Proposal for a COUNCIL DECISION amending Decision 2003/893/EC on trade in certain steel products between the European Community and Ukraine

(presented by the Commission)

EXPLANATORY MEMORANDUM

The purpose of this Decision is to amend the Council Decision 2003/893/EC of 15 December 2003 on trade in certain steel products between the European Community and Ukraine in order to take into account the accession of the new Member States to the EU.

As established in the Act of Accession, the new Member States shall apply the common trade policy, including the quantitative limits to the imports of certain steel products. However, as referred to in the Act of Accession, the levels of those quantitative limits must be adjusted to take into account the EU enlargement.

The negotiations for a bilateral Steel Agreement between the enlarged EU and Ukraine for the year 2004 are ongoing. This Agreement, once concluded, would replace the autonomous measures. However, pending the conclusion and entry into force of this Agreement, the current quantitative limits introduced by the Council Decision 2003/893/EC of 15 December must be increased to ensure that traditional trade is maintained after EU enlargement. Therefore, an increase of these quantitative limits is proposed.

The methodology to increase these quantitative limits takes into account the traditional imports into the new Member States, via a formula consisting of :

- the average of the imports of the last three years (2000-2002) into the new Member States of relevant steel products originating in Ukraine,

- adjusted pro rata temporis since the enlargement will be effective on 1 May 2004,

- reduced by 30%, that is the same reducing factor applied to the quantitative limits already adopted for Ukraine as a result of the obstacles to the export of ferrous scrap imposed by this country.

This Council Decision will be repealed when the Agreement enters into force.

The Council is invited to approve this proposal for a Council Decision amending the Council Decision 2003/893/EC of 15 December 2003.

2004/0124 (ACC)

Proposal for a COUNCIL DECISION amending Decision 2003/893/EC on trade in certain steel products between the European Community and Ukraine

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof,

Whereas:

(1) As from 1 May 2004, the European Union includes ten new Member States, which are: Cyprus, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovenia and Slovakia. The 2003 Act of Accession stipulates in its Article 6(8) that the quantitative restrictions applied by the Community on imports of steel products shall be adjusted on the basis of imports of new Member States over recent years;

(2) By Decision 2003/893/EC of 15 December 2003 on trade in certain steel products between the European Community and Ukraine [1], the Council adopted quantitative limits on imports into the European Community of certain steel products originating in Ukraine;

[1] OJ L 333, 20.12.2003, p. 84.

(3) Since the negotiations with Ukraine on the conclusion of a bilateral Steel Agreement have not been completed, and in pursuance of Article 6(8), third subparagraph of the 2003 Act of Accession, it is necessary to provide for the increase of existing quantitative limits to ensure that traditional trade is maintained after the enlargement of the European Union. This increase is based on the average of the imports of the relevant steel products by the new Member States over the years 2000, 2001 and 2002, adjusted pro rata temporis since the enlargement will be effective on 1 May 2004, and further adjusted by applying the same reducing factor of 30% already applied to the quantitative limits adopted as a result of the obstacles to the export of ferrous scrap imposed by Ukraine. These quantitative limits will be further amended as necessary following the conclusion of an Agreement;

(4) Therefore, Annex II to the Council Decision 2003/893/EC should be amended;

HAS DECIDED AS FOLLOWS:

Article 1

Annex II to the Council Decision 2003/893/EC is replaced by the Annex to this Decision.

Article 2

This Decision shall take effect on the third day following that of its publication in the Official Journal of the European Union.

Done at Brussels,

For the Council

The President

ANNEX

"ANNEX II

QUANTITATIVE LIMITS - UKRAINE

Unit :tonnes

Year // 2004

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Products //

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SA. Flat products //

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SA1. Coils // 62 037

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SA2. Heavy plate // 200 104

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SA3. Other flat products // 66 608

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SB. Long products //

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SB1. Beams // 12 481

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SB2. Wire rod // 66 828

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SB3. Other long products // 122 170

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