There is likely to be a substantial increase in world trade in dairy products over the next six years, as the economies of newly industrialised countries recover from the financial crises of the 1990s. This is the view of analysts at the Organisation for Economic Cooperation and Development (OECD) in its Agricultural Outlook report for 2000-05. In a generally optimistic view of world agriculture and food trade development, the OECD predicts renewed growth in agricultural trade over the period 2000-05. As a consequence of the recovery in demand, there is likely to be a significant rise in commodity prices. Meat prices ­ other than pigmeat ­ are expected to climb past their peaks of the mid 1990s. World prices for cheese, skim milk powder and whole milk powder can be expected the be above the 1994-98 average, but grain, oilseeds and sugar prices, although projected to improve steadily from their recent troughs, are unlikely to reach the record levels of the mid-1990s. How far European Union traders will be able to exploit this market will, however, depend on the value of the euro against the US dollar. This is because the recent Agenda 2000 reforms, says the OECD, did not cut price support sufficiently to allow the Union to break free of subsidised export limits set by GATT in 1994. {{PROVISIONS }}