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Opinion of the European Economic and Social Committee on ‘The repercussions of trade policy on industrial change, with special reference to the steel sector’

(2004/C 117/15)

On 17 July 2003 the European Economic and Social Committee, acting under Rule 29(2) of its Rules of Procedure, decided to draw up an own-initiative opinion on ‘The repercussions of trade policy on industrial change, with special reference to the steel sector.’

The Consultative Commission on Industrial Change was instructed to prepare the Committee's work on the subject.

At its 408th plenary session of 28 and 29 April 2004 (meeting of 29 April 2004), the European Economic and Social Committee decided to appoint Mr Lagerholm as rapporteur-general and adopted the following opinion by 46 votes in favour, 16 against and 8 abstentions.

1.   Introduction. Aim and scope of the opinion; definitions

2.   Significance of trade policy in the steel sector

3.   Industrial change in EU steel production and trade policy

4.   Future challenges for trade policy and industrial change

Today, European steel production seems considerably vulnerable to policies and practices that breach trade disciplines. The European market for steel is the most open in the world. Following the zero-for-zero agreement on steel in the Uruguay round, tariff rates for imports of steel in the EU are eliminated in 2004. Imports of steel in Europe have grown very fast in recent years, rising from 14.5 million tonnes in 1997 to 24.6 million tonnes in 2002 - a 70 % increase - and turning the EU, which had been a net exporter for decades, into a net importer of steel in 1998. (In 2003 exports were again slightly larger than imports.)

From here on, looking into the future, a number of challenges can be identified that set the context of trade policy in relation to ongoing changes in the steel sector in the coming few years:

5.   The EESC's comments on key trade policy issues in the steel sector

Given its present position and the future challenges it faces, the EU steel sector, in order to successfully respond to the dynamic movements in its business environment, will want to see the same openness and fairness in steel markets around the world as is the case for third country imports into the EU. Despite the negative outcome of the WTO meeting in Cancun in September 2003, the Doha Round still provides an opportunity to make significant progress in unrestricted market access between WTO members. It also permits discussions on improvements to existing rules, fine-tuning and reinforcing existing disciplines, notably anti-dumping. In a wider perspective, an effective launch of negotiations on the so-called Singapore issues, such as trade facilitation and trade and competition, would bring real benefits to the steel sector in Europe and indeed world-wide.

Without totally excluding the possibility of improving market access through a bilateral or regional approach with those regions or countries with which the EU has the greatest economic interest in terms of trade, the interests of the EU steel sector are served best in a multilateral trade system (WTO). This should be based on rules that are consistently transposed into national law by all countries and provides for instruments that are applied objectively with no political interference and implemented on an equal basis by all countries. Given the steel related trade policies and practices of certain countries in the past years, the efforts of the EU should focus strongly on the following points:

The most important elements of these basic statements can be further evaluated taking into account the following aspects.

5.1   Market access

5.2   Anti-dumping

5.3   Subsidies

5.4   Trade policy, industrial change and the social dimension

6.   EESC conclusions

Considering the findings of this own initiative opinion on the repercussions of trade policy on industrial change, with special reference to the steel sector, the EESC reaches the following conclusions:

Brussels, 29 April 2004.

The President

of the European Economic and Social Committee

Roger BRIESCH

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