Acknowledging economic realities. The CMEA policy change vis-à-vis the European Community, 1970–3

Abstract

In the early 1970s, the economic consequences of European Community (EC) policies forced the Council for Mutual Economic Assistance (CMEA) to devise its trade policy vis-à-vis the outside world. With the implementation of its Common Commercial Policy, the EC was about to change the rules and conduct of its foreign trade. The East–West trade boom that took off in the 1960s had created significant commercial links, and substantial dependencies, across the Iron Curtain. The smaller members of the CMEA began to advocate an opening up towards the EC due to their fears of worsening trade prospects caused by the new EC policies. After reconsideration of its allies' commercial needs, the Soviet leadership was pressured to change its mind in favour of a common approach vis-à-vis the EC. This article follows the debate within the CMEA Executive Committee on the socialist countries' dependency on the Western market and on the advisability of opening up to the global market. It relies on official CMEA documents as well as Soviet and German Democratic Republic (GDR) policy-making documents. This article analyses the process of socialist integration in connection with the simultaneous developments taking place in their Western European counterparts, and thereby fills a gap in the historiography of Europe in the Cold War.