The Baltic Common Market is a commercial union of several countries that was proposed as a modern version of the Hanseatic League. In the 1940's, Sweden, Germany and Denmark were competing in trade and technology, particularly in front of other central and eastern European countries. Sweden had a great advantage of the captive markets of the other members of the Swedish Commonwealth: Finland, Novgorod and Estonia, while the extension of the Danish Crown allowed them to easily extend into the North American markets. On the other hand, Germany was the fastest developing industry in the area.
The Baltic Common Market developed originally as an idea to extend the successful model of the Swedish Commonwealth, with their freedoms to move goods, capitals, and peoples, into the whole Baltic area. In 1950, the Baltic Common Market was established with the participation of the following nations:
Denmark, while being part of the conversations, did not joined in 1950. The 1950 organization only allowed for free movement of goods, while there were not a tariff union.
In 1954 a permanent Council was established in Królewiec. In 1967, a tariff union was approved, as well as free movement of capitals. In 1968 the Baltic Mark was proposed as a common currency, however it was not adopted by any nation. In 1983, free movement of people were granted inside all continental members of the Baltic Common Market.