Squeezed between external trade barriers and internal economic problems : Bulgaria’s trade with Denmark in the 1970s

Abstract

This paper investigates Bulgaria’s trade strategy towards the European Economic Community (EEC) in the 1970s: a decade of intensified economic exchange between East and West thanks to détente and, simultaneously, of growing trade barriers due to the consolidation of the Common Market. The successes and failures of Bulgaria’s endeavours are discussed through a study of economic cooperation with Denmark before and after its accession to the EEC in 1973. The main argument is that while Bulgarian economic policy focused on the rising regulatory impediments to trade with EEC members, it neglected the structural deficiencies of Bulgarian export production. Thereby, Bulgarian state officials strove to resolve foreign trade problems through diplomatic negotiations over customs regulations upheld by their Western partners instead of advancing domestic economic reforms. This argument is supported by analysis of intergovernmental economic negotiations and trade deals between Bulgaria and Denmark during the 1970s. It highlights the different ways in which Bulgarian trade envoys in Copenhagen and top officials at home evaluated recurrent problems in accessing the Danish market and formulated solutions for these problems. Thus, rather than tackling internal structural problems, the blueprints for Bulgaria’s foreign trade focused on external foes, namely trade discrimination against socialist countries