GATT Negotiations: Farmers of Western Europe under Pressure

Agreement on a new order for trade with agricultural products has become one of the key problems of the on-going Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The U. S. ask for a further opening up of markets and a substantial reduction in agricultural subsidies. The West Europeans, under the leadership of the EC, want to slow down this process, because they fear heavy losses for their farmers. A lowering or the degree of protection of the agricultural sector would also affect Austrian farmers. So far no compromise is in sight. A collapse of the negotiations does not seem likely, however. It is to be expected that the Uruguay Round will eventually reduce the special position of agriculture in world trade. This will result in more international competition and an increased pressure for adjustment for West European farmers.