Economic Paper

English
ISSN: 
2310-1385 (online)
http://dx.doi.org/10.14217/23101385
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This series examines current economic issues from a Commonwealth perspective. The titles in the series are technical papers of topical interest to specialists concerned with trade, micro and macroeconomics, development economics and related subjects.
 
The Enlargement of the E.E.C. and the Asian Commonwealth Countries

The Enlargement of the E.E.C. and the Asian Commonwealth Countries You do not have access to this content

English
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    http://oecd.metastore.ingenta.com/content/0873131e.pdf
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Author(s):
Dharam P. Ghai
01 Aug 1973
Pages:
58
ISBN:
9781848592049 (PDF)
http://dx.doi.org/10.14217/9781848592049-en

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Among the most significant developments on the international economic scene in recent years have been those associated with the enlargement of the EEC, some of the problems of which have long been anticipated and some of the consequences of which are even today difficult to foresee.

This study examines problems that may arise for Commonwealth Asian countries from the accession of new countries to the EEC in the field of trade, with a view to seeking appropriate solutions.
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  • Foreword

    Among the most significant developments on the international economic scene in recent years have been those associated with the enlargement of the EEC, some of the problems of which have long been anticipated and some of the consequences of which are even today difficult to foresee. For over a decade it has been obvious that the entry of Britain into the EEC would be likely to call for adjustments in the trading patterns of all her Commonwealth partners, but only comparatively recently have the lines been clearly drawn for the period of intense negotiations that will shape the future trading relations of developing Commonwealth countries with the EEC. For the problems of twenty of these, situated in Africa, the Caribbean and the Indian and Pacific Oceans, Protocol 22 of the Treaty has been put forward by the EEC as a basis for negotiation.

  • Introduction

    The European Economic Community of six members was enlarged to nine on January 1, 1973, by the accession of UK, Denmark, and Ireland to the Treaty of Rome. After a transitional period, the new member states are required under the Treaty of Accession to align their external tariff and agricultural protection systems to those prevailing in the EEC. The enlargement of the EEC will have far reaching economic consequences for the developing Commonwealth countries as UK harmonises her economic policies with those of the EEC.

  • Trends and Patterns of Trade of Asian Commonwealth Countries

    A study of the trends and patterns of trade of the Asian Commonwealth countries (ACCs) provides an indication of the dependence of these countries on various markets, including the UK, as well as of the degree of diversification of their exports. It should also provide some evidence on the structure of production and hence the stage of development of these countries.

  • Factors Determining the Implications of the EEC Enlargement

    A complete analysis of the implications for the ACCs of the enlargement of the EEC presents difficult and complex problems. This would require knowledge of the likely changes in the pattern of production and rate of growth of the economics of the member countries as a result of the enlarged Common Market; because it is these changes which in turn affect the pattern and volume of imports from outside the bloc. Another difficulty arises in assessing the impact on the direction of imports of the new member states of the elaborate network of special trade agreements which the EEC has negotiated with the third countries and to which the members will be required to subscribe.

  • Impact of the Harmonisation of British Commercial Policy with the EEC

    Before coming to the details of the individual products that might be adversely affected from the ACCs, it is useful to consider in general terms the impact of the harmonisation of the external commercial policy of the UK with the EEC. The Treaty of Accession does not spell out clearly the transitional arrangements for the phasing out of the Commonwealth Preferences for "non-associables"; there is also the possibility of modification in the EEC scheme of preferences when it is merged with those of the new members. The prospects for ACCs will be substantially affected by the outcome in respect of these issues.

  • Specific Problems of Individual Asian Commonwealth Countries

    We can now draw upon the earlier analysis to focus on the specific problems faced by individual Asian Commonwealth countries. The difficulties faced by them will depend on the extent to which enlargement of the EEC will affect the access to different markets of their current and potential exports. It was noted earlier that this will affect not only access to the markets of the new members but also to those of the Six and a number of third countries with which the EEC has preferential trade agreements.

  • Approaches to the Solution of the Problems Arising from EEC Enlargement

    Although formal negotiations within the framework of the Declaration of Intent are likely to take place later in the year, individual or groups of Asian Commonwealth countries have initiated exploratory discussions with the EEC. India has been attempting for some years to negotiate a comprehensive commercial treaty with the EEC, the main elements of which are reduction or elimination of trade barriers in the Community on products likely to be adversely affected by the elimination of the Commonwealth Preferences, collaboration in the establishment of new industries and assistance with the marketing of Indian exports in the enlarged Community. It is understood that Sri Lanka has presented an Aide-Memoire to the Community setting out its views on the solution to the various problems it is likely to encounter as a result of the enlargement of the EEC.

  • Some Implications for Development Assistance

    Although this study is concerned primarily with trade, the enlargement of the EEC will also have some implications for development assistance. In the first place, starting in 1975, Britain and other new members of the EEC will be required to contribute to the European Development Fund (EDF). The share of total development assistance channelled by the members of the European Community through the EDF has been relatively modest, though it has arisen from 0.6 per cent in 1965 to 5.8 per cent in 1970.

  • Summary of Main Findings and Recommendations

    A study of the pattern and trends of trade of the Asian Commonwealth countries (ACCs) in the sixties indicates a steady decline in the importance of UK as an export market. On the other hand, the importance of Japan, the USSR and the USA has risen in most cases. The relative importance of the UK and the Six as export markets for these countries.

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