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Agricultural trade, always a source of international friction, will remain a contentious issue in the years to come. The GATT agreement achieved only partial trade liberalization; recognizing this, the agreement calls for a continuation of the negotiation process to achieve the long-run goal of a “substantial reduction in agricultural support and protection.†In any case, it is clear that U.S.-European Union (EU) agricultural trade relations will remain central to any future negotiation. In this volume, leading experts present a comprehensive set of analyses of the U.S.-EU agricultural trade conflict. The discussions provide a unique perspective on the U.S.-EU agricultural trade confrontation in recent years and offer insights into both the final GATT agreement and forthcoming agricultural issues. Presenting a broad historical context, the book focuses on changes in U.S. and European trade and agricultural policies, looking at the implications of these changes for bilateral relations and global agricultural markets. Providing U.S., EU, and third-party perspectives, the contributors analyze the negotiation process in the Uruguay Round of the GATT. Finally, the book explores several additional dimensions of the U.S.-EU agricultural trade conflict, including the consequences of the EU integration and enlargement processes, the environmental impact of the Union’s agricultural policies, and the mechanisms and forces that determine agricultural policy formation in both the United States and in Europe.
Transatlantic Food and Agricultural Trade Policy traces the past fifty years of transatlantic trade relations in the area of food and agricultural policy, from early skirmishes over chicken exports to ongoing conflicts over biotech foods and hormone us
Provides a context for understanding the agricultural aspects of the GATT, the CAP, and EC-U.S. relations
A viable system of international trade requires the active support of both the United States and the European Community, the world's largest trading partners and, consequently, the primary forces shaping the post-World War II international trading regime. In recent years, however, a series of disagreements have threatened the consensus supporting that regime. Differences have arisen over the relation of trade policy to balance-of-trade deficits, the terms of and actual compliance with the current General Agreement on Tariffs and Trade, and the proper agenda and procedures to be adopted in future multilateral trade negotiations. These differences, if left unresolved, will further weaken an already strained system. Issues in US-EC Trade Relations presents the results of a conference organized by the NBER and the Centre for European Policy Studies. In it, North American and European trade specialists offer theoretical, empirical, and historical analyses of some of the major issues on which American and Community officials disagree and also formulate realistic policies for settling present disputes. Contributors consider such topics as the legal aspects of trade between the two regions, agricultural policy, different ways the United States and members of the European Community use embargoes to attempt to induce foreign countries to change particular political actions, the growing trend toward protectionism and responses to this policy, international trade in services, and trade policy in oligopolistic environments. In most cases, each general subject is approached from both an American and a European perspective.
David Ricardo's law of comparative advantage and his finding that free trade increases the wealth of all participating nations is one of the very few economic laws which is accepted by almost all economists. But economic reason and economic policy do not always follow the same path. This especially applies to trade policies. A substantial and growing part of trade between Japan, Europe and the US does not follow the principles of free trade, but is more accurately managed trade. The management of international trade, international trade negotiations, and the political dynamics of trade conflicts create a complex reality which follows its own laws without regard to economic policy prescriptions. This political-economic reality was the subject of the conference 'The Political Economy of Trade Conflicts' organizedjoindy by the German Institute for Japanese Studies and the Friedrich-Ebert-Foundation together with the Institute of Modern Political Science and Economics of Waseda University in December 1993. We present the results of the conference in this reader. Three issues were of special importance: the US-Japanese conflict over the reduction of trade imbalances via quantitative import targets; the liberalization of trade in agricultural products, especially the opening of the Japanese rice market; and the trade tensions between the European Union, the US and Japan in high technology industries. The conference took place immediately before the conclusion of the Uruguay Round, and yet its subject continues to be of high political importance. In early 1994, the US-Japan conflict around quantitative import targets became more tense.
The Farm War of the early 1980s was rooted in the political economy of agriculture, but it was a crisis for the international trading system. The war was evident in disruptions on the farm and in world markets, in conflicts among major governments, and in disagreements in international organizations. Wolfe shows how and why battles over agricultural protectionism were largely resolved through the Uruguay Round of GATT negotiations, demonstrating that the global economy is not self-regulating: it needs institutions if it is to be stable.
This detailed account of the politics of opening agricultural markets explains how the institutional context of international negotiations alters the balance of interests at the domestic level to favor trade liberalization despite opposition from powerful farm groups. Historically, agriculture stands out as a sector in which countries stubbornly defend domestic programs, and agricultural issues have been the most frequent source of trade disputes in the postwar trading system. While much protection remains, agricultural trade negotiations have resulted in substantial concessions as well as negotiation collapses. Food Fights over Free Trade shows that the liberalization that has occurred has been due to the role of international institutions. Christina Davis examines the past thirty years of U.S. agricultural trade negotiations with Japan and Europe based on statistical analysis of an original dataset, case studies, and in-depth interviews with over one hundred negotiators and politicians. She shows how the use of issue linkage and international law in the negotiation structure transforms narrow interest group politics into a more broad-based decision process that considers the larger stakes of the negotiation. Even when U.S. threats and the spiraling budget costs of agricultural protection have failed to bring policy change, the agenda, rules, and procedures of trade negotiations have often provided the necessary leverage to open Japanese and European markets. This book represents a major contribution to understanding the negotiation process, agricultural politics, and the impact of international institutions on domestic politics.