In 1987, the two Institutes brought together a number of persons with considerable experience in agricultural policy from 20 countries representing both importers and exporters. They participated in 4 meetings and approved the consensus policy statement published here with the background papers developed for the meetings. These background studies include suggestions for reforming government policies worldwide; a North American and European Community approach to decoupling the policy decisions that affect production from those that are pursued on social or environmental grounds; agriculture in GATT negotiations and developing countries; and exchange rates and their role in agricultural trade issues.