ABSTRACT
Traditionally, the European Community (E.C.) and the United States have been each other's largest trading partner. The Food Security Act of 1985 introduced an export subsidy program to recapture lost markets. The process of the Uruguay Round negotiations underlines the thesis that the United States were willing to learn from the past and to make compromises to achieve the long-term objective of liberalization of agricultural trade. There is a good chance that the Uruguay Round will be successfully concluded by the end of 1993. With the breakthrough achieved by the Blair House agreement, the prospects are good for the process of bringing agriculture fully into the General Agreement on Tariffs and Trade. The E.C. and the United States have agreed for the first time on a process that over time should lead to less and less state intervention in agricultural trade, allowing Heads of State to concentrate on other even more important issues of world politics than agriculture.
