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U.S. Pressures Mexico on Sugar, Citrus Under NAFTA

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From Bloomberg Business News

The Clinton Administration is pressuring Mexico to agree to voluntary restraints on its exports of sugar, citrus and possibly other products as part of an eleventh-hour attempt to win passage of the North American Free Trade Agreement.

The Administration’s goal is to gain the support of worried agriculture-state lawmakers in the House, who could be the swing votes needed to pass the treaty. Currently, about 110 Republicans and 60 to 70 Democrats are believed to support NAFTA in the House--considerably short of the 218 votes needed for passage.

However, it is far from clear that Mexico will go along with the U.S. request. Even if it does, analysts say, such agreement could open the floodgates for other members of Congress to demand special deals for their districts.

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Even so, the Clinton Administration may have concluded it has no other choice, given NAFTA’s perilous state in Congress.

NAFTA would create the largest free-trade zone in the world by lowering trade barriers between the United States, Mexico and Canada. Formal legislation is expected to be introduced by Nov. 1.

The last few weeks have seen intense negotiations among Mexico, the Administration and Florida citrus growers, who want Mexican firms to be prevented from selling oranges for use in concentrate at the same price or lower than those of their American competitors. American sugar growers are also asking for protection from a possible surge of Mexican sugar exports if the accord goes into effect.

One Mexican official, speaking on condition of anonymity, said it is unlikely the government would agree to the U.S. demands for citrus and sugar changes.

Moreover, the U.S. trade office is trying to handle requests from American vegetable growers, wheat farmers and others.

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