ABSTRACT

The US 1985 and 1990 Farm Bills sought to redress the damage done to the farmers by completely isolating them from market forces. In the late 1970s to early 1980s US farmers made their planting decisions based on government set target prices regardless of market conditions. The economic prosperity of the US is equaled, and in some cases surpassed, by the allies and like-minded market economies. The US cannot afford to be as generous with its trading partners. As the US government is unable to provide a comprehensive safety net, the export market has become critical to the livelihoods of the farmers and to the rural communities. The General Agreement on Tariffs and Trade (GATT) dispute settlement process produced what the United States believes was a fair judgment of the European Community (E.C.)/s oilseed regime and the E.C.’s GATT obligations. The com gluten feed dispute is a good case study in E.C. decision making.