f the more advanced levels. A common external tariff has thus far eluded the Andean Pact, and, without this step, the Pact remains essentially a free trade area.
The 1983 trade agreement between Australia and New Zealand has effectively established a common market of those two coun tries. The agreement between Australia and New Zealand involves two national economies which are much smaller thanthe potential level of free trade between the United States and the five Latin American countries.The EEC was created with the signing of a treaty in Rome in 1957, by Belgium, France, the Federal Republic of Germany, Italy, Luxembourg, and the Nederlands (Paxton, 1989). The long term goals of the EEC are (1) the integration of the 3economies of the member countries, and (2) political unity. Pursuit of economic integration has been both more rapid and more successful than has the pursuit of political unity, although economic integration has also been beset with signifi cant problems.
In 1970, membership negotiations began between the six member countries of the European Communities and Denmark, the Irish Republic, Norway, and the United Kingdom (UK). On 22 January 1972, these four countries signed a Treaty of Accession to the European Communities. Through a referendum in November of that year, Norway rejected membership in the European Com munities. In the early 1980s, Greece was brought into the European Communities, as a full member, and, in 1986, both Portugal and Spain were brought in as full members of the European Communities.
In the summer of 1978, the member countries of the Euro pean Communities agreed to the formation of the European Mone tary System (EMS), and the organization became a functional reality in March 1979 (van Ypersele, 1985). While the UK is a member of the EMS, it is not a participant in the major func tion of the system, which is exchange rate management, which involves operation of the exchange rat...