ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77)255
Vol.1977/0089

Disclaimer
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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)255final .
Brussels ,2June 1977 *
PROPOSAL FOR A
COUNCIL REGULATION
maintaining thearrangements making the importation into
theBenelux countries ofjute yarn originating inthe
Kingdom ofThailand subject toauthorisation
\(submitted -totheCouncil "bytheCommission )
/
CCM(77 )255final *

EXPLANATORY MEMORANDUM
(1)
1.ByCommissionRegulation (EEC)No.969/77of4May1977,adopted
pursuanttoArticle12ofRegulation (EEC)No.1439/74,importsintothe
Beneluxcountriesofjuteyarnoriginating intheKingdomofThailand
weremadesubjecttoauthorization ;theauthorizations aretobeissued
foraquantitywhichwillbesuchastoensurethatthetotalvolumeof
importsin1977doesnotexceed4,030tonnes.
2.Thesemeasuresweretakeninordertoremedythemarketdisruption
causedintheBeneluxcountriesbythesharpandsubstantial increasein
theimportsinquestion.
Since1975,ThaiexportsofjuteyarntotheCommunity andinparticular
totheBeneluxcountrieshaveincreasedverysubstantially .Exportsto
(2)theBeneluxcountriesrosefrom1,145tonnesin1975to4,459tonnesin
1976,includingtemporaryimports,whichrepresents anincreaseof300%.Imports
fromThailandaccountedfor73.3%oftotalBeneluximportsin1976asagainst .
42%in1975.
Moreover,thepricesofThaijuteyarnareconsiderably lowerthanthe
pricesrulingontheBeneluxmarket;depending onthe"kindofyarn,the
difference variesbetween10%and40%butisabout30%inmostcases.
Thissharpincreaseinlow-pricedimportsofThaijuteyarnhas
unquestionably causeddisruptionoftheBeneluxmarket,thesituationbeing
allthemoreserioussincethatmarketisshrinkingasaresultofvarious
factors:forexample,contraction ofoutletsasaconsequence of
competition fromsyntheticsubstitutes inmanufacturing ,contraction of
theformerlysubstantial demandforcarpetyarnasaresultofthetufted
carpetboom.Belgianproductionofjuteyarnhasfallenfrom76,000
tonnesin1970tothepresentfigureofaround35,000tonnes.Inthesame
periodtheworkforcedeclinedfrom4,400to2,100personsandthenumber
offirmswasreducedfromtwenty-five tothirteen.
(1)O.J.No.L115,6.5.1977,p.12
(2)1973:556tonnes.

*2-
3.Asearlyas1975theCommunitydrewtheattentionoftheThaiauthorities
totheseriousness ofthesituationandrequestedtheircooperation in
seekingasolution.TheCommunitywasalsoconcernedtoensurefair
playwithregardtoothersuppliercountries(IndiaandBangladesh )
which,withintheframeworkofthegeneralizedtariffpreferences,have
givenundertakings toexercisevoluntaryrestraint.
Consultations tookplacebetweenThailandandtheCommunityin
JanuaryandFebruarylast.Afurtherconsultation tookplaceinApril,
withoutamutuallyacceptablesolutionhavingbeenfound;onthisoccasion
itwasspecified,however,thatthemeasurethattheCommunitywouldbe
forcedtotakewouldnotprejudicethecontinuation ofconsultations with
aviewtoreachingsuchasolution.
4.TheCommissionthereforeconsidersthat,giventhesituationand
thefactthatthefactorsmakngfordisruptionpersist,itisessential
thatthearrangements whichwereadoptedasaninterimprotectivemeasure,
makingimportationsubjecttoauthorization,shouldbemaintained.
Itispointedoutthattheinterimprotectivemeasureadoptedby
theCommissionpursuanttoArticle12oftheabove-mentioned Regulation (EEC)
No.1439/74expiressixweeksfollowingitsentryintoforceunlessitis
confirmedbytheCouncil..
AccordinglytheCommission,inaccordancewithArtilce12(6)ofthat
Regulation (EEC)No.1439/74,submitstotheCouncilthefollowingproposal
foraregulation ontheappropriate measurestebeadoptedinthismatter.

PROPOSAL FORCOUNCILREGULATION No.
of
maintaining thearrangements makingtheimportation intotheBeneluxcountries
ofjuteyarnoriginating intheKingdomofThailandsubjecttoauthorization
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtoCouncilRegulation (EEC)No.1439/74of4June1974on
(1)commonrulesforimports,andinparticularArticle13thereof,
Consultations havingtakenplacewithintheAdvisoryCommitteesetup
underArticle5thereof,
HavingregardtotheproposalfromtheCommission,
(WhereasbyRegulation (EEC)No.969/77of4May1977theCommission
madetheimportationintotheBeneluxcountriesofjuteyarnoriginating inthe
KingdomofThailandsubjecttoauthorization;
Whereasthereasonsjustifyingtheintroduction ofthesemeasurespersist
andwhereasthemeasuresshouldaccordingly bemaintaineduntil31December
1977,
HASADOPTEDTHISREGULATION :
Article 1
Thearrangements fortheauthorization ofimportsintotheBenelux
countriesofjuteyarnoriginatingintheKingdomofThailand,adopted
byRegulation (EEC)No.969/77,shallremainapplicableuntil31December1977.
(1)OJNo.L159,15.6.1974,p.1
(2)OJNo.L115,6.5.1977,p.12

Article2
ThisRegulationshallenterintoforceonthedayfollowingits
publication intheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inalltheMemberStates.
DoneatBrussels. FortheCouncil
ThePresident