WORLD TRADE TALKS - Chemical & Engineering News Archive

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NEWS OF THE WEEK

WORLD TRADE TALKS Chemical industry welcomes tariff cuts hemical industry trade experts are generally pleased with the market access package, including tariff cuts, that negotiators unveiled last week in Tokyo at the G-7 (Group of Seven) summit meeting of industrialized nations. Negotiators represented the world's top four trade entities—the U.S., Canada, Japan, and the European Community (EC). K. James O'Connor Jr., associate director of international trade for the Chemical Manufacturers Association (CMA), says he is now optimistic that the sevenyear-old Uruguay round of multilateral trade negotiations can be completed by the Dec. 15 deadline required under U.S. "fast track" legislation. Without the G-7 market access package, says O'Connor, the Uruguay round would have been dead. Many trade experts share his opinion. Negotiations now can resume in Geneva under the auspices of the General Agreement on Tariffs & Trade (GATT). President Bill Clinton calls the market access deal a "breakthrough," freeing the logjam in the Uruguay round, and promising more jobs and higher incomes for the U.S. and other nations. However, others aren't quite that euphoric. They see the deal more as a new lease on life for the still-contentious and difficult trade negotiations. Many areas of disagreement remain—among them, agricultural trade, trade in services, and tariff cuts in textiles and apparel. The G-7 market access package is primarily a launching pad for reaching a tariff-cutting agreement in the Uruguay round. The tariff cuts, however, are linked to suitable reductions in nontariff barriers. For the chemical industry, this linkage is crucial. The agreement would phase out tariffs completely on eight categories of manufactured products, including pharmaceuticals, under so-called zero-for-zero tariff treatment. The other categories are construction equipment, medical equipment, beer, and—with some cave-

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JULY 12,1993 C&EN

Clinton: breaking Uruguay round logjam

ats—steel, furniture, farm equipment, and distilled spirits. The Pharmaceutical Manufacturers Association endorses the zero-for-zero concept. Uruguay round negotiators also will try to agree on cutting tariffs by 50% on "high-tariff" textile, apparel, glass, and ceramic products. And the goal is to cut tariffs by one third on electronics, wood products, paper, nonferrous metals, and scientific equipment. Chemicals are more or less in a class by themselves. Under the G-7 pact, chemical tariffs will be harmonized at "low rates." In some cases, duties will be completely eliminated. For the U.S. chemical industry and its counterparts in Canada, Japan, and the EC, the G-7 agreement is a moral victory, because it pretty much mirrors a chemical tariff-cutting proposal that they submitted to trade negotiators. Developed jointly by CMA, the Canadian Chemical Producers' Association, and the European Chemical Industry Council, that chemical industry proposal calls for "global harmonization" of chemical tariffs by the world's largest chemical-

producing countries. Japan endorsed the proposal later. The proposal, known as the "Joint Framework Agreement for Tariff Harmonization in the Uruguay Round," covers all products in chapters 28 through 39 of the Harmonized Tariff System—the so-called chemical chapters. Tariffs on these products would be harmonized, starting from the current "most favored nation" rates that moA trading nations now use. At press time, O'Connor had not yet seen details of the G-7 package, so it is not clear just how closely it adheres to the joint chemical industry proposal. Under that proposal, current chemica) tariffs of 10% or less would be cut to 5.5% (in some cases 6.5%) over a fiveyear period. Tariffs between 10.1 and 25% would fall to 6.5% over 10 years. And rates greater than 25% would also be cut to 6.5%, but the phaseout period would extend to 15 years. Tariffs less than the proposed harmonization levels would remain as they are. However, the chemical groups agree that further reduction of even these low tariffs is a worthy goal. For some chemicals, such further reductions likely will happen in the Uruguay round. In fact, some chemical tariffs may be completely eliminated under the zero-for-zero treatment. At various times throughout the Uruguay round, zero-for-zero proposals have been made for cosmetics, toiletries, soaps, some fertilizers, and soda ash. However, with the EC filing antidumping charges against soda ash, the prospects of eliminating duties on it are dim. Even tariffs on import-sensitive products would be cut under the joint proposal. To qualify a product as importsensitive, a producer would first have to justify its claims to trade negotiators in its own country. Then, even tariffs on these products would be cut no less than 30% over a period not to exceed 15 years. How closely a final Uruguay round

agreement—if there is one—adheres to these chemical industry proposals remains to be seen. But the G-7 package indicates that negotiators are heading in that direction. Whether the U.S. chemical industry endorses the final tariff-cutting agreement will depend, in large part, upon how many other GATT countries sign it. The industry wants many other countries besides the "major chemical producers" to sign onto the deal. Earl Anderson

Thalidomide blocks virus that causes AIDS

ported by the Public Health Service and RNA in PBMCs. In addition to suppressCelgene, a biotechnology company ing HTV-1 replication, thalidomide could headquartered in Warren, N.J., that enhance the well-being of HIV-1holds exclusive rights to manufacture infected patients by reducing TNF-a-inand market drugs developed through duced fever, malaise, muscle weakness, the research. and wasting, Kaplan says. Although TNF-a also is involved in The researchers have given thalidoHTV-1 activation in T lymphocytes, Kap- mide to a number of tuberculosis palan's research indicates that thalido- tients, some of whom were infected mide has little effect on the production with HIV-1. Although there have been of TNF-a by these cells or HIV-1 repli- some positive signs in these patients, cation in them. Kaplan says the results are too prelimi"If we treat HIV-infected individuals nary to draw conclusions about the efwith thalidomide, we could potentially re- fectiveness of the treatment. duce the number of viral particles being Kaplan notes that there has been a produced and released into the circulation published report that one of the two thato infect new cells/' Kaplan says. "We are lidomide enantiomers is responsible for very optimistic about the potential clinical the teratogenicity of the compound, but usefulness of this drug." that this finding is controversial. Her reAccording to Kaplan, thalidomide ap- search indicates that both enantiomers pears to exert its effect by selectively ac- suppress TNF-a biosynthesis. celerating the decay of TNF-a messenger Rudy Baum

Thalidomide, the tranquilizer associated with birth defects in the 1960s, blocks activation of HIV-1—the virus that causes AIDS—in certain immune system cells, find researchers at Rockefeller University in New York City. The drug could be useful in delaying the progression of an HIV-1 infection Aiming to prevent buildup of potenDOE's contractor, Westinghouse Hanand onset of AIDS symptoms, the re- tially explosive hydrogen gas, workers ford Co., installed the 64-foot-high, searchers suggest. They now plan clini- have successfully installed a giant mix- 19,000-lb pump in the hope that slow cal trials to test this idea. ing pump in a huge underground nu- mixing of the tank wastes and continuThalidomide was never approved for clear waste storage tank at the Depart- ous release of gas will prevent buildup use in the U.S. It was withdrawn from ment of Energy's Hanford site in Rich- of hydrogen gas bubbles in bottom sludge. A "window of opportunity" to the market in Europe in 1961 after the land, Wash. Buildup and periodic venting of hy- work inside the tank opened on June 30, discovery that it causes limb deformities in children of women who took it. Since drogen and other gases from tank 101- following venting of gases on June 26. then, researchers have found that thalid- SY is a top safety concern at Hanford, The window is the 30-day period after a omide is useful in treating inflammation which is the flagship site in DOE's ef- burp when it is safe to work in the tank. associated with severe cases of leprosy. forts at environmental restoration of its Pump installation took more than five There is evidence that the drug could nuclear complex. Researchers also be useful in treating other inflam- believe that thermal and radiolytic breakdown of organic matory processes. While investigating the mechanism of compounds in the tank's wastes thalidomide's anti-inflammatory activi- produces the hydrogen. Despite ty, Gilla Kaplan, an associate professor at ventilation, the level of hydroRockefeller, and coworkers showed that gen gas in the tank periodically the drug blocks biosynthesis of tumor exceeds the lower flammability necrosis factor-a (TNF-a), a cytokine limit of 4% in air, posing the that can induce the fever, chills, aches, threat of an explosion (C&EN, and inflammation associated with infec- June 21, page 9). tions. TNF-a is also known to be inNicknamed the hydrogen volved in activation of HTV-1 in latently "burp" tank because of its periinfected immune system cells. odic releases, tank 101-SY is Now, Kaplan and coworkers Sanit about 75 feet in diameter and Makonkawkeyoon, Rhona N. R. Lim- contains about 1.1 million gal of son-Pobre, Andre L. Moreira, and Victo- high-level radioactive waste, ria Schauf have shown that thalidomide which consists of a very viscous significantly reduces HIV-1 replication slurry at the bottom, covered by in cell lines latently infected with HTV-1, a layer of liquid topped with a and in peripheral blood mononuclear semisolid crust. Made of concells (PBMCs) from individuals infected crete-reinforced carbon steel, the with HIV-1 [Proc. Natl Acad. Sri. USA, double-shell tank is buried about 90,5974 (1993)]. Kaplan's work was sup- 10 feet underground. Crane lowers pump into Hanford waste tank

Pump targets hydrogen risk in nuclear waste tank

JULY 12, 1993 C&EN

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