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DOCUMENTS "COM"
COM(73)1304
Vol.1973/0245

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)1304 final
Brüssels ,8August 1973
PROPOSAL FORAREGULATION (EEC )OFTHECOUNCIL
subjecting toauthorization theimportation into the
United Kingdom ofyarn ofjute from third countries
REGULATION (EEC )OFTHE COUNCIL
subjecting toauthorization theimportation into the
United Kingdom ofcotton yarn from third countries
(submitted totheCouncil "bytheCommission )
CCM73 )1304 final

EXPLANATORY K3M0RANDUM
1.Since1April1973CouncilRegulation(EiDC)No.1025/70establishing
commonrulesforimportsfromthirdcountriesisapplicableintheUnited.
Kingdom.
Juteyarn(Tariffheadingno.57*06)islistedinAnnexItothatRegulation.
Importsofjuteyarnarethereforenotsubjecttoquantitative restrictions .
2.Before1April1973importsofjuteyarnintotheUnitedKingdom
weresubjecttoquotarestrictions withinatotalquotaappliedbythe
BritishGovernment.ApplicationofRegulation1025/70removedtherestri­
ctionsinforceforjute.-yarn..
On31March1973theBritishGovernmentinformedtheCommissionofthe
seriousdifficulties withwhichtheUnitedKingdomwouldbefacediftrade
injuteyarnwereliberalised ,,Atthepresenttime,thejute-spinning industry
is.centredaroundDundee,whereitconstitutes theonlyindustryofanysize.
A.suddenliberalization ofimportswouldundoubtedly poseaseriousthreatto
thisindustryandwouldinevitablyincreaseunemployment ,whichisalready
highinthatarea.
Moreover,theCommunityiscurrentlynegotiating withIndia,andisdueto
negotiatewithBangladesh,agreementsrelatingtotradeinjuteproducts.
Takingintoconsideration theinstructions givenbytheCounciltothe
Commissionforthesenegotiations ,juteyarnshouldalsoappearinthis
agreement(voluntaryrestraintwasprovidedforintheAgreementswith
PakistanandBangladesh ,whichdidinfactalsocoverjuteyarnandwhich
expiredattheendof1972,althoughtheAgreementwithBangladeshwasextended
defactoandbycommonassentuntil30June1973).TheUnitedKingdom
Governmentconsidersthattheliberalization oftheproductsinquestion
threatenstocausesubstantialinjurytotheBritishjuteindustry,in
particularinviewoftheincreaseinimportsarisingfromthechangein

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theimportriJes.The-BritishGovernmentaddsafurtherconsideration
regarding thecurrentsituation,namelythatitwouldbeinappropriate
forasystemofliberalization ofimportstobeintroducedwhenitispro-
pablethatadifferentsystemcouldbebroughtinunderthenegotiations
takingplaceorproposedinthenearfuture.
TheBritishimporterswouldfinditdifficulttoacceptpassingsoquickly
fromasystemofquotarestrictions toasituationofliberalization ,in
turnbymeasuresofvoluntaryrestraint.AccordingtotheBritishGovernment
thesefluctuations wouldcausechaosintraditional tradeflows.TheBri­
tishGovernmenthasthereforerequestedtheCommissiontotakeprotective
measuresunderTitleIVofRegulation1025/70inviewofthepossibility
ofregulatingbyagreementtradeintheseproductsbetweentheCommunity
andthemainsupplieroountries,thesewouldbeinterimmeasuresonly.
3.On9April1973therewasameetingoftheAdvisoryCommitteesetup
byArticle5PtRegulation1025/70*OntheBasispftheinformationsupplied
bytheBritishdelegation,allthedelegations andtheCommiaa.onacknowledged
thedifficultyofthesituationandthe.riskofsubstantialinjurywhich,
wouldariseintheUnitedKingdomasaresultofasuddenandprobably
temporaryliberalization ,andalsosawtheexpediencyofadoptinginterim
protectivemeasuresforthejuteindustryinthisMemberState*
4.TheCommissionconsequently considereditnecessarythatasaprotective
measuretheimportationintotheUnitedKingdomofjuteyarn(Tariffheading
No.5706)shouldbemadesubject,underArticle10(l)ofRegulation .1025/70,
toproductionofanimportauthorization (.CommissionRegulation(SjSC).;
no»,■-, .,...).. •-'i
1t • mm«j•••

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5. Article10(5)ofRegulation1C25/70provides that anydecision
taken "bytheCommission shall becommunicated totheCouncil andtothe
Member States .AnyMember State shall ,within tenworking days following the
dayofthecommunication ,refer such decision totheCouncil .
Theannexed proposal ispresented totheCouncil pursuant tothis provision •.
6. Taking into account theabovementioned factors ,theproposed measures
donotdiffer from those contained intheRegulation which hasalready been
provisionally adopted bytheCommission .
These measures ,which apply only totheUnited Kingdom ,provide that imports
into that Member State will belimited toalevel corresponding tothat of
thequantitative restrictions inforce intheUnited Kingdom until 1-April
1973 .
With this aiminmind ,itisproposed that aquota of380metric tons be
established fortheperiod 1April to31December 1973 .This period would
allow the Commission either :
-tocomplete thenegotiations onjute products now inprogress orthtake
"place inthenear future ;or
-alternatively ,tocontinue itsdetailed study ofthesituation and ,
ifnecessary ,torecommend that further measures botaken .
Asregards thegeographical area towhich theproposed measures
are toapply ,itseems advisable ,inview ofArticle XIX oftheGATT ,to
adopt anon-discriminatory formula .Themeasures will Iherefore beapplied
toallthird countries listed inAnnex IItoRegulation 1025/70»with the
exception ,howewer ,oftheSETA countries ,inrespect ofwlich theUnited
Kingdom applied noquantitative restrictions forjute yarn before 1April
1973 .
7. Itistherefore proposed ,inview ofthetime limits laid down in
Article10ofRegulation1025/70,that theCouncil adopt theannexed pro­
posal foraRegulation .

PBOPOSAL FORAREGULATION (EEC )OPTHECOUNCIL
subjecting toauthorization theimportation into theUnited .Kingdom
ofjute yarn from third countries
THE3COUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard tothoTreaty establishing theEuropean Economic Community !
Having regard ,toRegulation (EEC)No1025/70^"oftheCouncil establishing
common rules forimports from third countries ,and .inparticular Article 11(l)
thereof 5
Aftor consultation with thoAdvisory Committee setupbyArticle 5 that
Regulation !
Having regard totheproposal from theCommission 5
Whereas inresponse toarequest from theBri&ish Government theCommission ,
2byRegulation No.1832/73of4July 1973 establishing asystem ofpermits
covering theimport ofyarn ofjute from non-member countries into the
United Kingdom ,took interim protective measures limiting theimportation
into theUnited Kingdom ofjute yarns
Whereas itappears from theinformation supplied bytheBritish Government ,
inparticular during theconsultation intheabove-mentioned Committee ,and
also from other informationj that until 1April 1973 »thedate onwhich
Regulation (EEC)No.1025/70came into operation intheUnited Kingdom ,
importation into theUnited Kingdom oftheproducts inquestion wassubject
toquantitative restrictions inrelation tothecountries concerned !whereas
theincrease insuch imports which would follow theliberalization thereof would
bolikely tocause substantial injury ,which itwould bedifficult torepair ,
tothejute spinning industry intheUnited Kingdom and toaffect theemployment
situation inthoregion where this industry iscentred ;
OJNoL124 ,8June 1970
20JNoL185,7July1973

Whereas interim protective measures must therefore betaken ,dueregard
being had totherelevant international provisions ,inrespect ofthe
importation oftheproducts inquestions whereas .these measures should consist
inalimitation ofimports 5
Whereas ,since such measures areofaninterim nature ,they must remain in
force nolonger than isnecessary toallow thenegotiations with thetwo
third countries which arethemain suppliers tobecompleted ,or,ifthese
negotiations areunsuccessful ,nolonger than isnecessary toenable the
question tobeconsidered ofwhat measures ,ifany ,should betaken$ whereas
theCommunity isnegotiating atthepresent time ,orproposes tonegotiate
inthenear future ,agreements ontrade injute products with thethird
countries which arethemain suppliers ,andtheprotective measures should
therefore boadopted foraperiod extending uptothedate ofentry into force
ofsuch agreements ,butnotbeyond 31December 1973 5
Whoreas ,given that thethreat ofsubstantial injury originated inimports
intended afor United Kingdom markets ,itappears justified atpresent ,having
regard toexisting trade ..flows ,torestrict theapplication ofprotective
measures toimports into theUnited Kingdom ;
Wha*eas these imports should berestricted totherelevant level inthe
United Kingdom before 1April 1973 >
Wfcareas ,these protective measures maybeamended orrepealed inthelight
ofthetrend inimports into other regions oftheCommunity ! -
HAS AD0PT3D THIS REGULATION :

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Article 1
1.Theimportation into theUnited Kingdom ofGreat Britain andNorthern
Ireland from thethird countries listed inAnnex IItoCouncil Regu­
lation (SiiC)No.1025/70,excepting those countries setoutinthe
Annex hereto ,oftheproduct shown below shall besubject toproduction
ofanauthorization ,and thetotal tonnage soimported during theperiod
1April 1973 to31December 1973 inclusive shall not exceed thenumber
ofmetric tons indicated against thename ofthat produ ct:
CCT heading No
57V06 Yarn ofjute 380metric tons
2.Theimport authorization referred toinparagraph 1shall beiHsued
bytheUnited Kingdom ofGreat Britain andNorthern Ireland .
Article 2
This Regulation shall enter into force onthedayfollowing itspublication
intheOfficial Journal oftheEuropean Communilass .
This Regulation shall bebinding initsentirety anddirectly applicable
inallMember States .
Done atBrussels For the Council
The President

Annexreferred ,toinArticle1
Austria
Finiand
Iceland
Norway '1
Portugal
Sweden
Switz'.erland (togetherwithLiechtenstein )

■EXPLANATORY ?^.!ORAtfTXJM
1.CouncilRegulation(EEC)NO1025/70of25Hay1970establishing
commonrulesforimportsfromthirdcountrieshas"beenapplicableinthe
UnitedKingdomsince1April1973.
Cottonyarnwhetherornotputupforretailsale(Tariffheadings
55.05and55*06)islistedinAnnexItothatRegulation;itsimportation
intotheCommunityisnotthereforesubjecttoanyquantitativerestric­
tions.
2,TBefore1April-1973importsof.cottonyarnintotheUnitedKing­
domweresubjecttoquotarestrictions ,bothundertheprovisionsofinter­
nationalagreementsandundercertainnationalorspecialquotaarrange­
ments. .....
On25March1973theBritishGovernmentinfomedtheCommission
oftheseriousdifficulties withwhichtheUnitedKingdomwouldbefaced
iftradeincottonyarnwereliberalized .Accordingtoinformationsupplied
bytheBritishGovernment,thecottonyarnindustryisconcentrated inthe
north-westofEngland,whereitemploysapproximately 35000personsj
in1952thenumberofpersonsemployedinthatindustrywas115000.The
Britishauthoritiesstatedthatthereleaseofthelabourforceconcerned
andtheirre-deployment inothersectorsoftheeconomyhadtakenplace
graduallyandwithouttoomanyharmfuleffects,thankstothemaintenance
ofthesystemofquotarestrictions.However,asuddenliberalization would
seriouslyjeopardizethisprocessandwouldmostcertainlycauseunem­
ploymentinthatregion.
/

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TheBritishGovernmenthasthereforeaskedtheCommissiontotake
protectivemeasuresunderTitl6IVofRegulationWoIO25/7O.
3.On2April1973theAdvisoryCommitteesetup"byArticle5of
RegulationNo1025/70wasconvened.Alldelegationsacknowledgedthe
difficultyofthesituationandthesubstantialinjurywhichasudden
liberalization ofimportscouldcausetothetextileindustryinthe
UnitedKingdom.Theyalsorealizedthat-asuitablesolutiontothis
situationmustbefoundquickly.
Duringthemeetingdelegateswereremindedthat,amongother
things,theCommunityhadsignedagreementswithitsprincipalsupplier
countriesonvoluntaryrestraintinrespectoftradeincottontextiles
pursuanttoArticle4ofthelong-termAgreement,"butthattheseagree­
mentsdidnotcovercottonyarn*ItwasalsostatedthattheUnitedKingw
domhadconcludedbilateralagreementswhichalsocoveredcottonyarn
withmostofthesecountriesbefore1January1973(dateofaccessionof
theUnitedKingdomtotheCommunity).AstheActConcerningtheCondi­
tionsofAccessionprovidesthattherightsandobligationsarising
fromagreementsconcludedwiththirdcountriesbeforeaccessionshallnot
beaffected,itwasstatedthattheUnitedKingdomisstillentitledto;
calluponthepartiestotheabovementioned agreementstohonourtheir
commitments,includingtheobligationnottoexceedthequantitiesfixed
inthoseagreementsasregardscottonyarn.InthisconnectiontheUnited
Jingdomstressedthat,althoughtheprinoipalsuppliercountriesareso
committed,thereisnothingtoproventsizeabletransactions frombeing
carriedoutwithothersupplierthirdcountries,andthereforethe-
injuiysufferedbytheBritishtextileindustryasaresultoflibera­
lizationwouldbethesame#

4.Takingintoaccountthedifferentpointsnotedduringthemeeting,
τ>·;;
theBritishviewthattherestrictive measuresrequested "bytheUnited
r
Kingdomasfrom1April1973shouldapplyonlytothosethirdcountries
towhichrestrictionsappliedonthatdate(whichimplieskeepingthe
existingsituationunchanged),andthefactthat"theproblemisanexcep­
tionalonewhollyconnectedwiththeaccessionoftheUnitedKingdomto
theCommunity,thoCommissionconsidersit.necessarytomakeimportsof
cottonyarn(Tariffheadings55*05and55*06)intotheUnitedKingdom
temporarilysubjecttotheproductionofanimportauthorization ,pursuant
toArticle10(l)(b)ofRegulationEo1025/70.(CommissionRegulation
(EEC)No...of....).
5.InaccordancewithArticle10(6)ofRegulation1025/70the
Commissionmust,within10daysoftheentryintoforceoftheemergency
measurereferredtoinparagraph4above,sv.bnittotheCouncilaproposal
ontheappropriate andnecessarymeasures.
TheproposalforaRegulationannexedheretoisthereforesub­
mittedtotheCouncilinaccordancewiththatprovision.
6.Takingintoaccountthefactorsandconsiderations givenabove,
theproposedmeasuresdonotdifferfromthosecontainedintheRegular-
tionwhichhasalreadybeenadoptedforaprovisionalperiodbythe
Commission .
Thesemeasures,whichapplyonlytotheUnitedKingdom,provide
thatimportsintothatMemberStateshallberestrictedwithinlimits
tobefixedtakingintoaccounttheamountofquantitative restrictions
inforceintheUnitedKingdomuntil1April1973*Itistherefore
./

proposedtoestablishaquotaof12750metrictonsfortheperiodfrom1
Aprilto31December1973inciLisive.ThisperiodwouldallowtheCommission
tocontinueitsdetailedstudyofthesituationand,ifnecessary,to
recommendthatfurthermeasures "betaken.
Asregardsthegeographicallimitofapplicationoftheproposed
measuresitseemsadvisableinviewofArticleXIXofGATTtoadopt
anon-discriminatory formula.Themeasureswillthereforebeappliedto
allthirdcountrieslistedinAnnexIIofRegulation1025/70withthe
exceptionof:
-certaincountries(MemtteSfSOftheCommonwealthorEFTA)in
respectofwhichtheUnitedKingdomdidnotapplyquantitative
restrictions oncottonyarnbefore1April1973?
-9Mediterranean countriesinrespectofwhichtheUnitedKing­
domabolishedexistingquantitativerestrictions ontheproducts
inquestionpursuanttotheTreatyofAcoession.
7.Dependinguponfuturetrendsintheimportsofthoseproducts
intotheCommunity,theCommissionreservestherighttoproposethe
amendmentoftheproposedmeasuresortheirrepeal,ifthethreatof
injuryhasbeeneliminatedor,ifeventssojustify,theextensionofthe
measurestootherpartsoftheCommunityortothewholeCommunity.,
8.ItisproposedthattheCounciladopttheproposalforaRegu­
lationannexedheretowithinthetimelimitprescribedinArticle10
ofRegulation1025/70.

-PROPOSALFORAREGULATION(EEC)OPTHECOUNCIL
subjectingtoauthorization theimportationintotheUnited
Kingdomofcottonyarnfromthirdcountries
THECOUNCILOPTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity }
HavingregardtoRegulation(EEC)No1025/70"*"oftheCouncilestablishing
commonrulesforimportsfromthirdcountries,andinparticularArticle
11(l)thereof}
Afterconsultation withtheAdvisoryCommitteesetupbyArticle5ofthat
Regulation }
HavingregardtotheproposalfromtheCommission }
WhereasinresponsetoarequestfromtheBritishGovernmenttheCommission,
byRegulationNo1831/73of4July1973providingforlicencesforthe
importofcottonyarnintotheUnitedKingdomoriginatinginandcoining :
fromnon-membercountries,1tookinterimprotectivemeasureslimitingthe
importationintotheUnitedKingdomofoottonyarn},,
WhereasitappearsfromtheinformationsuppliedbytheBritishGovern­
ment,inparticularduringtheconsultation intheabove-mentioned
Committee,andalsofromotherinformation ,thatuntil1April1973,the.
dateonwhichRegulation(EEC)NoIO25/7Ocameintooperationinthe
UnitedKingdom,importationintotheUnitedKingdomoftheproductsin
1OJNoL124,8June1970 ''' v
2OJNoLI85,7July1973 '''"'

questionwassubjecttoquantitative restrictions inrelationtothecoun­
triesconcerned }whereastheincreaseinsuch'importswhichwouldfollow
theliberalization thereofwouldbelikelytocausesubstantialinjury,
whichitwouldbedifficulttorepair,tothecottonspinningindustryin
theUnitedKingdomandtoaffecttheemploymentsituationbyinterfering
withtheprocessofredeployment inthatindustry;
Whereasinterimprotectivemeasuresmustthereforebetakenandshould
consistinalimitation ontheimportationofcottonyarnf
Whereastoremovethethreatofinjuryprotectivemeasuresshouldbe
adoptedforaperiodextendingupto31.12.1973 ;"
Whereasgiventhatthethreatofsubstantialinjuryoriginatedinimports
intendedforUnitedKingdommarkets,itappearsjustifiedatpresenthaving
regardtoexistingtradeflows,torestricttheapplicationofprotective
measurestoimportsintotheUnitedKingdom;
Whereastheseimportsshouldberestrictedtotherelevantlevelinthe
UnitedKingdombefore1April1973?
Whereastheseprotectivemeasuresmaybeamendedorrepealedinthelight
ofthetrendinimportsintootherregionsoftheCommunity;
HASADOPTEDTHISREGULATION i
Article1
1.TheimportationintotheUnitedKingdomofGreatBritainand
NorthernIrelandfromthethirdcountrieslistedinAnnexIItoCouncil
Regulation(EEC)NO1025/70,exceptingthosecountriessetoutinthe
Annexhereto,oftheproductsshownbelowshallbesubjecttoproduction
ofanimportauthorization ,andthetotaltonnagesoimportedduringthe
period1April1973to31December1973inclusive •shallnotexceedthe
numberofmetrictonsindicatedagainstthenamesofthoseproducts:

-3-
CCTheadingNo .'Yir;4.:v• v
55.05Cottonyarn,notputupforretailsale)12^metric±ons
55.06Cottonyarn,putupforretailsale <
2.Theimportauthorizations referredtoinparagraph1shall"be
issued "bytheUnitedKingdomofGreatBritainandNorthernIreland.
Article2
ThisRegulationshallenterintoforceonthedayfollowingits
publicationintheOfficialJournaloftheEuropeanCommunities'#
ThisRegulationshallhebindinginitsentiretyanddirectlyappli­
cableinallMemberStates.12750metrictons
DoneatBrussels PortheCotuicil
ThePresident

AnnexreferredtoinArticle1
Australia !
Austria •/ '..:
Canada
Cyprus
Finland
Greece
Iceland
Israel
Lebanon
Malta
Morocco
NewZealand
Norway
Portugal
Spam
Sweden'
Switzerland(includingLiechtenstein)
Tunisia
Turkey
USA