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TRADE NEWS BULLETIN  Volume II Number 14
Monday, January 25, 1993
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NAFTA News Summary
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OFFICIAL: EAEC NEEDED TO COMPETE WITH NAFTA, EC

The formation of the proposed East Asia Economic Caucus (EAEC)
would dissuade Europe and North America from adopting the "closed
and unyielding stance that recently characterizes their actions," said
Malaysian Finance Minister Datuk Seri Anwar Ibrahim.

Speaking at the two-day Asian Forum Malaysia, Anwar said the EAEC
will be a forum for free trade, and it should not be considered a
regional bloc or fortress.  "It makes rational sense for East Asian
countries to group together so that they can face whatever problems
that will emerge from the creation of NAFTA and the single market
in the European Community."  Anwar stated that if current growth
rates continue, the East Asian economy should exceed the size of
those in North America and Europe by the year 2020.

Conference attendees considered a plan to place EAEC as a subgroup
under the Asia Pacific Economic Cooperation (APEC).  Another option
discussed was for East Asian countries to enter into preferential
agreements with North America, with open regionalism as an
objective.

Source: Noorzita Samad, "Anwar: EAEC Is Set to Take Shape," NEW
STRAITS TIMES (Malaysia), January 19, 1993, p. 14.
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GATT News Summary
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EC AG CHIEF SEES GATT COMPROMISE WITHIN CAP REFORM

Speaking at the official opening of Berlin's Green Week January 21,
Rene Steichen, the new agriculture commissioner for the European
Community, rejected the claims of many farmers who contend an EC-
United States agriculture accord is inconsistent with the EC's Common
Agriculture Policy (CAP).  "The analyses I have seen show that
overall the concessions which the Community has made as well as
those made to it, and which are all too often passed over in silence,
fall within the framework of the reform of the CAP," Steichen said.

Steichen said the long-stalled Uruguay Round of the General
Agreement on Tariffs and Trade should be completed this year, and
that the next few weeks could be "decisive."

New EC External Affairs Commissioner Leon Brittan hopes to meet
with U.S. Trade Representative Mickey Kantor next week in
Washington, DC.  Brittan said if Clinton does not take a
"fundamentally different view" from Bush, a GATT accord would be
possible this year."  Everything depends on the attitude of the US
administration," Brittan said over the weekend.  "What we have to
establish is how high a priority it is for Clinton."

Source: Rene Steichen, "Steichen Speech at Opening of Green Week in
Berlin," REUTER, January 22, 1993; Andrew Gowers, Ian Hargreaves,
"EC Trade Supremo Has to Hit the Ground Running," FINANCIAL
TIMES, January 25, 1993, p. 3.
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Other Trade News
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HINDUS DEMAND TRADE POLICY CHANGES IN INDIA

India's main opposition Bharatiya Janata Party, which favors a
greater emphasis on Hindu culture, and rejects the constitution's
tolerance for other religions and peoples, is gaining momentum,
according to an article in the NEW YORK TIMES.  India has endured a
month and a half of religious and ethnic violence, beginning with the
destruction of a 16th century mosque.  The Bharatiya also advocates
increasing nuclear weapons production and restructuring the Indian
economy by reducing foreign investment and loans and restricting
imports.  "Foreign companies can come in if they bring technology
and capital only in those areas we do not have technology," said Jay
Dubashi, author of the party's economic policy.  "We want them in
high-tech areas: oil exploration, modern urban transportation.  But
for example, Kelloggs is coming in to manufacture breakfast foods.
This is something we don't like at all.  Coca-Cola and Pepsi are
something we can do without."

Source: Edward A. Gargan, "Hindus Now Demanding the Leadership of
India," NEW YORK TIMES, January 24, 1993, p. 3.
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Resources:

The Economic Strategy Institute (ESI) has produced two new
documents on GATT and NAFTA respectively: "The Uruguay Round
and the United States: A Critical Analysis" and "NAFTA: Making It
Better."  Each is available for $9.95 from ESI, 1100 Connecticut Ave
NW, Suite 1300, Washington, D.C. 20036.
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Produced by:
Kai Mander
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:kmander@igc.apc.org
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