5/78
SPAIN AN D
THE EUROPEAN COMMUNITY
CONTENTS
1. Spain s eques o membe ship o he Communi y
. . . . . . . . . . . . . . . . . . . . . . . . .
2. TheSpain-EECT adeAg eemen ..................................,....
3. Modi ica ion o he T ade Ag eemen .............,................."
4. A numbe o sec o al p oblems: ishing, ex iles and oo wea , s eel.
.............
Annex: Economic p o ile o Spain and ade wi h he Communi y. . . . . . . . . . .
. . . . . . . . . . . . . .
Rep oduc ion au ho ized, wi h o wi hou indica ion o o igin. Vouche copies would be app ecia ed.
May 1978
On he occasion o he o icial isi by M Roy Jenkins, P esiden o he Commission o he Eu opean
Communi ies, o Mad id on 27 and 28 Ap il 1978, he p esen in o ma o y memo andum assesses
ela ions be ween Spain and he Eu opean Communi y.
NOTICE
Subsc ibe s o 'EUROPE-INFORMATION' a e eques ed o no e ha om .Issue No 1/78 his publica ion will be
dis ibu ed by he se ices o he O ice o O icial Publica ions in Luxembou g.
Any change o add ess should be no i ied o:
M MARASCHIN
OFFICE FOR OFFICIAL PUBLICATIONS
OF THE EUROPEAN COMMUNITIES,
Boi e Pos ale 1003 5, ue du Comme ce
L - LUXEMBOURG
Howe e , any eques s o new subsc ip ions o addi ional in o ma ion conce ning his publica ion should be
add essed o:
COMMISSION OF THE EUROPEAN COMMUNITIES
Spokesman s G oup and Di ec o a e-Gene al o In o ma ion
Publica ions Dis ibu ion Se ice
Be laymon 2 - 27
Rue de la Loi, 200
1049 BRUXELLES
Tel. 7350040 ex . 5120 o 2346
1. SPAIN'S REQUEST FOR MEMBERSHIP OF THE COMMUNITIES
On 17 Feb ua y 1976 he Spanish Minis e o Fo eign A ai s, M de A eilza, isi ing B ussels sho ly a e
he h oning o King Juan Ca los, in o med M O oli, hen P esiden o he Eu opean Commission, and Si
Ch is ophe Soames, Vice-P esiden esponsible o ex e nal ela ions, ha Spain would be able o eques
accession o he Communi y once he g adual p ocess o in oducing democ acy in o he con y was
comple ed. These p ospec s could no come as a su p ise o he Communi y which had o a long ime
e used any kind o ins i u ional link wi h Spain on he g ounds ha i s egime was no democ a ic.
I was on 28 July 1977, immedia ely a e he June elec ions, ha M O eja Agui e, he new Spanish
Minis e o Fo eign A ai s, o icially p esen ed P esiden Sua ez s le e s con aining his coun y s eques
o accession o he P esiden -in~O ice o he Council, he Belgian Minis e M Simone . On he p e ious
day he Spanish Minis e had me wi h he Commission P esiden , M Jenkins, and also wi h Mess s
Na ali and Ha e kamp, Vice-P esiden s esponsible o ques ions co e ing enla gemen and ex e nal
ela ions, espec i ely. This eques came wo yea s a e G eece s eques (June 1975) and ou mon hs
a e Po ugal's eques (Ma ch 1977).
The Commission exp essed sa is ac ion a Spain s desi e and on 20 Sep embe he Council ga e o icial
ackhOwledgmen o eceip . The Council hen asked he Commission o d aw up, in con ac wi h Spain
and membe coun ies, i s opinion p io o he opening o nego ia ions.
On 4 No embe , he Spanish P ime Minis e , M Sua ez, isi ed he Commission, ollowing alks in he
capi als o he a ious membe coun ies. The P esiden , M Jenkins, oge he wi h M Na ali con i med,
on his occasion, he impo ance hey a ached o inding sa is ac o y solu ions o he p oblems in ol ed
in in eg a ing Spanish ag icul u e and indus y.
Du ing an o icial isi o Mad id om 13 o 15 Feb ua y 1978 Vice-P esiden Na ali had alks, in an
excep ionally good a mosphe e, wi h King Juan Ca los and hose in leading poli ical pos s, inCluding
Mess s Sua ez, O eja Agui e and Cal o So elo, who had been appoin ed Minis e in cha ge o Rela ions
wi h he Communi y. On his occasion M Na ali s essed he ac ha since he Communi y and Spain
had aken he poli ical choice in a ou o enla gemen his should p omp he sea ch o solu ions o
economic p oblems which could be c ea ed by accession.
M Cal o So elo hen paid a isi o B ussels on 8 and 9 Ma ch 1978 in o de o wo k ou , wi h he
Commission, p ac ical aspec s o coope a ion o pu poses o d awing up an opinion on he eques o
membe ship and, in pa icula , o pupply he Commission wi h in o ma ion.
This opinion is expec ed o be published in ea ly 1979.
2. THE SPAIN-EEC TRADE AGREEMENT
E e since 1962 Spain had asked he Communi y o s a up nego ia ions wi h a iew o an Associa ion
Ag eemen which could lead on o accession. On he basis o he p eamble o he T ea y o Rome
('...
esol ed... o p ese e and s eng hen peace and libe y, and calling upon he o he peoples o Eu ope
who sha e hei ideal o join in hei e o s ...') he Communi y did no eel i could mee he eques s o
he Spanish go e nmen a he ime. A new eques was submi ed by Spain in 1964 and explo a o y
alks we e held om 1964 o 1966 wi h a iew o nego ia ing an ag eemen o a s ic ly comme cial
na u e. Ac ual nego ia ions .s a ed in Sep embe 1967 a e he Communi y Council o Minis e s had
adop ed ini ial nego ia ion guidelines in July. Nego ia ions we e o be ca ied ou by he Eu opean
Commission in .acco dance wi h s anda d p ac ice.
The nego ia ions we e comple ed on 12 Ma ch 1970 a e he Council had speci ied and ex ended i s
e ms o e e ence du ing i s session on 17 Oc obe 1969,
The Spain-EEC T ade Ag eemen . concluded on he basis o A icle 113 o he T ea y o Rome, was
signed on 29 June 1970 and came in o o ce on 1 Oc obe ha same yea . 2 This p e e en ial ag eemen
1 C . Commission communica ion o he Council on 19 Ap il 1978 gi ing o e all conside a ions on he p oblems o
enla gemen .
2 EEC OJ L 182 o 1970.
was aimed a phasing ou he essen ial ba ie s o ade o e an ini ial s age las ing a leas 6 yea s
whils espec ing GATT decisions. A second s age, he p ac icali ies o which a e no de ined, would be
subjec o nego ia ions be ween bo h pa ies.
A Join Commi ee was se up in o de o ensu e ha he ag eemen was duly implemen ed. Ei he pa y
could wi hd aw om his Commi ee wi h a six mon h pe iod o no ice. I did no co e he coal and
s eel sec o which came unde he ECSC T ea y.
Unde he e ms o he Ag eemen Spain unde ook o phase ou i s impo du y on Communi y
p oduc s o e a pe iod unning om 1 Oc obe 1970 o 1 Janua y 1977. On his inal da e du y would
be educed o he ollowing pe cen age o i s o iginal le el:
(i) 60% o speci ic ag icul u al p oduce, o e, wood, aw co k, ex ile ib es e c. Which in 1968
accoun ed o 4% o Communi y expo s o Spain and we e subjec o cus oms du y o 8.2% 011
a e age;
(ii) 25% o a la ge numbe o indus ial p oduc s and speci ic ag icul u al p oduce (22% o Communi y
expo s, subjec o an a e age du y a e o 17.7%);
(Hi) 25% o 'sensi i e' p oduc s such as plas ics, au omobiles, machines and elec ical appliances (34.
o Communi y expo s, a e age a e o 28.5%).
Fo he mos sensi i e p oduc s, such as pape pulp, pape and ca d, he e was no p o ision o educ ion.
Special o mulas had, mo eo e , been wo ked ou o dai y p oduce. Spain he eby unde ook o buy a
leas 30% o i s bu e impo s om he Communi y as om 1 Janua y 1976.
The Communi y o i s pa unde ook o phase ou quo a es ic ions and o g adually educe i s cus oms
du y on Spanish indus ial goods as om 1 Oc obe 1970. Du y was o be educed by:
(i) 60% o i ually all indus ial p oduc s on 1 Janua y 1973;
(ii) 40% o a dozen indus ial p oduc s, including lea he shoes and speci ic ex iles on 1 Janua y 1977.
In addi ion, o he ag icul u al sec o , a i concessions we e g an ed o ci us ui s (40% unde ce ain
condi ions), un e ined oli e oil and he ollowing wines: She y, Malaga (50%), Jumilla, P io a o, Rioja and
. Valdepenas (30%), in he amewo k o quo as. A numbe o ypes o ish, mea and ui and ege ables
also bene i ed om educ ions anging om 25 o 100%, bu gene ally a a le el o 50% o hei o iginal
du y le el.
In he ag icul u~al sec o wo- hi ds o Spanish expo s o he Communi y we e co e ed by p e e ences.
Fo he emaining p oduce he ag eemen was in en ionally unbalanced in Spain s a ou so ha i s young
indus y, p o ec ed by highe a i s, would gain easie access o he Communi y ma ke .
I will be seen, in ac , ha as a as he indus ial sec o is conce ned, he Ag eemen b ough abou an
a e age educ ion o 55% o he Communi y s a e age cus oms du y a e o 8%, and a educ ion o only
25% o he Spanish a e age a e o 25%;
3. MODIFICATION OFTHE TRADE AGREEMENT
Sho ly a e he Ag eemen came in o o ce he Spanish au ho i ies and he Communi y ocused hei
a en ion on he epe cussions ha he accession o new Membe S a es o he Communi y would ha e ~
in pa icula he accession o he Uni ed Kingdom.
The Uni ed Kingdom was in ac he main expo ma ke o Spanish ag icul u al p oduce, which was, in
many cases, no co e ed by he Ag eemen . The Uni ed Kingdom a i was going o be aised o b ing i
in o line wi h ha o i s new pa ne s. I was e y quickly seen ha Spain could no ag ee o a simple
echnical ex ension o he Ag eemen o co e he new membe coun ies and ha Spain wished, on he
con a y, o p oceed o undamen al modi ica ion o he Ag eemen o make allowance o all he
implica ions o enla gemen .
Nego ia ions aimed a a new Ag eemen wi hin he amewo k o he Communi y s Medi e anean policy
we e hus held om July o Oc obe 1973 and in No embe 1974, a e a P o ocol p o iding o
empo a y non-applica ion o he 1970 Ag eemen o he new Membe S a es had been signed on 29
Janua y 1973. These nego ia ions esul ed in deadlock, wi h he Communi y p oposing ee ade o
indus ial goods oge he wi h new concessions in he ag icul u al sec o , whils Spain wished o ha e a
link be ween ee ade in he indus ial and ag icul u al sec o s. A comp omise was beginning o come o
ligh a he s a o 1975 bu nego ia ions we e b oken o by he Communi y who wished o use his as a
means o p o es ing agains iola ion o human igh s in Spain.
A e King Juan Ca los I came o he h one on 27 No embe 1975 con ac s we e aken up again. M de
A eilza, he new Spanish Minis e o Fo eign A ai s, paid an o icial isi o he Commission on
17 Feb ua y1976. M Cal oSo elo, Minis e o T ade, ollowed him on 27 Ap il wi h a iew o examining
ways and means o adap ing he Ag eemen o he enla ged Communi y.
Since he Spanish Go e nmen had made i known since he s a o 1976 ha i wished o iew i s
ela ions wi h he Communi y on he basis o apid accession o he EEC, i soon became appa en ha i
was poin less a emp ing o ul il he aim o ee ade h ough modi ica ion o he Ag eemen . The
Commission submi ed a p oposal o he Council o he e ec ha i would be be e o nego ia e an
addi ional P o ocol o he 1970 T ade Ag eemen , o be alid up o he end o 1981. In addi ion o
p o iding o ex ension o he p o isions o he Ag eemen o co e he Uni ed Kingdom, Denma k and
I eland, he P o ocol should also allow o mu ual, limi ed educ ion in cus oms du y, u he concessions
in he ag icul u al sec o in Spain s a ou and also p o ide o a sys em co e ing ade in he coal and
s eel sec o .
A e he Council had issued i s di ec i es ela ing o modi ica ion o he Ag eemen in he ligh o
Communi y expansion in Ap il 1977, nego ia ions we e aken up again in May. An exchange o le e s
be ween he wo pa ies shows on 25 July ha he p o isions o he ag eemen be ween he h ee
new Membe S a es and Spain we e implemen ed au onomously on 1 July ~ he da e on which he
ansi ional pe iod ixed o he Uni ed Kingdom, Denma k and I eland expi ed. Only a numbe o
ag icul u al p oduc s impo ed by he Uni ed Kingdom would con inue o be subjec ed o he old impo
sys em up o 31 Decembe 1977 - he end o he ansi ional pe iod o hese p oduc s.
In Decembe 1977 he Council adop ed nego ia ion di ec i es co e ing adap a ion and ex ension o he
Ag eemen . Nego ia ions s a ed up again on 8 Feb ua y 1978.
The Communi y el ha he imbalance in indus ial bene i s ins i u ed by he Ag eemen should be
e iewed in he ligh o de elopmen s in Spanish indus y since he end o he 1960s. Spain, o i s pa ,
showed a willingness o g an concessions as a as i s cus oms a i s on indus ial goods we e
conce ned, bu only i i we e g an ed su icien concessions o ag icul u al p oduce in e u n. This
was i s ly o make all'3wance o concessions g an ed by he Communi y o o he non-Communi y,
Medi e anean coun ies and secondly, o o se he losses ha Spain ea ed i would su e on he B i ish
ma ke .
Con ac g oups we e se up o look in o he p oblems in ol ed in managemen o he Ag eemen and o
u he speci y he di ec ions ha bo h delega ions should ake.
4. A NUMBER OF SECTORAL PROBLEMS
(a) Fishing
Following he ex ension o ishing-zone limi s o Communi y Membe S a es o he A lan ic coas
u he o conce ed ac ion, he Commission ecei ed au ho iza ion o s a nego ia ions wi h non-
Communi y coun ies ela ing o access o ishing esou ces and he equisi e managemen measu es,
in pa icula as a as he conse a ion o ce ain species was conce ned.
Whils awai ing he conclusion o amewo k ag eemen s he Communi y has aken au onomous
measu es on a empo a y basis. Hence, whils he nego ia ions s a ed wi h Spain in 1976 a e
con inuing, Council egula ions ha e se up a licence sys em, o which ships lying he Spanish lag
ha e been subjec since Ap il 1977. In 1978 he mon hly quo a o hake alloca ed o Spanish ishe -
men was hus ixed a some 3 000 onnes - a conside able educ ion compa ed wi h 1977. This
educ ion, wa an ed by he need o sa egua d halieu ic esou ces, is equal o ha imposed on
Communi y ishe men.

(b) Tex iles and oo wea
A he end o 1977 he Communi y concluded some wen y i e-yea ag eemen s wi h non-
Communi y coun ies, in he amewo k o he In e na ional A angemen on T ade in Tex iles. These
we e aimed a gua an eeing and in oducing discipline in o ex ile expo s o he Communi y om
coun ies whose p oduc ion capaci y seemed o be h ea ened in he sho e m by compe i ion om
la ge-scale supplie coun ies. The si ua ion is ob iously mo e complex in he case o coun ies wi h
links wi h he Communi y in he o m o p e e en ial ag eemen s.
The Commission and Spain exchanged lis s o p oduc s ( ou een on bo h sides) which hey el o be
in a pa icula ly sensi i e posi ion. Discussions con inued wi h a iew o eaching an a angemen
whe eby bo h pa ies would adop a con e gen app oach aimed a p e en iog ecou se o spo
measu es, whils e aining hei au onomy as a as indi idual comme cial policy was conce ned.
I should be no ed ha he Communi y has likewise jus decided o se up an a p io i Communi y
moni o ing scheme o all supplie coun ies, co e ing impo s o oo wea , whils awai ing he
in oduc ion o a mo e lexible sys em on 1 Oc obe nex which will ob ia e he need o a licence p io
o impo .
(c) S eel
A adi ional impo e o Communi y s eel p oduc s, Spain has also apidly become he second la ges
supplie o s eel o he Communi y, a e Japan. On bo h sides, ade in s eel, which is ela i ely well-
balanced, amoun s o some one million onnes. Wi h a iew o p ese ing his balance unde he
p esen c isis condi ions, each pa ne has aken au onomous measu es. The Commission, ac ing on
he basis o he ECSC T ea y, has no ably subjec ed Spanish gal anized shee s eel, hea y pla e and
sec ions o empo a y an i-dumping du y. Measu es o his kind ha e likewise been aken in ade
wi h a la ge numbe o o he coun ies.
In applica ion o he Council decision o 19 Decembe 1977, he Commission s a ed nego ia ions
wi h Spain on 24 Janua y 1978, wi h a iew o eaching an ag eemen which main ains adi ional
ade ci cui s and ensu es, in pa icula , ha Spanish expo e s obse e he minimum p ices ixed by
he Commission o Communi y p oduce s, al hough making allowance o a ce ain scope o
pene a ion. These nego ia ions esul ed in an Ag eemen which was ini ialled on 24 Ap il.
ANNEX
Economic p o ile o Spain and ade wi h he Communi y
Spain has a popula ion o almos 36 million o a e i o y o 505 000 km , i.e. a popula ion densi y o jus abo e 70
inhabi an s pe squa e kilome e. The popula ion igu e is expec ed o exceed 39 million in 1985. Ou o a wo king
popula ion o 13341 900 in 1976, 27% we e women.
The pe cen age o ac i e popula ion in ol ed in ag icul u e ell om 40% in 1960 o 23% in 1975, wi h indus y now
p o iding 38% o jobs and he se ices 39%.
The pe cen age o g oss domes ic p oduc made up by ag icul u e d opped om 24 o 12% o e he pe iod 1960 o
1975. Ranking second a e F ance, in Wes e n Eu ope, in e ms o a ailable ag icul u al land, Spain has a de ici in
bee and dai y p oduc s. I is one o he wo ld's op p oduce s o ci us ui s, wine and oli e oil.
Spain anks en h among he indus ial powe s o he wo ld. By way o illus a ion o i s g ow h a e om 1960 o
1975 le us men ion bu a ew igu es: s eel p oduc ion has isen om 1.9 million onnes o 11.1 million onneS, ca
p oduc ion has inc eased om 39 600 o 696 000, cemen p oduc ion has inc eased om 5.2 million onnes o 23.
million onnes and inally, elec ici y om 16600 kWh o 82400 kWh. Spanish indus y is ma ked by he
con as ing co-exis ence o mode n unde akings con olled by he S a e o la ge inancial holdings and a la ge
numbe o small businesses wi h a lack o capi al and esou ces o esea ch and echnology.
The g oss na ional p oduc was sligh ly abo e 100000 million dolla s in 1976 wi h he pe capi a income (USD
2 865) oughly equi alen o ha o I eland. This was ollowing an economic g ow h a e o on a e age 5.9% pe
annum om 1965 o 1975, compa ed wi h a Communi y g ow h a e o 3.5%, A e he oil c isis, g ow h did no
exceed 1% in 1975 o 1976, bu was on he up ake again in 1977 in a clima e which was, howe e , ma ked by
pe sis ing unemploymen , a balance-o -paymen s de ici .and .an in la ion a e o some 25% (Decembe 1976 o
Decembe 1977) which he Go e nmen would like o educe o some 16% in 1979.
The b eakdown o Spain s ade wi h he es o he wo ld on a pe sec o basis was as ollows in 1976:
(pe cen ):
Impo s Expo s
Foods u s, d ink, obacco
Ene gy, lub ican s
Raw ma e ials
Chemical p oduc s
Machines and anspo equipmen
O he manu ac u ed goods
10,
29,
14.
20.
16.
20.4
24.
40.
Sou ce: EEC S a is ics O ice.
Mon hJyex e nal ade bulle in special issue 1958-76.
The Communi y is by a Spain s la ges cus ome and supplie . I s p opo ion o Spanish expo s has emained
s able, accoun ing o 47.8% in 1973 and 46.4% in 1976, whils he p opo ion o impo s ell om 42.9% in 1973
o 33. 1 % in 1976 as a esul o he inc eased p ice o oil p oduc s.
T ade be ween Spain and he Communi y
(USD mil/ion)
Spanish Spanish T ade de ici
impo s expo s
1973 4112 2463 1649
1974 5548 3360 2188
1975 5461 3432 2029
1976 5785 4048 1737
1977 i s
3 qua e s 4610 3347 1263
Sou ces: EEC S a is ics O ice. Mon hly ex e nal ade bulle in Feb ua y 1978 and
special issue 1958-76.
E en wi hou aking in o accoun he ou is income o igina ing om he nine EEC coun ies and ans e s sen o
Spain by Spanish emig an s in he Communi y, ade be ween Spain and he Communi y, whils s ill showing a
de ici , is mo e balanced ha i s ade wi h he es o he wo ld. F om 1973 o 1976 Spain s o e all impo s we e
only hal co e ed by expo s, in alue e ms.
The si ua ion imp o ed, howe e , in 1977, wi h he ade de ici b ough down om USD 8.7 o 7.6 housand million
o e all, by i ue o a sha p inc ease in expo s (+ 17.5%) accompanied by a s agna ion in he le el o impo s
(+ 1.6%, i.e. oughly -8% in eal e ms). As o he de ici in he CU en balance o paymen s ~ his has been
educed om USD 4.3 o 2.5 housand million