ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)328
Vol.1975/0116

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)328 final
Brussels,,2July1975
RECOMMENDATION FORA
COUNCILDECISION
ontheconclusionofanAgreementbetweenthe
EuropeanEconomicCommunityandJapan
negotiatedtinderArticleXXVIIIoftheGeneralAgreement
onTariffsandTrade
(submittedtotheCouncil "bytheCommission)
COM(75)328final

1/163/75-E
AnnexI
Reportontheresultsof"therenegotiations onskiboots
1.On4November1974"theJapaneseGovernmentinformedtheGATTSecretariatof
itsintentiontoopennegotiations withtheEuropeanCommunityunder
ArticleXXVIII(5)oftheGeneralAgreementwithaviewtomodifyingthetariff
concession on.
ex64.OISkiboots Boundrateofduty10$,
theCommunitybeingtheprincipalsupplierand,sincethisconcessionwasgranted
duringtheKennedyRound,theinitialnegotiatoroftheconcession.
2.Totakeaccountofthedifficulties facingthenationalski-bootindustry
andtheresultingplansforitsreorganization ,theJapaneseauthoritiesdecided
toraisethetarifflevelto27$;intheiropinion,thisrateshouldsimply
maintainthepresentlevelofnationalproduction ,withnogrowth,thusallowing
importstoprofitfromtheexpandingmarket.
3.Onthebasisoftheaverageover1971-72-73,"thedirectinjurytothe
Communitycausedbythemodification ofthisconcessiononskibootsamountedto
¥10^9millionintermpofthevolumeoftradeandto¥1^2millionintermsof
customsreceipts(raisingofdutyfrom10$to27$).
4.InordertooffsetthedamagedonetotheCommunity,Japanhadoriginally
offeredreductionsinboundratesoneightproducts(includingmarble,musical
instruments,lifters(forcigarettes,etc.)andfurniture),coveringavolume
oftradewiththeCommunityof¥1879millionandinvolvinganimprovementin
termsofcustomsreceiptsof¥49million.Inmakingthisofferofcompensation ,
JapaninparticularpointedoutthatpursuanttoArticleXXVIIIthecomparison
shouldbemadeintermsofvolumeoftrade.
5.TheCommissionfeltthatthisofferwasclearlyinadequate,particularly
fromthequalitativepoint,ofview,andnotedthatcustomsreceiptsareoneofthe
factorstobetakenintoaccounthere;theCommissionhasthereforeaskedthe
Japaneseauthoritiestoreconsidertheirinitialstandpointandmakeamore

-2- 1/163/75-E
balanced offer .Tothis end.,theCommission hasmade additional requests
involving reductions incustoms duties andthebinding ofanunbound rate of
duty .Also ,though itappreciates thedifficulties facing theJapanese industry
inquestion ,theCommission hasrequested that thenewcustoms duty onskiboots
befixed atalevel ofless than 27$andthat thenewrate bere-bound toavoid
any .uncertainty astothefuture .
6.Aseries ofnegotiations with theJapanese authorities washeld between
December 1974 andthebeginning ofMarch 1975 an<itheArticle 113Committee was
kept regularly informed ofprogress inthenegotiations .Although some ofthe
additional headings ofinterest totheCommunity were able tobeincluded in
Japan 'sfinal list forcompensation ,others were rejected foreconomic andsocial
reasons andreplaced byother products (notably knitted orcrocheted fabrics ,
tractor engines andlighters plated with precious metals ). Itshould bestressed
that theJapanese authorities have onseveral occasions mentioned that ,ifthe
Community refused theimproved offer ,they might notmodify theconcession at
this stage but ,after examining thetrend ofJapanese imports ofskiboots next
autumn ,might instead adopt other measures under theGATT (inparticular under
Article XIX)whose effects would possibly nothave hadthesame consequences for
Community exports .
7.Theimproved andfinal offer ofcompensation made byJapan consists ofthe
following !
(a)re-binding oftheconcession onskiboots attherate of27/6?
(b)reduction inbound rates ofduty onfourteen products (Annex II)covering
avolume oftrade with theCommunity of¥4483million (392/Sofcompensation
forharm )andinvolving animprovement interms ofcustoms receipts of
¥160million (88$compensation forharm ). ,

-3- 1/163/75-E
8.Taking these factors into' account ,theCommission feels that thefinal offer i
ofcompensation issatisfactory andfair andproposes toconclude therenegotiations
with theJapanese Government onthis "basis . !
t
i
9.During itsmeeting of6March 1975 "theArticle 113Committee delivered an
opinion corresponding totheCommission 'sproposal ,aprovisional reservation "by
oneMember State "being lifted a.fewdays later .
■
10.Thedocument recording theresults oftherenegotiations (Annex II)was
initialled on15April 1975 *
11.Thenewrate of2755onski "boots entered into force intheJapanese
tariff on5June ,1975».atthesame time asthereductions intherates on
theproducts offered illcompensation . '

riAnnexe II r
NEGOTIATIONS RELATING TOSCHEDULE XXXVIII -JAPAN
The Delegations ofJapan and oftheCommission oftheEuropean
Communities have concluded their negotiations under Article XXVIII
for themodification orwithdrawal ofconcessions provided for
inSchedule XXXVIII -Japan asset out inthe report attached .
For the Delegation of For the Delegation of
Japan theCommission ofthe
European Communities
A
<A|
i
15Aprii 1975

3 .
RESULTS OFNEGOTIATIONS WITH THE EUROPEAN ECONOMIC COMMUNITY
UNDER ARTICLE XXVIII FOR THE MODIFICATION OR
WITHDRAWAL OFCONCESSIONS INTHE SCHEDULE OFJAPAN .
CHANGES INSCHEDULE XXXVIII -JAPAN
B.CONCESSIONS' TOBEMODIFIED
Tariff Item
NumberDescription ofProducts •. I:ate ofDutyR
bound in
Existing
Schedulelate ofDuty
tobeboundl
i
i
i
\
i
!
- I
ex64.01
_Footwear with outer soles and
uppers ofrubber orartificial
plastic material :
Ski boots 10% i27%I
I
!
ί
i
l
i
t
I
I
i
(■
l
î
!■
C.NEWCONCESSIONS ONITEMS INTHEEXISTING SCHEDULESI
!_
î
i
Tariff Item
NumberDescription ofProductsRate ofDuty
bound in
Existing
Schedule
jlate ofDuty
tobebound
j
ex60.01 Knitted orcrocheted fabric ,
not elastic nor rubberised :
1.Plain orrib (other
than goods specified
in2below ):
(3)Ofman-made
fibres :
A.Containing more
than 50% by
weight of
synthetic fibres
oracetate
fibres*
12.5%* ' •
10%!
;
i
r< i ' i ii. ■ i i
" ■' ■ .l ' •-, //

-2-
Tariff Item
Number
68.02
70.09
ex70.14
fex84.06Description ofProductsRate ofDuty
bound in Rate ofDuty
Existing tobebound
Schedule •
Worked monumental orbuilding
stone ;and articles thereof
(including mosaic cubes ),
other than goods falling
within heading No.68.01 or
within Chapter 69: •
1.Marble ,polished ,-and
articles ofmarble :
Slabs and sheets of
marble ,polished
Other
.2.Other
Glass' mirrors (including
rear-view mirrors ),un­
framed ,framed orbacked
Illuminating glassware ,
signalling glassware and
optical elements ofglass ,
not optically worked nor
ofoptical glass :
Illuminating glassware
for electric lamps ,
excluding those for
filament lamps
Internai combustion piston
engines :
»•
1.Engines :
ex (1)For motor .vehicles :6.25 %
7.5 %
2.5 %
12.5 %Free
Free
Free
10 %
10 % 8%

" * • • -3-
Tariff Item
Number Description ofProducts*ate ofDuty
bound in» Rate ofDuty
Existing tobebound
Schedule
ex84.06
(con .)
2X84 .52*Intended for
use intractors
falling within
heading No .
87.01 :
Other than
gasoline
enqines
Calculating machines ;account­
ingmachines ,cash registers ,
postage-franking machines ,
ticket-issuing machines and
similar machines ,incorporating
acalculating device :30% 15%
ex2.Electric calculating
machines other than
those specified in1
above :
Other than those with
3rules ormore calcu­
lating mechanisms7.5% 6%
îx85.13 Electrical line telephonic and
telegraphic apparatus (includ­
ingsuch apparatus forcarrier -
current line systems ):
Apparatus forcarrier -
current line Systems7.5% 6%
/V

-4-
Tariff Item |.■
Number IDescription ofProductsRate ofDuty
bound in Rate ofDuty
Existing tobebound
Schedule ■
92.05
ex94.03
ex98.10Other wind musical instruments
Other furniture and parts
thereof :
ex 3.Other :
.Other than those
made ofwood or
base metal
Mechanical lighters and
similar lighters ,including
chemical and electrical
lighters ,andparts thereof /
excluding flints andwicks :
ex1.Made of,orcombined
with ,precious metals ,
rolled precious metals ,
metals plated with
precious metals ,
precious orsemi­
precious stones ,
pearls ,coral ,
elephants *tusks
orBekko :
Made of ,orcombined .
with ,rolled silver
orplatinum group
metals ormetals
plated with silver
orplatirium group
metals
ex2.Other :
Lighters7.5% 6%
10% 8%
20% ■
10%16%
8%
(

I/163/75-E
AnnexIII
RECOMMENDATION FORA
COUNCILDECISION
ontheconclusionofanAgreementbetweentheEuropeanEconomicCommunityand
JapannegotiatedunderArticleXXVIIIoftheGeneralAgreementonTariffsand
Trade.
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,andin
pa.rticularArticle113thereof;
i
HavingregardtotheCouncilDecisionof25May1970authorizingtheCommissionto
enterintonegotiationorconsultation inspecificcircumstances withthird
countrieswhichareContractingPartiestotheGATT;
HavingregardtotheRecommendation oftheCommission ;
Whereas,inaccordancewithArticleXXVIIIoftheGeneralAgreementonTariffsand
Trade,theGovernmentofJapanhasnotifieditswishtomodifyaconcession
affectingtheEuropeanEconomicCommunity;whereasthatmodification hasbeenthe
subjectofnegotiationsforcompensatoryadjustment; j
WhereastheconcessionsofferedbyJapanincompensation forthemodifiedconcession
!.
aresatisfactory , !
i.
!
i
HASDECIDEDASF0LL0WS:
Article1
TheAgreementnegotiatedwithJapanunderArticleXXVIIIoftheGeneralAgreement j
onTariffsandTradeisherebyconcludedonbehalfoftheEuropeanEconomic j
CommunityiThetextoftheAgreementisannexedtothisDecision. !
< . *
jArticle2 , !
TheContractingPartiestotheGeneralAgreementonTariffsandTradeshallbe
notifiedoftheconclusionofthisAgreement. j
i
•jDoneatBrussels • i
j
iFortheCouncil !
I
ThePrésident !