ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73)104
Vol.1973/0015

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CCMMIcSION OFTHES-IIP.CFS13"COMMUNITIES
COM(73)104final
Brussels,29January1973
PROP:OSALSFROMTHECOMMISSION TOTHECOUNCIL
RELATING COMMUNITY
CONTRIBUTE TOTHEFIGHTAGA^TX™.AjnTIG^

Asitsmeetingof30and31October1972heldatLuxembourg ,the
Council,whendiscussingpointVIoftheResolution onthemeasurestobe
takenagainstinflation,understoodtoreachadecision,uponaproposalto
besubmittedbytheCommissionbefore31January1973,oncommercialpolicy
*measuresregardingquantitative restrictions ,theapplication ofgeneralized
preferences andpossiblespecifictrafficreductionlikelytocontributeto
thefightagainstinflation.
0
o o
Inviewofthepersistentriseinconsumerprices,therateofwhich
hasaccelerated overthelastmonths,themeasuresproposedunderCouncil
Resolutionof5December1972mustallbepursuedvigorously.TheCommission
remainshereofthefirmopinionthataneffectivetradeonthetrendof
prices,inparticular ,offinishedproductscanonlybeappliedthroughurgent
Communityactioninthetradingfield,toaddtoandreinforcethemeasuresof
economicpolicytakenortobetakenbyMemberStates.
Tariffreductions andtheraisingofexistingquotasmightbemajorfactors
ininitiatinganabatementofpricerises,particulary bystiffeningcompetition
oninternalmarkets.Althoughtariffreductions maynotinthemselvesprove
effective,thefightagainstinflactionmustbelookedatasacombinedoperation
consistingofanumberofmeasurescomplementing andreinforcing eachother.
Besidestheirconsequential effects,thesemeasurescouldalsoandmightwell
havetheaddedeffectofbringingtogetherthevariouseconomicandsocial
groupsforamoreactiveparticipation inthefightagainstinflation.They
wouldbeparticularyeffectiveintheywereaccompanied byothermeasureswhich
wouldensurethattheincidenceoftariffreductionsisreflectedinconsumer
prices.Consequently ,itwouldbenecessarytoinvolvethepricecontrol
instrumentstowhichreferenceismadeatpointIIoftheResolutionof5December
1972.
Inordertoapplyaspromptachekaspossibleonthetrendofprices,
theCommissionconsidersitessentialthatthetariffreductionstobegranted
bytheCommunityasoriginallyconstituted shouldbearonfinishedindustrial
products.Butastheseareapartoftotalimportsthereductioninduties

shouldnotbelowerthan20%.Tosimplifytheprocedurethetariffreduction
shouldcoverthewholeofeachchapteroftheG.C.T.whichrelatesentirely
ormainlytofinishedindustrialproducts,withoutexceptionofanyparticular
headingtheproposedreductioncouldbeimplementedeasilywithoutamendement
totheC.C.T.bysimplyreducingby20fotheamountofdutywhichwould
otherwisehavebeencharged.Ifexcessivepricerisesweresubsequently to
affectanyparticularproducttheCommissionwouldthenproposesupplementary
tariffreductionsinrespectsuchproductorwouldsuspendaltogetherthe
dutiesrelatingtoit.
Themeasuresunderconsideration mustonnoaccountprejudicethetrade
negotiations tobeheldin1973underGATT.Cautionisthereforeessentialand
thisiswhytheCommissionconsidersthat,soasnotcompromisethenegotiation
position,theeffectoftariffreductionsshouldbelimitedto6months.A
reductionofdutieslimitedtoproductslikelytohaveanimmediateeffecton
thelevel'ofpricesisinitselfevidenceofashort-term economicpolicy
measurewhichcanbenomeansbetakenasanindicationofthefuturenegotiation
intentionsoftheCommunity.
Soastomitigatepossibleunfavorableeffectsontheemploymentlevel,
asafeguardclausemightbeinsertedprovidingforexemptionofcertainspecific
productsfromtheeffectofthemeasureswhereverthesemeasuresmightentail
seriousdisturbances inspecificindustrialsector.
IftheCouncilsharestheopinionoftheCommissionovertheproposed
tariffreductionstheCommissionwillsubmittotheCounciladraftinstrument
embodyingtheproposal.
Asregardsquantitativerestrictions andtheapplicationofgeneralized
preferences ,theCommissionactinginpursuanceofpointVIofCouncilResolution
of5December1972onthemeasurestobetakenagainstinflation,submitsto
theCouncil(seeAnnexes1,2and3)J
-aproposalforaDecisionunderArticle113raisingbyto10$forthe
year1973thequotassubsistinginoneormoreoftheMemberStatesinrespect
ofagricultural andindustrialproducts,excludingtextiles,importedfrom
countrieswhicharepartiestoGATT'ortreated ^likewiseaswellasfrom
territories withaplannedeconomy:

-3-
-aproposalforaRegualtionunderArticle113raisingbyIQffofor
theyear1973thequotasand.ceilingsfixedbytheCouncilfortheapplication "
ofgeneralizedpreferencesin1973;
–adraftDecisionoftheRepresentatives oftheGovernments ofthe
MemberStatesoftheCoalandSteelCommunityrelatingtoasimilarraise
asregardsgeneralizedpreferences inrespectofproductscoveredbythe
E.C.S.C.Treaty.

-1- ANNEXI
Proposalfora
COUNCILDECISION
of
&
provisionally raising "by10%quantitativerestrictions onimports.
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
havingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andparticularArticle113thereof;
havingregardtotheproposalfromtheCommission *,
whereascomprehensive measuresare"beingtakenonaCommunityscaleagainst
inflationary tendencies ;
whereasaprovisional measureraisingquantitative restrictions ongoodsim­
portedintotheEuropeanEconomicCommunityasoriginallyconstitutedislikely
tocontributetoabatementofthosetendencies ;
whereastheincreaseshouldbefixedat10$andbeeffectivethroughout1973;
whereas,however,textiles,provisionforwhichisbeingmadeelsewhere,
shouldbeexemptedfromtheeffectofthismeasure;
HASADOPTEDTHISDECISION :
Article 1
TheMemberStatesoftheCommunityasoriginallyconstitutedshall,intheyear
1973,raiseby10percentumtheimportablequantityofproductssubjectto
quantitative restrictions applyingtoanyoneormorethirdcountries.

Article 2
This Decision shall notapply totextile products falling within Chapters
56to62oftheCommon Customs Tariff .
Article 5
This Decision isaddressed tothe Member States ,
Done atBrussels , Por the Council
The President

-3- ANNEX2
Proposalfora
REGULATION(EEC)NO/73OPTHECOUNCIL
raisingby10$thequotasandceilingsfixedinrespectoftheapplication
ofgeneralizedpreferencesin1973
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
havingregardtotheTreatyestablishing theEuropeanCommunity,andinparticular
Article113thereof?
havingregardtotheproposalfromtheCosmssion;
whereascomprehensive measuresarebeingtakenonaCommunityscaleagainst
inflationary tendencies;
whereasunderRegulations (EEC)Nos2761to2766/1972tariffquotasand.ceilings
havebeenopenedinrespectofgeneralizedtariffpreferencestobeapplied
in1973;
whereasanincreaseof10fainthequotasandceilingsfixedinrespectofthe
applicationofgeneralizedpreferencesin1973islikelytocontributetothe
abatementofinflationarytendenciesfeltwithintheCommunity;
HASADOPTEDTHISREGULATION :
Article1
Quotaamountsorvolum.esmaximumamountsinrespectofeachcountryorterritory
andquota-shares allocatedtoMemberStatesinrespectofeachoftheproducts
listedatAnnexAofRegulations (EEC)2761,2763arxd2765/72areraisedby
10percentum.
Communityceilings,theamountsorvolumesofwhicharecalculatedforeach
productinaccordancewithArticle1(3)ofRegulations (ESC)2762,2764and
2766/72,areraisedby10percentum.
(l)OJNoL296,30,12.1972,p.

-4-
Article 2
ThisRegulationshallenterintoforceon1April1973.
ThisRegulationshall"be"bindinginitsentiretyanddirectlyapplicable
inallMemberStates.
DoneatBrussels, PortheCouncil
ThePresident

-5- ANNEX 3
BRAFT DECISION
oftheRepresentatives oftheGovernments 01'theMember States ofthe
Coal andSteel Community meeting intheCouncil raising by10^thequotas
and ceilings fixed inrespect oftheapplication ofgeneralized preferences
in1973 forproducts covered "bytheE.C.S.C. Treaty .
THE REPRESENTATIVES OFTHE GOVERNMENTS OPTHE MEMBER STATES OFTHE EUROPEAN
COAL ANDSTEEL COMMUNITY MEETING INTHECOUNCIL ,
inAgreement with theCouncil ,
HAVE DECIDED :
Sole Article
Quotas ,ceilings ,andmaximum amounts inrespect ofeach country orterritory
fixed inrespect oftheapplication ofgeneralized preferences in1973 by
Decisions Nos432and433 (l)areraised by10percentum .
Done atBrussels , For ,theCouncil
The President
(1)OJNoL296 ,30.12.1972