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28 J. Common Mkt. Stud. 1 (1989-1990)

handle is hein.journals/jcmks28 and id is 1 raw text is: 






Journal ofCommon Market Studies
Volume XXVIII, No. 1 September 1989
0021-9886 $3.00






       Customs Union Enlargement and

                        Adjustment:

      Spain's Accession to the European

                        Community*

                           ROBERT  C. HINE

            Universiy ofNottingham, and College ofEurope, Bruges

          1. CUSTOMS UNION  ENLARGEMENT AND ADJUSTMENT
With  Spain's entry to the European Community (EC) in 1986, tariff- and
quota-free trade throughout Western Europe in manufactured goods and to
a large extent in agricultural products was in prospect. The Community
itself is on the threshold of major change with the ambitious plan to create a
Single Market by 1992. For Spain and its EC partners these developments
will set in train a complex process of adjustment. In the short term, Spain
and its EC partners have to come to terms with the adjustment problems
created by Spain's membership of the EC customs union. These problems
are particularly severe because Spain is both a large and heavily protected
country, and a relatively poor one. The required tariff changes are markedly
asymmetric because most of Spain's exports to the EC already had relatively
liberal access before 1986, whereas Spain's imports from all sources were
heavily restricted. Over the longer term, the nature of the specialization
process in the European  economy  will have important implications for
adjustment. Will the Spanish economy, for example, come increasingly to
resemble those of Spain's European partners, or will a more complementary
relationship of inter-industry specialization develop?

  *An earlier version of this paper was presented at a Conference on 'Economic Aspects of Regional
Trading Arrangements', Lehigh University. The paper benefited by discussion at the conference, and in
particular from the comments ofH. Grubel and D. Greenaway; thanks are due also toJ. A. Salmurri and
to the two anonymous referees for their helpful advice.

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