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European Trade Policies and Developing Countries by J. Kol

By J. Kol

This publication seems at how styles of global alternate are altering, how EEC protectionism impacts constructing nations, how precise bargains and exceptions are got from time to time and appears to the long run to determine how the location might boost.

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It appears that the major areas where Greece might be in conflict with developing countries are certain agricultural products (mainly fruits and vegetables, wine, tobacco and olive oil) and some manufactures (mainly clothing, shoes and textiles). Within the textiles and clothing group similarity in export structure is found to be considerable, especially in products considered sensitive under the Multi Fibre Arrangement. Consequently, Greek support for an EC policy to liberalize such imports from developing countries is not likely, especially upon accession of Portugal and Spain.

Such differences between them are important, but not as important as what they have in common. Furthermore, the views and practices of these two groups have over time influenced others. In particular, the United States appears to have moved decisively away from its rhetoric in favour of non-discrimination, although, it must be admitted, the practice of discrimination had entered into the policy of the United States, albeit hesitantly, already in the 1950s. The discussion below starts with a consideration of the economic, legal and political aspects of the liberal international economic order, focusing principally on trade, whereupon the strengths and weaknesses of the actual order established after World War II are examined.

Another approach towards considering the effectiveness of the textile arrangements consists of looking at the trade coverage of the system and the rate of quota utilization. In 1983 87 per cent of extra EC textile and clothing imports, irrespective of origin, consisted of products, which are potentially regulated by the MFA. The average quota utilization in the sensitive product groups, for all developing MFA suppliers together, decreased from 100 per cent in 1978 to 82 per cent in 1983. The data on quota utilization can be interpreted as at least being consistent with some of the known by-product distortions of the MFA.

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