The Uruguay Round of trade negotiations in the General Agreement on Tariffs and Trade (GATT) has been deadlocked over disagreement between the European Community (EC) and other GATT members about policy reform in agriculture. Last July, Mr. MacSharry, the EC Agriculture Commissioner, proposed an internal reform of the EC Common Agricultural Policy (CAP). Meanwhile, Mr. Dunkel of the GATT Secretariat has proposed a compromise GATT agreement that would reduce support to agriculture in the EC and other member countries. This paper summarizes these two proposals for agriculture and compares the effect of their implementation by the EC. The two proposals are then contrasted from an EC policy management viewpoint.


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