European Free Trade Association

Abstract

An important item of discussion during the Autumn months of 1960 among the members of the European Free Trade Association (EFTA) was reported to be the question of association with the European Economic Community (EEC), but the press announced in October a “lack of progress” in resolving the problems encountered. The question was said to have been included in the issues taken up at the second ministerial meeting of the Council, held in Berne, Switzerland, on October 11 and 12, 1960. Mr. Max Petitpierre, president of the Swiss Confederation, reportedly stated in an address to the Council that, even if there was little prospect of an agreement between EEC and EFTA in the immediate future, it was imperative that the two organizations work together, not only for commercial and economic reasons, but also because of the mission that Europe was called on to discharge toward the newly independent countries. Since, however, an acceptable settlement with EEC seemed impossible in the near future, the Council determined that EFTA should proceed with its own plans. In pursuance of this decision, the Ministers decided to establish a consultative committee, representative of all aspects of economic activity, including labor, to advise on all facets of the activity of the Association. Also considered at the meeting was the possibility of an additional 10 percent tariff reduction to take effect as of January 1, 1961, to keep pace with the EEC cut scheduled for that date, but the Council concluded that too little time had elapsed since the first 20 percent tariff reductions on July 1, 1960, to make any modification of the timetable feasible at this time; it resolved, nevertheless, to re-examine the question early in 1961. The Ministers noted with satisfaction that the original tariff cuts had gone into operation without difficulty, and reasserted that the object of EFTA was not the creation of an inward-looking preferential bloc—for example, no restrictions on trade with third countries had been introduced with the creation of the group. EFTA offered to all trading nations, whether producers of industrial or agricultural products, stated the Council, the opportunities of an expanding market.