WRITTEN QUESTION E-2295/96 by Erich Schreiner (NI) to the Commission (27 August 1996)

Subject: Trade policy of the CEEC

The EU's Europe Agreement with the Central and Eastern European countries makes provision for free trade structures.

How does the Commission explain the fact that Poland, Bulgaria, Hungary and Slovakia have introduced additional import levies (duties) of up to 10%, which chiefly harm EU exporters and are not justified by the macro-economic data (balance of payments) of Poland and Slovakia?

Poland has free access to the EU market for trade in steel. As a result it achieves an annual export surplus of over 1.2 million tonnes with the EU, to the detriment of the European steel industry. At the same time Poland is levying import duties of 9-10% on imports of steel from the EU and is considering extending these duties, in contravention of the agreement.

Whilst cars made by the Korean manufacturer Daewoo can be imported duty-free into Poland, cars imported from EU manufacturers are subject to a 35% import duty.

What steps does the Commission intend to take against this discrimination?

What further initiatives will the Commission adopt in this connection against other obstacles to trade which harm Community exporters?

Answer given by Mr Van den Broek on behalf of the Commission (15 October 1996)

Chapter II of Title V of the Europe Agreements referred to do allows signatory countries to levy additional import charges but only if this can be justified by balance of payments considerations. Countries which introduce such levies must submit as soon as possible to their partners a schedule for abolishing them. The charges may be levied only for a limited period and must not go beyond what is strictly necessary to remedy any balance of payments difficulties. Below is a full list of additional import levies so far imposed by Central European countries.

The Europe Agreement stipulates that Poland must abolish all remaining duties on Community imports of steel products from 1 January 1999 (the duty on some steel goods having been abolished when the Agreement came into force (see Annex II to Protocol 2 of the Agreement)). Last year, Poland, which has an overall trading deficit with the Community of around ECU 2 400 million, nevertheless recorded an export surplus of around ECU 80 million for metals and metal goods (Section XV of the Combined Nomenclature). However, Community exports in the sector rose 42% on the previous year compared with only 28% for Poland.

As for car imports into Poland, the Commission has been keeping a close eye on the arrangements adopted by Poland and will continue to do so to ensure that the Europe Agreement and the tariff abolition measures laid down in it are strictly adhered to. Under the programme, all customs duties on cars must be abolished by 1 January 2002. On the point about the treatment given by Poland to the Korean firm, Daewoo, the Commission is following the matter very closely to ensure that Poland abides by its international obligations.

All trade barriers and forms of discrimination are addressed bilaterally on a regular basis by the institutions set up under the Agreements, especially the Association Councils, committees and subcommittees, which try to resolve any problems. The Agreements also provide for arbitration if necessary.

On wider Community initiatives to combat damaging trade barriers, the Commission would refer the Honourable Member to the 1994 Council Regulation on trade obstacles. ((Regulation No. 3286/94, OJ L 349, 31.12.1994; OJ L 41, 23.2.1995. ))

ADDITIONAL IMPORT LEVIES IN CENTRAL AND EASTERN EUROPE

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