A Brief History of Malta-EU RelationsAfter the failure of the Integration with Britain process, in the early 1960s, both major Maltese political parties (the Nationalist Party (PN), headed by G. Borg Olivier, and the Malta Labour Party (MLP), headed by Dom Mintoff) agreed that the best solution for Malta was Indipendence. After the 1956 Suez debacle, Britain started to disengage itself from its Empire, leading to the rundown with its harsh consequences on the Maltese economy.
In 1959 Dom Mintoff had already expressed the fact that following Indipendence, Malta could become a member of the European Community. However he explained that another option available to the Maltese was that of 'Switzerland in the Meditteranean', a motto still used by the Labour Party, more than fourty years later.
For some time this question was left aside, and in 1961, Herbert Ganado put the question of EC membership to attention again. He developed similar notions to Mintoff's but he moves a step forward. He stated that Malta needed to seek membership of the Commin Market or strenghten the links with it. He also puts in the idea of using Malta as a freeport, something to which Mintoff agreed.
While the Nationalist side looked with interest at the events happening in Europe, Mintoff and his MLP stressed the importance of a good and stable relationship with the North African States. The Labour leader, however, seemed to believe that penetrating these markets was quite an easy things. Yet, trade in N. Africa was still based on old colonial systems. Maghrebian states still traded very little even between themselves and traded principally with the European state that controlled them in the past. Their policy was inward looking and did not believe in Free Trade agreements but in import substitution policies. Secondly, customs duties were a major revenue for the Government.
Thus, while European states were opening their borders the North African states were keen on protectionism. Herbert Ganado also viewed the EC as a place where Maltese citizens could emigrate. Both Maltese and British authorities agreed that emigration was essential to check over-population growth. For Ganado, the EC was a trade opportunity arguing that trade is no longer a pursuit and an instinct but it had become 'a real science'.
An important question on Malta's future arose in 1962 when Great Britian applied to join the EC. If Britain joined the Community, would Malta continue to export duty free to the UK ? Without any special arrangement, Britain in the EC meant that it would have to apply a Common External Tarriff to Malta.
The 1962 electoral campaigns were dominated by two main points of policy. a) The relationship with Britain and b) the relationship with the EC.
The MLP asked for Indipendence and promised a referendum on future EC relations.
Ganado's Democratic Nationalist Party, asked for Indipendence and membership or an association agreement with the EC.
the Progressive Constitutionalists (M. Strickland), asked for Dominion Status, not Indipendence, and some form of agreement with the EC.
The PN's statement was quite ambigous. PN leaders stated that Malta should show interest in Europe after gaining Indipendence. It was only following following the electoral victory that the PN defined its position as one in favour of membership.The 1962-66 PN Government term was more concerned with achieving Indipendence from Britain, which was achieved on the 21st September 1964. It was only after another victory in 1966, that particular attention was given to the EC.
An important ally for Malta was Italy. Local leaders understood that the chances of success of their negotiations with the Communit would increase if they got the help of an EC state. While at first Italy was not so enthusiastic with such proposals, by 1967, it came to accept the fact that social unrest in Malta could encourage other foreign powers to exploit this Mediterranean state. The risk was that Malta would leave the Western sphere and this went against Italy's security agenda. Thus by 1967 Italy started to give financial help and promised to defend Malta's bid for an agreement with the EC.The Malta-EU Association Agreement, was signed in Valletta, 5th December 1970. This agreement was divided in two parts.
i) In 5 years, the Maltese Govt. was bound to reduce its external tarriffs on Community Imports while the EC would dismantle 70% of CET on Maltese goods.
ii) At the end of Part I, Malta would have another five years in which to achieve the Customs Union and adopt the EC's CET.Malta was allowed to maintain certain restrictions but could not introduce new protectionist tarriffs except anything regarding to agricultural and petroleum products. Tarrifs on Community goods were to be reduced by 35%. The EC would eliminate all quantitative restrictions and reduce the CET by 70%. This CET would be completely abolished by the end of Part II, in which Malta would have also eliminated all tarriffs against the Community.
Agricultural trade was excluded. Malta was to receive only some tarriff reductions on agriculture and these were dependent on calendar (according to the Community's necessities, i.e. when EC production was lowest). Restrictions were also placed on textiles (yarn).The Opposition Labour Party criticised this Agreement for leaving out the agricultural sector. Actually, there was nothing Malta could do on this, since the Common Agricultural Policy of the EC, did not allow the Community to make concessions to third parties. The Community was very protectionist on agriculture.
In 1977, when the Stage I had to end, the Labour Government signed an agreement to extend the stage for a further three years, until 1980. In 1981, the Government failed to reach a new agreement for the special relationship, after making unacceptable demands to the EC, mainly by asking for financial aid to develop the Dockyard, in a time when the EC already had extra dockyards and a depression attacked this market.
Relationship between Malta and the EU were quite difficult in the early 1980s for two particular reasons. First of all it was due to these mentioned demands which could not be accepted by the EC. Secondly, relations were strained by the 'flirting' of the Maltese Labour Government with several Warsaw Pact and African countries, culminated in the Government Party joining AAPSO and applying for the Arab League.
This attitude changed when the PN Government came to power in 1987. The party's aim was clear: to seek EC membership. The Maltese application was handed to the EC in 1990, and presently negotiations over 30 different chapters are going on. The Maltese Government expects to be in the first group of entrants, when enlargement takes place, supposedly in 2003.
For more information about the current situation of Malta-EU relations log in the Malta-EU Information Centre's Website on www.mic.org.mt
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