Ouchy Convention
Encyclopedia
The Ouchy Convention was negotiated at Ouchy
(Switzerland
) in June 1932, but signed at Geneva
on 18 July 1932 between the two BLEU
countries, Belgium
and Luxembourg
and the Netherlands
. At the convention the three countries agreed to a gradual reduction of economic barriers and the creation of a customs union
. The convention was based on the Oslo Agreements
of 1930 and aimed in addition at the reduction of trade tariffs.
and other countries. The Ouchy Convention contained a clause that it should not come into effect until these countries had waived their rights. At the British Empire Economic Conference
at Ottawa
of July–August 1932 the United Kingdom
opposed the Dutch–Belgian interpretation of the most-favoured nation
clause of the Ouchy convention. The refusal of the United Kingdom to waive its rights as most-favoured nation and the fact that the United States
made no reply to the request for a waiver
, made the convention fail without ever coming into operation.
The convention would be revived by the end of World War II
by the creation of the BeNeLux
. It would also be an inspiration for the BeNeLux memorandum
of 1955, which was presented at the Messina Conference
of 1955.
Ouchy
Ouchy is a commune, port, and popular lakeside resort located south of the city of Lausanne in Switzerland at the edge of the Lake Léman ....
(Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
) in June 1932, but signed at Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
on 18 July 1932 between the two BLEU
Belgium-Luxembourg Economic Union
The Belgium–Luxembourg Economic Union , abbreviated to BLEU or UEBL, is an economic and monetary union between Belgium and Luxembourg, two countries in the Benelux economic union....
countries, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
and Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
and the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
. At the convention the three countries agreed to a gradual reduction of economic barriers and the creation of a customs union
Customs union
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
. The convention was based on the Oslo Agreements
Oslo Agreements, 1930
The Oslo Agreements or Convention of Economic Rapprochement of 22 December 1930 were an economic agreement between the countries which had already agreed upon the Dutch-Scandinavian Economic Pact earlier that year and the countries of the BLEU, Belgium and Luxembourg...
of 1930 and aimed in addition at the reduction of trade tariffs.
Summary
The three countries agreed that:- There should be no increases in existing trade tariffs or the application of new tariffs on imports from the participating countries.
- The existing duties on imports from each country should be gradually reduced by 10 per cent each year until the total reduction would reach 50 per cent.
- There should be no new barriers other than import duties on imports from each other
- There should be open entry to the convention on the part of other countries and extension of its benefits to non-entering countries if they in fact carried out its terms.
Most-favoured-nation problem
Both Belgium and the Netherlands had commercial treaties which contained the most-favoured-nation clause clause with for instance the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and other countries. The Ouchy Convention contained a clause that it should not come into effect until these countries had waived their rights. At the British Empire Economic Conference
British Empire Economic Conference
The British Empire Economic Conference was a 1932 conference of British colonies and the autonomous dominions held to discuss the Great Depression. It was held between 21 July and 20 August in Ottawa.The conference saw the group admit the failure of the gold standard and abandon attempts to...
at Ottawa
Ottawa
Ottawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
of July–August 1932 the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
opposed the Dutch–Belgian interpretation of the most-favoured nation
Most favoured nation
In international economic relations and international politics, most favoured nation is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must, nominally, receive equal trade advantages as the...
clause of the Ouchy convention. The refusal of the United Kingdom to waive its rights as most-favoured nation and the fact that the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
made no reply to the request for a waiver
Waiver
A waiver is the voluntary relinquishment or surrender of some known right or privilege.While a waiver is often in writing, sometimes a person's actions can act as a waiver. An example of a written waiver is a disclaimer, which becomes a waiver when accepted...
, made the convention fail without ever coming into operation.
The convention would be revived by the end of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
by the creation of the BeNeLux
Benelux
The Benelux is an economic union in Western Europe comprising three neighbouring countries, Belgium, the Netherlands, and Luxembourg. These countries are located in northwestern Europe between France and Germany...
. It would also be an inspiration for the BeNeLux memorandum
BeNeLux memorandum, 1955
The BeNeLux memorandum of 1955 was drafted by the three BeNeLux countries on 18 May 1955 as a means to reviving European integration on the basis of a general common market.-Background:...
of 1955, which was presented at the Messina Conference
Messina Conference
The Messina Conference was held from 1 to 3 June 1955 at the Italian city of Messina, Sicily. The conference of the Foreign Ministers of the six Member States of the European Coal and Steel Community would lead to the creation of the European Economic Community in 1958...
of 1955.
Sources
- Oral History Interview with Baron Jean-Charles Snoy
- Ethel B. Dietrich, Foreign Trade Blocs, Annals of the American Academy of Political and Social Science, Vol. 211, Our Foreign Commerce in Peace and War (Sep., 1940), pp. 85-91
- Robert E. Clute, Robert R. Wilson, The Commonwealth and Favored-Nation Usage, The American Journal of International Law, Vol. 52, No. 3 (Jul., 1958), pp. 455-468