Trade Relations: More Developed Countries
The trade relations of the Community with more developed countries has primarily centered on tariff negotiations under GATT auspices. This chapter will examine those tariff negotiations over the life of the EC, consider some continuing trade issues with the more developed world, look at intra-EC trade relations, and finally consider Spain and Portugal as new entrants into the Community.
Although postwar tariff negotiations under the auspices of GATT have been truly multilateral in nature, the sheer size of the negotiants has meant that the talks are perhaps best characterized as a United States-EC dialogue. That dialogue began with the Dillon Round of tariff negotiations.
The basic authority given to the U.S. executive branch to participate in the Dillon Round of tariff reduction talks was originally given almost three decades earlier in the Trade Agreements Act of 1934. This act was enacted only four years after the establishment of the prohibitive Smoot-Hawley Tariff. By that time, however, the full effects of the Great Depression had been felt, and perhaps at least a nodding recognition of the role that a reduction in world trade can have on the health of individual countries in the world economy had been achieved. In any case, the act was clearly intended to stimulate exports (and hence domestic employment) by having other countries lower their tariff barriers, albeit at the "cost" of lowering one's