Finding Ways to Skin the Grape

THE ISSUE ON THE TABLE WAS OILSEED production. But what turned the tables was the power and the quality of the grape -- from California, largely. On Friday, U.S. and E.C. trade representatives announced an agreement that reverses Europe's previous refusal to reduce oilseed production, which in turn should head off a transatlantic trade war. Ultimately at stake: a new General Agreement on Tariffs and Trade (GATT), which some say could generate a trillion dollars in trade over the coming decade.

By consenting on oilseeds, the E.C. beat a Dec. 5 deadline, when U.S. tariffs would have tripled the cost of European white wine. Had American white wine not provided such a clear market alternative to imports, the stalemate might have disintegrated into a costly battle of tariffs. Though French President Francois Mitterrand, who must still face his nation's angry farmers, may balk at the agreement, U.S. President George Bush hailed the accord as a "breakthrough" that would bring a "comprehensive, global and balanced agreement" on trade that much closer for the 108 nations participating in GATT's Geneva negotiations. The Americans have cause to celebrate, perhaps with a glass of California Chardonnay.