ECONOMIC

tained, they would probably be felt most intensely in Japan and WesternEurope because of their relatively high dependence on imported energysources.Lessons for the FutureThe world was caught unprepared when the shortages during 1973caused a shift from a buyer's to a seller's market for certain products. Becausea buyer's market had existed in varying degrees for several decades,most international trading rules focused on trade policy devices, such astariffs and quotas, that protected producers in their domestic markets. Theexisting patterns of thought as well as existing trade rules were not wellgeared to dealing with trade policy measures aimed at restricting exportsand preserving domestic sources of supply.As the year wore on, countries began to seek practical accommodationson the new issues that arose; and in the future it will become desirable tofocus greater attention on the possibility of new kinds of commitments byexporting countries on foreign access to their supplies when world demandis strong. Such issues will be explored in the forthcoming world conferenceon food, in the coming meeting of oil-consuming and oil-producing nations,and possibly at similar conferences in the future. At the same time the formulationof a more general code of good conduct for exporting countries,and the adoption of more systematic procedures for the resolution of disputesover the access to supplies, should be addressed in the context of the forthcomingmultilateral trade negotiations.PLANNING THE FUTURE INTERNATIONAL TRADING SYSTEMThe United States reaffirmed its commitment to a continued expansionof world trade by joining 104 other countries in opening a new round ofcomprehensive trade negotiations in Tokyo during September. In a statementissued at the end of the meeting the participating countries expressedtheir willingness to pursue negotiations aimed at "the progressive dismantlingof obstacles to trade and the improvement of the international frameworkfor the conduct of world trade."A new initiative in the trade area is timely for a number of reasons.First, the reductions in trade barriers negotiated during the Kennedy Roundhave been fully implemented, and this makes desirable the negotiation of newcommitments. Second, with the lowering of tariffs as a result of past negotiations,nontariff barriers have become relatively more important as asource of distortion in international trade and have taken on greater importancein international economic relations. Third, expansion of the EuropeanCommunity to include the United Kingdom, Denmark, and Ireland,as well as the substantial elimination of trade barriers between theexpanded European Community and most of the other European countrieshave created the possibility of a significant decrease of trade opportunitiesbetween Europe and the rest of the world, including the United States.212