Yugoslavia and the E. E. C. in the 1970s

• Published in: Journal of common market studies 1980-06, Vol.18 (4), p.355
• Main Authors: Artisien, Patrick F R, Holt, Stephen
• Format: Article
• Language: English
• Subjects: Balance of payments; Economic development; Economic policy; Economic reform; Foreign investment; Statistical data; Trade agreements
• ISSN: 0021-9886; 1468-5965

The end of the Tito era and the Soviet intervention in Afghanistan loosened up the dam of negotiations between Yugoslavia and the European Economic Community (EEC). Common market countries are the principal recipients of the Yugoslav migrant labor force and the chief source of workers' remittances, private transfers, and foreign tourism. In addition, Yugoslavia's trade has derived most benefit from the Generalized System of Preferences introduced by the Community on July 1, 1971. Currently, the full documentation on the new agreement is not available; only the Commission's press release summary is available. Apparently, the agreement contains a mixture of concrete new concessions by the EEC and other features of a more cosmetic nature that are designed to appear better than they will actually be. In the sensitive area of agriculture, the tariff quota on baby beef has been raised, and concessions have also been made on tobacco, slivovica, and wine. In the industrial sector, there will be free access to EEC markets for 70% of Yugoslavia's industrial products. Finally, it would seem that the 10 years since the signing of the first EEC-Yugoslav Agreement have not brought about any significant solution to Yugoslavia's objective of underpinning its political nonalignment by maintaining balance in its economic relations with the outside world.