The low agricultural output of many developing countries is often blamed on discrimination against the farm sector, especially as a result of low state-regulated prices. Accordingly, it is argued that agricultural prices should be raised to offer producers incentives to expand production....

After protracted negotiations, the EC Ministers of Agriculture agreed on a reform of the Common Agricultural Policy on July 1st. Will this reform solve the fundamental problems plaguing the common agricultural market? Is it compatible with the GATT?

The recent reform of the EC's Common Agricultural Policy is likely to be only the beginning of the adjustments which will be necessary in the near future. Accession applications by various EFTA countries are pending. At the same time Eastern Europe desperately needs assistance from Western...