No C 286/32 Official  Journal  of the European  Communities 15.12.  75 
into the possible  applications  for telecommunications 
in the  transport  field,  including  their  possible 
employment  consequences.  The  Committee  considers 
that the  Commission  should  also  make  an 
examination  of the  question  of the  substitutability 
between  transport  and  telecommunications  in the 
Community. 
7.3.2.  The  Committee  is certain  that  if the 
Commission  were  to promote  telecommunications 
technology  more  strongly,  this  would  probably 
stimulate  faster  development  of  new  transport 
techniques.  In any  case,  however,  such  action  could 
provide  a further  contribution  towards  increased 
safety  in the transport  field. 
7.3.3.  The  use  of telecommunications  in  city 
centres  (organization  of limited  space,  charging  for 
infrastructure  costs,  traffic  control,  etc.)  should 
constitute,  in the  Committee's  view,  a further  field 
for in-depth,  urgent  study  by the Commission,  all the 
more  since  other  areas  of the  economy  should 
provide  sufficient  stimulus  in order  to create  the 
requisite  technical  infrastructure. 
8. FINAL  COMMENT 
8.1. As  has  been  outlined  above,  a common 
telecommunication  policy  is necessary.  This  policy 
Done  at Brussels,  25 September  1975. must  be based  on the  principles  which  were  used  in 
the framing  of  other  common  policies. 
Implementation  of this  policy  is conditional  on 
political  will  (which  on too  many  occasions  is absent 
from  other  common  policies),  a  coherent 
Community  concept  and  the  earmarking  of the 
appropriate  funds.  In order  to realize  a common 
telecommunication  policy,  the Commission  must: 
8.1.1.  submit  proposals  as soon  as possible  for 
implementing  a common  policy  in this  field; 
8.1.2.  work  out  various  Community  models  for 
Member  States'  medium-term  development  in order 
to assess  the  role  of  communications,  and 
particularly  telecommunications,  in the light  of these 
models; 
8.1.3.  study  telecommunications  systems  in the 
Member  States  and  take  every  step  to harmonize 
these  systems. 
8.2. The  Committee,  which  includes 
representatives  of the  users,  industrialists  and  trade 
unions  concerned,  expects  to be consulted  on all 
future  Commission  initiatives  in this  field.  For  its 
part,  the  Committee  is prepared  to provide  the 
Commission  with  all possible  assistance  in this  field. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the European  Community's  Generalized  Tariff  Preferences  Scheme  for 1976 
and on the  future  development  of the  European  Community's  Generalized  Tariff 
Preferences 
The text  referred  to the  Committee  has  not  been  published  in the Official  Journal  of 
the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 26 June  1975,  the  Council  referred  the abovementioned  subject  to the  Economic 
and Social  Committee  under  Article  198  of the  Treaty  establishing  the  European 
Economic  Community. 
15.12.75 Official  Journal  of the European  Communities No C 286/33 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 133rd  plenary  session, 
held in Brussels  on 24 and  25 September  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof; 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 30 June  1975  for an 
Opinion  on  the  Commission's  proposals  to the 
Council  for  Regulations  relating  to the  application 
of generalized  tariff  preferences  for 1976; 
Having  regard  to the  Commission  communication 
to the  Council  of 3 February  1975,  entitled  'The 
Future  Development  of the  European  Community's 
Generalized  Tariff  Preferences'; 
Having  regard  to the decision  taken  by its Bureau  on 
15 July  1975,  instructing  the  Section  for  External 
Relations  to draw  up an Opinion  on the  above 
matters; 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr Evain; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for  External  Relations  at its meeting  on 
9 and  10 September  1975; 
Having  regard  to the discussions  at its 133rd  plenary 
session  held  on 24 and  25 September  1975, 
HAS  ISSUED  THE  FOLLOWING  OPINION 
by unanimous  vote: 
1. The  Generalized  Tariff  Preferences  Scheme 
for 1976 
1.1. Each  year,  the  Commission  submits  to the 
Council  proposals  relating  to the  generalized  tariff 
preferences  which,  since  1971,  have  been  granted  by 
the Community  to a number  of developing  countries 
and territories  in line  with  the  offer  made  to 
UNCTAD  in 1969. 
The offers  concern  exemptions  from,  and  reductions 
in, customs  duties  and  zero-duty  or reduced-duty 
tariff  quotas  for  certain  processed  agricultural 
products  covered  by Chapters  1 to 24 of the CCT,  as 
well as all the  manufactured  industrial  products 
covered  by Chapters  25 to 99 of the CCT. 1.2. For  the  1976  Generalized  Tariff  Preferences 
Scheme,  the  Commission  proposes  in respect  of 
processed  agricultural  products: 
(a) an additional  linear-  reduction  of 10 °/o in the 
GSP customs  duties  for all the products  covered 
in 1975  (except  castor  oil and  coconut  oil for 
industrial  use),  and  for  'Virginia  flue-cured' 
tobacco; 
(b) the  inclusion  of a few  products  such  as tonka 
beans  and  products  which  originate  in the 
poorest  countries  and  are  not  produced  in the 
Community; 
(c) the  opening  of a 28 000  metric  ton  tariff  quota 
at a duty  of 15 °/o for tinned  pineapple  in slices 
and a 10 000 metric  ton increase  in the existing 
tariff  quota  for  tinned  pineapple  other  than  in 
slices. 
1.3. For  manufactured  industrial  products  other 
than textiles  and  steel,  the Commission  proposes: 
(a) a general  15 % increase  in the quotas  for all the 
products  covered  in 1975,  apart  from  plywoods 
(+ 5%  by  volume),  tennis  rackets  (+ 20%) 
and footwear,  radios,  television  sets  and 
transistors  (+ 8%); 
(b) raising  the 'buffers'  for some  products,  such  as 
tennis  rackets. 
1.4. For  textile  products,  the  Commission 
proposes: 
(a) the  retention  of the  1975  scheme  for jute  and 
coir products  pending  bilateral  agreements  with 
the main  countries  concerned,  i.e.  India  and 
Bangladesh  (the  existing  agreements  are due  to 
expire  on 31 December  1975); 
(b) a 5 °/o increase  in the existing  quotas  for other 
textile  products; 
No C 286/34 Official  Journal  of the  European  Communities 15.12.  75 
(c) the  inclusion  of Guatemala,  Paraguay  and  Haiti 
in the list of beneficiary  countries; 
(d) the  inclusion  of dependent  territories  in the  list 
of GSP  beneficiaries  in the  textiles  sector  for 
certain  products  which  are  subject  to ceilings 
(beneficiary:  Hong  Kong); 
(e) raising  the  'buffer'  for  hand-knotted  carpets, 
carpeting  and  rugs  containing  350  knots  or less 
(beneficiary:  India). 
1.5. The  Commission  proposes  a 15 % increase  in 
the quotas  for  goods  which  come  under  the  ECSC 
Treaty. 
1.6. In  addition,  the  Commission  proposes  a 
certain  extension  of the  Community  tariff  quota 
reserve  system. 
1.7. In  its explanatory  memorandum  preceding  its 
proposals  to the  Council  for  the  1976  scheme,  the 
Commission  states  that  these  amendments  represent 
a modest  but  significant  improvement  on the  1975 
system  and  should  be  of special  benefit  to the 
poorest  countries.  It also  announces  Community 
measures  in the  area  of GSP  documentation  and 
information. 
2. The  future  development  of  the  Generalized 
Tariff  Preferences  Scheme 
2.1. In  a communication  of 3 February  1975  to 
the Council,  the  Commission  outlines  the  future 
development  of generalized  tariff  preferences.  It 
points  out  that  its efforts  have  been  directed  towards 
making  the Generalized  Tariff  Preferences  Scheme  an 
instrument  of  development  cooperation,  to  be 
applied  within  a world  economic  order  observing  a 
number  of  rules  of  conduct  and,  within  the 
Community  itself,  to be  integrated  with  other 
common  policies. 
2.2. Up  to 1980,  the  Commission's  efforts  will  be 
directed  towards: 
— increased  use  of  the  Generalized  Tariff 
Preferences  Scheme  (through  measures  to provide 
information  and  promote  trade), 
— better  management  of the  scheme  (cooperation 
between  national  and  Community  administrative 
authorities), 
— appropriate  improvements  in accordance  with  the 
following  criteria: (a) increased  benefits  for  the  poorest  countries 
by enlarging  the  coverage  of  processed 
agricultural  products 
(b) help  for industrialization  programmes 
(c) taking  account  of the  Community's  supply 
requirements  in  cases  where  processing 
activities  are  transferred  to the  developing 
countries 
(d) fair  sharing  of  advantages  among 
beneficiaries 
(e) simplification. 
2.3. In  the long  term,  the Commission  foresees  the 
continuation  of the  Generalized  Tariff  Preferences 
Scheme,  subject  to the  necessary  degree  of alignment 
of the  different  donor  countries'  schemes  being 
carried  out  and  the list of beneficiary  countries  being 
reviewed  in the light  of objective  criteria. 
3. Comments  on the scheme  proposed  for 1976 
3.1. The  Committee  notes  with  satisfaction  that 
the Commission  has  framed  its proposals  regarding 
the 1976  Generalized  Tariff  Preferences  Scheme  with 
the intention  of  giving  further  aid  to the  poorest 
countries.  Because  of  the  lack  of  statistical 
information,  the  Committee  is, however,  not  in a 
position  to assess  the  practical  effectiveness  of the 
scheme.  It therefore  calls  upon  the  Council  and  the 
Member  States  to give  maximum  assistance  to the 
Commission  in  the  collection  of  statistical 
information. 
3.2. The  Committee  shares  the  Commission's 
desire  to take  account  of the  present  state  of the 
Community's  economy,  of  the  GATT  trade 
negotiations  recently  embarked  on,  and  on the  need 
to make  a special  effort  to help  the  poorest 
countries. 
The Committee  considers  that  the  1976 
improvements  should  relate  to a better  knowledge 
and a better  application  of the  scheme  as it has 
evolved  over  the past  four  years,  rather  than  further 
changes  in its formal  structure. 
3.3. The  Committee  therefore  approves  the 
prudent  approach  adopted  by the  Commission  in its 
proposals  for 1976. 
3.4. The  present  economic  and  social  situation  in 
the Community  makes  it impossible  to go beyond 
these  1976  proposals.  The  Committee  recognizes  that 
the improvements  granted  to  the  developing 
15.12.  75 Official  Journal  of the  European  Communities No C 286/35 
countries  are  not  as substantial  as would  have  been 
desirable.  The  Committee  would,  for example,  agree 
that the  15%  increase  in those  quotas  which  are 
expressed  in terms  of value  and  which  embrace  the 
majority  of industrial  products  could  be  partly 
cancelled  out  by price  increases  (although  the  prices 
of a number  of products  which  come  under  the  GSP 
have  fallen  on the world  market). 
3.5. It  is all the  more  necessary  to look  for  ways 
of promoting  optimal  utilization  of the system  by the 
beneficiary  countries.  One  way  would  be  to 
introduce  a greater  degree  of continuity  in the 
operation  of the  system  and  to eliminate,  as far  as 
possible,  the  uncertainty  which  the  economic 
operators  have  to contend  with  as a result  of the 
annual  decision-making  by  the  Council.  The 
Committee  would  suggest  that; 
— provision  be made  for  the  automatic  renewal  of 
the system  for  the  following  year,  the  quotas 
being  opened  temporarily  for three  or six months 
and the  customs  duties  in force  during  the 
previous  calendar  year  being  further  applied. 
— the  Commission  be given  the  task  of making 
annual  adjustments  to the  scheme  in accordance 
with  policy  guidelines  laid  down  by the  Council 
and after  consulting  the  economic  and  social 
groups  concerned. 
3.6. With  regard  to  item  1.4  (d)  above,  the 
Committee  wonders  whether  the  inclusion  of 
dependent  territories  is commensurate  with  the 
Community's  general  policy  of trying  to give  the 
poorest  nations  preferential  treatment.  It is true, 
however,  that  the present  size  of the quotas  for these 
dependent  territories  hardly  warrants  any  undue 
concern. 
3.7. The  Committee  notes  with  satisfaction  that 
the Commission  has  once  again  announced  the 
setting-up  of a documentation  centre  to deal  with 
problems  connected  with  generalized  preferences. 
The Committee  thinks  that  this  documentation 
centre  should  be made  available  to all the  economic 
and social  operators  in the  Community  and  the 
developing  countries.  The  activities  of the  centre 
should  be coordinated  with  the  efforts  to supply 
information  which  are  necessary  under  other 
cooperation  instruments  covering  economic  and 
commercial  relations  between  the  Community  and 
the developing  countries,  such  as the  Convention  of 
Lome. 
The Committee  would  like  to see  other  parties 
besides  the  Commission  of  the  European 
Communities  play  a part  in informing  economic  and 
social  operators  in the  beneficiary  countries.  The Commission  should  give  maximum  encouragement 
to any  initiatives  in this  field.  Steps  taken  along  these 
lines  by socio-economic  organizations  in Germany 
and the  Netherlands  deserve  to be mentioned  in this 
context. 
4. Comments  on  the  future  development  of the 
Generalized  Tariff  Preferences  Scheme 
4.1. The  Committee  applauds  the  fact  that  the 
Commission  has  taken  into  account,  in its document 
of 3 February  1975  on the  future  development  of the 
Generalized  Tariff  Preferences  Scheme  for developing 
countries,  all the anxieties  which  the  Committee  had 
expressed  in its Opinion  (1) delivered  last  year  on the 
proposals  for the 1975  scheme. 
4.2. In  particular,  subject  to points  4.3  to 4.6 
below,  the  Committee  applauds  the  fact  that  the 
Commission  indicates  in the  said  document  that,  in 
the years  to come,  the Generalized  Tariff  Preferences 
Scheme  will  have  to: 
(a) operate  within  an  economic  and  commercial 
system  subject  to  international  rules  and 
obligations  which  will  involve  both  rights  and 
duties  for  the  donor  countries  and  the 
beneficiary  countries,  even  though  the  scheme 
itself  remains  autonomous; 
(b) be  considered  as an instrument  for development 
cooperation  and,  as such,  be coordinated  with 
the other  measures  forming  part  of an overall 
Community  policy  on cooperation; 
(c) be  simplified  and  made  more  effective,  that  is to 
say be of real  benefit  to those  countries  which 
need  the preferences  most; 
(d) take  into  account  its repercussions  on sectors  of 
economic  activity  in  the  Community  and, 
consequently,  be  in  harmony  with  the 
Community's  various  common  policies; 
(e) form  the  subject  of a critical  examination  as 
regards  the drawing  up of the  list of beneficiary 
countries;  in particular,  this  list  will  have  to be 
drawn  up  on the  basis  of objective  economic 
criteria; 
(f) be  aligned  with  similar  schemes  applied  by other 
donor  countries. 
4.3. The  Committee  considers  observance  of the 
rules  of conduct  referred  to in item  4.2  (a) above  to 
(!) OJ No C 16, 23. 1. 1975. 
No C 286/36 Official  Journal  of the European  Communities 15.12.  75 
be essential  to the  very  future  of the  Generalized 
Tariff  Preferences  Scheme  applied  by the Community 
in respect  of developing  countries. 
Even  though  the  Community's  offer  to  the 
developing  countries  is a unilateral  one,  both  sides' 
international  trading  activities  must  naturally  display 
a certain  reciprocity  in support  of this  offer. 
4.4. The  Committee  would  point  out,  with  regard 
to item  4.2  (d) above,  that  the  necessary  solidarity 
between  the  Member  States  in the  face  of possible 
repercussions  of the  scheme  on  their  economies 
could  be shown  by integrating  the  GSP  into  the 
Community's  common  policies. 
4.5. As  regards  point  4.2 (e) above,  the Committee 
notes  with  satisfaction  that  the Commission  has  not 
ruled  out an eventual  review  of the list of beneficiary 
countries,  based  on  objective  criteria.  The 
Committee  emphasizes  that  these  criteria  must  not be 
exclusively  of an economic  nature;  they  must  also 
have  a social  aspect.  Thus  particular  countries  which 
refuse  to recognize  certain  basic  rights  or  to 
introduce  minimum  social  standards  for  their 
workers  should  be excluded,  as should  countries 
which  carry  out  dumping  or in general  fail  to 
conform  to certain  rules  of commercial  conduct. 
Generally  speaking,  the  Committee  thinks  that  the 
preferences  must  be confined  to countries  which, 
because  of their  per capita  income  and  other  factors, 
are classed  as developing  countries.  The  Commission 
must  make  proper  allowance  for  this  fact  in its 
future  plans. the scheme  can  be slanted  to achieve  the  impact 
desired  by the  poorest  countries.  Furthermore,  the 
Committee  considers  that  ultimately  an endeavour 
should  be  made  to coordinate  the  information 
systems  of all the donor  countries. 
4.8. In  this  connection,  the  Committee  is of the 
opinion  that  the  Commission  should  examine  the 
impact  of the GSP  on consumer  prices.  It should  also 
examine  how  and  to what  extent  undertakings  in 
industrialized  countries  are  encouraged  by the  GSP 
to change  their  investment  policies  in view  of the 
ease of access  to the Community  markets. 
4.9. At  all events  the  Committee  considers  that 
plans  should  be made  to carry  out,  from  1977 
onwards: 
(a) a revision  of the list of beneficiary  countries; 
(b) an adjustment  of the  'buffers'  so that  the 
preferences  can  continue  to be of maximum 
benefit  to the least-privileged  countries; 
(c) if necessary,  measures  to adapt  and  restructure 
those  industrial  and  agricultural  sectors  within 
the Community  which  could  be  adversely 
affected  by action  in favour  of the  developing 
countries. 
This  ought  not to preclude  subsequent  improvements 
to the terms  granted  to the developing  countries. 
4.6. As  regards  item  4.2 (f) above,  the Committee 
stresses  the  urgent  need  for  alignment  and 
coordination  of the  systems  of generalized  tariff 
preferences  used  by different  countries,  so as to 
achieve  greater  effectiveness  (in other  words  benefit 
the poorest  country)  and  greater  market 
transparency.  The  Committee  suggests  that 
advantage  be  taken  of the  multilateral  GATT 
negotiations  in order  to promote  this  coordination. 
4.7. The  Committee  regrets  that  it did  not  have 
sufficient  statistical  documentation  to be able  to 
carry  out  a detailed  assessment  of the application  of 
generalized  tariff  preferences.  It is only  with  such 
documentation  that  one  can  judge  whether  and  how 4.10.  The  Committee  is  aware  that  the 
effectiveness  of the  Generalized  Tariff  Preferences 
Scheme  diminishes  as more  headway  is made  in the 
GATT  negotiations  on the  liberalization  of trade. 
Nevertheless,  the Committee  holds  the view  that,  in 
the current  negotiations,  the  Community  should 
make  an effort  to preserve  the  bulk  of the  tariff 
preferences  granted  to the developing  countries. 
4.11.  The  Committee  feels  that  it is too  early  to 
give its views  on the  schemes  to be applied  to the 
various  categories  of industrial  products  after  1976. 
The Commission's  proposals  certainly  deserve  to be 
applauded,  but  their  true  value  clearly  cannot  be 
assessed  until  they  have  become  draft  Regulations. 
15.12.  75 Official  Journal  of the European  Communities No C 286/37 
The distinction  between  sensitive  products,  semi-
sensitive  products  and  non-sensitive  products  is in 
keeping  with  changing  economic  circumstances.  The 
division  of  the  various  products  into  these 
categories  is closely  bound  up with  the development 
of the  economic  situation.  A non-sensitive  product 
may,  in the space  of a few  months  or a few  weeks, 
unexpectedly  become  a sensitive  product.  The 
removal  of ceilings  for non-sensitive  products  should 
at all  events  be  dependent  upon  the  prior 
establishment  of an effective  warning  and  safeguard 
system. 
4.12.  For  the same  reason,  it cannot  be said  here 
and now  that  tariff  quotas  are  no longer  necessary. 
In view  of the difficulties  encountered  in developing 
Done  at Brussels,  24 September  1975. an effective  rapid  monitoring  system,  the  fixing  of 
tariff  quotas  has,  up till now,  proved  itself  to be the 
only practical  method  of ensuring  that  quotas  are 
not exceeded.  It may,  therefore,  under  certain 
circumstances,  continue  to be necessary  to employ 
this method. 
4.13.  In  conclusion,  the Committee  considers  that 
the future  development  of the  Generalized  Tariff 
Preferences  Scheme  should  be regarded  above  all as a 
complementary  instrument  of  Community 
cooperation  in the development  of a number  of third 
countries  which  recognize  that  economic 
interdependence  is a decisive  factor  in joint  economic 
and social  progress. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the proposal  for a Council  Directive  fixing  the maximum  level  of erucic 
acid in fats  and  oil and  margarine  for food 
The text  referred  to the  Committee  was  published  in Official  Journal  of  the 
European  Communities  No  C 150  of 5 July  1975,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 3 July  1975,  the Council  referred  the abovementioned  proposal  to the  Economic 
and Social  Committee  under  Article  198  of the  Treaty  establishing  the  European 
Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 133rd  plenary  session, 
held in Brussels  on 24 and  25 September  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof; 
Having  regard  to the request  made  by the Council  of 
the European  Communities  on 4 July  1975  for  an 
Opinion  on the  proposal  for  a Council  Directive 
fixing  the maximum  level  of erucic  acid  in fats  and 
oil and  margarine  for food; Having  regard  to the decision  taken  by its Bureau  on 
15 July  1975,  instructing  the Section  for  Protection 
of the  Environment,  Public  Health  and  Consumer 
Affairs  to draw  up an Opinion  and  a report  on the 
above  matter; 
Having  regard  to the  Opinion  issued  by the Section 
for Protection  of the  Environment,  Public  Health 
and Consumer  Affairs  on 9 September  1975,  and  the 
Report  submitted  by Mr De Grave;