George H.W. Bush: “Well, NAFTA, as you know, is getting a little caught up in politics. We are not going to take a bad agreement to the…”

“Well, NAFTA, as you know, is getting a little caught up in politics. We are not going to take a bad agreement to the Congress. We are going to push for a North American free trade agreement. I talked to the Prime Minister of Canada yesterday on it. I've been in touch with Salinas of Mexico, who's doing a superb job down there. And I told them we are not going to pull back one inch, politics or no politics. This expands job opportunity for Ameri- cans. And the argument that it takes American jobs away is just not true. Just in recent history, the exports to Mexico have dramatically gone up, and that's very, very good for American jobs. So on that one, we're pressing forward. I'm going to try to set aside any political timetable on it but move it to completion. We are being fought by the unions, strong. They are wrong. And those of us who believe in expanding markets and a more prosperous Mexico is good for the United States, whether it's their ability to do something about their environment, or whether it's their ability to buy more American goods, that's sensible trade policy. So, we're going to press for it. Whether we'll get it, Governor Thompson, in time or not, I don't know. The GATT, which in a sense is broader because it gives us problems in Europe, is extraordinarily difficult. The major stumbling block is still agriculture. It is not the only stumbling block. I had a chance to visit with President Mitterrand up at the United Nations on Friday. We've agreed to talk again in a bilateral meeting on this subject. The Germans are involved, and they tell me they're trying to be helpful. But I don't want to misrepresent it to the Governors; we still have some big problems on bringing this one to conclusion. And it is essential that it get done because if it doesn't get done, what we're going to do is see the world start dividing up into trading blocs. There's one out in Asia that makes some sense, the ASEAN bloc. But if you add to that Japan and try to make a Pacific trading bloc, that would not be good for free trade worldwide. I similarly went to great ends to tell them that the NAFTA, the free trade agreement, was not an effort on the part of this hemisphere to divide into a trading bloc. And I think I've made that point, I hope convincingly, to the EC and to Europe. But it is important we get that deal done, and get it done so the Congress can approve it. We're not going to take a bad deal up there. It isn't simply agriculture: We've got intellectual property rights; we have market access; we have some other ingredients. But we've got good people working this problem. There's Ed Madigan here today. He's handling the agriculture end and can expand on that. But Carla Hills, doing a superb job. It isn't easy right now because I think it's much more European politics than it is U.S. at this time. Because the common agricultural policy there is one of high subsidization. And the last thing I'd say, for those who are doubtful about it or unclear, the best way to help countries that need help the most is through a successful conclusion of the GATT round. The Third World countries would benefit there more than any others. But Ed, do you want to add a word to that? Because I know a lot of people around this table are vitally interested in the agricultural component of this. Secretary Madigan. Mr. President, the Director General of GATT, Arthur Dunkel, has made a proposal for the solution to the round, and that proposal is regarded by the United States as being a very acceptable framework for bringing the negotiations to a close. And as you point out, the Europeans will not accept it. So, Mr. Dunkel has begun meeting unilaterally with the Europeans this week to see if he can work out something with them that he would then propose to the rest of us. We don't know the status of those talks at this point.”