Evening star., 1961-08-21
u. 5. Draftinu
Common Mart
Balance Plan
BY LEE M. COIN
Star staff Writer

IidendS.
Growth of the Common
Market is in the cards, so W.
had better make the best dea
we can," an official said il
summing up the administra'
tion's attitude.
President Kennedy enthusi'
aStically welcomed Britain'i
decision to apply for member.
ship in the Common Market
despite fears expressed BY
some businessmen and Govern.
ment experts that the organic
atoms rapid growth will hurt
the American economy.
/ Others In Join
The Common Market, knowr
formally as the European
Economic Community, wa
founded in 1858 by France
West Germany. Italy, Bel.
gium, The Netherlands anC
Luxembourg. Greece became
an associate member this year
Turkey is negotiating for as.
sociation and now Britain i.
expected to join by January /
1868. Several other countrie.
intend to follow Britain's lead
BY 1870 or sooner, the Com.
mon Market will eliminate al
internal tariffs and other re.
strictionS on imports and ex-
ports among members, ano
will erect a common external
tariff wall against Imports
from outsiders. The transition
is nearly one-third complete.
Beyond tariffs, the Common
Market aims at free movement
Of workers and capital within
its boundaries, and at unified
economic, monetary, agricul-
tural and labor policies. Ever
more striking is the drive fol
p political cooperation ano
eventual federation in a United
States of Europe.
AS the Common Market ex-
pands, it will make life rough
for American exporters. If the
United States economy fails tc
fight back effectively, profits
will decline, jobs will vanish
and the balance of payments
will sink deeper into the red.
Competition Advances
Reduction of internal tariffs
has forced Common Market
businessmen to compete more
vigorously with each other fol
sales. They are developing new
products, building m derr
plants. cutting prices and TAX
ing other steps to fight fol
markets, now that the Common
Market is flushing them out
from under the tariff shelter.
Increasing efficiency and dy-
namism in the Common Market
will in itself make competition
by American exporters in Eu.
rope and elsewhere more chal-
longing.
On top of this man-to-mar
competition. American busi.
nesSmen will have to fight tt
overcome the handicap of the
Common Markets external tar.
if. An American steel manu'
facturer, for example, will have
to add a tariff to his selling
price in Italy, while a German
steel-maker will sell in Italy
duty free.
Tariffs Important
Another complication will
arise because of Britain's tie,
to countries of her Common
wealth. If the Common Marke
grants Australia and othe,
Commonwealth countries spe
cial tariff breaks, the Common
wealth will divert both exports
and imports from the UniteC
States to Europe.
All these factors explain VIII!
the United States intends tt
use its influence in the negotia,
tions between Britain and tht
Common Market, which prob
ably will start in October. AL
though the United States will
have no official status in tht
talks, Common Market leaders
have pledged to listen to Amer.
lean views.
These are the broad goal!
American diplomats intend tt
pursue:
/. Keep the Common Mar.
ket's external tariffs low, tc
minimize discrimination against
non-members.
2. Avoid special preference.
for the British Commonwealth
American officials concede
however, that the Common
Market will have to grant tn,
Commonwealth special treat.
ment at least during a transi'
tional period.
8. Protect access of American
farm commodities to the Eu
ropean market.
The Common Market so ia
has indicated its intention tt
keep it's external tariffs rela.
lively low. AS gesture in thil
direction. it extended to non,
members its first 10 per cen
cut in internal tariffs, and haI
offered conditionally to do thu
same with last JanuarY's fur.