EUROPEAN COAL AND STEEL COMMUNITY CONSULTATIVE COMMITTEE RESOLUTION concerning 'External measures' - Steel imports from countries of central and eastern Europe (PECO)

(93/C 121/04)

(Adopted unanimously, with two abstentions, at the 304th session of 2 April 1993)

THE EUROPEAN COAL AND STEEL COMMUNITY (ECSC) CONSULTATIVE COMMITTEE:

1. OBSERVES that, whereas Community steel consumption fell in 1992, steel imports from the five PECO countries rose from 2,2 million tonnes in 1991 to 3,3 million tonnes in 1992 (i.e. a 50 % increase overall and a 72 % increase for sensitive products) and those originating from the Commonwealth of Independant States (CIS) rose from 1,1 million tonnes to 1,4 million tonnes (i.e. a 20 % increase overall and a 63 % increase for sensitive products);

2. NOTES that the price level of these imports is one of the causes for the drop in prices for steel in the Community thus considerably weakening all Community producers and pushing even some large companies into a struggle for survival. As long as the extremely low price level of these imports is not corrected by adequate Community measures, imports from PECO will very seriously complicate any return to normal price levels in the Community;

3. EMPHASIZES that this situation, together, in particular, with the restricted, or even closed, situation on the US market, the excess of supply and price levels, contributes to the need for Community producers to implement restructuring plans. These entail reducing production capacities and will have extremely serious repercussions at industrial, economic and social levels; they are likely to provoke the loss of over 50 000 jobs in the steel sector and to affect employment in the coal industry as the repercussions are felt in the collieries and coking plants;

4. POINTS OUT that the Council, conscious of the seriousness of the problem, has, in order to facilitate the realization of the restructuring plan, given directions for the immediate implementation of all measures which concern both the stabilization of the Community market and the 'volet externe'; these measures have to be specified and put in concrete form implying consultation and participation of all parties concerned;

5. CONSIDERS that the measures adopted by the Council are a first step in the right direction. The Community steel producers are, in particular, aware of the social and economic responsibilities they assume in the process of restructuring; but the sacrifices of the Community steel industry would be pointless if imports from third countries replace the reductions in Community production;

6. URGES the Commission, with a view to the application of the conclusions of the Council of Ministers of 25 February, to:

- organize an a priori and an a posteriori surveillance of imports,

- publish periodically updated import reference prices,

- negotiate without further delay with ex-Czechoslovakia, Poland and Hungary tariff quotas for all sensitive ECSC products and products of first processing for the entire period of 1993 to 1995 allowing these countries a gradual access to the Community market compared with the level of their 1991 realizations starting with '1991 + 20 %' for 1993. If the development of consumption allows it, the increase could be '1991 + 25 %' for 1994 and '1991 + 35 %' for 1995. However, the list of products covered by these quotas will have to be adapted to the seriousness of the situation and to the development of the consumption of the products concerned, while avoiding regional concentrations,

- transform, without transition, the system of Community quotas in force with Bulgaria and Romania into a system of tariff quotas, if the present regulation must be terminated because of the entering into force of 'Interim Agreements',

- propose to the Council to extend to 1994 and 1995 the Community quotas instituted with regard to certain imports from the republics of the CIS;

7. INSISTS on the urgency of these measures given that the first quarter of the year has already passed;

8. CALLS, in this regard, on the Commission to assume entirely the responsibilities conferred on it by the ECSC Treaty.