NAFTA MONITOR
Volume I Number 4
January 20, 1994
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Headlines:
-TRADE LEADERS SAY CHIAPAS UPRISING WILL HAVE LITTLE
EFFECT ON NAFTA
-NEW NAFTA WORKING GROUPS PROPOSED
-CLINTON FOLLOWS THROUGH WITH  NAFTA PROMISE
-NINTENDO MOVES PLANT TO MEXICO
-BORDER TRAFFIC ON THE RISE: FUNDING IN QUESTION
-HAZARDOUS WASTE MOVES ACROSS BORDER
-GALLUP POLL SHOWS NAFTA GAINING SUPPORT IN CANADA
-RESOURCE: CHIAPAS DIGEST
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TRADE LEADERS SAY CHIAPAS UPRISING WILL HAVE LITTLE EFFECT
ON NAFTA
Trade ministers from the United States, Canada and Mexico declared
after their first ministerial meeting since January 1 when NAFTA
went into effect that the peasant uprising in Chiapas, Mexico would
have no impact on NAFTA implementation.  "I don't believe the
situation in Chiapas will have anything to do with the effective
implementation of NAFTA or its success," said U.S. Trade
Representative Mickey Kantor.

The Zapatista National Liberation Army (EZLN) initiated an armed
uprising New Year's Day to press the Mexican government for
improved indigenous rights, justice, free elections and basic services
for the peasants.  The EZLN issued a formal communiqu to Mexican
President Carlos Salinas de Gortari Monday demanding their rights
and also sent a letter to U.S. President Bill Clinton warning him that
the Mexican government has used U.S.-supplied "planes, helicopters,
radar, communications equipment and weapons .... not to fight drug
traffickers ... but to repress the just struggle of the Mexican people
and the indigenous people of Chiapas."  Mexico City's daily
newspaper LA JORNADA reported that U.S. officials received
assurances from the Mexican government that U.S. military
equipment, supplied to combat the war against drugs, was not used
to fight against the EZLN.  For more information on the Chiapas
uprising see RESOURCE below.

Sources: Anita Snow, "Mexico-Rebellion," AP, January 18, 1994;
Christine Tierney, "Mexican Rebels Ask President Clinton for
Support," REUTER, January 17, 1994; "NAFTA Trade Ministers See No
Effect From Chiapas," REUTER, January 14, 1994; Charles Wilbanks,
"Caught in the Crossfire," EL FINANCIERO INTERNATIONAL, January
10-16, 1994.
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NEW NAFTA WORKING GROUPS PROPOSED
Canadian International Trade Minister Roy MacLaren called for the
creation of two new working groups under NAFTA to handle
anticipated dumping charges and subsidy complaints.  MacLaren
issued the proposal during a two-day visit to Mexico City last week
and said the initiative resulted directly from Canada's four-year free
trade experience with the United States, which he admitted "has not
been easy."  "What we are proposing," he said, "is that the free trade
agreement be provided with all of the necessary tools to prevent
situations such as those that have occurred on the bilateral level."

During his visit MacLaren, U.S. Trade Representative Mickey Kantor
and Mexican Trade Minister Jaime Serra Puche agreed to begin talks
on accelerating tariff reductions.  Mexico wants to speed up the tariff
reduction process for a number of goods including, citrus products,
flat glass, garments and shoes.  Kantor said tariff reduction talks
would begin soon.

Sources: "Canadian Trade Chief Visits Mexico," EL FINANCIERO
INTERNATIONAL, January 10-16, 1994; "NAFTA Trade Ministers See
No Effect From Chiapas," REUTER, January 14, 1994.
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CLINTON FOLLOWS THROUGH WITH  NAFTA PROMISE
U.S. President Bill Clinton followed through on a last-minute promise
made to peanut-state and wheat-state lawmakers during the NAFTA
debate.  Clinton ordered the U.S. International Trade Commission
(ITC) Wednesday to open investigations of U.S.-Canada farm trade.
American farmers claim that Canada has depressed U.S. wheat and
peanut prices by "dumping" unfairly subsidized grain in U.S. markets
after the U.S.-Canada Free Trade Agreement was signed in 1989.
Farmers in Montana recently blockaded delivery of Canadian wheat
to a grain elevator to express their growing anger.

Earlier this week, Canada offered to end transportation subsidies on
wheat provided the United States did not sell subsidized grain to
Mexico.  A settlement was not reached.  The Clinton administration
threatened to  impose quotas on Canadian wheat if the ITC finds that
Canada's shipping subsidy hinders U.S. farm policy.  ITC
investigations, on average, take six to nine months.

Sources: Philip Brasher, "Canada-Wheat," AP, January 18, 1994;
"Canada Offers to Limit Wheat Exports to U.S.-Paper," REUTER,
January 15, 1993; Nancy Dunne, "U.S. Farmers Seek Curbs on
Canadian Wheat," FINANCIAL TIMES, January 20, 1994.
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NINTENDO MOVES PLANT TO MEXICO
Nintendo, a U.S. video game producer, announced plans to relocate its
only U.S.-based plant to Mexico.  In less than 60 days, 136 workers
at the plant will be laid off.  Phil Rogers, vice president of U.S.-based
operations for Nintendo, said the company decided to relocate the
plant to Mexico to "better serve" rapidly growing markets in Latin
America, and had nothing to do with NAFTA implementation.  "The
timing is purely coincidental because we would have made this move
with or without NAFTA," Rogers said.  Video game machines and
software produced for the United States, Nintendo's biggest market,
are made in Japan.

Source: "Nintendo Moving U.S. Production to Mexico," REUTER,
January 11, 1994.
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BORDER TRAFFIC ON THE RISE: FUNDING IN QUESTION
The Transportation Department recently released a report stating
that U.S. border states have not done enough to prepare for increased
traffic under NAFTA.  However, the report concludes that there is no
immediate need for a separate federal fund to pay for new and
improved crossings.

Representative Henry Bonilla (R-TX) disagreed with the report's
findings that bridges, tunnels and facilities housing federal inspection
agencies at the border appear "adequate ... for the foreseeable
future."  Bonilla said "it doesn't take a rocket scientist to see that
border crossing facilities in Texas already have problems."  Bonilla
and Representative Ronald Coleman (D-TX) said they are
disappointed that Transportation Secretary Federico Pena is not
calling for major federal investment to improve border crossings.
Pena is scheduled to meet with his Mexican and Canadian
counterparts in Washington this March to discuss NAFTA's impact on
border crossings and transportation.

Source: James H. Rubin, "Border Crossings," AP, January 11, 1994.
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HAZARDOUS WASTE MOVES ACROSS BORDER
More than 72,000 tons of hazardous waste were shipped from the
United States to Mexico for recycling and confinement last year,
according to the Environmental Protection Agency (EPA).
Approximately 6,500 tons of hazardous waste produced in Mexico-
based maquiladoras were shipped back to the United States.  The
EPA also reported that three U.S. companies operating maquiladoras
were cited for omissions in documentation required for the
importation of hazardous waste.  The three companies, Gi
Corporation, Transportation Electronics and Delco Chassis, could be
fined a total of $115,000 if found guilty.

Source: "U.S. Shipped 72,000 Tons of Hazardous Waste," EL
FINANCIERO INTERNATIONAL, January 10-16, 1994.
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GALLUP POLL SHOWS NAFTA GAINING SUPPORT IN CANADA
A majority of Canadians still oppose NAFTA, but the most recent
GALLUP POLL indicates opposition is weakening.  Forty percent of
those polled said they favor NAFTA, the highest level of Canadian
support recorded during the past four Gallup polls.  Forty-two
percent remain opposed and the remaining 18 percent declined to
comment.

Source: "Support for NAFTA Hits All-Time High, Poll Says," TORONTO
STAR, January 3, 1994.
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RESOURCE
The Institute for Agriculture and Trade Policy is temporarily
producing a weekly bulletin called "CHIAPAS DIGEST" and is
available for free by electronic mail or by fax.  CHIAPAS DIGEST
includes news, analysis and declarations on the peasant uprising in
Chiapas, Mexico.  For more information contact: Hannah Holm, IATP,
(612) 379-5980 fax (612) 379-5982 e-mail [email protected]
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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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