4. 7. 88 Official Journal of the European Communities No C 175/39 
Opinion on relations between the European Community and European State-trading 
countries 
(88/C 175/14) 
On 24 February 1987, the Economic and Social Committee decided, in accordance with 
Article 20, paragraph 4, of its rules of procedure, to draw up an Opinion on relations between 
the European Community and the European State-trading countries. 
The Section for External Relations, which was responsible for preparing the Committee's 
work on the question, adopted its Opinion on 11 March 1988. The rapporteur was 
Mr. Briganti. 
At its 255th plenary session (meeting of 27 April 1988), the Economic and Social Committee 
adopted the following Opinion by 74 votes to 11, with 15 abstentions. 
1. This Opinion confines itself to dealing briefly with 
the main economic and trade problems in relations 
between the European Community and the European 
countries which are members of COMECON. These 
problems, together with others not covered in this Opi­
nion, are dealt with in greater detail in the attached 
report. 
It must be said that trade relations between the Commu­
nity and the abovementioned countries are far from 
satisfactory. In recent years there has not been sufficient 
development in the volume of imports and exports, the 
quality of trade, nor even in economic cooperation, 
which remains limited. Application of reasonable prices 
(quite apart from dumping), systematic recourse to 
compensation transactions, delivery dates, compliance 
with industrial property provisions and difficulties con­
nected with the sale of advanced technology are among 
the problems. Trade relations between the Community 
and the (European) COMECON member countries 
should therefore be improved and extended, particular­
ly at the time of change in the countries concerned and 
of development in international economic relations, 
with efforts being concentrated on finding solutions to 
the above problems. 
2. It is very important that the Community and 
COMECON should soon sign the 'joint declaration' 
which has been under discussion since September 1986. 
This declaration should contain clauses to take into 
account the respective institutional powers of the two 
organizations. Up to now the adoption of this declara­
tion—which could cover technical and environmental 
aspects —has been delayed by the 'Berlin clause'. Under 
the Treaty of Rome, the territory of West Berlin is an 
integral part of the Community, and it is essential for 
this situation to be acknowledged in relations between 
the (European) COMECON member countries and the 
Community. 
3. The Community must also negotiate trade and 
cooperation agreements with each of the (European) 
COMECON member countries, which would make it 
possible, inter alia, to increase opportunities for Com­munity firms on those countries' markets. The rules on 
joint enterprises recently adopted in the Soviet Union 
are a good example of the Soviet economy opening up 
to third countries (with free-market economies). These 
rules should, however, evolve towards greater partici­
pation by foreign firms and better guarantees for 
COMECON countries obtaining supplies on external 
markets (especially with regard to the use of profits in 
foreign currency resulting from trade transactions with 
third countries). In this connection, the legislation adop­
ted in Hungary in recent years is a positive example. 
4. So far, the great majority of sizeable transactions 
with State-trading countries have taken place under 
bilateral cooperation agreements between those 
countries and a number of Community Member States. 
5. Cooperation agreements should be based on the 
complementary aspects of the economies of Community 
countries and those of the third countries concerned. 
As far as possible, the Community should ensure ever 
wider markets for its economic operators, especially 
with a view to increasing employment prospects. The 
Community should therefore work to remove the 
obstacles to access to markets, while accepting that this 
may require it to open its own market more and sell 
more technology to the State-trading countries. In parti­
cular, the list of restricted high-technology products 
should be revised, with a view to greater liberalization 
on both sides. 
However, the Community cannot consider opening its 
market further to the State-trading countries without 
adequate reciprocal arrangements. In particular, it 
would be very hazardous to seek to eliminate all quanti­
tative restrictions in relation to a given State-trading 
country, given the risks of deflection of trade and of 
inevitable extension to other countries. 
6. The cooperation agreements should also provide 
for liberalization of trade in the services sector. In the 
transport field, for example, the special interests of 
Community carriers should be stressed: liberalization 
No C 175/40 Official Journal of the European Communities 4. 7. 88 
of access to Community transport for carriers in third 
countries should be seen in relation to the advisability 
and feasibility of equivalent concessions to Community 
carriers. Other sectors, such as tourism, offer encoura­
ging prospects in the shorter term. 
7. The Economic and Social Committee has always 
held the view that trade agreements concluded by the 
Community should include a social clause on the appli­
cation of fair labour standards, in accordance with 
conventions of the International Labour Organization 
(ILO). 
8. Finally, while it is satisfying to note the Soviet 
commitment to participate more in world trade and 
diversify its export markets towards the capitalist 
countries, in present circumstances it is to be feared 
that Soviet accession to the General Agreement on 
Done at Brussels, 27 April 1988. 
1. Introduction 
1.1. In late 1987, the Ministers of Culture announced 
that they intended to give a fresh boost to culture in 
the Community. 
Any half-heartedness or slowness to act on the part of 
the political authorities could jeopardize basic value 
such as liberty and democracy, quite apart from having Tariffs and Trade (GATT), the World Bank and the 
International Monetary Fund—however desirable— 
may still be problematic for a number of technical, 
procedural and perhaps even political reasons. A special 
study should be made of this question by the ESC at 
the appropriate time. 
9. Finally, noting that trade relations and economic 
cooperation between the Community and the European 
members of COMECON can and must improve consi­
derably, the Committee hopes for an early conclusion 
of negotiations on the 'joint declaration', and of those 
with individual COMECON countries, on the basis of 
mutual interest and of fair conditions for both sides. 
The Committee may follow up this Opinion with others 
relating to the text of the 'joint declaration', the bilate­
ral treaties with the countries concerned, or problems 
connected with Soviet accession to the GATT. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT 
potentially serious economic and social implications. 
The Economic and Social Committee therefore supports 
the Ministers' decision and hopes that progress in 
creating a European cultural area will be swift and 
tangible. 
1.2. The Committee has consistently demonstrated 
its interest in cultural policy and activities. Opinion on the Communication from the Commission on a fresh boost forculture in the 
European Community 
(88/C 175/15) 
On 1 February 1988, the Commission decided to consult the Economic and Social Committee, 
in accordance with Article 198 of the Treaty establishing the European Economic Community, 
on the abovementioned Communication. 
The Section for Social, Family, Educational and Cultural Affairs, which was responsible for 
preparing the Committee's work on the subject, adopted its Opinion on 14 April 1988. The 
rapporteur was Mr Burnel and the co-rapporteur was Mr Noordwal. 
At ist 255th plenary session (meeting of 28 April 1988), the Economic and Social Committee 
adopted the following Opinion by a majority, with two votes against.