ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)356
Vol.1977/0118

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)356 final.
Brussels,July12.1977
PROPOSALFORACOUNCILREGULATION
,
maintaining thearrangements fortheauthorization ofimports
intotheCommunityorintoanumberofMemberStatesofcotton
yarnandofgarmentsoriginating incertainthirdcountries
(submittedtotheCouncil "bytheCommission)
..1
C0m(77)356final.

EXPLANATORY MEMORANDUM
1.Asaresultofasharpincreaseintheearlymonthsofthisyear
inimportsintoPranceofcertaintextileproducts(cottonyarn,menfs
shirts,T-shirtsandthelike,women*sshirtsandblouses)thatMember
Stategavenoticeon17–18Juneofitsintentiontotakesafeguardmeasures
inrespectoftheseproductswheretheycomefromlow–wageeconomies.
2.On21,23and29JunetheMemberStatesandtheCommissionheld
consultations onthismatteronthebasisoftherelevantprovisionsof
thevariousCommunityimplementing regulations,interaliaArticle3
1oftheCouncilDecisionof19December1972andArticles4and12of
2CouncilRegulation No1439/74•Atthefirstoftheseconsultations ,
on21June,oneMemberStateandtheCommissionobjectedtotheuse
byFranceofnationalmeasuresandtoarecoursetoArticleXIXofthe
GATT.Theseobjectionsweresubsequently supportedbyasecond
MemberState.Itwasalsoconfirmedduringtheseconsultations that
otherMemberStatessufferedfromsimilarproblems.
3.Inparticularasubstantial increaseinimportsoftheproductsin
questionfromallthirdcountriesxfasnoted.In1976theseimports
alreadyaccountedforaconsiderable shareofthemarket.Sincethat
timethissharehasincreasedfurthereithero?itheCommunitymarketas
awholeoronthemarketofcertainMemberStates,althoughtheincrease
hasvariedfromMemberStatetoMemberState.Asregardstheseproducts
withahighrateofmarketpenetrationspecialobjectiveshavebeenset
inthenegotiatingdirectivesfortherenewaloftheMPA.
lojNoL299,31.12.1972
OJNoL159,15.6.1974.

4.Aconsiderable partofimportsintotheComra-unityoftheproductsm
questionisalreadysubjecttoquantitative limitsnegotiatedwith
certainmajorsupplyingcountries.However,examinationofthe
stateofaffairsrevealedthatthetrendofimportsfromothersources
wassuchastojustifytheestablishment oflimitsontheproductsin
questionfortheCommunityasawholeorforcertainregionsofthe
Community.Thisexamination alsoservedtoidentifythelow-salary
supplyingcountriescontributing todisruptionofthemarket.
5.On6JulytheCommissiondecidedinprincipleonemergencymeasures
tobebroughtinforthesecondhalfofthisyearand,withregardto
thesupplyingcountries,whichCpmmunityregionsshouldbeprotected
andwhichproceduresapplied.Onthequestionofimportstabilization ,
thefollowingapproach'wasadopted:
(i)maintenanceoftheamountsandproceduresfixedpursuanttothe
bilateralagreementsonvoluntaryrestraint,unlesstheseare
renegotiated ;
inthiscontexttheCommissionisprepared
tobeginconsultations –atPrance'srequest–
withSingaporeandMacao,withaviewto
reducingtheshareofmen'sshirtsallocated
toPrance,offsettinganincreaseinthe
Frenchshareforotherproducts;
(ii)applicationinappropriatecasesofthecompulsoryconsultation
clauses(CCC)inthebilateralagreements.

)incertainspecialcases,theextensiontooneoranother
MemberStateofimportarrangementsalreadyinforcein
oneregionoftheCone-unityvis-a–visasupplyingcountry;
inallothercaseswherestrictimportlimitsarenecessary,
theapplicationofaformulalimitingimportsinthesecond
halfof1977insuchawayastoavoidanyexacerbation of
themarketdisturbance caused "byimportsoftheproductsin
question,"bearinginmindtheCommunity *sinternational
obligations ;forcountrieswithwhichtheCommunityhas
concludedbilateralagreementsestablishing specialtrade
arrangements ,theintroduction ofmeasuresbasedonthe
safeguardclausesinthoseagreements ;
inthecaseofGreece,inrespectofwhichcountrythereis
nosafeguardclause,andincaseswherethereisnowishto
imposestrictlimitsupontheimportsofcertaintextile
products(Cyprus–Israel–Malta–Morocco–Tunisia–
Turkey),diplomaticactionaimedatstabilizingimports.

-4-
(vi)incertain other cases ,renewed ,vigilance with regard to
imports oftheproducts inquestion ,with aview toapplying
appropriation measures should itbecome necessary .
6.Consultations have taken place with thefollowing countries ,with which
theCommunity hasconcluded "bilateral agreements establishing special
arrangements fortrade ,todiscu.ss theproposed measures "based oncertain
provisions ofthose Agreements :
Morocco :7July 1977
Tunisia :8July 1977
Turkey : 7July 1977
Spain : 8July 1977
Egypt wasasked forconsultations within theJoint Committee ofthe
Agreement with theCommunity "butwasunable totake part .Anote verbal e .
hasbeen sent tonotify Egypt ofimport restraint measures concerning it.
Requests forconsultations have been sent tothose MFAmember countries in
respect ofwhich itisplanned totake import restraint measures either
under theMFAorunder thebilateral Agreements ontextiles negotiated or
concluded with theCommunity within theframework oftheMFA (Colombia -
Malaysia –Pakistan –India -Romania ).
7.Inthecase ofRomania thequestion ofimport restraint oncotton yarn
hasbeen dealt with byaCommission Decision of12July 1977 ,inaccordance
withDecision 75/21O/EECapplicable tostate-trading countries (SeeDoc.
)andwith theEEC-Romania Agreement initialled on10November 1976 .

-5-
8.InviewoftheurgentnatureoftheproblemtheCommissionhas
decidedtotakeappropriate stepstoremedythedisruptionofthe
marketfortheproductsinquestion.Asregardsrestraintmeasures,
sincetheimmediateintroduction byanumberofthethirdcountries
concernedofarrangements forvoluntaryexportrestraintforthe
productsinquestionappearsoutofthequestion,ithasbeen
necessarytoenvisageasystemofimportlicences.
Inthecourseofconsultations anumberofthecountriesaffected
bythesemeasuresrequestedthatthesafeguardmeasuresconcerning
themshouldbeappliedintheformofvoluntaryrestraint.The
Commissioniscontinuingconsultations withthesecountries,and
withanyotherswhomightsorequest,withaviewtoworkingout
detailsfortheapplication ofsuchvoluntaryrestraintarrangements
backedupbyadoublecontrolsystem.
9.Onthebasisofparagraph6ofArticle12(layingdownan
emergencyinterventionprocedure)ofCouncilRegulation(EEC)Ho1439/74t
theCommissionhasestablishedfortheproductsandthecountries
oforigininquestionimportrestraintarrangements fortheCommunity
asawholeorforcertainregionsoftheCommunity(seeRegulation
(EEC)No/77of12July1977).
Commissionregulations adoptedbyvirtueofArticle12ofRegulation
(EEC)NO1439/74expiresixweeksfollowingtheirentryintoforce
unlesstheyareconfirmedbytheCouncil.
Consequently theCommissionproposesthattheCounciladoptthe
Regulationproposedhereunder,thepurposeofwhichistoconfirm
themeasuresadoptedbytheCommissionregulationregardingproducts
originatinginColombia,Egypt,India,Malaysia,Pakistan,Morocco
orTunisia.
10.TheCommissionconsidersthatthisproposal,togetherwiththe
othermeasuresandinitiativestaken,isadequatebothtoremedythe
problemscomplainedofbyPranceandotherMemberStatesduringthe
consultations referredtoinparagraph2above,andtomeetthe
objectionsraisedagainsttheintentionsofFranceasnotifiedbythat
countryon17–18June1977.

Proposal foraCouncil Regulation
maintaining thearrangements fortheauthorization ofimports
into theCommunity orinto anumber ofMember States ofcotton
yarn andofgarments originating incertain third countries
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
Having regard toCouncil Regulation (EEC)Ho1439/74of4June 1974
1oncommon rules forimports ,andmparticular Article 13thereof ,
After consultation within theAdvisory Committee established "by
Article 5oftheabove Regulation ,
Having regard totheproposal from theCommission ,
2Whereas byRegulation (EEC)NO /77ofJuly 1977 theCommission made
inter alia the importation into certain Member States ofcotton yarn and
garments originating inColombia ,Egypt ,India ,Malaysia ,Morocco ,
Pakistan orTunisia subject toauthorization ;
Whereas thegrounds justifying the introduction ofthemeasures have
persisted andwhereas itisaccordingly necessary forthemeasures to
remain inforce until 31December 1977 »
HAS ADOPTED THIS REGULATION :
Article 1
Thearrangements fortheauthorization ofimports into certain Member
States ofcotton yarn andofgarments originating inColombia ,Egypt ,
India ,Malaysia ,Morocco ,Pakistan orTunisia ,adopted byRegulation
(SEC)No /77,shall remain applicable until 31December 1977-
Article 2
This Reflation shall enter into force onthedayfollowing thedayof
itspublication intheOfficial Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels FortheCommission
1 The President