COUNCIL RESOLUTION of 17 June 1992 on the textile and clothing industries (92/C 178/02)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Having regard to the Commission communication on industrial policy in an open and competitive environment,

Having regard to the Commission communication on improving the competitiveness of the Community's textile and clothing industry,

Whereas the textile and clothing industry is of considerable economic and social importance in the Community and bearing in mind that the structure of this industry consists, to a large extent, of small and medium-sized enterprises and is highly concentrated in certain regions;

Whereas the Community textile and clothing industry must adapt to increased competition stemming from the gradual return of the textile sector to the general rules of the General Agreement on Tariffs and Trade (GATT), from the completion of the single market and from the extension of preferential links with the countries of Eastern Europe;

Whereas the responsibility for improving industrial competitiveness essentially lies with the private-sector economic operators themselves, since it is for the public authorities to provide them with a clear and predictable framework and to create an environment which is favourable for their activities;

Whereas the success of the structural adjustment of the industry will initially depend on improving product quality and design and the quality and extent of services offered, as well as on improved integration of the various links in the textile and clothing chain;

Whereas the process of structural adjustment is already more advanced in certain Member States, which makes it necessary for the others to carry out the requisite adjustments as soon as possible within the framework of the objective of economic and social cohesion;

Whereas the Community already provides a variety of instruments in a number of areas such as regional development, industrial conversion, research and development and cooperation between small and medium-sized enterprises (SMEs) within the framework of the structural funds and various programmes but whereas full use cannot be made of such instruments in certain cases,

HAS ADOPTED THIS RESOLUTION:

I

THE COUNCIL:

1. recognizes the particular situation of the textile and clothing sector, which is having to face up simultaneously to:

- high rates of increase in the level of imports from a growing number of third countries with low production costs, together with fairly low long-term growth in final consumption,

- the continuation of the gradual opening up of its markets vis-à-vis third countries, in particular the countries of Eastern Europe, in a sector long governed by a specific trade agreement (the MFA),

- heavy regional concentration, making structural adjustment more difficult,

- the completion of the single market, which will affect the present system for the regional allocation of import quotas;

2. emphasizes the need to conclude the Uruguay Round negotiations as soon as possible, especially in order to establish a reliable long-term framework for world trade in textiles and for the future structural adjustment of the textile industry;

3. is convinced that, if the Community is to retain a textile sector which is internationally competitive, the outcome of the Uruguay Round as regards textiles and clothing should involve a gradual opening up of all markets as well as the necessary transparency of trading conditions in the world, including progress in liberalizing imports into the Community under an approach which enables the Community industry to continue its process of structural adjustment;

4. emphasizes that a conclusion of the Uruguay Round negotiations should bring about a strengthening of GATT rules and constraints, thereby ensuring market access, and should enable effective use to be made of instruments in areas such as anti-dumping, subsidies and fraud and also as regards the protection of intellectual property rights and the implementation of general or specific safeguard clauses;

5. considers that, in the light of the final outcome of the Uruguay Round and without prejudice to existing obligations under the GATT, it will be necessary to examine whether further initiatives by the Community may be required in order to create effective access to the markets of third countries;

6. emphasizes that the gradual opening up of the markets will have to go hand in hand with structural adjustment of the sector within the Community, where enterprises will have a vital role to play in developing the requisite strategies; recognizes the full importance of the promotion by the Community and the Member States of a favourable environment which will encourage adjustment initiatives by enterprises in compliance with the principle of subsidiarity and recognizes that the implementation of a consistent and effective trade policy for the textile sector in the single market warrants a Community response to the specific problems of certain regions;

7. emphasizes that, in order to provide enterprises with such a favourable environment, the Community and the Member States should:

- continue with their efforts to ensure effective conditions of competition in the textile and clothing markets,

- press ahead with the collection, on a systematic and reliable basis, of the economic, technical and social information required for structural adjustment, for modernizing the industry and for access to markets, noting the activities of the European Textile and Clothing Observatory,

- continue with action to step up R& D programmes and should specify their objectives and disseminate their findings, taking into account the requirements of the industry and its organizations and the constraints connected with broader involvement of SMEs,

- continue with the encouragement at every level of continuing vocational training suited to the present and future skill requirements of the industry, so that technological change, conversion and new working, organizational and marketing methods can be mastered,

- press ahead with examining the scope for encouraging undertakings to diversify in order to create job opportunities and facilitate the absorption of the surplus work force resulting from non-viable production,

- continue with affording help to areas which are dependent on the textile and clothing industry to adapt in their efforts to achieve the conditions both for the adjustment of enterprises and for the development of alternative activities, by improving the infrastructures and services accessible to enterprises, business know-how, cooperation and access to capital markets.

II

THE COUNCIL CALLS UPON THE COMMISSION TO:

1. continue to submit to it regular reports on developments in the competitiveness of the textile and clothing industry within the Community;

2. pursue efforts to conclude the Uruguay Round negotiations within the framework laid down;

3. optimize, in conjunction with the Member States and trade organizations, the gathering and processing of the requisite information on international trade to prevent infringements of GATT rules and constraints in Community markets;

4. follow up the developments envisaged to implement the guidelines laid down in this resolution, in conjunction with the senior officials for industry in the Member States and, for trade-related matters, with the committee set up under Article 113 of the Treaty.

III

THE COUNCIL CALLS UPON THE MEMBER STATES AND THE COMMISSION TO:

adopt and, whenever they deem it necessary, propose, the measures which are essential for the implementation of the guidelines defined in this resolution. Such measures must be taken in good time and in the light of developments in the negotiations on the opening up of the Community textile and clothing market.