ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)302
Vol.1975/0106

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)302 final
Brussels,17June1975
PROPOSAIFORADECISION OFTHECOUNCIL
concerningtheopeningofnegotiations inrespectof
theUnited.NationsConvention onaCodeofConductfor
LinerConferences
(submittedtoth«Council "bytheCommission)
COMC75)302fiaal

EXPLANATOHT MEMORANDUM
On17July 1974 17March 1975 "theCommission forwarded tothe
Council proposals foraCouncil Decision concerning common action bythe
Member States inrespect oftheConvention onaCode ofConduct forLiner
Conferences (doc# CQt<l(74 )1112 final andCOM (75)112final ).These
proposals aimed especially atthedefinition oftheterms andconditions
ofcommon action asproposed "bytheCommission ,within specified time
limits ,andabstention onthepart ofMember States from anyunilateral
action inrespect oftheConvention#
TheCommission ,while recalling theneed forMember States totake
common action ,considers that itisadvisable ,here andnow ,tomake
proposals aimed atfinding theconcrete terms andconditions fortheaction
tobeundertaken bytheCommunity andtheMember States with regard tothe
Code ofConduct#
Itrecalls theincompatibilities which exist between someoftheprovisions'
oftheCode ofConduct andtheEEC Treaty# Some provisions oftheCode create
difficulties ofaneconomic andpolitical nature#
TheCommission considers that incompatibilities exist between the
following provisions oftheCode ofConduct andspecified articles ofthe
Treaty (d)
Provisions oftheCode ofConduct Articles ofthe Treaty
(Thereferences inbracket areto
thetext oftheCode ofConduct )
Membership ofaConférence (Chapter II
Article 1)7,52.85
Participation intheTrade (Chapter II
Article 2)7j52.85
(1)Theapplication efthegeneral rules oftheTreaty tosea
anilairtransport wasconfirmed bytheCourt ofJustice
initsruling of^.4.197 ^incase 167/73*

(Thepresentprovisionscreatediscrimination ,"becauseoftheir
nationality,betweenshippingcompaniesestablishedintheEEC
andrisklimitingcompetition)
–Relations "betweenshippingcompanies
andshippers(ChapterIII) 85.86
(Theseprovisionsdonotentirelyconform
tocompétitionrules)
Adifficultyofanotherlegalnatureisraised "bytheabsenoe
ofanyprovisionwhichwouldallowtheCommunitytobecomeacon­
tractingparty.Thedifficulties ofaneconomicandpoliticalnature
areraisedespeciallybythefollowingprovisionsoftheCodeof
Conduct:
–membershipoftheconferences andparticipation inthetrade:itis
necessarytoobtainmodifications whichwillavoidthecreationof
freshbarrierstointernational maritimetransportwhiletaking
accountofthespecialneedsofdevelopingCountries
–relationsbetweenshippersandconferences :itwillbenecessaryto
improvetheprotectionoftheshippers*interests,especiallyinso
farasthetermsandconditionsoftheapplicationofloyaltyagree­
mentsareconcerned:
–freightrates:itwouldbewisetorendermoreflexibletheprovisions
concerningthenoticegivenofoverallincreases
–settlementofdisputes:itwillbenecessarytoimprovetheseprovisions,
inviewoftheirexcessivecomplexity,bysimplification
–competentauthority:thedefinitionof"competentauthority",forthe
purposeofapplyingtheCode,shouldincludetheCommissionoftheEEC#
Difficultiesofalegal,economicandpoliticalnaturewillbe
raisedbytheapplicationoftheCodeofConducttoseatransportwithin
theCommunity#Itwouldbewise,therefore,toensurethenon–application
oftheCodetothistraffio#

Itwillbenecessarytoovercomethesedifficulties,"byappropriate
methods,iftheCommunityandMemberStatesaretoadheretotheConvention *
Itisadvisablethereforetosubmitreservations or,shouldtheoccasion
arise,obtainamendmentstotheConventionwhichwouldtakeaccountof
thesedifficulties.
Somereservations ,especiallythosewhicharenecessaryinorderto
avoidanydiscrimination ongroundsofnationality betweenshipping
companiesestablishedinMemberStates,arenotofakindtoposeany
problemsofacceptability forthirdCountrieswhichare,orwanttobecome
contractingpartiestotheConvention.However,othierreservations (e.g.
applicationofCommunityLaw)couldposeproblemsofacceptability# Some
amendments,necessaryfi*omalegal,economicalorpoliticalpointofview,
couldalsocreatesuchdifficulties.
Itisadvisabletherefore,inparallelwiththeworkundertaken
withintheCommunity,toopennegotiations with
interestedthirdCountriesforthepurposeofestablishing theacceptability
ofthesereservations andamendments.Giventhatthesereservations and
amendmentsdependeitheronthecompetenceoftheCommunity OTonthecom­
petenceofMemberStates,thesenegotiations shouldbeconductedjointly
bytheMemberStatesandtheCommission.
Fromthepracticalpointofviewthesenegotiations cannotbe
limitedtobilateralcontacts.Asunanimousagreementisnecessaryforany
amendmentonemusttakeaccountofthepossibilityofcarryingoutthese
negotiationsinanappropriateinternational forum.If,infact,bilateral
negotiations showtheadvantageofsodoingtheCommissionwillpropose
thattheMemberStatesshouldsuggest,•jointlywiththeCommission,that
anadvancedreviewconferenceshouldbeconvenedtindertheauspicesofthe
UnitedNations,withtheaimofavoidingthewasteoftimecreatedbythe
provisionsofArticle52oftheCode,whichprovidesforthepossibilityof
conveningsuchaconferenceonlyattheendofa5yearperiod.Onthebasis
oftheresultsofthesenegotiations theCommissionwillsendaproposalfor
aDecisiontotheCouncilconcerningpossibleadhesionoftheMemberStates
totheConventionand,shouldthematterarise,arecommendation foradecision
relatingtotheconclusionoftheConventionbytheCommunity.

4.
InthemeantimeitisnecessarythatMemberStatesabstainfromany
actionconcerningsignature,withorwithoutreservations concerning
ratification ,ratification oradhesiontotheConventionontheCodeof
Conduct#ThisobligationstemsfromtheprovisionsofArticles
and116oftheEECTreaty#
Conclusions
ForthereasonssetoutabovetheCommission considersthatitis
advisabletoopennegotiations withinterestedthirdCountriesonthe
subjectoftheConventionoftheCodeofConductwithaviewtoresolving
thosedifficulties ofaneconomic,politicalorlegalnaturewhichprevent
MemberStatesfrombecomingpartiestotheConvention,andwhichprevent
theCommunityconcludingtheaforesaidConventioninitspresentform.
Giventhatthereservations andamendmentsfallwithinthecompetenceof
boththeCommunityandtheMemberStates#Thesenegotiations aretobe
carriedoutjointlybytheMemberStatesandtheCommission#
Thenecessaryreservations andamendmentshavebeensetoutaboveand
arerepeatedinthedirectivesfornegotiation annexedtotheDecision#
InthelightoftheobligationsarisingundertheTreatyitisevidently
necessarythatMemberStatesshouldabstainfromanyisolatedaction.

Proposal foraCouncil Decision (ESC)
concerning "theopening ofnegotiations regarding theUnited Nations'
Convention ona Code ofconduct for Liner Conferences
THE COUNCIL OFTHEEUROPEM COMMUÏTITIES
Having regard totheTreaty establishing theEuropean Economic Community
andinparticular articles 113and116 ,
Having regard totheProposal oftheCommission ,
Whereas aConvention onaCode ofconduct for Liner Conferences has "been
opened forsignature following itspreparation "byaconference convened under
theauspices ofUNCTADj
Whereas that Convention isaimed inparticular atlaying down certain inter­
nationally applicable rules relating tocargo sharing ,theaccession of
shipping lines toconferences andtherelations between transporters and
shippers j
Whereas theapplication ofthese rules would affect theterms onwhich transport
iseffected ,both within theCommunity andwith noiwnember countries ,and
whereas such rules would affect inparticular theinterests oftheshipping
lines andshippers established intheMember States )
Whereas theCommunity isdetermined tocontinue tocontribute towards the
prosperity ofdeveloping countries andtotake into account fully their needs
andproblems with respect totheactivities of .liner conferences serving their
foreign trade ;
Whereas certain provisions oftheConvention areincompatible with obligations
arising from theTreaty (EEC)j
Whereas from theeconomic andpolitical point ofview certain amendments to
theConvention appear desirable ;
Whereas toallow theCommunity andtheMember States becoming contracting
parties itisnecessary toremove theincompatibilities andtomake certain
reservations andamendments jandwhereas itisnecessary fortheCommunity
andtheMember States toopen negotiations forthis purpose .

Hasadopte!thisDécision:
Article1
TheCommissionisauthorisedtotandMemberStatesshall,actingincommon
togetherwiththeCommissionopennegotiationsregardingtheUnitedRations*
ConventiononaCodeofConductforLinerConferencestopermittheaccession
oftheCommunityandMemberStates.
Thesenegotiations shallbeconductedinaccordancewiththeDirectives
annexedtothisDecision.
TheCommissionshallconductthenegotiations fallingWithinitscompetencein
consultation withthespecialcommitteereferredtoinarticle113.
Article2
MemberStatesshallrefrainfromsigning,ratifyingoraccedingtothe
ConventionuntiltheCouncildecidesontheactiontobetakenhavingregard
totheoutcomeofthenegotiation.
Article3
ThisDecisionisaddressedtoMemberStates.
Doneat FortheCouncil

Annex
Directives for nego-fciatian
Reservations ana amendments tothe Convention :
1.Forthepurpose ofapplying theCode ofconduct toliner conferences engaged
intheexternal trade oftheCommunity ,anyshipping company formed in
accordance with thelawofaMember State andhaving itsregistered office ,
central administration orprincipal place ofbusiness within theCommunity
shall beregarded asa"national shipping line"with respect toanyliner
conference engaged intheexternal trade ofoneormore Member States .
2.Sea-borne trade between Member States oftheEuropeanEooiomic Community
should beexcluded from theapplication oftheCode ofconduct .
3.For thepurpose ofapplying theprovisions oftheCode toliner conferences
engaged intheexternal trade oftheCommunity ,anyagreement between the
members ofaconference orbetween the members ofaconference and a
shipper (ororganization ofshippers )andanydecision oraction taken by
aconference oritsmembers shall remain subject ,where appropriate ,tothe
rules oftheTreaty establishing theEuropean Economic Community and to
Community legislation .Therecommendations ofconciliators concerning any
dispute referred t>compulsory international conciliation shall bemade in
accordance with theprovisions oftheCode and ,where appropriate ,in
accordance with Community law .
4.Theprovisions oftheCode ofconduct concerning membership ofconferences
andparticipation intrade (Ch.II)should bemodified asconcerns liner
conferences engaged intheexternal trade oftheCommunity inorder to
avoid thecreation ofobstacles intrade ,taking account oftheparticular
needs ofdeveloping countries .
5.Forthepurpose ofapplying theprovisions ofChapter IV,Article 14para­
graph 9"toconferences engaged intheexternal trade oftheCommunity ,
therule providing foraminimum period ofatleast tenmonths between the
date when onegeneral freight rate increase becomes effective andthe
date ofnotice forthenext general freight rate increase shall berelaxed
byintroducing thenotion that this period maybeshortened where shipping
lines areaffected byexceptional increases incosts .
/

Simplify andimprove theprovisions oftheCode relating tothesettlement
ofdisputes .
Amendments topermit theCommunity to "become aContracting Party and
consequential amendments .