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The EEC Is Now a Customs Union

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The EEC Is Now a Customs Union A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Groeben, Hans Article — Digitized Version The EEC is now a Customs Union Intereconomics Suggested Citation: Groeben, Hans (1968) : The EEC is now a Customs Union, Intereconomics, ISSN 0020-5346, Verlag Weltarchiv, Hamburg, Vol. 03, Iss. 8, pp. 226-229, http://dx.doi.org/10.1007/BF02930556 This Version is available at: http://hdl.handle.net/10419/137998 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu INTERVIEW The EEC Is Now a Customs Union Interview with Hans yon der Groeben, Member of the Commission of the European Communities in Brussels The Customs Union among the member states of the European Economic Community has come into force on July 1, 1968. Its main effect has been the eradication of the ultimate 15 per cent that had remained of the original internal rates of import duty on industrial products between member states and the complete application of the joint tariff of the Community to industrial imports coming from outside the area. Farm produce, which is not subject to import duty but to "Absch~pfungen" (levies) will in future be governed by a unified system of import control. Recently, it has not always been a true com- munity spirit that ruled the fate of the EEC because, in many countries, national selfish- ness seems to recover ground. This renders more indispensable than ever for the Com- munity a successful completion of the Customs Union, which is thought to be the first big step towards closer political cooperation in Europe. QUESTION: Herr vonder Groe- months later, which means that it of a tariff system, has led to ben, in contrast to the predictions has become a reality more rapid- vigorous growth of business. We of some pessimists, the European ly than foreseen. Admittedly, we expect that all Common Market Customs Union has become oper- met with obstacles occasionally countries wilt obey the decision ative on July 1, 1968. Which were in such countries as France and of the Council of Ministers and the main difficulties that had ham- Italy, where people had been used dismantle all internal tariffs, whilst pered the carrying out of this de- to relatively high tariff protection, at the same time adopting the com- sign? but such difficulties referred only mon unified external tariff. Even France has declared its willingness ANSWER: Strictly speaking, the to individual branches of produc- to do so, and we hope that our path towards the Customs Union tion. But broadly speaking, all French partner will be able to do was not strewn with major difficul- member countries have been able away with the remaining tariff ties. As you know, we had original- to observe that free competition barriers and to put into practice ly planned to bring the customs within the Community, free espe- the tariff adjustments. union into being at a date eighteen cially from the distorting effects Agrarian Market Regulations: Subject of Heated Disputes HANS VON DER GROEBEN QUESTION: We all hear nego- was born in East Prussia in i907. Now a member of the Commis- tiating common market regulations sion of the European Communities, he contributed to the drafting and concluding these talks on of the fundamental treaty of the EEC. In the Commission, which May 29, 1968, were supposed to he entered in 1958, he was in charge of the policy for the safeguard- be the last step before the Six ing of competition within the EEC. He played a decisive part in entered the Customs Union. What the carrying-out of the EEC's principles for the marketing policy. connection is there, in your view, between agrarian market regula- In the present-day Commission yon der Groeben's many respon- tions and the Customs Union? sibilities are in the field of unifying the national law, harmonis- ing the tax systems, of securing the liberty of domicile for citizens ANSWER: There is indeed a link and companies within the EEC area, and of regional policy. His between agrarian market regula- was the initiative towards a common added-value-tax. He is also tions and the tariff system for in- responsible for the spadework in laying down the statute for a dustrial goods. There is not one European Company Law, among the member countries where there is a completely free and 226 INTERECONOMICS,No. 8, 1968 competitive market for farm prod- fixed by our Ministers of Agri- tional frontiers but a whole series uce. All of them operate systems culture have put a premium on of taxation laws, currency regula- of state control. For this reason, certain production, especially on tions, and the differences in tech- it would not have been sufficient all dairy products and animal and nical definitions and procedures. to dismantle all tariffs and other vegetable fats. Some critics of our A market in which goods are trade obstacles, but it was neces- farm price controls demand price completely free to circulate will sary, in addition, to set up unified cuts in order to eradicate all in- not come into being before the market controls for the major prod- centives for increased production. frontiers between different systems ucts of the Common Market area. On the other hand, influential and rates of taxation and other Because of the considerable dif- voices are raised, among them trade obstacles have all been done ferences between individual EEC that of my colleague, Sikko Mans- away with and member states give members both in the fields of farm holt, against using interference up customs inspections. In order and of industrial production, there with the price mechanism as the to reach these targets, a big po- have not only been close economic only instrument of controlling farm litical effort will still he required, but also political links between output. They advocate an overall which will have to be sustained setting up unified controls of farm structural and regional treatment over a number of years. produce markets and building a of European farming. I believe QUESTION: As taxation will re- customs union. Some of our mem- that it will be necessary to think main different in different coun- ber states were more keenly in- over afresh all the questions that tries, do you not think it conceiv- terested in obtaining access to wide- are in any way connected with able that protectionism by taxation open markets for their farm prod- these problems, and to find so- might replace national protective uce, in others the salient interest lutions, so that our farmers will tariffs? was focussed on dismantling im- be enabled to adjust themselves port duties levied on industrial gradually, and not hastily, to liv- ANSWER: No, I do not believe products. And this was the reason ing in our Common Market, whilst that, for it would be rather diffi- why the ultimate step which we at the same time not forming a cult to use taxation for protec- were able to do in the agricultural burden preventing industrial pro- tionist purposes on a very broad sector was an indispensable prior gress to higher productivity. front. Moreover, I do not believe condition for overthrowing the last that any member state of the Com- remnants of protective internal Not Yet a "Home Market" munity is aiming at such protec- tariffs in the field of industry. tionist policies under the guise of QUESTION: Everybody seems to Politically speaking, it may there- national taxation. There remains, talk about a completion of the fore be stated that the last ob- of course, the question whether Customs Union. Is it a fact, or is stacle on our march towards a member states are able fully to it not, that now there are no longer customs union was overcome on any import duties to be paid? resist the temptation to grant tax May 29. preferences to individual branches ANSWER: Apart from a few of industry. Such measures are al- QUESTION: Do you personally agricultural products, for which no ways feasible, and it will never believe that agricultural market market control system has yet been be possible to prevent them com- controls as they have now been worked out, there is indeed a com- pletely. What matters is rather to introduced represent a final and plete customs union in force. On keep such preferential taxation genuine solution to your problems, the other hand, completely free within strict limits, so that this or do you think that they will movements of goods will only be could not falsify competition be- have to be reviewed and adjusted guaranteed after certain rules and tween the industries of member at a later date? regulations of tariff law, and def- states. Limited differences in tax- ANSWER: Agricultural market initions of dutiable value, are ation between member countries controls have just now become the harmonised.
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