Chicken War

Chicken War in Global Commerce Policy

In this regard, chicken war is: a period of trade tension between the United States and the European Economic Community lasting from July 1962 to January 1964. The entries on trade policy are here. It overshadowed the start of the Kennedy Round. The entries on trade policy are here. It was triggered by the extension of variable levies under the Common Agricultural Policy to poultry which trebled German import charges. This led to an immediate and drastic decline in the export of United States poultry to Germany where up to that time United States exporters had been spectacularly successful. Claim and counterclaim for compensation followed. The establishment of a panel of experts by the GATT in November 1963 provided the basis of a solution. Both parties accepted that poultry trade worth $26 million was affected. To settle the score, the United States then imposed additional import duties affecting mainly French cognac, German trucks and Dutch dextrine and starch, thus ensuring that the United States retaliatory action would be noticed among members of the European Economic Community more broadly. The influence of the Chicken War on the remainder of the Kennedy Round is hard to judge, especially since it was followed by several other difficult periods. The entries on trade policy are here. It provided a pointer, however, to the increasingly vexing problem of international agricultural trade facing efficient exporters as the Common Agricultural Policy first led to European self-sufficiency and then to subsidized exports of many products. See also agriculture and the multilateral trading system and Ploughshares War.[1]

Chicken Warin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Chicken War” entry (OAS)

See Also