ABSTRACT
This chapter discusses some myths associated with the economic as well as the political aspects of US - European Community (EC) relations. The EC-1992 program does not hinder the General Agreement on Trade and Tariffs negotiations for the following reasons: the philosophy of the European Community is liberal in nature and success of the Commission in its action gives it more authority to negotiate at an international level. The strategic concept of the Atlantic Alliance - as defined by the US -still causes setbacks to European integration. Predictable regional insecurity at the doors of Western Europe might be the decisive test for judging the real capacity of the European Community to be more than an economic giant. The Community's bureaucracy, as it dictates the trading rules for the Twelve, European Free Trade Association, and other European countries, could prescribe the rules of the new world trading game.
