The political economy of EC protectionism: National protectionism based on Article 115, Treaty of Rome
✍ Scribed by Ludger Schuknecht
- Publisher
- Springer US
- Year
- 1991
- Tongue
- English
- Weight
- 748 KB
- Volume
- 72
- Category
- Article
- ISSN
- 0048-5829
No coin nor oath required. For personal study only.
✦ Synopsis
This paper investigates the trade policy of the EC, based on Art. 115, Treaty of Rome. It is shown that politicians and bureaucrats take advantage of the significant discretion the procedure allows. Political and bureaucratic self-interest are the underlying motives for national trade barriers against non-member countries based on Art. 115. The empirical results support this hypothesis.
Art. 115, Treaty of Rome
In order to ensure that the execution of measures of commercial policy taken in accordance with this Treaty by any Member State is not obstructed by deflection of trade, or where differences between such measures lead to economic difficulties in one or more of the Member States, the Commission shall recommend the methods for the requisite cooperation between Member States. Failing this, the Commission shall authorise Member States to take the necessary protective measures, the conditions and details of which it shall determine. (...) (Ipsen, 1972).