The EEC was created in 1957 by the Treaty of Rome, which was signed by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. The United Kingdom, Denmark, and Ireland joined in 1973, followed by Greece in 1981 and Portugal and Spain in 1986. The former East Germany was admitted as a part of reunified Germany in 1990.
Known informally as the Common Market, it was the most significant of the three treaty organizations that were consolidated in 1967 to form the European Community.
CREATION OF THE EEC
Designed to create a common market among its members through the elimination of most trade barriers and the establishment of a common trade policy.
The EEC aimed to reduce tensions in the aftermath of World War II.
It was hoped that integration would promote a lasting reconciliation of France and Germany, reducing the potential for war.
As a means of improving Europe's economic climate and preventing war, influential statesman and political theorists suggested economic integration
PURPOSE OF THE EEC
ACCOMPLISHMENTS OF THE EEC
Provided for a common agricultural policy, which was established to protect EEC farmers from agricultural imports.
Common Price Levels for Agricultural Products
The 6 countries adopted a common external tariff on goods from the rest of the world.
A common external tariff was fixed
In 1968, each of the 6 members abolished taruffs and quotas on goods.
Internal tariffs were eliminated
All member nations in this free trade area removed all barriers to trade among themselves, which is what economists call a customs union.
Created a prominent free trade area and single market
CAUSES AND EFFECTS OF THE EEC
After WW2, tensions still remained in the European countries. They hoped integration would promote a lasting reconciliation of France and Germany, reducing the potential for war. The Treaty of Paris was signed first, creating an international community for coal and steel. To aim to create a federal Europe, more committees were proposed.
Aftermath of WWII
The Treaty of Rome was signed later in 1957, which established the European Economic Community. This was to create a customs union, and soon became the result of common price levels for agricultural products and tariffs removed of many products.
Creation of the EEC
The EU absorbed the European Communities as one of its three pillars. The EEC's areas of activities were enlarged and were renamed the European Community (EC), continuing to follow the supranational structure of the EEC. The EEC institutions become those of the EU as well. It soon enlarged to include double the countries it started with and was continuously growing.
Growth of EC
Changing the regional and national trade agreements showed how free-market economics was able to spread. The EEC aimed to bring economic integration among its member states, including a common market and customs union. In 1993, a complete single market was achieved, known as the internal market, which allowed for the free movement of goods, capital, services, and people within the EEC, covering 15 countries. Through the development of the EEC, and changing of regional trade agreements, like setting common prices and removing tariffs for many products, they were able to achieve a single market, free of all barriers to the maximum extent possible. This free market allowed for people, goods, services, and capital to move around a union as freely as they do within a single country.
The Single Market
The effects of this newly developed free market in Europe has been huge on its countries its self, along with encouraging others to do it as well. After the EEC transformed into the European Union, many other countries followed suit, creating the Eurasian Economic Union, for countries in Northern Asia and Eastern Europe, and the CARICOM, a Caribbean Community union consisting of 15 Caribbean nations who as well want to promote economic integration. This shows the effect regional trade agreements were able to have on other neighboring and far away countries.
The EEC was seen as an effort to make the world more connected through the introduction of the free market for European countries. This community participated in free market practices including trade and commerce, which was done to help the countries in it become more connected through the free market.