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France and the Claims for Social Harmonization in the European Economic Community 91
The maintenance of the claim for social harmonization in Brussels also contributed
to the keeping up of advantages within the OEEC. 37 Within both the OEEC
and GATT, the French system of tax reductions on exports had been heavily criticized,
and France had already obliged herself to announce when she would be
ready to diminish or eliminate these reductions. The additional tax on imports was
likewise contested. In order to explain her modest liberalizing performance within
the OEEC, France had invoked the disparity between French and foreign prices.
She had argued that it was this disparity that necessitated both tax reductions on exports
and the additional tax on imports. Thus, if France engaged in a common market
without harmonization of social legislation at the same time as she had not fulfilled
her obligations versus the OEEC, she would put herself in an awkward
position.
Table 1: Trade liberalization in OEEC countries, 1952-56
(% of imports freed from quota restrictions; end years) 38
Intra-OEEC trade 1952 1954 1956
France 0 65 82
Germany 81 90 92
OEEC average 65 83 89
The opinion within the Foreign Ministry was that France during the last few years
had considerably benefited from the process of quota liberalization. In addition to the
general advantages of liberated trade and payments following the decisions taken within
the OEEC, exceptions had permitted her to profit from the ongoing process without
having to commit herself to the same degree as the other countries. 39 In early 1952,
France had suspended all import-liberalizing measures for a period of twenty months
due to balance of payments troubles. While doing so she had been allowed to continue
to benefit from the liberalization undertaken by the other countries. In the same period
the other countries had accepted a 50% reduction in quota-regulated imports into
France without introducing similar measures versus French exports. Furthermore, the
OEEC had accepted the introduction of the special tax on imports that appeared in April
1954. And finally, while the OEEC had decided in January 1955 to remove a certain
number of export subventions, the organization had admitted that this obligation would
not automatically apply to France. This decision was due to take effect from December
37. MAE, Papiers Wormser (PW), Vol.31, Note pour le Président, 10.10.55.
38. Source: A. BOLTHO, Convergence, competitiveness and the exchange rate, in: N. CRAFTS and
G. TONIOLO (eds.), Economic Growth in Europe since 1945, Cambridge University Press, Cambridge,
1996, p.121.
39. Between 1952 and 1955 the French economy remained one of the most protected economies in
OEEC. F.M.B. LYNCH, Restoring France …, op.cit., p.65.