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Détente, East-West Trade, and the Future of Economic Integration in Eastern Europe

The paper attempts to examine the impact of East-West trade on the process of economic integration in Eastern Europe, carried out under the aegis of the Council for Mutual Economic Assistance (CMEA). The discussion is focused on the proposition that, other things being equal, the continued growth of East-West trade is at the present time incompatible with the increase in the level of economic integration in that part of Europe. The problem is analyzed in the context of several factors: the process of regional economic integration; the attitude of the Soviet Union and of the East European political and economic elites toward both integration and East-West trade before and after détente; the influence of economic reforms in Eastern Europe; and the impact of the energy crisis and of the developing global shortage of raw materials. The conclusion emerges that, on balance, the chances of economic cooperation if not integration in the region are today better than in the past, albeit at the expense of closer economic relations between Eastern Europe and the West.