ABSTRACT
This chapter provides a discussion on "CAP Reform and E.C.-U.S. Relations: The General Agreement on Tariffs and Trade (GATT) as a Cap on the CAP" by H. Guyomard, L.P. Make, T.L. Roe, and S. Tarditi. They focuses on the interpretation of the recent Common Agricultural Policy (CAP) reform in the context of the Uruguay Round and in the perspective of the traditional European Coal (E.C.)-U.S. agricultural trade conflict. The authors claim that the history and role of the GATT were dominated by E.C.-U.S. disputes and that recent bilateral developments were at the heart of the present round. They provides a useful background for interpreting the CAP reform by tracing the E.C.-U.S. trade conflict since the early 1960s with supporting facts and figures. The authors evaluates the E.C.-U.S. trade conflict using game theory and draws on recent empirical work to support their thesis. They analyze three E.C. reform scenarios against a base-run using “MISS,” a three-region price-equilibrium model.
