US-Egyptian trade alarms Europe

The growing and potentially dangerous dispute between the United States and the European Community over trade in farm products stayed just short of the boiling point this week.

EC foreign ministers meeting here agreed to words, not actions, reports Monitor contributor Gary Yerkey. Instead of retaliatory moves against the US for selling subsidized wheat flour to Egypt - a traditional European market - the ministers agreed to send a tough letter to US Secretary of State George Shultz. As one British diplomat put it, the letter says ''enough is enough.'' It is to be written this week and will be followed up by a great deal of pressure by EC trade negotiators, said Hans-Dietrich Genscher, West German foreign minister.

Clearly worrying West European leaders here were unconfirmed reports that the US had signed another deal with Egypt - this time for thousands of tons of butter and cheese at below-market prices. Nearly 90 percent of Egypt's current butter needs are met by EC producers.

US officials, meanwhile, were breathing a collective sigh of relief that the EC diplomats had decided against action this week. ''A letter is always better than action,'' mused one US official here.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK