WRITTEN QUESTION P-2298/99 by Elisa Damião (PSE) to the Commission. Future of the textile industry in the European Union.
Date: 1999-11-29
Institutions: European Parliament, Provisional data
Subjects: European Anti-fraud Office, World Trade Organisation, fair trade, intellectual property, international competition, international trade, restriction on competition, textile industry, trade restriction

1.8.2000

EN

Official Journal of the European Communities

C 219 E/143

Nevertheless the Commission is very concerned about the current difficult world market situation caused
by over-capacity and low prices, as well as possible unfair competition from elsewhere such as injurious
pricing. At the 9 November 1999 Industry Council the Commission presented a first report on the
situation together with a series of possible measures to address the problems.

The Council shared the Commission(cid:146)s concerns and called for the following actions: the Commission to
pursue its efforts to establish a level playing field for the sector by immediately engaging Korea in
constructive consultations with a view to halting the unfair competition; industry, Member States and the
Commission to seek as much detailed evidence as possible of the alleged anti-competitive behaviour, in
order to take appropriate action under the World trade organisation (WTO); Member States to urge the
International monetary fund (IMF) and World Bank to continue to investigate whether the conditions and
assumptions for IMF rescue packages are fully respected; Member States and the Commission to pursue
their efforts to establish a level playing field for the sector in the appropriate international fora, including
the Organisation for economic cooperation and development (OECD), in order to enforce, without delay,
fair competition rules. The Council also welcomed the Commission(cid:146)s determination to continue to meet its
obligations under Article 12 of Council Regulation (EC) No 1540/98 and to report on developments as
soon as necessary.

As for the Honourable Member(cid:146)s specific questions about Spanish yards, the Commission is aware of the
sale of the Astander yard. This privatisation is a matter for the Spanish government. So far as the
Commission(cid:146)s recent decision (3) on tax credits is concerned, the Commission acted only after very careful
study and extensive consultations with the Spanish authorities. It concluded that the aid had been granted
in breach of the conditions attached to a previous aid decision approving restructuring aid to the publicly-
owned yards in Spain. Faced with such a situation, the Commission was obliged to react.

(1) COM(97) 470 final.
(2) OJ L 202, 18.7.1998.
(3) C3(99) xnu 145/98.

(2000/C 219 E/180)

WRITTEN QUESTION P-2298/99

by Elisa Damiªo (PSE) to the Commission

(29 November 1999)

Subject: Future of the textile industry in the European Union

The textile industry, which employs some 2,5 million people in Member States, is the EU(cid:146)s main export
sector, accounting for ECU 180 bn. In the last ten years its volume of production has dropped by around
10 % and, according to Euratex, approximately one million jobs were lost in the same period. This has
been caused by cheap imports.

The sector has been going through a serious crisis since 1997, with annual output shrinking by as much
as 3,3 % in 1999. It is estimated that it will make a slow recovery, with an increase in output of 2,7 % in
2000.

Given that Commissioner Pascal Lamy has examined the possibility of EU action to support other sectors
such as agriculture, will the Commission state what measures it intends to take to help this sector which is
vitally important to the EU, in particular with regard to the following:

(cid:129) in the context of the WTO negotiations, the decisions of the Uruguay Round, whose incorrect

application has been to the detriment of regions exclusively dependent on the textile industry;

C 219 E/144

Official Journal of the European Communities

EN

1.8.2000

(cid:129) promotion of a label

to guarantee consumer protection and certify that products have been
manufactured in compliance with labour laws, thereby ensuring that the WTO members(cid:146) economies
develop on a fair and sustainable basis and safeguarding intellectual property rights, which implies
taking action to combat fraud in this as in other areas.

Answer given by Mr Lamy on behalf of the Commission

(20 December 1999)

The Commission is fully aware of the difficulties experienced by the Community(cid:146)s textile and clothing
sector. With the entry into force of the World trade organisation (WTO) agreement on textiles and
clothing (ATC), a process of staged liberalisation has begun that will lead to the complete removal of
quantitative import restrictions with WTO members by 1 January 2005.

The Commission is convinced that in preparation for this date the creation of a (cid:145)level playing field(cid:146),
allowing the Community(cid:146)s industry equal access in third country markets, will be indispensable for the
sector. Therefore, it will be necessary to attack the numerous tariff and non-tariff trade barriers which
Community exports face in many trading partners(cid:146) markets. In its communication (1) to the Council on the
new round of trade talks, the Commission presented a comprehensive tariff approach, aiming notably at
harmonising tariff structures and removing tariff peaks. It further underlined the necessity to attack non-
tariff trade barriers.

The Commission believes that voluntary schemes which promote labelling of textile products, in order to
identify products produced respecting social and labour rights, can be helpful to raise awareness in the
general public and facilitate consumers(cid:146) choice. The Commission takes a hard line on cases of textile fraud
and circumvention. The textiles anti-fraud initiative (TAFI) was created to deal with this serious issue and
cases where malpractice is suspected are rigorously investigated by the European Anti-fraud Office (OLAF).
As far as the protection of intellectual property rights in the sector is concerned, the Commission has
commissioned a handbook to help Community producers achieve adequate protection against counterfeit.
Furthermore, the Commission presented on 22 June 1999 an amended proposal for a Council regulation
on the European Community design (2). This would encourage innovation and help to prevent counter-
feiting and piracy by providing for protection of industrial designs, including textile designs, throughout
the Community single market.

The Commission considers the policies and measures described above to be necessary in order to provide
for the European textiles and clothing industry a fair and equitable trading environment in which it can
fully unfold its comparative advantages and bring to bear its competitive potential.

(1) COM(1999) 331 final.
(2) COM(1999) 310 final.

(2000/C 219 E/181)

WRITTEN QUESTION P-2299/99

by Hanja Maij-Weggen (PPE-DE) to the Commission

(29 November 1999)

Subject: Tax arrangements which distort competition within the EU

Can the Commission confirm that a working party of Commission officials has identified 60 tax
arrangements in a number of Member States which may be regarded as distorting competition?

Is it true that according to the working party(cid:146)s report the Netherlands heads the list of countries with tax
arrangements that distort competition, nine of its arrangements coming in for criticism for this reason?

Which are the nine offending tax arrangements?