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DOCUMENTS "COM"
COM(74)244
Vol.1974/0046

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COMMISSION OPTHEEUROPEANCOMMUNITTES
COM(74)244final
Brussels,22February1974
PROPOSAI FORA
courre ILRÉGULATION
subjectingtoauthorization theimportof
cottonyarnintotheUnitedKingdomfromnon-membercountries
(submittedtotheCouncilbytheCommission)
COM(74)244final

EXPLANATORY MEMORANDUM
1. The Commission set upasystem oflicences for theperiod from
1April 1973 to31December 1973 for theimport ofcotton yarn into
theUnited Kingdom from non-member countries (l).
TheRegulations bywhich theCommission and Council set upthis
system were motivated bythe fact that before 1April 1973 *which was
thedate onwhich Regulation (EEC )No.1025/70 (2)came into operation
intheUnited Kingdom ,cotton yarns whose importation into theCcmnu -
nity wasliberalized byRegulation (EEC)No.1025/70,were subject to
aquota system intheUnited Kingdom both under conventional provisions
and inthe form ofnational quotas .
Theapplication ofRegulation (EEC )Nc.1025/70from 1April 1973
should have resulted inthedisappearance ofthequota system .I'he
British Government ,asserting that economic and social difficulties
would follow sudden liberalization ,requested permission from the
Commission totake interim protective measures .After consultation
with theAdvisory Comaittee setupbyRegulation (EEC )No.1025/70
itwas decided toallow theUnited Kingdom tosubject theimportation
ofcotton yarn totheproduction ofalicence during the period from
1April to3*1December 1973 and tolimit such imports to12.750 metric
tons®
2» On17December 1973 theBritish Government requested permission
from theCommission tocontinue theinterim protective measures for
afurther period .
TheAdvisory Committee setupbyCouncil Regulation (3EC )
No.1025/70meton10January 197^.
./.
(1)Commission Régulation (EEC)No.1831 (OJNo.L185 ,7July 1973 )
andCouncil Régulation (EEC )No.2631 (OJNo.L272 ,29September 1973 )
(2)Council Regulation (EEC)No»1025/70establishing common rules
forimports from third countries

-2-
v
During themeeting theBritish Delegation justified itsrequest
bystating that ,asin1973 »the sudden liberalization ofcotton yarn
impor^e would still threaten tocause substantial injury totheBritish
industry which isconcentrated inNorth-West England where itemploys
themajority ofthelabour force .For several years this labour force
hasbeen undergoing aprocess ofreconversion (1962 :72*500 persons
employed ;1972 :3^.000 ).This process however canonly becarried out
gradually because of,among other things ,acertain measure ofprotection
asregards imports from third countries .Indeed ,sudden liberalization
would lead toalarge increase inthe volume ofimports from countries
offering low prices ,lower production and anincrease inunemployment .
During 1973 »moreover ,theBritish cotton spinning industry had tocon­
tend with increased imports from Mediterranean countries (inparticular
Turkey )inrespect ofwhich theUnited Kingdom liberalized imports in
accordance with theTreaty ofAccession .Any further liberalization
would therefore beaburden whiesh would cause serious consequences to
the industry .
However ,theBritish Government believes that recourse tointerim
protective measures must create anunusual situation and itintends to
implement measures facilitating thespeedy completion oftheprocess
ofreconversion iatheindustry concerned .
During theconsultation certain delegations expressed theopinion
that ,byaccepting Regulation (EEC)No.1025/70atthetime oftheAc-
cension negotiations ,theUnited Kingdom hadalready provided for the
liberalization ofcotton yarn imports from 1April 1973 .Ifinterim
protection measures had ,nevertheless ,been granted bytheCouncil to
theUnited Kingdom ,enabling ittosubject toauthorization the pro­
ducts inquestion for theperiod 1April to31December 1973 »such
measures should have facilitated thereorganization oftheBritish
spinning industry enabling ittoliberalize imports ,thedetrimental
effect ofwhich does notseem tohave been sufficiently proved .
Anynewinterim protective measure should bevery limited intime .

Itwas stated according toother delegations :
-immediate liberalization would constitute athreat ofserious damage
tothecotton yarn industry intheUnited Kingdom ;
-new interim protective measures could thus beconsidered ,provided
that they were for aperiod ofnot more than oneyear ;
-theBritish Government should doeverything ,during the further
period oftime ,toput anend totheunusual situation and tocomplete
theprocess ofreconversion of -,theindustry concerned .
3. Consequently theCommission considered itnecessary toretain on
atemporary basis theinterim protective measures adopted bytheCouncil
in1973 (1)andtosubject immediately for197^theimportation into
theUnited Kingdom ofcotton yarn ,whether ornot putupforretail
sale (tariff headings 55*05 ,55«06 ),toproduction ofanimport licence
pursuant toArticle 10(1 )(b)ofCouncil Régulation (EEC )No.1025/70,
asaprotection measure (Commission Régulation (EEC )No.335/7^of
(?)8February 197^)
k. Inaccordance with Article 10(6 )ofRegulation (EEC )No.1025/70
theCommission shall ,within tenworking days oftheentry into force
16ftheenergency measure referred toinitem 3above ,make aproposal
totheCouncil onappropriate measures tobetaken inthis area .
The proposal for aRegulation annexed hereto issubmitted tothe
Council inaccordance with theaforementioned provisions .
5. Allowing for the factors and considerations which have been noted ,
the proposed measures are not unlike those which were the subject ofa
Regulation which hasalready been adopted on -aprovisional basis bythe
Commission .
./.
(1)Council Régulation (EEC )No.2631/73of29September 1973 (OJ
No.L272 ,29September 1973 )
(2)Commission Regulation (EEC )No.335/7^of8February 197^(OJ
No.L37,9February 197*0

These measures provide that imports into theUnited Kingdom
will belimited prorata atalevei notless than that laid down for
theperiod April toDecember 1973® 17^000 metric tons corresponds
tothese criteria and are ,indeed ,greater since theUnited Kingdom
has ,meanwhile ,liberalized imports ofcotton yarn from Mediterranean
countries .
Itwould seem appropriate ,inview ofArticle XIX oftheGATT ,
tomake use ofanon-discriminatory formula asregards thegeographical
scope ofthemeasures concerned .Themeasures will therefore continue
toapply tothe same non-member countries asare listed inthe Council
Regulation quoted initem 3»
6. Depending onthefuture developments ofimports oftheproducts
inquestion into theCommunity ,theCommission reserves the right to
propose future amendments ortorepeal themeasures concerned should
thethreat ofdamage disappear ,oronthe other hand ,toextend these
measures toother parts oftheCommunity ortothe entire Community
should there beathreat ofserious damage toproducers inregions
other than the United Kingdom .
7. Itisproposed that theCouncil adopt theproposal foraRegu­
lation joined tothis document ,allowing for the time limits laid down
inArticle 10ofRegulation (EEC)1025/70*

Proposai for a
COUNCIL REGULATION
subjecting toauthorisation theimportation
ofcotton yarn into theUnited Kingdom from
non-meEber countries
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC )No.1025/70 (l)of25May1970
establishing common rules forimports from third countries ,and inpar­
ticular Article 10thereof ,
After consultation with theAdvisory Committee setupbyArticle 5of
that Regulation ,
Whereas inresponse toarequest dated 17December 1973 from theBritish
Government theCommission byRegulation (EEC )No.335/71*(2)of8February
197^,setup,pursuant toArticle 10ofRegulation (EEC )No.1025/70,
asystem oflicences for theimport ofcotton yarn ,into theUnited Kingdom
originating inand coming from non-member countries ,under the same
conditions aslaid down inCouncil Regulation (EEC )No.2631/73 (3)Of
27September 1973 *setting upthesame system fortheperiod 1April
to31December 1973' »
Whereas itappears from the statistics and other information supplied
bytheBritish Government during theconsultation with theAdvisory
Committee ,that theimmediate liberalization ofimports ofcotton yarn
from thecountries listed inAnnex IItoRegulation (EEC )No.1025/7o
would ,inpresent circumstances ,involve therisk ofsubstantial injury ,
which would bedifficult terepair totheBritish cotton spinning in­
./.
(1)OJNo.L12*f ,8June 1970 *
(2)OJNo.L37,9February 197^
(3)OJNo.L272 ,29September1973

dustry ,inparticular asregards employment ,bydisrupting therecon­
version process ofthe industry inthat area ;
Whereas interim protective measures must therefore berenewed and
should consist ofalimitation ontheimportation ofcotton yarn ;
Whereas toremove the threat ofinjury ,protective measures should be
adopted foraperiod extending to31December 197^»
Whereas ,given that the threat ofsubstantial injury originated inim­
ports intended forUnited Kingdom markets ,itappears justified at
present ,having regard toexisting trade flows ,torestrict the appli­
cation ofthe interim protective measures toimports into theUnited
Kingdom ;
Whereas these inteiim protective measures must bedefined insuch away
astofacilitate the completion ofthereconversion process and toal­
lowtheliberalization oftheimports inquestion bytheendof197^?
Whereas having regard toproduction andconsumption intheUnited Kingdom
and tothe trend inimports from non-member countries ,which have in­
creased substantially following theliberalization ofimports into the
United Kingdom from certain Mediterranean countries under agreements
between theCommunity andthose countries ,provision should bemade for
limiting imports atalevel corresponding tothat fixed for19735

-5-
Whereas these protective measures maybeamended orrepealed 111the
light ofthetrend inimports into other regions oftheCommunity ;
HAS ADOPTED THIS REGULATION :
Article 1
1. The importation into theUnited Kingdom ofGreat Britain and
Northern Ireland from the non-member countries listed inAnnex IIto
Council Regulation (EEC )No.1025/70,excepting those countries listed
intheAnnex hereto ,oftheproducts shown below shall besubject to
production ofanimport licence ,and the total tonnage soimported during
theperiod 1January 197^to31December 197^shall notexceed the
following quantities :
CCT heading No.
55.05
55-06
2. The import licences referred toinparagraph 1shall beissued
bytheUnited Kingdom ofGreat Britain andNorthern Ireland .
Article 2
This Regulation shall enter into force ontheday following its
publication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .Cotton yarn ,notputupfor )
retail sale )
Cotton yarn ,putupfor ^retail salev17.000 metric tons
Done atBrussels , For the Council
The Président

Annex referred toinArtide 1
Australia
Austria
Canada
Cyprus
Spain
Finland
Greece
Iceland
Israël
Lebanon
Malta
Morocco
New Zealand
Norway
Sweden
Switzerland (including Liechtenstein )
Tunisia
Turkey
USA