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The Making of a World Trading Power the European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963–67)

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The Making of a World Trading Power the European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963–67) The Making of a World Trading Power The European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963–67) Lucia Coppolaro THE MAKING OF A WORLD TRADING POWER Modern Economic and Social History Series General Editor: Derek H. Aldcroft Titles in this series include: Economics in Russia Studies in Intellectual History Edited by Vincent Barnett and Joachim Zweynert Mining Tycoons in the Age of Empire, 1870–1945 Entrepreneurship, High Finance, Politics and Territorial Expansion Edited by Raymond E. Dumett British Conservatism and Trade Unionism, 1945–1964 Peter Dorey The International Order of Asia in the 1930s and 1950s Edited by Shigeru Akita and Nicholas J. White Personal Capitalism and Corporate Governance British Manufacturing in the First Half of the Twentieth Century Myrddin John Lewis, Roger Lloyd-Jones, Josephine Maltby and Mark David Matthews A Decent Provision Australian Welfare Policy, 1870 to 1949 John Murphy Commerce and Culture Nineteenth-Century Business Elites Edited by Robert Lee The Eclipse of ‘Elegant Economy’ The Impact of the Second World War on Attitudes to Personal Finance in Britain Martin Cohen The American Reaper Harvesting Networks and Technology, 1830–1910 Gordon M. Winder Land, Proto-Industry and Population in Catalonia, c. 1680–1829 An Alternative Transition to Capitalism? Julie Marfany The Making of a World Trading Power The European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963–67) LUCIA COPPOLARO Institute of Social Sciences – University of Lisbon © Lucia Coppolaro 2013 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Lucia Coppolaro has asserted her right under the Copyright, Designs and Patents Act, 1988, to be identified as the author of this work. Published by Ashgate Publishing Limited Ashgate Publishing Company Wey Court East 110 Cherry Street Union Road Suite 3-1 Farnham Burlington, VT 05401-3818 Surrey, GU9 7PT USA England www.ashgate.com British Library Cataloguing in Publication Data Coppolaro, Lucia. The making of a world trading power : the European Economic Community (EEC) in the GATT Kennedy Round Negotiations (1963-67). -- (Modern economic and social history) 1. European Economic Community--History. 2. Kennedy Round (1964-1967 : Geneva, Switzerland) 3. Foreign trade regulation--History--20th century. 4. European Union countries--Commercial policy. I. Title II. Series 382.9'4-dc23 Library of Congress Cataloging-in-Publication Data Coppolaro, Lucia. The making of a world trading power : the European Economic Community (EEC) in the GATT Kennedy Round negotiations (1963-67) / by Lucia Coppolaro. p. cm. -- (Modern economic and social history) Includes bibliographical references and index. ISBN 978-1-4094-3375-0 (hbk.) -- ISBN 978-1-4094-3376-7 (ebook) 1. European Economic Community countries--Foreign economic relations. 2. European Economic Community countries-- Commercial policy--History. 3. Europe--Commercial policy--History. 4. Europe--Foreign economic relations--United States. 5. United States--Foreign economic relations--Europe. 6. European Economic Community--History. 7. General Agreement on Tariffs and Trade (Organization) 8. Kennedy Round (1964-1967 : Geneva, Switzerland) I. Title. HF1532.5.C67 2013 382'.9209409046--dc23 2012034225 ISBN 9781409433750 (hbk) ISBN 9781409433767 (ebk – PDF) ISBN 9781409474449 (ebk – ePUB)XV Printed and bound in Great Britain by the MPG Books Group, UK. For Little T. This page has been left blank intentionally Contents List of Figures and Tables ix Acknowledgments xi Key to Archives xiii Abbreviations and Acronyms xv General Editor’s Preface xvii Introduction 1 1 Kennedy’s Initiative for a New GATT Round: Liberalizing International Trade and Strengthening the Atlantic Alliance 15 2 The EEC’s Answer to the U.S. Proposal: Accepting the Round While Defending its Regionalism 39 3 Devising the Rule of the Kennedy Round 65 4 The Regional Crisis in a Multilateral Context 93 5 The EEC and Negotiations in the Industrial Sector: Enhancing Freer Trade 119 6 Negotiations in Agriculture: In the Shadow of the Common Agricultural Policy 149 7 Final Bargain: Setting the Tone of European Regionalism in Global Trade 177 Conclusions 205 Bibliography 215 Index 231 This page has been left blank intentionally List of Figures and Tables Figures 1.1 U.S. exports to the Six, 1954–62 27 2.1 EEC exports by area of destination as a percentage of the total 47 2.2 EEC imports by area of origin as a percentage of the total 47 Tables 1.1 GATT rounds and their main results 23 1.2 U.S. exports 1954–62 28 1.3 U.S. trade balance 1954–62 29 2.1 Average ad valorem percentage incidence of import duties of the Six in 1958 44 2.2 EEC member states’ exports 1954–63 by destination 45 2.3 Trade of the Six with the United States, 1954–63 55 3.1 Comparison of EEC, U.S., and UK Tariff Rates 70 5.1 EEC exports to major areas, 1959, 1962 and 1964 120 5.2 Composition of total exports of the Six in 1964 120 5.3 Exports of the Six in machinery and transport equipment (SITC Classification 7, in percentages) in 1964 by destination 121 5.4 Index of growth of EEC member states’ exports in SITC 7, machinery and transport equipment 121 5.5 Index of growth of EEC member states’ exports in SITC 5, chemicals 121 5.6 Index of growth of EEC member states’ exports in SITC 6, manufactured goods classified chiefly by material 122 5.7 Composition of U.S. trade balance with the EEC in 1964 123 5.8 Tariff lines excluded from the linear cut, for each sector (Commission proposals), as a percentage of total number of tariffs 125 5.9 Exceptions as a percentage of the EEC’s total imports and dutiable imports by sector and in total in 1963 125 5.10 Exceptions proposed by the Commission and further exceptions approved by the Council of Ministers 135 x THE MAKING OF A WORLD TRADING POWER 5.11 Categories of U.S. imports affected by EEC exceptions list 138 6.1 Composition of U.S. agricultural exports to the EEC, by commodity 153 6.2 U.S. exports by destination in 1965 (thousands of metric tons) 153 6.3 Imports of cereals by EEC members, excluding France, in 1964, by country of origin (in tons) 154 6.4 Rate of EEC members’ self-sufficiency in cereals in 1964 155 6.5 French exports of cereals by destination in 1964 (in tons) 156 7.1 EEC average ad valorem percentage incidence of import duties before and after the Kennedy Round 198 7.2 U.S. average ad valorem percentage incidence of import duties before and after the Kennedy Round 199 7.3 UK average ad valorem percentage incidence of import duties before and after the Kennedy Round 199 Acknowledgments This book originated in a Ph.D. dissertation submitted to the European University Institute (EUI) in Florence in December 2006. Throughout the writing of the thesis and then of the book, I was fortunate to receive precious help, support, and encouragement from many people, without which the process would have been much more difficult. All have contributed in different but crucial ways. At EUI I was fortunate to have Professor Alan S. Milward as supervisor. His confidence in me was a great support during the entire period of writing. I consider it a privilege to have had such an outstanding scholar as a guide and interlocutor in discussing the topics of this book. The preparation of the manuscript has entailed a fascinating journey in the Iberian peninsula during which my debts have accumulated. I am, first of all, indebted to Fernando Guirao. For nine months beginning in September 2006 he gave me the opportunity to visit the Universitat Pompeu Fabra in Barcelona as a postdoctoral researcher. During this period he carefully and patiently read my dissertation, and his incisive comments and criticisms helped to improve the argumentation of this book. Moreover, he gave me the opportunity to make my debut as a teacher at this very stimulating university. I am most grateful to Fernando for all this and also—let’s be frank—for allowing me to enjoy the terrific city of Barcelona. In 2008, I started a postdoctoral program at the Institute of Social Sciences of the University of Lisbon. This position provided the opportunity to continue my research on international trade and European integration and to complete the writing of this book in an intellectually inspiring environment. I benefited from the scholarly advice of Pedro Lains—and enjoyed his mild but very acute sense of humor and irony—and that of José Luís Cardoso on countless matters, and from their constant support. I am most grateful to both. I would also like to express my gratitude to my friend and colleague Nina Wiesehomeier, with whom I enjoyed many lunch breaks. My thanks go also to Maria Eugénia Rodrigues for general administrative support. Several people have read parts of the thesis and of the book and proffered useful criticism. I wish to record my thanks to David M. Andrews, Michael J. Geary, Ann-Christina Lauring Knudsen, N. Piers Ludlow, Francine McKenzie, Sigfrido Manuel Perez Ramirez, Pascaline Winand, Thomas W. Zeiler, and Hubert Zimmermann. I am indebted especially to Piers Ludlow for being available whenever I needed good advice. I wish to thank Ashgate for assistance through the publishing process and for having recruited two anonymous reviewers who gave thoughtful advice. I xii THE MAKING OF A WORLD TRADING POWER acknowledge with gratitude the assistance provided by Richard Isomaki in the proofreading of the book manuscript.
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