ABSTRACT

An event external to the General Agreement on Tariffs and Trade (GATT) discussions had significant consequences for Kennedy's program of freer trade. Kennedy's trade program was one of the casualties of the French veto. Although the Trade Expansion Act (TEA) passed by Congress contained many liberal provisions, de Gaulle's decision reduced the extent to which tariffs could be eliminated and international trade liberalized. In response to German foot-dragging on unified grain prices (UGP's), de Gaulle threatened to dissolve the European Economic Community (EEC's). This chapter deals with, Chicken War, the commercial war between the EEC and the United States that came to an end as the trade talks were getting started. At the Geneva ministerial meeting held from 4 to 6 May 1964, the Kennedy Round was formally inaugurated. However, the political willingness to start a new round was strong on both sides of the Atlantic and these led to pragmatic solutions.