Resolution of the ECSC Consultative Committee for the need for effective implementation of the trade defence instruments to safeguard the sustainable competitivity of the European Union steel industry
Date: 1999-10-15
Institutions: Consultative Committee of the European Coal and Steel Community
Subjects: ECSC, common commercial policy, competition, competitiveness, iron and steel industry

9.11.1999

EN

Official Journal of the European Communities

C 321/7

RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE FOR THE NEED FOR EFFECTIVE IMPLEMEN-
TATION OF THE TRADE DEFENCE INSTRUMENTS TO SAFEGUARD THE SUSTAINABLE COMPETITIVITY
OF THE EUROPEAN UNION STEEL INDUSTRY

(1999/C 321/07)

(adopted unanimously during the 347th Session of 15 October 1999)

THE ECSC CONSULTATIVE COMMITTEE

(cid:151) referring to its previous resolutions devoted totally or
partially to problems concerning EU imports and most
recently to that dated 23 October 1998 (1),

(cid:151) referring to the comunication on the state of the competi-
industry in the European Union

tiveness of
adopted by the Commission on 5 October 1999 (2).

the steel

NOTING THAT:

(cid:151) the retention of an indigenous steel industry is essential to
the long-term viability of the EU as a manufacturing base,
the steel
industry constitutes an essential element of the
industrial framework of the European economy, all other
manufacturing sectors depend to varying degrees on steel as
a material,

(cid:151) this price collapse occurred in the positive phase of the
business cycle putting the industry in a loss situation,
from building the
preventing the
reserves necessary for the negative phase of
the cycle,
weakening therefore
the industry in
Europe and placing its workforce under threat.

industry therefore

the viability of

THEREFORE THE ECSC CONSULTATIVE COMMITTEE,

(cid:151) CONSIDERS that the maintenance of fair trade is in the
interests of the steel industry, its workforce and customers.
It
is an essential condition for the maintenance of an
efficient, competitive steel industry in the EU,

(cid:151) REQUESTS the Commission urgently to re-establish the
and

steel producers, workforce

stability that

market
customers require,

(cid:151) CONSIDERS that such market stability can be achieved by
from unfairly traded and injurious

giving urgent relief
imports,

(cid:151) consumers of steel require an effective and competitive steel
industry
quality
capable of providing product
requirements with competitive prices (see point 2.3 of
the communication on competitivity),

and

(cid:151) OBSERVES that the communication on durable competitivity
affirms that (cid:145)an essential condition is the existence of fair
steel markets. The Commission is
competition on all
for strict
resolved to promote and ensure the respect
discipline in competition . . .(cid:146),

(cid:151) customers of the steel

industry to continue

industry therefore look to the EU
steel
investment
substantial
programme in new plant processes and in research and
development
the communication on
competitivity),

(see point 4.1.3 of

its

(cid:151) however,

forward investment by the steel

industry was
the price
threatened by the financial consequences of
collapse caused by the development of imports in 1998
endangering research programmes and risking undermining
thereby the competitivity of the industry and its ability to
respond to the needs of its clients. Prices fell as from the
second quarter 1998 by 30 % in one year to their lowest
level in 25 years,

(1) OJ C 371, 1.12.1998.
(2) Doc. COM(1999) 453 final.

(cid:151) CONSIDERS that today the way in which the trade defence
instruments are used by the EU and by its major trading
partners constitutes an important factor in the competi-
tivity of the steel industry,

(cid:151) STRESSES the importance of the European Union applying

its trade laws effectively,

(cid:151) STRONGLY REGRETS the decision by Sir Leon Brittan on the
eve of the end of his mandate as a European Commissioner
to propose the imposition of provisional measures
not
against
from South Africa,
Bulgaria,
Iran, Taiwan and Yugoslavia which were
the subject of a complaint filed by Eurofer in November
1998 on behalf of 11 European producers,

imports of hot rolled coil

India,

C 321/8

EN

Official Journal of the European Communities

9.11.1999

(cid:151) CONSIDERS that the necessary conditions for the imposition
of provisional duties (cid:151) dumping margins, causality and the
presence of
injury in the investigation period (cid:151) were
clearly established by the Commission services and that
provisional duties were entirely appropriate in this case.
Failure to propose such measures ignored well-founded
evidence of injury and could therefore be considered to
be based more on political reasoning than on technical
criteria,

(cid:151) NOTES that imports of hot rolled coil from the six countries
subject to the complaint represented less than 50 % of coil
imports in 1998. The complaint therefore was not designed
to close the European market to third country imports but
rather to request action against predatory imports traded
under conditions which do not conform to WTO rules,

(cid:151) URGES therefore the European Commission to conclude
rapidly the investigation on the hot rolled coil complaint
with a decision imposing definitive duties.

RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE FOR THE EVALUATION BY THE EUROPEAN
COMMISSION OF THE MEASURES TAKEN BY THE MEMBER STATES IN FAVOUR OF THEIR COAL MINING
INDUSTRIES

(adopted less five abstentions during the 347th Session of 15 October 1999)

(1999/C 321/08)

THE ECSC CONSULTATIVE COMMITTEE,

(cid:151) referring to the position taken in the past regarding the
situation of the coal industry in the European Union, and
particularly to the Declaration adopted on 25 June 1999 on
the role of coal in the 21st century,

(cid:151) referring to the report

from the Commission on the
application of the Community Rules for State aid to the
coal industry in 1996 and 1997,

AFTER THE FOLLOWING CONSIDERATIONS:

(cid:151) the conclusions of the Commission report provide a biased
evaluation of the situation of the European coal industry,
namely by declaring (cid:145)that the indigenous coal is sometimes
of lower quality than imported coal(cid:146), whereas the contrary
could also be true,

(cid:151) the biased conclusions of the report may lead into the
wrong direction: the Commission should rather recognise
efforts made by the European coal industry to supply high-
quality coal and to promote efficient use of coal,

(cid:151) the conclusions are in contradiction with the principle of a
balanced energy policy based on sustainable development,
such as has been explained in the above Declaration of the
consultative committee,

the

and

historical

disregards

(cid:151) declaring that the aid programmes have promoted a type of
(cid:145)life of its own(cid:146) and (cid:145)habits become standard practise(cid:146)
is
incorrect
evolution,
the seventies and
particularly during the oil crises of
eighties, and the fact
the Commission itself has
continuously taken an active part in implementing State
through Commission Decision No
aid
the coal
the framework for
3632/93/ECSC, which is
policies of all Member States until July 2002, as well as
the enormous efforts made by the industry in terms of
capacity and workforce reduction which are a clear indi-
cation that such bad habits do not exist,

rules,

that

last

(cid:151) the conclusions do not

take account of an objective
evaluation of
the
whole production chain both of EU and imported coal
compared to other energy sources.

the environmental consequences of

Therefore the ECSC consultative committee,

(cid:151) cannot accept the conclusions of the report in their present

form,

(cid:151) requests the Commission to recognise the importance of
solid fuels for a future energy policy in Europe and to
take these remarks into account for the next report.