Deal At Dawn

Calling off the Perrier war

The trade dispute between the U.S. and the European Community had been simmering for months. In March, Portugal and Spain, the two new members of the E.C., put added tariffs on American agricultural exports that would cost U.S. farmers $500 million a year in lost sales. The U.S. responded with a threat to retaliate by July 1 against a host of European consumer items, including Perrier water, Brie cheese and Heineken beer. The E.C. came back with talk of restrictions on more products. Said Sir Roy Denman, the E.C. ambassador to the U.S.: "This is the nearest approach to trade war...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!