This paper examines the changing nature of pulp and paper trade patter
ns within the European Community as these producers responded to incre
asing global competition between the years 1960 and 1985. As the proce
ss of internationalization in the industry intensified during the 1980
s, specialization in the trade of individual pulp and paper products o
ccurred between member states. Specialization is explained in the theo
retical context of competitive advantage, where corporate strategies a
nd government intervention are emphasized, rather than in the traditio
nal neoclassical context of free markets, or comparative advantage. Th
e nature of trade is measured using Grubel and Lloyd's (1975) B(ij) in
dex.