Despite the poor political outlook, much of the technical work continued, leading to the first draft of a final legal policy agreement. This draft of the final act was drawn up by Arthur Dunkel, then Director General of the GATT, who led the negotiations at the official level. It was put on the table in Geneva in December 1991. The text fulfilled all parts of the Punta del Este mandate, with one exception, it did not contain lists of participating countries with obligations to reduce import duties and open up their service markets. The project became the basis of the final agreement. At the beginning of the Uruguay Round, there were plans to significantly reduce tariffs and quotas as well as domestic aid programmes. Indeed, in the United States, the Reagan administration initially proposed the total elimination of all trade-distorting subsidies, which should be introduced gradually over a ten-year period. What was eventually achieved was much more modest. The Uruguay Round agreement has been short-lived on several occasions because some countries, particularly the European Community (EC), were not willing to make many concessions to reduce agricultural subsidies. The WTO has replaced GATT as an international organization, but the general agreement still exists as a framework agreement on trade in the products of the Chambers of e and Commerce, which was updated following the Uruguay Round negotiations. Professional lawyers distinguish between the 1994 GATT, the updated gaTT parts, and the 1947 GATT, the original agreement that remains the core of the 1994 GATT.

disconcerting? For most of us, just refer to the GATT. The protection and support of the agricultural industry began during the Great Depression of the 1930s. Not only have tariffs been increased with most other imported products, but a number of price and income support programmes have been implemented in many countries. When the first GATT agreement was negotiated, specific exemptions were introduced for agriculture, including an allocation for the use of export subsidies. Remember that export subsidies under the anti-subsidy code are subject to retaliatory measures, but this requirement has been denied for agricultural products. This has allowed countries to keep agricultural commodity prices high in the domestic market and, if these prices produced a surplus of food, to reverse that surplus on international markets by using export subsidies. One of the achievements of the Uruguay Round would be the WTO-managed Uruguay Round Agricultural Agreement, which allows for full control of agricultural trade under the GATT.