The welfare and policy implications of the international trade consequences of '1992.' (single European market) (Papers and Proceedings of the Hundred and Fourth Annual Meeting of the American Economic Association)(European Economic Integration: Where Do We Stand?)

The area in which the single European market of 1992 will have the greatest effect is international trade. The reduction of trade barriers may reduce the prices of both imports within the European Community and extra-EC imports at the expense of domestic sales. Increased competition, in the form of either greater competition within EC-member states or greater competition from non-EC members, needs to supplement the reduction in trade barriers. Countries should not be allowed to petition reductions in EC imports unless policies are discriminatory.