Published online by Cambridge University Press: 22 May 2009
In December 1959 the European Free Trade Association was set up in Stockholm, and thus the postwar efforts to unite western Europe have led to a significant new division within it: two separate areas of free trade are being set up, at much the same pace, the “Inner Six” centered around France and Germany, the “Outer Seven” around Britain and Scandinavia.
1 A customs union involves the mutual abolition of tariffs within the area and the creation of a common tariff around it; a free trade area involves the mutual abolition of tariffs within the area without a common tariff around it.
2 Different areas accounted for the following percentage shares in United Kingdom trade: