US to quit dairy compact over sale of EC surplus
The United States plans to quit the International Dairy Arrangement, which is supposed to set minimum world prices for butter and other basic milk products. The US served notice to the Geneva headquarters of the General Agreement on Tariffs and Trade on Dec. 14.
The decision followed a large sale of surplus butter by the European Community at prices far below the minimum specified in the agreement. The US said it would not stand by idly while other countries dumped surpluses on the world market at subsidized prices.