WRITTEN QUESTION E-0365/00 by Glenys Kinnock (PSE) to the Commission. Support for Member State company interests overseas.
Date: 2000-02-14
Institutions: European Parliament, Provisional data
Subjects: agency abroad, common commercial policy, control of State aid

28.12.2000

EN

Official Journal of the European Communities

C 374 E/59

prostitution. The Community sees the adoption of the Convention as a major step forward and calls for its
early ratification and effective implementation.

The International Labour Organisation has well-established mechanisms for supervising the application of
international labour standards, including the ILO(cid:146)s Conventions on forced labour (29) and on the worst
forms of child labour (182). It is recalled that the 1999 International Labour Conference examined a very
critical report on Myanmar and decided to suspend the benefits of ILO technical assistance for this
country. It is, however, clear that there is no basis for trade measures preventing the import of goods
produced using bonded or child labour in any international instrument at present.

The Community follows an approach based on the offer of positive incentives and other forms of
assistance, as opposed to the use of sanctions,
in order to promote or enhance the ability of poor
countries to adhere in practice to accepted standards in the area of core labour standards. However, in
extreme and well-specified cases, the Community(cid:146)s generalized scheme of preferences (GSP) system allows
the suspension of benefits accruing to countries where severe violations of human rights have been found.
This provision has been applied to Myanmar and still is in force.

Considering the case of Pakistan, its government has introduced legislation to outlaw bonded labour and
child labour and keeps the Commission informed of the efforts of its authorities to implement this
legislation (investigations, convictions, rehabilitation). The Commission uses all appropriate occasions to
impress on Pakistan its concerns in this area. In addition, the Honourable Member will be aware of the
considerable importance for India and Pakistan of the International programme for the elimination of child
labour (IPEC) programme under the ILO aegis for the education of children which helps children to go to
school and families to get a job or some money to survive. The Community is a major contributor to this
innovative instrument to fight against poverty as well as bonded and child labour.

(2000/C 374 E/069)

WRITTEN QUESTION E-0365/00

by Glenys Kinnock (PSE) to the Commission

(14 February 2000)

Subject: Support for Member State company interests overseas

Does the Commission consider that companies with overseas interests supported by certain Member States
have an unfair advantage over companies in those countries that do not offer such support? Is the
Commission able to give detailed information on each Member States(cid:146) contribution to supporting the
overseas interests of companies from their own country?

Answer given by Mr Monti on behalf of the Commission

(10 April 2000)

The Honourable Member refers to possible support from certain Member States for the interests of their
companies overseas. If these measures appear to provide the beneficiaries with an economic advantage and
moreover if they are only available to certain enterprises or certain activities and if they potentially distort
intra-Community trade, they may well fall under the discipline of the Treaty state aid rules.

The Commission, in a recent decision, has adopted a strict approach as far as aid to outward foreign direct
investment of large enterprises is concerned (see Commission Decision of 14 October 1998 on a proposal
by Austria to grant aid to Lift GmbH (1)).

The Commission is regrettably not able to provide the Honourable Member with detailed information on
the amount of each Member State contribution to support overseas interests of companies.

(1) OJ L 142, 5.6.1999.