Treaty of Rome

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The Treaty of Rome is an agreement signed in 1957 with which the European Economic Community (EEC) was established, consisting of six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. The objective was to promote trade in order to achieve higher economic growth.

In other words, the Treaty of Rome consisted of a pact between six European countries to increase the level of commercial exchange.

The Treaty of Rome gave rise not only to the free transaction of goods and services between the signatories, but also to the free movement of people and capital.

This treaty also sought to go beyond an economic agreement, aiming at political integration in Europe.

In other words, with this agreement, the foundations were laid for a greater union between the countries of the old continent. All this, in order to achieve greater economic growth in the region, but also reducing inequality.

The institutions of the Treaty of Rome were integrated into the European Union in 1993, now calling this agreement the Treaty on the Functioning of the European Union.

Another important fact is that, at the same time that the Treaty of Rome was signed, the Treaty establishing the European Atomic Energy Community (Euratom) was also signed. This sought to coordinate the investigations of the member countries for a peaceful use of nuclear energy.

Common market in the Treaty of Rome

With the Treaty of Rome, a common market is established between the participating nations, each one committing to adapt its economic policies according to the agreement.

For example, subsidies that could affect trade between signatories were prohibited. It should be remembered that a subsidy is an economic contribution received by a person or group of people from a public body and that it should not be returned. Its objective is to help carry out an activity that requires a high investment or that the individual in question could not cope with alone.

Another important measure was the establishment of a common tariff on imports from outside the EEC. In other words, the tariff for imports of product X from, for example, the United States, would be the same in all the nations participating in the agreement.

It should also be noted that within the framework of this treaty the Common Agricultural Policy project began in 1962. This includes a set of policies that the member countries of the European Union have today to protect their farmers and ranchers.

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