WRITTEN QUESTION P-0532/03

by Glyn Ford (PSE) to the Commission

(19 February 2003)

Subject: Removal of tariff suspension for CRTs

The Commission is proposing to end the current EC tariff suspension for the cathode ray tube (CRT) due to an objection, proposed by the Netherlands, stating that LG-Philips in Eindhoven can supply identical or equivalent products.

Within the south-west of England, Toshiba is a major importer of CRTs.

Were this tariff suspension to cease it would have the following effect:

- Toshiba would be unlikely to be able to purchase the CRTs produced by LG-Philips because the mechanical dimensions are incompatible with Toshiba 36 televisions; however,

- if Toshiba continued to purchase its CRTs from outside the Community as it currently does, but with the tariff applied, prices would increase, and sales would drop by around 25 %; Toshiba estimates that this would have a knock-on effect of a reduction in the workforce in Plymouth of 50 people;

- LG-Philips would gain a monopoly as the only producer of CRTs within the EU market.

Would the Commission indicate what it plans to do to respond to these concerns and what its future plans are with respect to this tariff suspension?

Answer given by Mr Bolkestein on behalf of the Commission

(18 March 2003)

The Netherlands submitted a request to repeal the current suspension for colour cathode-ray tubes with a diagonal measurement of the screen of 85,5 centimeter (cm) or more on the basis that a production of similar tubes will start in Durham, United Kingdom, creating a significant number of new jobs.

Autonomous tariff suspensions and their repeal are adopted by the Council with qualified majority on the basis of a proposal from the Commission. At present no decision has been taken on the request submitted by the Dutch authorities and, consequently, no proposal has been submitted in this respect to the Council. The Commission will decide on this issue in accordance with the principals set out in its Communication concerning autonomous tariff suspensions and quotas(1).

In this context the Commission would like to draw the attention of the Honourable Member to point 3.2 of the Communication which states that unless the Community interest dictates otherwise no suspension will be proposed where identical, equivalent or substitute products are manufactured in sufficient quantities within the Community. Point 3.3. of the same Communication mentions that where there is some Community production but such production is insufficient to meet the requirements of all the relevant processing or manufacturing companies, tariff quotas (limited to the unavailable quantities) or partial tariff suspensions may be granted. Nevertheless, the same point 3.3 says in this connection, account will be taken, where appropriate, of consequential damage to any new production and of any manufacturing capacity which could be made available in the Community.

At present the Commission is still examining all substantiated information and has asked some Member States to provide further documentation on this question. Its decision on this issue will be made in due course after a careful evaluation of the request and a detailed discussion with the experts of the Member States.

(1) OJ C 128, 25.4.1998.