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WORLD EVENTS
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Fireworks Feared at World
Trade Talks
The United States and Western Europe will meet
head on this September in direct negotiations over their
economic futures. That's when the major trading pow–
ers of the free world will gather for the "Nixon Round"
ofGATT (General Agreement on Tariffs and Trade).
The publicized purpose of the GATT conference is
to liberalize international trade by breaking down bar–
riers to the tlow of goods and services across national
boundaries. But ín order to do this, 1he divisive issues
thal separate all parlies will have to be aired, and there
is the distinct possibility that lhe negotiations could
cause more distrust and ill feeling than friendship.
In sharpest focus will most certainly be the rising
tensions between the United States and the European
Community on 1he bread-and-butter issues of inter–
national trade and monetary affairs. According to one
American analyst stalioned in Brussels, ' 'The United
States and the Common Markel a re sounding more like
foes than the partners they clairn to be."
Certain sectors within the American economy com–
plain that the European Community has erected many
barriers to the importation of U. S. goods, especially
agricultura! items. American officials also object to the
"special preferences" linking the European Community
and many of its cuslomer nations, especially in Africa
and around lhe Mcditerranean.
The European Community, in its annual report for
1972,
said that Europe, "for its part, also has plenty to
complain about." Repeated dollar crises - and deval–
uations - are disrupting export-oriented segments of
European industry. Moreover, numerous non-taríff bar–
riers place European exporters at a competitive dis–
advantage in the American market. And any further
liberalization of the Community's import structure can
only hurt - severely hurt - European farmers whose
products can't compete with those from the United
Stales. The Communily's complex Common Agricul–
tura) Policy ís so popular with European farmers that it
PLAIN TRUTH July-August 1973
would be political suicide to tamper much with this
policy.
The growing controversy has sorne officials deeply
worried on bolh sides of the Atlantic. Former U. S.
Ambassador 10 the European Community, J . Robert
Schaetzel, has warned that an "ominous mistrust" is
buildíng up in both camps, with neither side willing to
listen to the other as it should. West German Enance
Minister Helmut Schmidt, after a visit to Washington,
1old an interviewer thal there was a "major danger"
that trade disputes might shatter the Atlantic alliance.
"Europe cannot afford to allow ilself lo get involved in
a trade war wilh the United States,'' Schmidt said. With
$25 billion in trade between lhem each year, the U. S.
and the Common Market have an enormous stake in
preserving economic peace.
Presidential adviser Dr. Henry Kissinger slated in
April that "it is the responsibility of national leaders to
insure that economic negotiations serve larger political
purposes. They must realize that economic rivalry, if
carried on without restraint, will in the end damage
other relationships."
The coming trade talks will wrestle with other trou–
blesome trade matters as well. Officials in both the
United States and Western Europe are increasingly in–
censed wíth what they claim is Japan's "rampant mer–
cantilism." Tokyo's "export madness," they say, is not
malChed by a liberal policy toward imports from others.
It
is becoming quite clear that unless something
positive is accomplished this fall, a serious world eco–
nomic crisis could develop. According lo Mr. Schaetzel,
a future "breakdown of the whole world monetary sys–
tem" is a very possible occurrence.
It has been said that "in trade, we're all sinners."
1t
remains to be seen, in September, whether the world's
trading powers will meet in a spirit of compromise- or
retreat still further into entrenched self-interest.
One American source has already predicted the
likely climale of lhe talks: "You can expect all the
negotiations 10 be extremely difficult. Each side will try
to win or save all it can by talking and not listening."
- edited by Gene H. Hogberg
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