Industrial Diplomacy and Economic Integration: The Origins of All-European Paper Cartels, 1959—72

Abstract

Students of European integration have produced an enormous amount of literature on the intergovernmental negotiations that led to the establishment of such organizations as the OEEC, the EEC and EFTA. However, only a few have devoted substantial attention to the international contacts between companies that attempted to undermine the integration process by building private trade barriers that would replace those that governments had agreed to remove. The paper producers began to build such barriers soon after EFTA and the EEC had been set up. Although these attempts were not always successful, the industrialists did manage to create arrangements that were substantially more extensive in their geographical and product scope than those that had existed before. The British government and the EEC were reluctant to challenge these arrangements, and in some cases even actively promoted them. The interwar decades are widely considered to be the ‘golden era’ for international cartels; but for the paper cartels, the ‘golden era’ began in the 1960s, when previous bilateral links were replaced with multilateral ones.