The European Alternatives International Commodity Policy: EEC Policies and Options

Extract

HOW IS THE EEC TO REACT TO THE UNCTAD DEMAND FOR AN INTEGRATED commodity programme? In this paper we attempt to sketch the background to this question and to identify some of the major options available to the Community. At the outset, however, one point deserves emphasis: over the past fifty years there have been many attempts to manage international commodity trade. Their success or failure has invariably depended more on political than purely technical considerations. Where national security or alliance needs ‘demanded’ coordination, as with the combined Raw Materials Board during the Second World War, any technical difficulties were overcome; on the other hand the inter-war rubber, wheat and coffee agreements were unable to withstand the onslaught of the depression, the retreat to economic nationalism, and the readiness of many members to put short-term domestic considerations before long-term international commitments. In the current debate the political context has, of course, changed, but the relevance of these political considerations has not.