Commonwealth And Europe

Press, Volume XCIX, Issue 29342, 22 October 1960, Page 3

Commonwealth And Europe

The Commonwealth and Europe. Prepared by the Economist Intelligence Unit under the sponsorship of Britain in Europe, Ltd. 606 pp.

Britain in Europe is an organisation of leading industrial companies, banks and trade unions established two years ago to keep businessmen in Britain informed on develqpments in the field of European economic integration. Britain in Europe commissioned the Economist Intelligence Unit to make a study of the effects of the European Common Market on British industry, with or without a European Free Trade area. The results of this study were published in “Britain and Europe.” The present volume, a logical successor to “Britain and Europe,” analyses the implications for the British Commonwealth countries, individually and collectively, of the Common Market and of the European Free Trade Association. About 130 business firms and organisations, including the Bank of New Zealand and the New Zealand Meat Producers’. Board, contributed to the cost of its publication.

This is an exhaustive study of a complex subject. Correspondents of the “Economist” Intelligence Unit throughout the Commonwealth interviewed businessmen, economists and public servants to provide background material for analysis. The result must be one of the most comprehensive sur-

veys of trading relationships ever published. The conclusion reached by the team of authors is in line with progressive thought in Britain and in New Zealand. “It has been argued that the Six could agree to the tariff arrangements which have been outlined [providing for United Kingdom entry into the Common Market] . . . the choice for Britain is not an economic one; both Britain and the Commonwealth will lose if Britain remains cut off from the Six. The choice is political.”

The main arguments supporting this conclusion may be summarised as follows:

The European Free Trade Association, by combining with the Common Market, would offer a larger market to the producers of both areas, with consequent benefits from economies of scale. If the two areas remain separate, tt-ade between them will dwindle and producers in each area will find their exports, and

hence their production, dwindling. Elimination of Commonwealth preference by Britain’s Commonwealth partners would be of real commercial advantage to European producers. In return, increasing access for African, Latin American and Asian Commonwealth" pro-

ducts to the growing Continental market would benefit these countries.

What would be the effect on New Zealand If Britain entered the Common Market? “Current plans for European integration threaten to hurt no more than 1 per cent, of New Zealand’s total exports (in 1956), equivalent to less than 0.3 per cent, of gross national product, and could benefit 15 per cent, of total exports, that is 5 per cent, of gross national product. The.proportion of trade affected by a wider European association would be very much larger, but the balance should still be heavily in New Zealand's favour. New Zealand is not a sufficiently large or expansionary market to, be able, in ordinary circumstances, to bargain singlehanded with the E.E.C. But it has, - thanks to the 1958 agreement with the United Kingdom, something to offer the Six in return for concessions on, say, meat sales there. Nevertheless it would prefer a joint Commonwealth approach to the problem.”