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From Isolation to the Core: Finland's Position towards European Integration 65
tween Finland and the Socialist countries”. Within GATT these agreements caused
trouble, but eventually they were, in fact, passed. 18
The free trade agreement with the EC entered into force from the beginning of
1974, a year behind the originally scheduled deadline. Finland's special status became
evident by the fact that the agreement did not include the so-called evolutionary
clause with regard to future arrangements and that the term of notice was defined,
like in FINN-EFTA, as three months, while for EFTA countries it was one
year in accordance with the Stockholm Convention. 19
Even though the adjustment of the Finnish economy to EFTA competition is to be
regarded as successful, many branches of the Finnish domestic industries requested a
similar delayed tariff-reduction scheme as in FINN-EFTA. These requests were noted
by the Finnish Foreign Ministry but subordinated to the principal integration aim,
which was the abolition of duties on paper products by the EC. The EC was known for
its protectionist policy with regard to paper industries. Unlike the EFTA partners the EC
was not prepared to make unilateral concessions. Indeed, the main grievance during the
negotiations was the EC position on the duties on paper and related products, which
gave the Finns grounds for putting their own protectionist claims onto the agenda.
Eventually the EC consented to make concessions which satisfied the Finnish demands
in the long run. Controversies were settled within a package of delayed transitional periods
for sensitive branches of both parties. 20
As in the framework of EFTA, free trade comprised industrial goods originating in
the area. Import duties on industrial products were gradually removed, as a general rule,
by July 1977. When the EC agreement was delayed, Finland agreed upon continued
free trade with Britain and Denmark for the year 1973. Free trade with Britain and Denmark
continued also during the transitional period, except that duties on paper were partially
resumed, but in fact free trade according to the previous pattern continued within
duty-free quotas. The so-called sensitive branches were protected by delayed timetables
for tariff reductions until the beginning of 1980 and 1984 for Finnish exports and until
the beginning of 1981 and 1985 for Community exports. For Finland, sensitive branches
were, above all, textiles, clothing and knitwear, footwear, some branches of the
chemical industry, metal and electro-technical industries, and for the EC, paper industries
and a relatively modest number of other, mainly metal products. The EC agree-
18. See R.C. BABAN, The GATT and Free Trade Agreements between Market and Centrally-Planned
Economies, in: Economia Internazionale, Vol.XXXIII, No.2-3, 1980, pp.178-179 & 198-199; The
Contracting Parties to the General Agreement on Tariffs and Trade, Basic Instruments and Selected
Documents. (…) Protocols, Decisions, Reports (…) [1974-1980], Geneva, 1976-1981.
19. E. ANTOLA and O. TUUSVUORI, Länsi-Euroopan integraatio, op.cit., pp.152-154.
20. See The Federation of Finnish Industries: Teollisuutemme ja EEC, Helsinki, 1971, pp.11 & 21-22;
Suomen Teollisuusliitto. Toimintakertomus 1971, 1972, pp.16-17; and Suomen Teollisuusliitto.
Toimintakertomus 1972, 1973, pp.24-26; The Ministry of Foreign Affairs, Suomen EEC-neuvottelut,
Helsinki, 1972, p.29; FM Records 58 D a: Ulkomaankaupan neuvottelukunta (The Foreign
Trade Committee), “Selvitys Euroopan integraatiokehityksestä ja Suomen ulkomaankaupasta.
Euroopan integraatiokysymyksiä selvittelevän toimikunnan mietintö”, Helsinki, 8 June 1967,
pp.93, 97-102; and FM Records 73 D 1 : EEC (folder 28), letters by Finnish industrial associations
to the Foreign ministry, autumn 1970.