Proposal for a COUNCIL REGULATION (EC) temporarily withdrawing access to generalized tariff preferences for agricultural goods from the Union of Myanmar
Date: 1997-02-17
Institutions: European Commission
Subjects: Myanmar/Burma, agricultural product, generalised preferences, secondary sector, slavery

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  17.02.1997 
COM(97)58 final 

97/0041  (ACQ 

Proposal  for a 

COUNCIL  REGULATION  (EQ 

temporarily  withdrawing access to generalized tariff  preferences 
for agricultural goods 
from the Union of Myanmar 

(presented  by  the  Commission) 

Explanatory Memorandum 

The proposal  concerning the temporary withdrawal  of preferences  from  Myanmar, which 
the Commission  transmitted to the Council on  19 December  1996,1 concerned  industrial 
goods only, since only the industrial scheme provided for complaints to be lodged for that 
purpose. 

The provisions of Council  Regulation  (EC) No  1256/96 of 20 June  19962 establishing the 
new  agricultural  scheme  which  provide  for  such  withdrawal  entered  into  force  on 
1 January this year.  On  2 January  the International  Confederation  of Free Trade  Unions 
(ICFTU)  and  the  European  Trade  Union  Confederation  (ETUC)  formally  notified  the 
Commission that they were extending their complaint to encompass agricultural goods. 

The  evidence  gathered  by  the  Commission  in  its  investigation -  and  the  conclusions 
drawn  on  the  basis  of  that  evidence  and  presented  to  the  Council  in  the  proposal  of 
18 December  1996 (COM(96) 711  final  - 96/0317 ACC) - remain  valid  and  warrant  the 
withdrawal of the preferences enjoyed  by Myanmar in the agricultural sector too. 

Such is the purpose of this proposal. 

1  COM(96) 711 final  - 96/0317 (ACQ,  18.12.1996. 
2  OJL  160, 29.6.1996, p. 1. 

2 

Proposal for a 
Council Regulation (EC) 

temporarily  withdrawing access to generalized tariff  preferences 
for agricultural goods 
from the Union of Myanmar 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having  regard  to  Council  Regulation  (EC)  No  1256/96  of  20  June  1996  applying 
multiannual  schemes of generalized  tariff  preferences  from  1  July  1996 to 30 June  1999 
in  respect  of  certain  agricultural  products  originating  in  developing  countries,  and  in 
particular Article  12(3) thereof, 

Having regard to the proposal from  the Commission,1 

Having regard to the opinion of the European  Parliament,2 

Having regard to the opinion of the Economic and Social Committee,3 

Whereas pursuant to Regulation  (EC) No  1256/96 the Union of Myanmar is a beneficiary 
of generalized tariff  preferences; 

Whereas  Article  9  of  Regulation  (EC)  No  1256/96  provides  that  the  preferences  in 
question  may  be  withdrawn  temporarily  in  whole  or  in  part  in  circumstances  including 
the  practice  of  any  form  of  forced  labour  as  defined  in  the  Geneva  Conventions  of 
25 September  1926  and  7  September  1956  and  International  Labour  Organization 
Conventions Nos 29 and  105; 

Whereas  on  2 January  1997  the  International  Confederation  of  Free  Trade  Unions 
(ICFTU) and the European Trade Union Confederation  (ETUC) notified  the Commission 
that  they  were  extending  the  scope  of  the  joint  complaint  lodged  under  Article  9  of 
Regulation  (EC)  No  3281/94  of  19  December  1994  applying  a  four-year  scheme  of 
generalized  tariff  preferences  (1995  to  1998)  in  respect  of  certain  industrial  products 
originating  in  developing  countries4  with  a  view  to  obtaining  the  withdrawal  of  the 
preferences  accorded 
from  Myanmar  under  Regulation 
(EC) No 1256/96; 

to  agricultural  goods 

Whereas  the  evidence  gathered  during  the  Commission's  investigation  of  the  initial 
complaint  by the  ICFTU  and  ETUC  and  the  resulting  conclusions  are broad  enough  in 
scope  to  provide  a  valid  basis  for  examining  the  extended  complaint  lodged  by  those 

, 

1  O JC 
2  O JC 
3  O JC 
4  OJ No L 348, 31.12.1994, p. 1. 

1997, p.... 
1997, p.... 
1997,  p.... 

"i 

organizations  on  2 January  1997, so rendering a specific  investigation  of the  agricultural 
sector unnecessary; 

Whereas,  having  completed  its  investigation,  the  Commission,  on  18 December  1996, 
approved  a  proposal  for  a  Regulation  temporarily  withdrawing  the  tariff  preferences 
applicable  to  industrial  goods  originating  in Myanmar  until  it  has  been  established  that 
the practices in question have been brought to an end 

Whereas the generalized  tariff  preferences  applicable to agricultural  goods originating in 
Myanmar  should  temporarily  be  withdrawn  for  the  same  reasons  and  on  the  same 
conditions; 

Whereas  goods en  route  to the European  Union  should  be exempted  from  this measure, 
provided that they were dispatched before this Regulation entered into force, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Myanmar's  access  to  the  tariff  preferences  granted  by  Regulation  (EC)  No  1256/96 of 
29 June  1996 is hereby withdrawn. 

Article 2 

The  Council,  acting  on  a proposal  from  the  Commission,  shall  bring the  application  of 
this Regulation  to an end once it has observed  on the basis of a Commission  report that 
the use of forced  labour in Myanmar has ceased. 

Article 3 

This Regulation  shall enter into force  on the third day following  that of its publication  in 
the Official  Journal  of the European  Communities. It shall  not apply to goods proven  to 
have been dispatched to the European Union before that date. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 
States. 

Done at Brussels,  1997 

For the Council, 

The President 

Title of operation 

Financial statement 

Draft  proposal  for  a Council  Regulation  temporarily  withdrawing  access  to  generalized 
tariff  preferences  for agricultural  goods from  the Union of Myanmar. 

Legal basis 

Article  113 of the Treaty 

Objective of the operation 

The aim of  this draft  proposal  is temporarily  to withdraw  access  to the GSP scheme  for 
agricultural  goods from  Myanmar. 

Estimate of customs revenue 

On the basis of the GSP offer  calculated using the figure for total imports of GSP-eligible 
agricultural  goods  from  Myanmar  in  1995 and  Myanmar's  average  take-up  of  the  GSP 
scheme for agricultural goods in  1994 (76%),' the increase in customs revenue which can 
be expected to result from  the withdrawal of GSP access for agricultural goods in  1997 is 
ECU  1  975 000  (compared  with  ECU 287 000  for  the  industrial  goods  included  in  this 
table as a reminder): 

(ECU  l(X)0) 

1995 imports of GSP-eligible industrial goods from  Myanmar 

agricultural  goods 

Estimated customs revenue for  1997 (industrial goods) 

(agricultural  goods) 

Average take-up of GSP in  1994 (industrial goods) 

(agricultural  goods) 

19 122 

2 599 

Estimate of customs revenue which will actually be collected (customs duties applicable in 
1997). 

(industrial goods) 

(agricultural  goods) 

1 975 

(Total for industrial and agricultural uoods) 

24 205 

2 392 

287 

12% 

76% 

(2 392x  12%) 

(2 599 x 76%) 

(2 262) 

Note: this revenue will drop during each year the withdrawal of access is in force in a manner reflecting  the fall in duties resulting from the 
Uruguay Round 

GSP figures  for  1995 are not yet known. 

6 

ISSN 0254-1475 

COM(97) 58 final 

DOCUMENTS 

EN 

02  03  11  01 

Catalogue number  :  CB-CO-97-057-EN-C 

ISBN 92-78-16126-8 

Office  for Official  Publications of the European Communities 

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