History.
Finland's relationship with the European Community (EC) began in the late 1950's as the Community was in the formation stage. However, Finland proceeded slowly towards integration into the EC due to its relationship with the Soviet Union. Since Finland's economy was based on exchange of manufactured goods in exchange for low-priced Soviet oil, the Soviets scrutinized the country's efforts to intensify economic ties with the West. Finally, in 1961, Finland signed an associate membership with the European Free Trade Agreement (FINNEFTA), whose members such as Britain and Denmark were vying to gain membership of the EC. Joining with the other EFTA countries paved the way for Finland to conclude a limited free trade agreement with the EC in 1973. However, with the collapse of the Soviet market, the Finnish government felt that the limited free trade agreement with the EC was not enough since the country needed an outlet for trade that was not restricted to certain sectors. …
