80 



Agricultural trade today is entering an entirely new era as the world 

 becomes a truly globalized marketplace. This is due both to the 

 political and economic liberalization of former centrally-planned 

 economies and to technology — the second industrial revolution that has 

 transformed the global economy, particularly telecommunications and 

 transportation. 



Agricultural markets have the potential to expand substantially as we 

 move toward the 21st century for several reasons: 



— The Uruguay Round of multilateral trade negotiations (MTN) which was 

 completed last year, will bring agriculture under GATT rules and 

 disciplines for the first time in history. Substantial cuts in 

 subsidies and expanded market access will improve opportunities for 

 U.S. agricultural exports, IF we are able to successfully implement 

 the agreement. 



— Countries that operated for nearly half a century under state 

 socialism have collapsed and many of their governments are on the path 

 to establishing dynamic private market economies. This is affecting 

 not only the former centrally-planned states in Central and East 

 Europe, but also developing countries throughout Asia, Africa and 

 Latin America. 



— Developing countries by the turn of the century will have 80 percent 

 of the world's population, and as they allow private capitalism into 

 their economies, their purchasing power will rise and stimulate demand 

 for food products. 



