U.S., Europe Avert ‘Yuppie Trade War’

BRUSSELS —  The United States and the European Common Market reached an 11th-hour settlement of a grain-sales dispute today, averting a politically embarrassing “yuppie trade war,” officials said.

The accord was reached less than 24 hours before punitive U.S. import duties on a variety of European products, mostly up-scale edibles and potables, were to take effect. The European Economic Community, or Common Market, had pledged to answer the American retaliation by slapping new charges on some U.S. products.

Duties of up to 200% would have been imposed on British gin, French cognac and some white wines, Danish canned ham, Belgian endives and carrots, Spanish and Greek olives, and various types of European cheese.

The EEC had threatened to strike back against the U.S. duties with stiff import duties on American corn gluten feed and certain varieties of rice.

Approval Certain

Representatives of the 12 EEC governments met in Brussels to hear details of the agreement and decide whether to formally approve it. Sources said that while some members were not happy with the deal, final approval was certain.

Willy de Clercq, the EEC’s chief negotiator, told reporters that he was satisfied with the accord on grain sales, which he called an “honorable compromise.”

De Clercq told a news conference he was dismayed that a dispute between two of the world’s biggest economic powers had come to the verge of a trade war.

“I’m not proud when I have to discuss like this with a major trading partner,” he said, adding later, “We wanted to avoid a trade war, and this could have spiraled, spreading elsewhere in the world.”