Early American Views Regarding European Unification

Abstract

This article examines the origins of US foreign economic policy in the post-1945 period and the major challenges posed to US policy by European economic integration and the establishment of a multilateral trade regime. US post-war economic planning began in the early stages of World War II. The US promoted bilateral trade agreements based on reciprocity and most-favoured-nation principles. During the war, US policy makers debated the merits of various plans to provide economic and financial assistance to Europe based on the assumption that Nazi Germany would be defeated. The plans for economic reconstruction of Europe were made under the premise that US economy would benefit from the creation of export markets in Europe. However, US policy makers were also concerned that the creation of a unified European market could potentially constitute a challenge to US economic hegemony and perhaps a political threat should Europe fall under another tyrannical regime. US policy therefore pursued twin tracks: it promoted economic reconstruction and integration in Europe; at the same time, it facilitated the establishment of an international trading regime that would promote principles of liberalised trade, support US economic growth and contribute to the development of a free enterprise capitalist trading system. This article illustrates that US economic planners in the 1940s were aware of the benefits and risks of European economic integration, seeking to balance European economic reconstruction with the establishment of a robust multilateral trading system.