ABSTRACT
The connection between the Common Agricultural Policy (CAP) reform proposals made by Commissioner MacSharry and the isolation of the European Union at Heysel is an example of the complex linkage between domestic and trade policies in agriculture. The Uruguay Round Agreement on Agriculture established a set of completely new and more operational rules for agriculture. The Blair House discussion on agriculture was the culmination of a set of negotiations that had started in early 1992. The agricultural trade negotiating process was prodded by General Agreement on Tariffs and Trade Director-General Dunkel at the end of September. The United States has been able to implement the provisions of the Uruguay Round Agreement on Agriculture with relatively little change in domestic policies. The prospect of having first to tailor the CAP instruments to the new rules and then to have them be subject to countervailing duties and World Trade Organization challenges would seem like double jeopardy.
