U. K. Grain Agreement: Format for an International Grain Agreement?

Including agriculture in the Kennedy Round of GATT negotiations so that effective reduction of nontariff trade barriers can be achieved is a difficult and controversial task. The current position of the United States government is to favor an access agreement of the general type recently concluded with the British government. This agreement, signed on April 15, 1964, is analyzed for its effectiveness in reducing nontariff barriers to more liberalized agricultural trade. Evaluation of the agreement indicates an absence of specific provision for reduction of trade barriers. The agreement encourages postponement of adjustment toward lower artificial production incentives until sufficient resources have been invested in agriculture to cause increased production. This does not appear to represent a significant reduction in agricultural nontariff barriers in return for U. S. industrial concessions and could present some dangers to liberalized world trade.