ABSTRACT
U.S. domestic policies have an impact on the US and the European Community (E.C.) trade in two ways: the policies change the supply and demand situation in the United States, which affects the US exportable supply; and the policies influence the negotiating environment in which US-E.C. trade policy issues are resolved. This chapter focuses on economic analysis to contribute to the exportable supply issue. It provides an estimate of the output and trade effects of US commodity programs in 1990–92 and the prospective effects in 1993 and beyond. Three main US political objectives lie behind the policies to be analyzed: farm income support, environmental protection, and control of federal expenditures.
