ABSTRACT
This chapter addresses numerous questions: Why has the United States and the European Community (U.S.-E.C.) farm trade dispute been so difficult to resolve? What will it take to bring about a resolution? In particular, is the Blair House accord of November 1992 likely to suffice? There are several advantages of accepting a Blair House-type accord, as part of an Uruguay Round agreement, that apply to all countries. The inclusion of farm policies was considered necessary, however, because they had become so distortionary both absolutely and relative to non-farm trade policies. An import-substituting industrialization strategy was adopted in the 1950s in liberated South Korea and Taiwan, which harmed agriculture, but that was replaced in the early 1960s with a more neutral trade policy that resulted in very rapid export-oriented industrialization in those densely populated economies. Governments have been intervening in agricultural trade for centuries.
