Anatomy of a Regional Trading Bloc : The European Union (from the date of Formation to the year 2003)

European Union the Formation Originally the European Coal and Steel Community (ECSC) was formed with the then West Germany, France, Italy Belgium, Netherlands and Luxembourg in 1952. The aim of the ECSC was to eliminate import duties and quotas on coal, iron ore, steel and scrap regarding the international trade among the member countries. The successful functioning of ECSC stimulated the member countries to extend this facility to all commodities by the Treaty of Rome in 1957. …

…products from the U.S., Japan and Canada. Despite all these achievements, the EEC has not been successful in achieving a complete economic and political union. It has failed to evolve a common central bank. Regional disparities within member countries persist. Empirical studies have revealed that some trade diversion effects have occurred. But trade creation effects have been much stronger so that the total trade of the Community with the outside world has increased manifold.