WRITTEN QUESTION E-4009/97 by Daniel Varela Suanzes-Carpegna (PPE) to the Commission (14 January 1998)

Subject: Competitiveness of Community slate production

The production of slate in the Community constitutes an industry with a long tradition and good prospects for the future, located in a number of Member States. In Spain alone, it employs 4 800 people directly and over 19 000 indirectly, in peripheral regions which are lagging behind or in declining industrial regions. The competitiveness of the sector is now being seriously threatened by imports of finished slate from third countries which operate less rigorous standards in terms of working conditions and the environment than those applying in the EU.

Is the Commission aware of this state of affairs?

Can it state what measures it has adopted or intends to adopt to stimulate the competitiveness of slate production in the Community?

Can it state which countries are exporting slate to the EU and specify the quantities and conditions concerned?

Can it provide information on the customs tariff applying to imports of finished slate?

Can it provide information on the economic and trade agreements between the EU and third countries which have a direct or indirect impact on slate production in the third countries concerned?

Joint answer to Written Questions E-4009/97 and E-4011/97 given by Sir Leon Brittan on behalf of the Commission (6 February 1998)

The Community is a net exporter of finished slate. In 1996 it exported 43 610 tonnes (7 997 of which came from Spain), while its imports totalled 26 639 tonnes. The trend for 1997, estimated on the basis of the figures for the first six months, seems to give the same result in the same proportions as for 1996.

European slate imports come mainly from a small group of countries. In 1996 the five biggest exporting countries accounted for over 85% of Community imports, these countries being: Brazil (5 501 tonnes), China (5 158 tonnes), India (4 864 tonnes), Norway (4 538 tonnes) and Canada (3 091 tonnes). However, Community exports of slate are mainly to the United States, Japan, Australia and Switzerland.

Community imports are subject to a Most Favoured Nation (MFN) customs duty of 2.1% ad valorem. However, imports from the European Economic Area (EEA) (e.g. Norway) and the African, Caribbean and Pacific countries are exempted from this duty. Under the GSP scheme for developing countries, the products in question are classified as non-sensitive. This means that imports are exempted from the customs duty. There are no plans to review the classification of these products as non-sensitive before the current scheme expires on 31 December 1998.

Brazil, China and India benefit from this scheme; however, given China's level of industrial capacity in this sector, the GSP in force has provided for the gradual elimination of the tariff concession. Accordingly, the preferential margin on imports of finished slate from China was reduced by 50% from 1 January 1997 and abolished on 1 January 1998. The full rate of 2.1% therefore again applies.

With regard to promoting Community exports, the Commission is strongly committed to improving the access of Community industry to third country markets. As the Honourable Member is aware, the Commission launched a new 'Market Access Strategies' initiative in November 1996 to identify and eliminate obstacles to Community exports. The slate sector, like all economic sectors, is invited and encouraged to participate actively in identifying barriers to international trade. The Commission, in conjunction with the Member States, will adopt any measures that could provide solutions to these problems.

It should also be stressed that the Commission pursues a policy of competitiveness for extractive industries in line with the approach set out in the communication on the competitiveness of the non-energy extractive industry ((SEC(92) 1884 final. )) and the Council's conclusions of 18 November 1993 in this regard. These documents, together with a report to the Council ((SEC(96) 852. )) on measures undertaken in this context, are being transmitted directly for information to the Honourable Member and to the Parliament's General Secretariat. The measures, which target the slate sector in addition to other extractive activities that produce building products, include greater market transparency and special monitoring of environmental regulations on extractive activities. Against this background, and with the help of those involved in the industry, the Commission regularly publishes a directory on European minerals which is designed to increase market transparency for consumers as well as for producers, many of which are small and medium-sized enterprises (SMEs). The European slate sector association is invited to collaborate on this task. With regard to environmental burdens, the Commission considers that the Community's environmental legislation takes account of the extractive sector's distinctive features and to this end provides the flexibility justified by, for example, size or production process. This is the case for quarries, as covered by Directive 97/11/EC amending Directive 85/337/EEC on the assessment of the effects of private and public projects on the environment ((OJ L 73, 14.3.1997. )), and the draft directive on the landfill of waste ((OJ C 156, 24.5.1997. )).

More recently, the Commission has adopted a communication on the competitiveness of the construction industry, in which construction products are included ((COM(97) 539 final. )). This communication sets out four major strategic objectives and over 60 specific measures to improve the industry's competitiveness.