AbstractEnlargement of the European Community (EC), recent reforms of the Common Agricultural Policy (CAP), and structural policy changes in the Community have generated economic conditions whose combined long‐term effect will be a decrease in the demand for US agricultural exports to the EC. Factors such as the imposition of quotas for milk production and the integration of Spanish and Portuguese agricultural policies into the CAP and its Community preference principle have aggravated an apparent shift in demand for US farm exports. Consequently, these changes have contributed to the heated dispute over the future of US–EC agricultural tr