe, please send an email to listserv@iatp.org. In the body of the message type:
unsubscribe nafta_monitor

For a list of other commands and list options, please send an email to listserv@iatp.org. 
In the body of the message type:
help
				
					

