ABSTRACT
This chapter focuses on the interpretation of the Common Agriculture Policy (CAP) reform in the context of the Uruguay Round and the European Community (E.C.)-U.S. agricultural trade conflict. It addresses questions to explain why agriculture has, for the first time, been given such a central role and why the CAP reform has developed tackling firmly the cash crop programs and leaving nearly untouched the most protected dairy and sugar sectors. The chapter briefly reviews the historical E.C.-U.S. trade debate. It deals with the E.C.-U.S. special interests and trade conflicts. The chapter also analyzes the CAP reform implications on E.C.-U.S. relations and relates it to the expected General Agreement on Tariffs and Trade treaty. It addresses more long-run issues, stressing the shortcomings of the CAP reform and future prospects for the General Agreement on Tariffs and Trade as a framework to discipline domestic and trade farm policies, including their environmental dimensions.
