Trade Relations

Abstract

A process of economic integration as profound and extensive as the one now under way in Europe has far-reaching implications for the economies involved. Because Spain joined this project late – at the stage of customs union and with the single market in the process of formation – from 1986 onwards the Spanish economy had to confront a radical transformation in the regulatory framework of its foreign trade relations. Since 1986 Spain has had to dismantle the physical and economic borders with its new partners, adapt its systems of protection vis-à-vis third countries to those prevailing in the European common market, and assume the existing commitments in exchange-rate and monetary matters, as well as in areas relating to the freedom of movement of productive factors, areas in which the member countries had gradually advanced until the foundations for the construction of economic and monetary union were in place.