Evening star., 1961-12-05


Third Of Three Articles
the way for the United States
to prosper as the Common
Market expands. High tariffs,
they warn, would cause eco
nomic stagnation here and
would weaken the free worlds
alliance against communism.
That's why the President
intends to fight next year for
a trade law giving him broad
new powers to cut tariffs.
Founded in 1858
The Com mon Market,
known formally as the Euro
pean Economic Community,
was founded in 1858 by
France, West Germany. Italy,
Belgium, the Netherlands and
Luxembourg.
BY 1870 or sooner. accord
ing to pla, the Common
Market will eliminate all in
ternal tariffs and other re-
strlctionS on imports and eX-
ports among members, and
will erect a common external
tariff wall against imports
from outsiders. The tranSi-
tion to these goals, nearly
one-third complete, is ahead
of schedule.
Beyond tariffs, the Com
mon Market aims at free
movement of workers and
capital within its boundaries,
and unified economic, none
tary, labor and agricultural
policies. Development of an
agriculture policy is proving
to be especially difficult.
Drive for Unity
Even more striking than
the moves for economic unity
is the Common Markets drive
for political coordination and
eventually formation of a
United States of Europe.
Responding to establishment
of the Common Market, seven
other European nations in
1860 set up a rival trading
bloc. the European Free
Trade Association. Members
are Great Britain, Sweden,
Switzerland. Norway. Den
mark, Austria and Portugal.
Much less ambitious than
the Common Market, ETA is
essentially a custom union
It's plans call for elimination
of all internal tariffs on in
dustrial goods by 1870. But
each member sets its own
tariffs against outsiders, so
there is no common external
tariff.
And ETA makes no pro-
vision for unified policies in
such fields as agriculture, nor
for political unity.
Merger Planned
ETA has made progress,
but has been out-paced by the
Common Market. Merger with
the Common Market. basically
on the latter's terms, now is
planned.
Britain made the first for
NAL move toward merger last
July 81 by applying for men,
bership in the Common
Market. Negotiations are un-
derway and Britain is expected
to join by January l, 1858. All
the other ETA members also
are expected to join the Com
mon Market as full members
or associates.
When that happens, the new
Common Market will have a
population of about 300 mil
lion, with vast economic
resources and the power to up
hold Western Europe's inter-
ests in world politics.
Free Commerce Principle
The economic principle OF
the Common Market parallels
the principle of free interstate
commerce in the United
States. With a mass market
varied resources, production
specialization and effective
competition, Western Europe
hopes for dynamic economic
growth.
Talk of expanding the Com
mon Market through merger
with ETA met a cool reception
in the United States during
the Eisenhower administration
The Kennedy administration
enthusiastically favors the ex-
pansion, despite some con-
tinuing skepticism in the
ranks.
American doubts about the
Common Market are based on
the tariff set-up-free trade
within Western Europe and a
discriminatory barrier against
imports.
The move toward free in
ternal trade has forced Com
mon Market businessmen to
compete more vigorously with
each other-developing new
products, building m o derr
plants and cutting prices.
Competitive Challenge to U. S
Increasing efficiency ano
vigor in the Common Market
will make competition BY
American producers more chal-
longing.
On top of this man-to-mar
competition. American busi.
nessmen will have to overcome
the handicap of the Common
Markets external tariff to sell
in the rich Western Europe
market. An American stee,