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COM (84) 516 
 
 
 
Vol. 1984/0 204 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
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COMMISSION OF THE EUROPEAN COMMUNITIES
C O M (84) 516 final 
Brussels, 1 7  September 1984
C O M M I S S I O N  C O M M U N I C A T I O N  T O  T H E  C O U N C I L
S T E E L  :  E X T E R N A L  M E A S U R E S  1985
C 0 M (8 4 ) 516 final

C O M M I S S I O N  C O M M U N I C A T I O N  T O  T H E  C O U N C I LCon 5V6
Steel :  External measures, 1985
I. General remarks
The maintenance until the end of 1985 of the internal element of the anti- 
crisis measures (Council deliberations of 2 5  July 1983) involves the 
need of maintaining for the year 1985 the outward defense (external 
element) also; the letter guarantees the proper operation of the internal element. 
However, the improvement of the market and the increase - even if modest - 
of Community consumption have persuaded the Commission to suggest a certain 
flexibility in the outward defence as compared with previous years in order 
to preserve the complementary nature of the external element.
II. Com m ission proposals for 1985
1. The Commission proposes to extend the basic aspects of the 1984 system to 
cover 1985, as follows :
a) Basicjorices
Maintenance and, if necessary, adjustment of basic prices in 1985; the 
Com m ission will continue to monitor regularly the trend - as regards 
both quantities and prices - of imports from countries subject to the 
system so as to permit the rapid implementation of trade protection 
instruments in cases of unfair competition. T he recent decision 
2177/84/ECSC streamlines and complements the anti-dumping and anti­
subsidy defence system against suppliers from third countries that 
have concluded no arrangement with the Commission.
The range of products covered by basic prices remains unchanged, 
with the exception of semis.
b) Arrangement_s^stem
Réintroduction of the following elements without change :
- Range of geographic application
T he Com m ission proposes the prolongation of the steel arrangements 
for 1985 with the sam e countries as in 1984, i.e. :  Austria, Fin­
land, N orw ay, Sweden, South Africa, Australia, Brazil (pig iron), 
South Korea, Spain, Bulgaria, Hungary, Poland, Rum ania, Czechos­
lovakia, and the special "understanding" with Japan. S he is

-  2 -
prepared to examine the appropriateness and the possibility 
o f concluding arrangements w i th other partners, and of broade­
ning the coverage of products with Brazil.
- Regulation of quantities
. Fixing by the Council of the rate of reduction for 1985 com pared 
with the figure for 1980 on the basis of the need to maintain 
traditional trade flows in the light of the forseeable trend ^or 
in apparent consumption in the Com m unity.
. Refusal to take into account such quantities as have not been 
used in 1984,either in the quantities concluded in the 1985 
Arrangements or in the m anagem ent of the Arrangements.
. Consideration in the negotiations with the E F T A  countries for 
the special nature of the arrangements- and especially for the 
principle of reciprocity- with these countries, concluded as 
they are in the framework of the free-trade agreements.
. Com m ission statement, acknowledged by the Council, to the effect 
that where the quantities agreed in the arrangements with the 
state-trading countries for supply to M em b er States not covered 
by autonomous quotas are in danger of being exceeded,the C o m m is­
sion will authorize the M em b er State concerned to introduce 
an autonomous safeguard quota after' consulting the third country 
in question.
. Should n ew  steel arrangements be negotiated for 1985 with developing 
countries, the C om m unity would then take into account the particular 
situation of such countries in the determination of the quantities 
to be inserted in the arrangements.
. Com m ission statement, acknowledged by the Council, to the effect 
that the five M em b er States operating traditional autonomous 
quotas m a y  maintain them  at their traditional level, though 
in compliance with the overall quantitative rule.

- 3  -
-  Triple clause : Com m ission statement, acknowledged by the Council, 
expressing its intention to remain particularly vigilant concerning 
compliance with the clause which provides for the maintenance of 
traditional trade flows while respecting staggering, geographical 
distribution and the breakdown of imports by product.
M o re particularly, as far as the staggering is concerned, the C o m m is­
sion proposes the elimination of the provision introduced for 1984 
that limits the imports during either half year to 5 5 %  of the annual 
amount.
h o w c v c pS he intends/to monitor the staggering of the liveries during 1985 
with extreme attention in order to prevent any concentration of 
imports during a given fraction of the year.
A s  far as geographical distribution is concerned, the Com m ission 
proposes, in the light of 1984 imports, a clear restatement of the 
interpretation she had m ade kn o w n  previously, i.e. that in case of 
problems stemming from  an unsatisfactory compliance with the geo­
graphical clause during 1984 in respect of certain M em b er States, 
she will seek a quantitative solution that takes into account both 
the quantities found in the reference period and the recent evolu­
tion of trade flows.
A s  far as breakdown by product is concerned, the Com m ission proposes 
the elimination of certain specific provisions which were adopted 
either as a  consequence of sanctions (for Spain, wide-flange beam s 
and re-bars) or of specific problems (E F T A  countries, and especially 
for N orw ay wide-flange beam s and re-bars). T he need for such 
provisions w as already waning in 1984.

. Undertaking by the Com m ission, acknowledged by the Council, that in the 
event of violation or potential violation of the triple clause, it will 
immediately consult the country concerned with a view to finding the 
appropriate solution.
. Second choice products : maintenance of the special provisions or 
practices relating to this group of products and, in cooperation with 
the M e m b er States increased surveillance of imports of such products 
in the framework of the n ew  administration regulations that will be 
finalised by M em b er States and Commission.
. Temporary imports : exclusion from  the scope of the arrangements of 
imports for hire processing w hen the product does not change owner.
Price rules and margin of penetration
. Maintenance of penetration margins currently granted to the exporters 
of non-m em ber countries by reference to C om m unity delivered prices. For 
E F T A  countries alternative choice between basic prices and delivered 
prices minus the margin of penetration.
. Alignment by C om m unity producers : continued prohibition of such 
alignment.

- 5  -
. Indirect imports : maintenance of the rule whereby such imports are 
subject to the basic prices and m ust be deducted from  the quantities 
agreed.
- Price rules for deliveries to shipyards
T he price system for steel imported for use in shipyards or' ship
repair yards will be maintained in its present form.
- Products coverage
T he range of products currently covered by the arrangements will be
maintained, but semis (73.06 and 73.07) will be excluded.
- M anagem ent of arrangements
. Consultation clause : maintenance of provisions providing for consul­
tations for the purposes of both the traditional mi-year review of the 
operation of the arrangements and the discussion of specific problems.
. Control and sanctions : - maintenance of the providing for suspension 
of .the arrangements as set out in the existing texts for the m ost 
serious violations;
- maintenance of sanctions, in the case of 
violation of price rules, consisting either in the reduction or 
elimination of the margin of penetration or, where the violation 
persists and in the m ore serious cases, in exclusion from  the arrange­
m ent system of the product which is the subject of price undercutting.
. Retrospective and advance surveillance : extension for 1985. Effective 
collaboration by M e m b er States, especially through m ore speedy trans­
mission of statistics and the regular and prompt despatch of infringement 
files, would enable the Com m ission to strengthen the efficiency of the 
clause contained in the arrangements.

-  6 -
2. In  order to maintain the m o re stringent m an agem en t an d  surveillance  
established in 1984, the C om m ission proposes to keep unchanged for  
1985 the m ea n s of action introduced in 1984, w hich aim ed at strengthening  
the system then in force.
A . Basic prices
T h e  C om m ission will continue to apply the stiffened surveillance  
o n  iron an d  steel products im ported from  third countries subject to  
basic prices, an d  will see to it that a  speedy examination is m a d e  
of complaints submitted b y  the C o m m u n ity  industry.
B . A rrangem ents
- T h e  C om m ission will maintain the m echanism  introduced in 1984 to  
avoid violations of the triple clause (staggering, geographical  
_____ distribution, breakdow n b y  product) b y  the arrangem ent countries.
- 
T h e  C om m ission will extend for 1985 the recom m andation 161/84/E C SC  
establishing a n  advance surveillance (i.e. on  licences) a n d  
decision 162/84/EC SC  establishing retrospective surveillance  
(i.e. on actual imports).
3. Procedure
T h e  negotiations with the partner countries will be conducted b y  the  
C om m ission  following agreem ent with the M e m b e r  States in the Steel  
Liaison C om m ittee. Before the negotiations are concluded, the text of  
the arrangem ents will be submitted to the com petent authorities of the  
C ouncil at the sa m e  tim e as the request for assent to prohibition of  
alignment.

III. S u m m a r y  of C om m ission  proposals
- In  keeping with the O E C D  declaration the C om m ission  will propose that  
certain countries w h ich  export steel to the C o m m u n ity  conclude bilateral  
arrangem ents with the C o m m u n ity  entailing discipline o n  prices so as  
not to disturb the C o m m u n ity  m arket. A t  the sa m e  tim e assurances
will b e given concerning the m aintenance of traditional trade flows,  
b ut taking into account both the evolution in dem and foreseen 
for 198 5  a n d  the anti-crisis m easures w hich have been im plem ented  
under Article 5 8  of the E C S C  Treaty .
The Commission proposes that the other measures set out in Section II  
of the document be approved.
- T h e  C om m ission  will separately submit
its proposals o n  the quantitative aspects of the arrangem ents with  
the partner countries for w h ich  figures are to be agreed.
- T h e  C om m ission  will report regularly o n  the negotiations to the  
Steel Liaison C om m ittee; this C om m ittee will deliberate o n  all  
matters with a  view  to finding appropriate solutions.
- P roblem s for w hich n o solution can b e found within the Liaison  
C om m ittee w ill  b e referred to the P erm an en t Representatives C om m ittee.
- T h e  C om m ission  w ill  present the text of the arrangem ents to the C ouncil
before arrangements are concluded.