ABSTRACT
The European Union1 (EU) was responsible in 1989 for 15.6 per cent of world trade (average of exports and imports), compared with 13.8 per cent for the US and 8.1 per cent for Japan. This proportion has been increasing since the inauguration of the Single European Market (SEM). Excluding trade between EU member countries, the EU accounted for about 20 per cent of world exports in 1993, and is the world's largest single trade unit, surpassing both the US (16.3 per cent) and Japan (8.2 per cent). Despite moves towards SEM, and the desire for cohesion, trade policy in the EU has remained heterogeneous. In any industrial sector, the interests of member countries will differ depending on the structure of the sector concerned and its competitive position. This is highlighted by the case of the car industry.
