journal of european integration history revue d'histoire de l ...

92
Hans-Otto Frøland
tav Sjaastad, the Norwegian minister of Industry, and Ludwig Erhard, the West
German minister of Economics. 43 The Federal Republic was not only the largest
purchaser of Norwegian aluminium, but also the fastest growing export market.
The share of overall Norwegian exports that corresponded to exports to the Federal
Republic had grown from twelve per cent in 1950 to almost sixteen percent in
1959. By the same token, imports had increased from five percent to twenty-one
percent over the same period. Measured by total trade value the Federal Republic
was more important for Norway than Great Britain between 1958 and 1962. The
procedure for establishing a common external tariff was to hurt Norwegian exports,
as the Federal Republic would be raising its tariff rates.
The establishment of the EEC led to Norway's participation in the unsuccessful
FTA negotiations, even though the free trade area if affecting the primary sector
would represent by far the greatest threat against the country's political economy.
There was a substantial fear of the impact of the tariff union on traditional Norwegian
exports, and the authorities were willing to accept the costs to the domestic industry.
However, agricultural policy remained the same even if some members of the government
wished to use external pressure as an excuse to change it. The dilemma that
arose due to the demand to include agriculture in the free trade scheme ensured that
most politicians probably were relieved when France stopped, in November 1958, the
work of the so-called Maudling Committee, that is the OEEC inter-governmental
committee in charge of studying the establishment of a free trade area in Western Europe.
Starting in the spring of 1957, the Norwegian government had reported on the
disagreement between Great Britain and France, and as the EEC tariff union would
come into force in January 1959, the authorities discussed alternative interim solutions.
The ideal alternative was formulated by Trade minister Skaug at the Parliament's
Extended Foreign Policy and Constitutional Committee:
“the best alternative for us would be that the Six never reached an agreement. We
would then be able to continue our efforts on the basis we had through GATT and the
OEEC, and in other ways”. 44
Bearing in mind the needs of its export industry, Norway wanted free trade regulations
for industrial goods, defending liberal provisions for the origin of goods during
the entire FTA negotiation process. The authorities were afraid that France and
Italy would demand the exclusion of processed-wood products, ferro-alloys and
aluminium from the free trade area or that producers in both countries be subjected
to special schemes. France was suspected of trying to facilitate conditions so that
the French areas of Africa would supply the EEC with raw aluminium. 45 Paper pro-
43. UD, 44.2.38, vol.20, Memo on the effects of the Rome Treaty on the trade of aluminium, undated;
ibid., 44.33.1, Note on conversations with Erhard, 22 May 1958; and ibid., 44.2.38, Note on conversations
between Sjaastad and Erhard, 25 September 1958.
44. SA, SUUKK, Minutes of 14 February 1958, p.19.
45. SA, SUUKK, Minutes of 5 November 1958, p.6.