WRITTEN QUESTION P-2343/01

by Daniel Varela Suanzes-Carpegna (PPE-DE) to the Council

(3 August 2001)

Subject: European shipbuilding industry

In its reply to my Written Question E-1371/01(1) of 13 July 2001 the Commission informed me that, unless the negotiations with the Korean authorities produced a solution by the beginning of July 2001, the Commission would decide whether it was appropriate to open proceedings before the WTO.

Even though the Trade Commissioner Pascal Lamy announced the suspension of negotiations with Korea on 18 July 2001, the Commission has not yet taken nor decided to take any action against South Korea because some Member States are reluctant to introduce temporary support measures for the duration of proceedings before the WTO. According to Mr Lamy, the Commission considers the two measures to be inseparable parts of a set menu. Mr Lamy also pointed out that both he and the Competition Commissioner Mario Monti outlined the Commission's standpoint to the 15 at the Council meeting of Monday, 16 July 2001. Mr Lamy added that either there is a clear political agreement, in which case he would have a strong negotiating position, or there is no such agreement, in which case his negotiating position would be weak.

Can the Council say which Member States do not back the Commission strategy and why?

Does the Council not believe that it is now time to grant the Commission a clear political mandate and that the EU's credibility is at stake, along with its ability to defend the interests of its industry, as well as solidarity among the Member States?

(1) OJ C 40 E, 14.2.2002, p. 38.

Reply

(29 November 2001)

1. The attention of the Honourable Member is drawn to the fact that at its meeting of 16 July 2001, under Other business on the agenda, the Council was briefed by Commissioners Lamy and Monti on the current state of negotiations with Korea concerning shipbuilding and of the discussions at the Commission concerning the procedure under the Trade Barriers Regulation (the TBR procedure) for action at the WTO and the proposal for a temporary support mechanism for the European Union's shipbuilding industry. The exchange of views following the Commissioners' presentation revealed a large majority subject to finalisation of the details in favour of the action to be taken in the WTO framework; the proposal for temporary support measures for the Community industry received

a mixed welcome. The Permanent Representatives Committee was therefore instructed to consider the Commission's proposals once they had been formally forwarded to the Council.

The exchange of views under Other business on the agenda of the Council meeting without a formal proposal was of a preliminary and indicative nature only since it did not provide Member States with the means to adopt a final position.

2. Article 12 of Council Regulation (EC) No 1540/98 of 29 June 1998(1) establishing new rules on aid to shipbuilding states that the Commission shall present to the Council a regular report on the market situation and appraise whether European yards are affected by anti-competitive practices. If it is established that industry is being caused injury by anti-competitive practices of any kind, the Commission shall, where appropriate, propose to the Council measures to address the problem.

This is the context in which the Commission officially forwarded to the Council and the Parliament on 30 July 2001 a proposal for a Council Regulation concerning a temporary defensive mechanism to shipbuilding(2). The proposal is now being studied carefully by the appropriate Council bodies.

(1) OJ L 202, 18.7.1998.

(2) Doc. 11335/01 COM(2001) 401 final.