ACADEMY ASSOCIATION OF ECONOMICS CERTIFIED CHARTERED ECONOMISTS CHE CEPA

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1990s. Farm trade disputes continued, however. From Americans' point of view, the European Community failed to follow through with its commitment to reduce agricultural subsidies. The United States won favorable decisions from the World Trade Organization, which succeeded GATT in 1995, in several complaints about continuing European subsidies, but the EU refused to accept them. Meanwhile, European countries raised barriers to American foods that were produced with artificial hormones or were genetically altered -- a serious challenge to the American farm sector.

In early 1999, the U.S. Vice President called again for deep cuts in agricultural subsidies and tariffs worldwide. Japan and European nations were likely to resist these proposals, as they had during the Uruguay Round. Meanwhile, efforts to move toward freer world agricultural trade faced an additional obstacle because exports slumped in the late 1990s.

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