The United States and the European Economic Community: A Problem of Adjustment

The movement toward a one-world economy that seemed well underway during the middle 1950's has suffered setbacks. Retrogression has been particularly noticeable where previously progress had been most promising—in the relations of the United States with other industrial countries and especially with the European Economic Community (EEC). Difficulties over the United States' payments deficit, the international role of the dollar, and direct investment by the United States, mark the trend. The outcome of the Kennedy Round negotiations, fortunately, was a success, but the very duration and the bitterness of the negotiations were symptomatic of a deteriorating relationship. And complicating these economic problems were the political difficulties arising over the North Atlantic Treaty Organization (NATO) and Vietnam.