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The US-EC farm trade dispute has been costly in itself and in its
effect of delaying the successful conclusion of the Uruguay Round. In
Discussion Paper No. 849, Research Fellow Kym Anderson argues
that the November 1992 Blair House accord should achieve this by
satisfying both these and the other GATT contracting parties, despite
its major reversal of the long-run upward trend of agricultural
protectionism. Politically `difficult' product groups such as dairy and
sugar do not face substantial liberalization, and both the US and the EC
face budgetary pressures for unilateral reform. EC enlargement to absorb
some EFTA countries will also enable Western Europe to meet any export
reduction targets more easily, as the new entrants reduce domestic food
prices to EC(12) levels during their accession. The food-exporting
developing countries and the Cairns Group view the accord as less
liberal than they would wish, but it offers at least some reform. Japan
and South Korea would prefer less liberalization, but they are likely to
accept the accord to allow the completion of the Uruguay Round. US-EC Farm Trade Confrontation: An Outsider's View Kym Anderson Discussion Paper No. 849, October 1993 (IT) |
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