ARMISTICE ELUDES EC AND U.S. IN SPAGHETTI WAR
Talks between the European Community
(EC) and the United States have failed to settle a trade
dispute over pasta, an EC Commission spokesman said.
    Diplomatic sources said the dispute could provoke new trade
friction unless it was settled soon.
    Washington is insisting that the EC comply with what it
regards as an unambiguous ruling from the world trade body GATT
and cut export subsidies which have allowed Italy to take an
increasing share of the U.S. pasta market.
    The EC provides subsidies of about 16 cents a pound on
pasta exports. The spokeswoman said the talks foundered on the
question of how much the subsidy should be cut.
 Reuter
