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The following newsletter articles were taken from the February 1999, Volume
XI, Number 2 edition of "The Bulletin". Any questions or comments
regarding content should be addressed to Alistar Mcnab at 713-678-4300.
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Mexico Objects to Adding Environment to Free Trade Talks
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Talks between the United States, Canada and Mexico to establish a Free Trade
Zone of The Americas by the year 2005 are in trouble as Mexico is objecting to
the joining of trade and the environment in the talks.
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Mexico is opposing measures which would bring international pressure on a
country for its environmental policies. Mexico along with several other nations
believes foreign based special interests could use the process to exploit some
nations. Mexican negotiators believe that discussions concerning the environment
are best done at a domestic level and do not belong in international trade
talks.
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This opposition could result in any type of free trade agreement without same
type of environmental procedures facing extreme opposition in the U.S. and
Canada dooming any agreement to potential failure.
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Up to now, the FTAA negotiators have only come up with a weak compromise on
environmental issues, creating a special committee to take input from a broad
range of interest groups concerned with the environment, labor rights, human
rights and women's rights.
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Customs Appealing Tariff Classification Dispute
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to Supreme Court
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The U.S. Supreme Court is hearing oral arguments in the first Customs
Service case in decades.
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The case is the United States vs. Haggar Apparel Co., a classification dispute
which has a much broader implication, i.e. whether the courts must show
deference to Customs -- a presumption of expertise -- in interpreting its own
regulations.
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Although Customs is arguing that every other government agency gets that
respect, the trade community argues that is because the government has set up a
court with the expertise to review Customs' decisions, the Court of
International Trade.
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Importers are worried if the Supreme Court rules in favor of Customs they will
lose the right to challenge Customs decisions on tariff classifications and
other matters.
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U.S. Steelmakers Renew Quest for Legislative Quotas for Import Steel
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U.S. Steelmakers are again lobbying Congress to impose tough new quotas on
imported steel. Congressmen from steelmaking states are preparing to introduce
legislation which will roll back steel imports to about 20% of the U.S. market
versus the now nearly 50% share triggered by the Asian economic crisis.
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The United Steel Workers Union of America, along with a coalition of U.S.
steelmakers, has been lobbying the Clinton Administration to impose quotas on
many kinds of imported steel. However, when the President declined to take any
sort of unilateral action, the union and the steelmakers' coalition shifted
their emphasis to a legislative one.
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The bill expected to be introduced by Rep. Peter Visciosky, a Democrat from
Gary, IN., a major steel producing area would direct the President to impose
monthly tonnage quotas on all imports of steel from foreign producers. This
would be a major deviation from the current efforts by the domestic steel
industry to reduce imports of hot-rolled steel from producers in Brazil, Japan
and Russia.
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If the bill is passed, it would cause a major reduction in imports from
countries such as Australia, Britain, Indonesia, Russia, South Africa, South
Korea, Taiwan and the Ukraine.
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NITL Comments on FMC OSRA Rules
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The National Industrial Transportation League (NITL) has tiled comments with the
Federal Maritime Commission in two separate proposed rulemakings that deal with
implementation of the Ocean Shipping Reform Act of 1998 (OSRA).
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The proposed rules are : Docket 98-21, Miscellaneous Amendments to Rules of
Practice and Procedure; and Docket 98-25, Amendments to Regulations Governing
Restrictive Foreign Shipping Practices and New Regulations Governing Controlled
Carriers.
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Although the rules laid out in Docket 98-21 are primarily administrative, the
League stated that it supported the FMC's effort to simplify streamline and
reorganize the structure of its rules. The League commented specifically on
provisions in the OSRA affecting the FMC's exemption authority. The comments by
NITL urge the Commission to grant exemptions when the agency finds it is able to
make a determination, that it can exempt any class of agreement or specified
activity from any requirement of the statute, and the exemption will not result
in substantial reduction in competition; it should have no choice but to grant
such exemption. Currently, the Shipping Act of 1984 allows the FMC to deny such
an exemption even if it finds such an exemption is possible.
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As to Docket 98-25, which primarily deals with controlled carrier operators, the
League commented on the body of law affecting the definition of "predatory
practices" as they apply to certain ocean carriers.
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The League claims the changes brought about OSRA did not require changes to the
Commission's proposed rules which adds "below market pricing" as an example of
"predatory practices" The League claims the reference to "below market pricing"
is indistinct and not supported by well developed law.
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Port of Houston Statistics 1998
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Preliminary numbers coming out of the Port of Houston Authority are showing that
the public port had a good year with total cargo showing a 14 percent growth to
25,839,766 short tons.
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On the bulk side, the biggest movers were Industrial Chemicals at 6,282,193
short tons (down 7% from last year, but still the biggest category); Coke at
1,690,013 short tons (up 40% over 1997); and Grain at 1,364,329 short tons (up a
staggering 229% from the year before). Strong gains were also made in Molasses
(up 30% at 159,903 short tons); and Tallow (up a spectacular 75% at
228,149 short tons).
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Bagged goods, on the other hand, showed a modest decline to 621,245 short tons
with gains only in Chemicals, Flour; and Bagged Goods, not otherwise specified.
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Container movements did show gains but ended the year with only a disappointing
growth rate of 3.7% over 1997 representing 988,169 teus and not breaking through
the one million teu benchmark that had been forecast. Growth at Barbours Cut was
somewhat lackluster at less than one percent over 1997 whereas container
activity at the Turning Basin managed to grow at 22.46% when compared with the
previous year to reach 15.75% of the total container movement handled at the
public docks. The preliminary total teus for the two facilities were 815,771 for
Barbours Cut and 152,398 for the Turning Basin.
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When analyzed further, Barbours Cut showed an increase in imports of 8.8% and a
decline in exports of 2.7%. The movement of empty containers inwards declined
11% whereas, empty containers going out increased by 48.2%. The Turning Basin,
on the other hand, showed increases in imports and exports (30.1% and 8.0%
respectively) while empty box movements rose spectacularly by 31.7% inwards and
428.7% outwards.
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There is no doubt that the recent downturn in the world economy is having an
adverse effect on Houston's seaport activity with slower than anticipated
growth. But continuing growth there is. Based on an ever-widening regional scope
and on diverse cargo sectors (containers, breakbulk, neo-bulk, bulk etc.), the
public port at the Port of Houston is in good shape and has had a good year.
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