ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(74)2263
Vol.1974/0384

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COMMISSION OFTHEEUROPBAN COMMUNITIES
COM(74)2263final
Brussels.9January1974
PROPOSAL FORA
REGULATION OFTHECOUNCIL
providingforlicensingarrangements inrespectoftheimportation
intotheUnitedKingdomofcottonyarnfromthirdcountries
(submittedtotheCouncilbytheCommission)
COTï(74)2263final

IJxplanatory Statement
1.TheCommunitysetupasystemoflicencesfortheimportofcotton
yarnintotheUnitedKingdomfromnon-membercountriesfortheperiodfrom
1Apriltill31December1973and,again,for1974^^•
Thesemeasuresweremotivatedbythefactthatbefore1April1973»
whichwasthedateonwhichRegulation(EEC)No.1025/70cameintooperation
intheUnitedKingdom,cottonyarnwhoseimportationintotheCommunitywas
liberalisedbyRegulation(EEC)NO.1439/74^^(whichreplacedRegulation
(ESC)NO.1025/70),'wassubjecttoaquotasystemintheUnitedKingdom
bothunderconventional provisions andintheformofnationalqu«$as.
TheapplicationofRegulation(EEC)No.1025/70from1April1973
shouldhaveresultedinthedisappearance ofthequotasystem.
TheBritishgovernment,assertingthatgraveeconomicandsocial
difficulties wouldfollowasuddenliberalisation andbasingitsarguments
ontheincreasedburdenofimportsofcottonyarnsfrommediterranean countries,
infavourofwhichtheUnitedKingdomhadliberaliseditsimportsunderthe
TreatyofAccession,soughtandobtainedin1973and.1974measurestakenby
theCommunity,settingupalicensingsystemfortheimportofcottonyarns
intotheUnitedKingdom.Fortheninemonthsof1973thequantitative limit
established bythesemeasureswasfixedat12,750tonnesand,for1974fat
17,000tonnes.
2.On21November1974theAdvisoryCommitteesetupbyRegulation (EEC)
No.1439/74raetattheCommission'srequesttodiscussthesystemenvisagedfor
1975.
Duringthemeeting,theUnitedKingdomrepresentative indicatedthathis
governmentwishedtobeabletomaintainthequotasystemforafurtherperiod
sincetheeconomicandsocialcircumstances describedinpreviousyearsstill
existedandtheburdenof"mediterranean "importshadmeanwhilebuiltup.
(1)Regulation (EEC)1.831oftheCommission (O.J.No.L185of7•7«1973)and
Regulation (EEC)2(531oftheCouncil(O.J.No.L272of29.9.1973)and
Regulation(EEC)335/74oftheCommission(O.J.No.L37/20of9-2.1974)andRegulation(EEC)675/74oftheCouncil(O.J.No.L83/1of20.3-1974)*
(2)Regulation1439/74oftheCouncilrelatingtotheestablishment ofcommon
rulesforimportsfromthirdcountries(O.J.L159of15.6.197i)•

TheCommissionpointedoutthattheUnitedKingdomimportregimefor
theseproductshadtotakeaccountoftheobligationsoftheArrangement
regardingInternational TradeinTextiles(ll.F.A).,concludedwithinthe
CATTframeworkandwhichenteredintoforceon1January1974,raidthat,
consequently ,liberalisation hadtobecontemplated before1April1975unless:
-recoursewashadtothesafeguardclauseinArticle3oftheL.F.A.
-theproductswereincludedinbilateralagreements
-theproductswereincludedinaprogrammeforgradualliberalisation
culminatinginliberalisation by31March1977atthelatest.
DuringtheworkoftheCounciladhocGroupdealingwiththepreparatory
workfortheCouncildecisionsauthorisingtheCommissiontoopennegotiations
withcertainnon-membercountrieswhicharethemainsupplycountriesfor
textileproducts,theUnitedKingdomdelegationindicatedthatitsgovernment
preferredtoprovide,forcottonyarn,aprogrammeforgradualliberalisation
ratherthaninclusioninCommunitybilateralagreements.
Suchaninclusionwould,inanycase,havecauseddifficulties ofprinciple
fornegotiatingpartnerssinoetheproductconcernedisliberalised onthe
CommunitylevelandiscontainedintheAnnextoRegulation(EEC)No.1439/74.
ThesolutionwhichwouldincludecottonyarnsfortheUnitedKingdom
inaprogrammeofgradualliberalisation underthemultifibres Arrangement
takesintoaccount,astheUnitedKingdomdelegationhadstatedduringthe
AdvisoryCommitteemeetingon10January1974(whenthe1974systemwas
examined),theBritishgovernment'sintentiontoputintoeffectgradual
liberalisation achievingcompleteliberalisation by1January1977,forwhich
astatistical schemehadbeenworkedout.
3.Consequently theCommissionthoughtitnecessarytomaintain,onan
interimbasis,thesafeguardmeasuresadoptedbytheCouncilin1974,and.,for
1975,immediatelytosubjecttheimportintotheUnitedKingdomofcottonyarn,
whetherputupforretailsaleornot,(tariffposition55«05and-55»0°)"to
productionofanimportauthorisation underArticle12,paragraphl(b)ofReg­
ulation(EEC)NO.1439/74(CommissionRegulation(EEC)No.3327of2011.l~7/l)(l)
(1)OJlioL.357¡31.12J.r-74.>14

-3-
4,InconformitywiththeprovisionsofArticle12,paragraph6of
Regulation ITo.1433/74,theCommissionmustsubmittotheCouncil,within
10workingdaysoftheentryintoforceoftheurgentmeasurereferredto
inpoint3above,aproposalconcerningtheappropriate measurestobetaken
inthisfield.
TheattachedproposalforaRegulationissubmittedtotheCouncil
inaccordancewiththeabovementionedprovisions.
5.Theprovisional RegulationadoptedbytheCommissioncoverstheyear
1975..
Intheattachedproposalitisconsidereddesirable,forthefuture,
tofixtheimportrulesfortheentireperiodoftheprogressiveliberal-
isation,thatisupto31March1977*
Themeasuresprovide,therefore,thatimportsintotheUnitedKingdom
shallbegrantedwithinlimitsequalto:
–20,000tonnesfor1975*
-30,000tonnesfortheperiodfrom1January1976"to31March1977*
Thesefigureshavebeenarrivedatbearinginmind,ontheonehand,
thenecessityundertheM.F.A.tomakeasubstantial advanceinthefirst
yearoftheprogressiveliberalisation programmeand,ontheotherhand,
toensurethat,attheendoftheperiod,asufficiently highlevelwill
havebeenreachedtoenableliberalisation totakeplacewithoutupset.
Withregardtothegeographicalfieldofapplication ofthemeasures,
itseemsproper,inviewoftheprovisionsofArticleXIXofGA.TT,to
followanon-discriminatory formula.Themeasureswill,therefore,continue
toapplytothesamethirdcountriesasarecoveredbytheCommissionRegulation.
6.Thefurtherdevelopmentofimportsoftheproductsconcernedinto
theCommunitywillbefollowedandtheCommissionreservestheright,
ifnecessary,toproposethemodification orrepealofthemeasuresifthe
dangerofirfjiryiseliminatedor,onthecontrary,theextensionofthe
measurestootherpartsoftheCommunityortotheentireCommunityof
thefutureevolutionofimportsissuhastothreatenseriousinjuryto
producersinregionsotherthantheUnitedKingdom.

7.ItisproposedthattheCouncilshouldadopttheattachedproposal
»• •
foraRegulation,hearinginmindthetimelimitslaiddowninRegulation
No.1439/74,Article12.

PROPOSAL FORA
REGULATION 0FTH3COUMCIL
providing forlicensing arrangements inrespect oftheimportation into the
': , j■r.„
United Kingdom ofcotton -yarn from third countries
» * · ·£. ..· ·,· * ·''ν 'Λί"·
ΊΉ11ΙΟΟΙΜΟΙΙ /0?ΤΣΒ3ί-ΒηοΡΞΜΓ σΟΜΗΙΠΓΙΤΓΒ ,'"- Γ' "'■:4■"Γ· : "::
Having regard totheTroaty establishing theEuropean Economio Community ;
Having regard toCouncil Regulation (EEC)No1439(l )of4June 1974 .establishing
common rules forimports from thiid countries ,andinparticular Article 12
thereof ?
Having regard totheproposal from theCommission ? •' ''
Having consulted theAdvisory Committee established under Article 5ofthdat
Regulation ;
Whereas byCouncil Regulations Nos.2631/73(2)of27September 1973 and675/74(3 )
of21March 1974 theimportation into theUnited Kingdom ofcotton yarn from
third countries v/asfortheperiod 1April is®31Deoember 1973 andforthe
whole of1974 made subject tolicence ;* -' ' --*■5 '*•(l*
Whereas following arequest from theBritish Government theCommission acting
pursuant toArticle 12ofRegulation (3HTDC)No1439/74established byRegulation
No'3327 -of20.12.1974(4 )}under thesame conditions aswere provided forunder
Council Regulation (TJBC)No675/74establishing thelike for1974# asystem
6flicences fortheimportation into th®United Kingdom ofcotton yarn originating
incadexported frorii third countries ► ^ .„, . , .. . ?
»r'L-:
■1 1 ' .' 1 . ! ■ «.• •.•/•
(1}O.J.NoL159,15.6.1974,p.l
(2)O.J. NoL272 ,29.9.1973 ,p.16 í'^''"r - 0';• •
(3)O.J. NoL83,21.3.1974 ,P.l
(4)OJ.NoL357,31.12.1974 ,P.14

Whereasitappearsfromthestatisticsandotherinformationsuppliedbythe
BritishGovernmentintheoourseofconsultation withtheabove-mentioned
AdvisoryCommitteethatasuddenliberalization ofimportsfromthe
countrieslistedinAnnexIItoRegulation(HEC)No1439/74wouldinpresent
circumstances stillinvolvetheriskofsubstantialinjurywhiohitwouldbe
difficulttoremedytotheBritishcottonspinningindustry,espociallysince
thevolumeofimportsfromcountriesintheMediterranean basinhasincreased
substantially }
Whereasprotectivemeasuresmustthereforebeadoptedandshouldconsistofa
limitation ontheimportation ofcottonyarn;
Whereas,sincethethreatofsubstantialinjuryoriginatesinimportsintended
forUnitedKingdommarkets,itappearsjustifiedatpresent,havingregardto
existingtradeflows,torestricttheapplicationoftheprotectivemeasures
toimportsintotheUnitedKingdom;
WhereastheobligationstindertheArrangementregardingInternational Tradein
Textiles,andinparticulartheneerttoraisegraduallythelevelsofimports
ofproductssubjecttoquantitativerestrictions ,requireliberalisation to
be.achievedby31Kerch1977at'thelatest;
Whereasitaccordinglyappearsappripriatetofixhereandnowthelevelof
limitationfortheentireperiodofgradualliberalization ,thatisupto
31March1977;
Whereastheseprotectivemeasuresmaybemodifiedorwithdravminthelightof
thetrendofimportsintoOtherregionsoftheCommunity;

HAS ADOPTED TEIS REGULATION I
Article 1
,v■"i» 1'
1«Theimportation into theUnited Kingdom ofGreat Britain andNorthern Ireland
fromthird countries listed inAnnex IItoCounoil Regulation (EEC)No1439/74,
with theexception ofthose countries listed intheAnnex hereto ,oftheproducts
shown below shall "besubject toproduction ofanimport licsnce ,andshall be
limited tothefollowing quantities : ,
)
CCTHeading No. Description ofproducts Quantity Year 1975 1
55.05 Cotton yam .notputup 20000metric tons
forretailsale v> <
55*06 Cotton yarn ,putupfor 1January 197° to
retail sale 31Maroh 1977 . '
30000 metrio tons
2. Theimport licences referred toinparagraph 1shall beissued
bytheUnited Kingdom .
.
Article 2
This Regulation shall enter into force onthedayfollowing its
publication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly
applicable inallMember States .
Done atBrussels ,
For the Council
The President

AnnexreferredtoinArticle 1
Ai»abRepublicofEgypt
Austral!a
Austria
Canada ,/.-•
Cyprus
■Finland '•
'Greece
> >, .
*leéland■ f■
Israël
Lebanon
,Malta
Marocco'
■NewZealand
Norway
Portugal •s
Spain!
Sweden
Swiizerland (includingLiechtenstein )
Tunisia
Turkey
USA