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COM (83) 589 
 
 
 
Vol. 1983/0 222 
  
 
Disclaimer  
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 openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic 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), this f ile 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. 
Februar 198 3 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 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 589 final
Brussels, 10 October 1983
COMMISSION COMMUNICATION TO THE COUNCIL
Steel: External measures, 1984
COM(83) 589 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 L
Steel: External m easures, 1 9 8 4
I. G eneral rem ark s
Effective application of the internal elem ent of the steel plan presupposes 
that the external elem ent rem ain s in force. T h e  C o m m is sio n  w o u ld  refer 
to the C o uncil deliberations of 2 5  July 1 9 8 3 , w h e re  the latter recognized 
the n eed  to m aintain the internal elem ent of the anti-crisis m easu res 
until the e n d  of 1 9 8 5 ; at this point a  n eed  also exists, therefore, to 
m aintain for the year 1 9 8 4  the o u tw ard  defense (external elem ent) 
w h ic h  guarantees the proper operation of the internal elem ent.
II. C o m m is sio n  proposals for 1 9 8 4
1 . T h e  C o m m is sio n  proposes to extend the basic aspects of the 1 9 8 3  
sy stem  to cover 1 9 8 4 , as follow s:
(a) B asic prices
M ain ten an ce and, if necessary, adjustm ent of basic prices in 1 9 8 4 ; the 
C o m m is s io n  will continue to m onitor regularly the trend - as regards b o th  
quantities a n d  prices - of im ports fro m  countries subject to the sy stem  i  
so  as to perm it the rapid im plem entation of trade protection instrum ents 
in cases of unfair com petition.

c
(b) Arrangements system
Réintroduction of the following elements without change :
“ R°nge of geographic application
T he Com m ission proposes the prolongation of the steel arrangements'for 1984 
with the sam e countries as in 1983, i . e .  : Austria, Finland, Norway, Sweden, 
South Africa, Australia, Brazil (pig iron), South Korea, Spain, Bulgaria, 
Hungary, Poland, Rumania, 6?:echoslovakia, and the spedal"understanding" 
with Japan. She is prepared to examine the appropri^eness and the possibility 
of broadening the coverage of products for Brazil and to conclude arrangements 
with other partners.
- Regulation of quantities
»  Fixing by the Council of the rate of reduction for 1-984 compared with the 
figure for 1980 on the basis of the need to maintain' traditional trade 
flows in the light of the forseeabLe trend in visible consumption in the 
Com m unity,
. Extlusion of quantities not used under the 1983 arrangements,' which m a y  
not*be carried forward and added to the quantities planned for 1984,
. Consideration in the negotiations with the E F T A  countries for the special 
nature of the arrangements, and especially .fo r the principle of reciprocity, 
with these countries, concluded as they are in the framework of the free- 
trade agreements.
A  Com m ission statement, acknowledged by the Council, to the effect that 
where the quantities agreed in the arrangements with the state-trading 
^countriesfor supply to M em b er States not covered by autonomous quotas are 
in danger of being exceeded the Com m ission will authorize the M em b er State 
concerned to introduce an autonomous quota after consulting the. third country 
country in question.
A  Com m ission statement, acknowledged by the Council, to the effect that 
the autonomous quotas m ay  be maintained at their traditional level. *
Triple clause: Comm 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.

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U ndertaxing b y  the C o m m issio n , ack n o w led g ed  b y  the C o u n c i l, that in  the 
event o f violation or potential violation of the clause, it will 
im m ediately consult the country concerned w ith a  v ie w  to finding the 
appropriate solution. A s  regards the state-trading countries, w h e re  
exports to a  M e m b e r  State are concentrated within too short a  period
of tim e, the C o m m is sio n  undertakes to enter into consultation w ith su c h  
countries.
•  S e c o n d  choice products :m aintenance of the special provisions or practices relating to 
this g ro u p  of products and, in cooperation w ith the M e m b e r  States, 
increased surveillance of im ports of su ch  products.
*  lE m jJ o ra ry  imports:  exclusion fro m  the sco p e of the arrangem ents o f
im ports forbire processing .  w h e n  the product does not c h an g e  o w n e r.
Price rules a n d  m arg in  of penetration
«  M ain ten an ce of penetration m arg in s currently granted to the exporters
of n o n -m e m b e r countries b y  reference to the C o m m u n ity 's delivered price 
lists.
•  A lig n m e n t b y  C o m m u n ity  producers:  continued prohibition of su c h
alignm ent.
»  Indirect imports:  m aintenance of the rule w h e re b y  su ch  im ports are
subject to the basic prices a n d  m u s t b e  deducted fro m  the quantities 
agreed.

Management of arrangements
» Consultation clause:  maintenance of provisions providing for consultations
for the purposes of both the-automatic mid-year review of the operation of the 
arrangements and the discussion of specific problems.
• Suspension clause:  maintenance of the suspension clause as set out in the
existing arrangements.
» Control and sanctions: maintenance of sanctions consisting either in the
— ■ M.I.W II I·1  ■ - M l i l l HI -Jfc... .
reduction or elimination of the margin of penetration or, where the 
violation persists and in the most serious cases, in exclusion from'- 
the arrangement system of the product which is the subject of price 
undercutting.
Retrospective a n d  advance surveillance: extension for 1 9 8 4 . Effective
collaboration b y  M e m b e r  States, especially through m o re  sp eed y  transm ission
o f statistics a n d  the regular a n d  p ro m p t despatch of infringem ent files/
©ff i c i sn cyw o u ld  enable the C o m m issio n  to strengthen the of the clauses contained
in the arrangem ents.
2 . In  order to strengthen the sy stem  already in force, the C o m m is s io n  
proposes to introduce the follow ing n e w  m easures for 1 9 8 4 :
Management of arrangements
The Commission will introduce a new mechanism to avoid violations of 
the triple clause (staggering, geographical distribution, breakdown by 
product) by the arrangement countries. To this end the Member States 
will have to inform the Commission by expedited procedure of any danger 
of injury due to non-compliance with the said clause. To this effect,

- 5  -
the C o m m is s io n  will im m ediately hold consultations w ith the country 
concerned and, if necessary, will take appropriate m easu res as provided 
for in the arrangem ents in order to put a n  e n d  to the injury suffered 
b y  the M e m b e r  State concerned.
A d v a n c e  surveillance
T h e  C o m m is s io n  will a m e n d  R e c o m m e n d a tio n  1 3 9 9 /8 2 /E C S C  i·3 · ™  order to :
permit a more thorough examination of applications for licences, by 
extending the period for the granting of such licences from 5 to 10 days;
ensure an effective examination of price rules, by obliging the Member 
States to forward all the documentation required (copies of contracts, 
applications for licences).
- Price rules
The Commission studies the possibility of modifying the preferential 
price scheme for imports of steel for shipbuilding and repair yards.
- Products coverage
T h e  ran g e of products covered will b e  extended to include cold-rolled 
plate of 3  m m  a n d  over.
- B asic prices t
T h e  C o m m is s io n  will intensify its surveillance of steel products im p o rted  
fro m  the countries subject to basic prices a n d  will take m easu res to 
ensure that com plaints m a d e  b y  C o m m u n ity  industry are dealt w ith m o re  
rapidly.
S e c o n d  choice products
T h e  C o m m is sio n  will consult the M e m b e r  States in the Steel Liaison C o m m itte e
in order to introduce effective uniform  control of im ports of seco n d  choice products.

3. Procedure
T h e negotiations with the partner countries will be conducted by the 
Com m ission following agreement with the M em b er States in the Steel 
Liaison Committee. Before the negotiations are concluded, the text of 
the arrangements will be submitted to the comptetent authorities of the 
Council at the sam e time as the request for assent to prohibition of 
alignment.
III. S u m m ary  of Com m ission proposals
T he Com m ission proposes to proceed in the following w ay  :
In keeping with the O E C D  declaration the Com m ission will propose that 
certain countries which export steel to the C om m unity conclude bilatera 
arrangements with the C om m unity entailing discipline on prices so as 
not to disturb the C om m unity market. A t the sam e time assurances 
will be given concerning the maintenance (  of traditional trade flows, 
but taking into account both the possible fall in dem and foreseen 
for 1984 and the anti-crisis measures which have been implemented 
under Article 58 of the E C S C  Treaty .
T he Com m ission proposes that the other measures set out in Section II 
of the document be approved.
T he Com m ission will present .
its proposals on the quantitative aspects of the arrangements with 
the partner countries for which figures are to be agreed.
- T he Com m ission will report regularly on the negotiations to the 
Steel Liaison Committee; this Committee will deliberate on all 
matters with a view to finding appropriate solutions.
- Problems for which no solution can be found within the Liaison 
Committee will be referred to the Permanent Representatives Committee.
“ T he Com m ission will present the text of the arrangements to the Council
before arrangements are concluded.