ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)530
Vol.1980/0173

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)530final
•thBrussels,12Bovember1980
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
EXTERNALASPECTSOPTRADEINSTEEL
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Ο"ί·«^·ΊΟΑΤία·ί :'.''ΐΕα\'ΜΤε5ΙίΛ 'ΓΟΤΗΖ Γ·1·Ν€χΙ .
£uj"nset :External aspects oftrade iur-teel
j.Itv.-?necessary toextend toecurre;itCommunity measures anforeici trade
in -.;teel to1?S1 .CR~1October 1900 .%Council gave itsagreement to
•heCoirenissior 'sCCPKIW ;:catjonof6October 1080OPthaapplication cf
Article 58cftheE.C,S.C ,Treaty ,ioparticular topoin +IV .,C.2cfth=?t
cc-1l ;;uj~)j.catj.o •,under wLich itwas stated thai '■benew ^irangemeiits onsceel
tradeshould amain in'je.t^rrl pirrid .artohhose for 1C-30 ,with 'heressrve
that the nvw ivianfcities fixedJ.Otna Arrano^ne /Ursshould bereduced from
thfir .1900 leveJ stotahe into -BCCCUIT *-tedu-r .^consumption within th -r.COI-N/RU-RII
Tneguiding j.rir.cipls for theCommunity pus 1:bethat oflair buxden-s -rinr ;,
Cnetheone ha>.d fitmust bemade clear toCc^uuni typroducers that thr.y will
notbesubject heanunfavour able treatment compar >dwith third-co »;ntry
•suppliers oftneCommunity market ;ontheother hand ,itisnecessary rot
todiscrixninate insuch awaythat iinpo^cs from third countries wou3d bz
detrimentally afleered .Byavoiding such discrimination ,abetter under o .andirg
of "dieCcTmruTiity 'sposition onthepart ofourtraditional suppliers could br
expected .
2.Basic prices
Inconformity with itscommunication of7October 1980 totheCouncil onthe
anti -crisis measures insteel ,theCommission published thenewset of
basic prices on1November 1980 ,These have been raised ,forcertain products ,
according toincreases inproduction costs .In1981 ,theCommission will
exercise astricter control ontheprices ofthose imports subject tobasic
prices .
3.Steel Arrangements
Theexisting Arrangements arebased onuniform principles ,but areadapted ,in
form andmore specifically intheir quantity provisions ,according tothe
particular relationships that exist between theCommunity anditspartner
countries .This cannot andmust notbechanged .
Themain provisions oftheArrangements should equally becontinued without
change for1981 .Thefollowing aretheessential features :
-Anobligation torespect theprice provisions i
-Community producers areforbidden toalign their prices onprice .,offered
byArrangement countries .
-Quantity provisions .
-Themaintenance oftraditional trade flows while respecting a .r.pacing of
exports intime ;regional distribution andthe -product-spre .1ofexports
totheComnunity .
-Theapplication ofbasic prices toindirect imports .
Provisional adeiress ;200 ,ruedelaLoi ,1040 Brusse!s–Telop^ône n>50040-358040–TeleqropH • tr*»y3:cCOMEUR Bru*sels 1–
Telex :«C0MEUR6RU 2)877 »

-Theexclusion iram thecov ;."eiee of '"It?Arr .nvrier^nt oftemi«eraryimports
forhire .-processing onthe -orK '','onthat heownership oftheproduct
does not change .
-Special provision for itr -.} :Cpte^'l for useinshipbuldir gand
repair-yards ,
-Consultation crause .
-Suspension clause ,.
There isnoneed torenew theexchange ofletters specific toSpain on
first -transformation products .
Itisnecessary tostrive toconclude Arrangements for 1981 with ellthose
countries with whom Arrangements were concluded for1980 .Further ,itwould
appear essential toconclude anArrangement with South Korea ,given the
latter' snewly-established production capacity .
Negotiations onquantitative aspects should depart from thefact that Community
production inthefirst quarter of1981 will beatalevel about 15%lover than
that ofthefirst quarter of1980 .Thefact that production aidinternal
consumption will beatlower then traditional levels inthesecond half of
1981 must also betaken into account »These developments must be
mirrored intheexternal regime ,,This could beachieved byforeseeing ,f°r1981
asawhole ,reductions cor Lexpending toprevailing tonnages ,while adding
aclause allowinq for consultations inmid-1981 .Inthe course ofthese
.decisions could bemade onthepossible adaptation ofquantities
onthebasis ofthereal development forecast for themarket for tlie
second half year .
Informulating quantity previsions ,sryspecial contractual relationships
wnich exist between ,theCommunity ande-?..aparbier courtry will have tobe
taken into account .Itis thee ; that theArrangements with ETTA
countries haw been set intheframework oftheFree Trade Agreertents .The
Arrangements with theEFTA countries end .with Spain also foresee reciprocity .
Hieprovision astoconsultation with these countries needs therefore to
bestrengthened „
Thenegotiations with partner countries ^1.1beconducted bythe
Commission inagrrcaient with the Mertber States within theframework of
the Steel Liaison' Committee ."Hietexts oftheArrangements will besubmitted ,
before 82gnatuie ,totheCorimittee ofPermanent Representatives ,more
particularly toobtain "a/iseonfonue "ORforbidding pric *alignments .

Inconclusion andinthelight oftheabove ,theCommission requests the
agreement oftheCouncil tothefollowing :
-Inline with thedeclaration oftheOECD,the Commission will propose tocertain
countries which export steel totheCommunity that ,inorder toavoid the
creation ofdisturbances ontheCommunity market ,they conclude with the
Community bilateral Arrangements implying aprice discipline .This will
only bepossible if,atthesame time ,assurances aregiven onthe
preservation oftraditional trade flows ,while taking into consideration
anypossible reduction inconsumption foreseen for 1981 aswell asthe
anti-crises measures put into operation bytheCommission .
-TheCommission will report regularly tothe Steel Liaison Committee onthe
negotiations .TheCommittee will deliberate onallquestions arising in
connection with these negotiations sothat appropriate solutions maybe
found .
-Important questions which cannot beresolved atthelevel oftheSteel
Liaison Committee will besubmitted tothe Committee ofPermanent
Representatives .
-TheCommission will submit ,before conclusion ,tinetexts oftheArrangements
totheCommittee ofPermanent Representatives .