No C 232/10 Official Journal of the European Communities 31. 8. 87 
1. The Economic and Social Committee approves the 
proposal by the Commission of the EC for a Council 
Decision recommending that the Community and its 
Member States act jointly to accept the 'Consolidated 
resolution on the facilitation of road transport' of the United 
Nations Economic Commission for Europe. The Committee 
shares the view of the Commission of the EC that, by 
simplifying and harmonizing procedures and approximating 
the various regimes in force, the proposed Resolution will 
contribute to the further development of road transport in 
Europe. 
2. The Committee considers that the joint action by the 
Community and its Member States recommended in the 
resolution is necessary because the subject matter either 
comes within the Community's exclusive jurisdiction 
(passenger transport by road, in accordance with the 
Community's secondary legislation) or else is of particular 
importance with regard to the common market (Article 116 
of the EEC Treaty). In the latter instance, the subjects 
concerned (transport of goods, vehicle insurance and 
registration) are covered in part by Community rules and in 
part by national ones. 
3. The Committee welcomes the change in the legal basis 
of the EC Commission's proposal: whereas in 1984 the legal 
basis consisted of the EEC Treaty in general, the 1987 
version proposes that Article 75 of the Treaty be specified, 
entitling the Committee to issue an opinion on the subject, which is of great importance to the common transport 
policy. 
4. The Committee is concerned that although the EC 
Commission's original intention was to introduce a 
non-binding legal instrument in the form of a 
recommendation, this has not been clearly understood, at 
least by some Member States. It also appears that there is no 
scope for joint action in many areas related to goods 
transport. These reservations have resulted in a long delay in 
the Council decision. The Committee would like to reiterate 
that the proposal is of a non-binding nature. On the other 
hand it believes that it is possible to achieve a minimum 
framework for joint action on goods transport, subject to 
certain collective reservations, as is proposed by the 
Commission of the EC. 
5. As these recommendations affect such a crucial sector 
(road transport), the Committee feels it is essential for the 
Community and its Member States to take immediate joint 
action within the framework of the United Nations 
Economic Commission for Europe. The Committee does not 
underestimate the difficulties involved (legal, economic, 
political, etc.). Nor would it overlook the fact that the last 
few years have been formative ones for the Community's 
road transport policy, and it has not yet taken on its definitive 
shape. Nevertheless, this should under no circumstances 
result in a delay in taking immediate joint action; at the same 
time, the Community and the Member States should seek to 
update at regular intervals (e.g. every two years) the 
provisions contained in the resolution. 
Done at Brussels, 1 July 1987. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT 
Opinion of the Economic and Social Committee on the impact of current US economic and political 
developments on the Uruguay Round and international trade 
(87/C 232/08) 
On 12 May 1987 the Economic and Social Committee, acting under the fourth paragraph of Article 
20 of its Rules of Procedure, decided to draw up an opinion on the impact of current US economic and 
political developments on the Uruguay Round and international trade. 
The Section for External Relations, which was responsible for preparing the Committee's work on the 
subject, adopted its opinion on 12 June 1987, in the light of the report by Mr Romoli. 
At its 247th plenary session (meeting of 2 July 1987), the Economic and Social Committee adopted the 
following opinion unanimously: 
31. 8. 87 Official Journal of the European Communities No C 232/11 
1. The Committee is following with concern the 
legislative moves of the US Congress (Senate and House of 
Representatives) to adopt an overtly protectionist trade bill 
this year. The situation is made more serious by fact that the 
Administration appears unable to offer successful 
opposition, and even the President's veto can be over-ridden 
by the votes of members of Congress in favour of hard-hitting 
trade legislation. 
2. Discussion of the proposals is now at an advanced 
stage. They show an increasing degree of protectionism, and 
to a large extent fly in the face of GATT. They ignore 
international commitments (e.g. the promises of a 'standstill' 
and a 'roll-back' at Punta del Este), and run counter to steps 
to achieve a multilateral balance in international trade. There 
is thus the serious prospect that the Uruguay Round of 
GATT negotiations will become devoid of all substance. 
3. Particularly dangerous are the provisions in the House 
of Representatives' bill seeking to impose unilateral trade 
reprisals against third countries which are accused of unfair 
practices or which simply have a trading surplus with the 
United States (replacing the principle of free trade with that 
of fair trade as judged by the US administration). Equally 
worrying is the discriminatory interpretation of the concepts 
of'damage' and 'prejudice' in anti-dumping and anti-subsidy 
investigations, as well as the proposals to introduce 
swingeing tariffs, quotas and other restrictions in certain 
sectors such as textiles and maritime transport. 
4. The Committee understands the difficulties facing the 
US economy, but points out that international trade is likely 
to face serious pressures if the US adopts unilateral decisions 
and insists on enforcing bilateral solutions. Counter 
measures and defensive moves from the third countries hit 
will be inevitable, and in the end will damage American 
exports too. 
5. The Committee urges the Commission and the Council 
to be highly vigilant, and to react firmly to measures taken 
outside the GATT framework by any country, including the 
United States, which prejudice exports from Community 
firms and therefore employment levels in the Member 
States. 
6. However, even while discussions are still underway, 
the Community should adopt clear positions and speak 
plainly: no-one must think that the violation of the legitimate 
interests of the European Community can go unchallenged 
without the adoption of appropriate counter measures which fully respect GATT. Nor should we rule out, as a last resort, 
the adoption of Community legislative measures mirroring 
those adopted by Congress; lists of industrial goods, 
agricultural products and services on which the Community 
is prepared to act if necessary should be drawn up and made 
public. 
7. The Committee is extremely concerned at the 
possibility of action being taken against individual countries 
which have trade surpluses with the United States. A number 
of European countries are currently in this situation, and 
could face discriminatory measures in the future. This could 
undermine the principle of the unity of Community trade 
policy. The Committee feels that this possibility must be 
averted at all costs. 
8. The Committee would draw the Council's attention to 
the need for Member States to act with the greatest 
consistency and cohesion, so that Community action is 
unanimous and unwavering. 
9. There has been debate in the United States for some 
time about the causes of the present economic difficulties and 
policies for the future. The Committee considers that the 
Community should also express its view. This is not just a US 
domestic policy issue: it involves the economic, monetary 
and financial balance of the whole world, and brings with it 
the danger of generalized recession. 
10. Accordingly, the Committee urges the Commission 
and the Council to make the Community's views clear — not 
only to American politicians but also, via the media, to the 
American public — on the dangers of an escalation of 
protectionism which will afford no lasting benefits for the 
country practising it, and on the need for a concerted effort 
by all to strengthen the GATT system and make the Uruguay 
Round negotiations a success. At the same time, the US 
spokespersons should also be able to put their views to the 
European public. 
11. The Committee agrees with those who argue that 
most of the difficulties facing the US economy are 
attributable to internal factors: to the economic policies of 
the last few years. These have led to very high domestic 
consumption and an inadequate fiscal policy, with serious 
deficits in the budget and in the trade balance, violent 
fluctuations in the dollar, and an unusually high foreign 
debt. 
12. For these reasons, US industry has become less 
competitive in many sectors. It has also lost market share in 
No C 232/12 Official Journal of the European Communities 31. 8. 87 
third countries because of internal restrictions which have led 
to firms losing interest in exporting. 
13. Firstly, then, it is up to the US to take steps to curb the 
budget deficit and restore a balance between domestic 
consumption, savings and investment. 
14. But it is also essential that the trade balance is restored 
against a background of an overall growth in international 
trade, rather than through restrictive and deflationary 
policies left entirely to Washington, with the obvious risks of 
triggering a general recession. 
15. The EEC countries and Japan therefore need to show 
greater solidarity and joint commitment in dealing with the 
US, and adopt more expansionist economic policies to 
support the world economy, especially as the countries of the 
West have undoubtedly benefited in recent years by the 
growth in their exports to the US. 
16. Moreover, some countries, especially Japan, have 
caused protectionist walls to be put up around national 
markets, which have certainly penalized exports from the US 
and other industrialized countries. 
17. Many of the more advanced industrializing countries 
have adopted protectionist policies that have helped 
aggravate imbalances in international trade. Some of these 
countries have constantly devalued their currencies, thus 
offsetting the fall in the dollar and boosting their exports to 
the rest of the world. 
Done at Brussels, 2 July 1987. 18. The Committee recognizes that the European 
Community must also bear some of the blame for having too 
long adopted a passive and defensive attitude over 
international economic relations and for having hitherto 
lacked the resolve to put forward overall proposals for 
solving the problems which have been building up and 
worsening with the passage of time (e.g. the world situation 
in agricultural products). 
19. The time has therefore come for the European 
Community to propose to the US that a frank comprehensive 
assessment be made of the situation with a view to working 
together for a new international economic equilibrium based 
on solidarity and sincere reciprocity. 
20. These discussions — which should later involve all 
major Western countries — should not be limited to trade 
issues, i.e. to bringing the Uruguay Round of the GATT 
multilateral negotiations to a successful conclusion. They 
should also cover the international monetary system and the 
search for a healthy balance between demand for and supply 
of raw materials and agricultural products. 
21. Firm cooperation between the EEC, United States 
and Japan is needed to find realistic, radical solutions to the 
indebtedness of the developing countries, where the situation 
is so serious that the attendant risks may soon cease to be 
containable. 
22. One basic premise in this new mutual commitment 
will have to be a substantial change in the policies followed 
up to now by Japan, which have been a major contributory 
factor to the imbalances at the root of the crisis in the US 
economy. The great Japanese nation has the strength and 
potential to make a positive contribution to the development 
of the world economic system, which in any case is likely to 
face less serious tensions and conflicts in the future. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT