The 1965 Western Europe agricultural situation /

Western Europe's economic growth continued at a rapid pace in 1964, although inflation and balance of payments remained serious problems. The rate of growth of the real gross national product was 5 percent or more in 11 out of 16 countries. In a majority of countries growth exceeded the 1963 rate by a substantial amount. The combined real product of the European Economic Community (EEC) grew at a rate of about 5.5 percent compared to 4 percent in 1963. 1/ The cost-of-living index rose, but wages in most cases advanced faster.

By the end of 1964 the EEC had put about 85 percent of its farm products under its Common Agricultural Policy. Rice, beef and veal, and milk and milk products were brought under the common organization of the market during 1964. The Common Market's long delayed decision on unified grain prices was finally reached in December 1964. In May the EEC negotiated a 3-year trade agreement with Israel, and on December 1, the EEC-Turkey association became effective. The second Convention of Association between the EEC and the associated African and Malagasy States (18 independent countries) became effective June 1.

Diiring 1963 and 1964, trade barriers on industrial products inside the European Free Trade Area (EFTA) market were further reduced to 40 percent of their 1960 level. EFTA is scheduled to become a single market for industrial goods by the end of 1966.

In May 1964 the Kennedy Round of trade negotiations, under the General Agreement on Tariffs and Trade (GATT), opened in Geneva. U.S. agriculture has a big stake in these negotiations which will affect the access of many U.S. farm products to foreign markets, particularly to the EEC and EFTA.

lje 06/07/2017

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