Journal of European Integration History – Revue d'histoire de l'

Journal of European Integration History – Revue d'histoire de l' Journal of European Integration History – Revue d'histoire de l'

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24Wolfram Kaisertariff calculations from the combination with the low-tariff countries Norway, Sweden,Denmark and Switzerland, which helped significantly to portray EFTA as themore liberal trade bloc. Moreover, Britain's remaining Commonwealth preferencesand the highly protectionist national agricultural policies of most of its EFTA partnerswere just as incompatible with free trade rhetoric as was the EEC's evolvingCAP.TABLE 2: Average Weighted Tariffs on Industrial Products in Per Cent of Import Value(Dates for 1960, 1967 and 1972 Allow for Intra-EFTA and Intra-EEC Reductions)1960 1967 1972 MFN 1.1.1973EFTAAustria 18.0 13.6 8.3 11.2Denmark 5.4 2.9 1.9 3.8Finland 6.9 3.5 2.0 4.4Norway 4.1 1.9 1.2 2.6Sweden 6.6 3.9 2.4 4.2Switzerland 4.5 3.7 2.2 2.8UnitedKingdom14.8 11.4 7.0 9.3EECW. Germany 6.1 4.5 2.6 7.4France 12.6 4.9 1.9 7.4Italy 13.8 5.6 2.2 7.4Benelux 7.4 4.0 2.0 7.4Source: B.S. AAMO, “Die Resultate der EFTA. 20 Jahre Handelszusammenarbeit”, EFTA Bulletin 21/3(1980), pp.9-11 (10).Yet, EFTA's liberal rhetoric exerted considerable pressure on the Six in the early1960s to prove to the United States that it was not building an economic fortressEurope, but instead would behave cooperatively in trade matters, and thus to retainthe prestige the EEC had in American eyes chiefly for its political content. Thecompetition from EFTA was one reason why the EEC decided to combine the earlyintroduction of the common external tariff with its reduction by 20 per cent, a stepthat was greatly facilitated by the positive development of the French economyafter the devaluation and subsequent convertibility of the French franc in December1958. The primary external reason for the 20 per cent cut was without doubtincreasing American pressure on the Europeans in view of their mounting balance-

Challenge to the Community 25of-payments problems to reduce tariff barriers, a policy that eventually led theKennedy government to introduce the Trade Expansion Act and subsequently to theKennedy Round of the GATT of 1963-7, 72 but EFTA clearly provided an additionalexternal stimulus.The creation of EFTA also initiated a debate among the Six about their longtermeconomic interests and political aims in Western Europe, particularly in theFederal Republic where European integration turned into the dominant domesticpolitical issue of the early 1960s. Within the government and the governing ChristianDemocratic Union (CDU), Erhard continuing his long-standing argumentwith Adenauer about German European policy that went back at least to the Messinainitiative and Plan G in 1955-6 led the campaign for a wider trade settlementbetween the EEC and EFTA in the form of a FTA or a customs union. 73 In 1959 hewent public yet again when the Economics Ministry paid for advertisements in thenational press. Employing the slogan “6+7+5=1”, they argued that a trade settlementof the Six, the Seven and the OEEC peripherals was indispensable. 74 Erhardsubsequently opposed acceleration, and when this proved impossible to pushthrough the cabinet against Adenauer, who gave absolute priority to strengtheningthe EEC's cohesion, they negotiated the compromise formula which the Council ofMinisters eventually adopted in July 1960.The debate in the Federal Republic of Germany, however, was not confined tothe government and the political parties. Increasingly, the German industry federation,the Bundesverband der Deutschen Industrie (BDI), and individual industrialistsand bankers, who were mostly close to the CDU, intervened in the debate aboutSixes and Sevens. 75 BDI President Fritz Berg, for example, wrote to Adenauer inSeptember 1959 that the forthcoming creation of EFTA was greatly increasing theanxieties among German exporters about the continued absence of a wider FTA.Berg concluded:“Die EWG mit ihrer politischen und wirtschaftlichen Zielsetzung muß als Kern dereuropäischen Integration erhalten bleiben; sie ist aber nur lebensfähig, wenn siedurch den größeren Zusammenschluß mit den übrigen OEEC-Staaten ergänztwird.” 7672. On the external economic policy of the Eisenhower and Kennedy governments see W.S. BORDEN,“Defending Hegemony: American Foreign Economic Policy”, in: T.G. PATERSON (ed.),Kennedy's Quest for Victory, Oxford 1989, pp.57-85 and T.L. ILGEN, Autonomy and Interdependence.U.S.-Western European Monetary and Trade Relations, 1958-1984, Totowa 1985.73. On the confrontation between Adenauer and Erhard see D. KOERFER, Kampf ums Kanzleramt.Erhard und Adenauer, Stuttgart 1987.74. U. LAPPENKÜPER, “Ich bin wirklich ein guter Europäer”. Ludwig Erhards Europapolitik 1949-1966”, in: Francia 18/3 (1991), pp.85-121 (88).75. On the BDI's European policy in the 1950s see W. BÜHRER, “German Industry and European Integrationin the 1950s”, in: C. WURM (ed.), Western Europe and Germany. The Beginnings of EuropeanIntegration 1945-1960, Oxford 1995, pp.87-114, first published in German as “Der BDI unddie Aussenpolitik der Bundesrepublik in den fünfziger Jahren”, in: Vierteljahreshefte für Zeitgeschichte40/2 (1992), pp.241-61.76. Berg to Adenauer: BA B136/2553 (30 September 1959).

Challenge to the Community 25<strong>of</strong>-payments problems to reduce tariff barriers, a policy that eventually led theKennedy government to introduce the Tra<strong>de</strong> Expansion Act and subsequently to theKennedy Round <strong>of</strong> the GATT <strong>of</strong> 1963-7, 72 but EFTA clearly provi<strong>de</strong>d an additionalexternal stimulus.The creation <strong>of</strong> EFTA also initiated a <strong>de</strong>bate among the Six about their longtermeconomic interests and political aims in Western Europe, particularly in theFe<strong>de</strong>ral Republic where <strong>European</strong> integration turned into the dominant domesticpolitical issue <strong>of</strong> the early 1960s. Within the government and the governing ChristianDemocratic Union (CDU), Erhard <strong>–</strong> continuing his long-standing argumentwith A<strong>de</strong>nauer about German <strong>European</strong> policy that went back at least to the Messinainitiative and Plan G in 1955-6 <strong>–</strong> led the campaign for a wi<strong>de</strong>r tra<strong>de</strong> settlementbetween the EEC and EFTA in the form <strong>of</strong> a FTA or a customs union. 73 In 1959 hewent public yet again when the Economics Ministry paid for advertisements in thenational press. Employing the slogan “6+7+5=1”, they argued that a tra<strong>de</strong> settlement<strong>of</strong> the Six, the Seven and the OEEC peripherals was indispensable. 74 Erhardsubsequently opposed acceleration, and when this proved impossible to pushthrough the cabinet against A<strong>de</strong>nauer, who gave absolute priority to strengtheningthe EEC's cohesion, they negotiated the compromise formula which the Council <strong>of</strong>Ministers eventually adopted in July 1960.The <strong>de</strong>bate in the Fe<strong>de</strong>ral Republic <strong>of</strong> Germany, however, was not confined tothe government and the political parties. Increasingly, the German industry fe<strong>de</strong>ration,the Bun<strong>de</strong>sverband <strong>de</strong>r Deutschen Industrie (BDI), and individual industrialistsand bankers, who were mostly close to the CDU, intervened in the <strong>de</strong>bate aboutSixes and Sevens. 75 BDI Presi<strong>de</strong>nt Fritz Berg, for example, wrote to A<strong>de</strong>nauer inSeptember 1959 that the forthcoming creation <strong>of</strong> EFTA was greatly increasing theanxieties among German exporters about the continued absence <strong>of</strong> a wi<strong>de</strong>r FTA.Berg conclu<strong>de</strong>d:“Die EWG mit ihrer politischen und wirtschaftlichen Zielsetzung muß als Kern <strong>de</strong>reuropäischen <strong>Integration</strong> erhalten bleiben; sie ist aber nur lebensfähig, wenn siedurch <strong>de</strong>n größeren Zusammenschluß mit <strong>de</strong>n übrigen OEEC-Staaten ergänztwird.” 7672. On the external economic policy <strong>of</strong> the Eisenhower and Kennedy governments see W.S. BORDEN,“Defending Hegemony: American Foreign Economic Policy”, in: T.G. PATERSON (ed.),Kennedy's Quest for Victory, Oxford 1989, pp.57-85 and T.L. ILGEN, Autonomy and Inter<strong>de</strong>pen<strong>de</strong>nce.U.S.-Western <strong>European</strong> Monetary and Tra<strong>de</strong> Relations, 1958-1984, Totowa 1985.73. On the confrontation between A<strong>de</strong>nauer and Erhard see D. KOERFER, Kampf ums Kanzleramt.Erhard und A<strong>de</strong>nauer, Stuttgart 1987.74. U. LAPPENKÜPER, “Ich bin wirklich ein guter Europäer”. Ludwig Erhards Europapolitik 1949-1966”, in: Francia 18/3 (1991), pp.85-121 (88).75. On the BDI's <strong>European</strong> policy in the 1950s see W. BÜHRER, “German Industry and <strong>European</strong> <strong>Integration</strong>in the 1950s”, in: C. WURM (ed.), Western Europe and Germany. The Beginnings <strong>of</strong> <strong>European</strong><strong>Integration</strong> 1945-1960, Oxford 1995, pp.87-114, first published in German as “Der BDI unddie Aussenpolitik <strong>de</strong>r Bun<strong>de</strong>srepublik in <strong>de</strong>n fünfziger Jahren”, in: Vierteljahreshefte für Zeitgeschichte40/2 (1992), pp.241-61.76. Berg to A<strong>de</strong>nauer: BA B136/2553 (30 September 1959).

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