TRADE

EC Rejects U.S. Demand on Soybeans: The European Community rejected a U.S. demand for binding arbitration in a soybean subsidies dispute that threatens to grow into a full-scale trade war. The United States had given the EC a deadline of Thursday noon to respond to its proposal for an independent panel to assess the amount of damages to other countries inflicted by EC subsidies. The soybean disagreement is only part of a larger subsidies dispute. The EC’s refusal to accept the level of cuts in farm supports demanded by the U.S. and other agricultural producers has stalled the crucial Uruguay Round of trade liberalization talks. The end of the round, which is meant to lead to a fairer international trading order, is already two years late.