ABSTRACT

The United States and the European Community (E.C.), along with their trading partners, had been engaged in negotiations within the General Agreement on Tariffs and Trade (GATT). This chapter reviews briefly both the economic and political forces shaping European and US domestic agricultural and trade policies. Long-term developments in E.C. trade relations, for instance, will go far to determining agricultural trade policies. Bilateral trade talks have always had an appeal, at least to the big countries, as a way of resolving disputes. The United States has entered into “successful” discussions with Japan on agricultural trade issues for many years, culminating in the opening up of markets for beef and citrus. Those who champion reciprocity in trade talks find the bilateral format attractive. It is also popular with those who argue for “results-oriented” policies, which set targets for market access.