WRITTEN QUESTION E-0936/03 by Dana Scallon (PPE-DE) to the Commission. Timber industry.
Date: 2003-03-26
Institutions: European Parliament, Provisional data
Subjects: United States, World Trade Organisation, customs duties, import (EU), market protection, originating product, trade dispute, trade policy, wood for construction, wood industry

C 58 E/40

Official Journal of the European Union

EN

6.3.2004

(2004/C 58 E/050)

WRITTEN QUESTION E-0936/03

by Dana Scallon (PPE-DE) to the Commission

(26 March 2003)

Subject: Timber industry

Is the Commission aware that the proposed tariff that is to be imposed on American softwood and
hardwood timber being imported into Europe would have a negative effect on the timber industry in
Ireland and that in the opinion of an Irish hardwood timber importer, it would result in closure of a great
deal of companies involved in the said industry?

In light of this serious situation I would ask the Commission’s reasons for proposing this tax and for a
review of the decision to propose it.

Answer given by Mr Bolkestein on behalf of the Commission

(5 May 2003)

The Honourable Member raises her concern on the negative effect that any eventual
countermeasures on American products would have on the timber business in Ireland.

imposition of

In that respect, it would be useful to recall the circumstances relating to the World Trade Organisation
(WTO) incompatible Foreign Sales Corporation/Extraterritorial Income (FSC/ETI) legislation which provides
an illegal export tax subsidy to American firms to the tune of roughly USD 4 000 million per year.
In particular, following the Community’s successful challenge of the FSC/ETI legislation before the WTO,
on 30 August 2002 the Community was granted by the WTO the right to impose countermeasures in the
form of tariffs on imports of certain goods from the United States up to that amount. However, the United
States has not yet taken concrete steps towards compliance, although both the Administration and senior
members of Congress have indicated that this is their intention.

it must be made clear that the Commission’s objective in this dispute is not the
At the same time,
imposition of countermeasures on American products but to obtain the withdrawal of illegal measures that
adversely affect the interests of Community companies. The Commission’s aim is, therefore, to ensure that
the United States complies with the WTO ruling on FSC within the shortest time possible. But if the
United States fails to comply, the Community will have no other option than to exercise its WTO rights.

In an attempt, however, to minimise the negative consequences that any eventual countermeasures could
create for European industry, the Commission has launched a public consultation exercise on a draft list of
products so as to give economic operators the opportunity to express their views on the list. Furthermore,
the Commission has only inserted on the list products for which imports from the United States represent
a maximum 20 % of total
imports into the Community. The Commission has evaluated numerous
comments received from interested parties during the public consultation period. In carrying out this
analysis, the Commission aimed to minimise the negative consequences that any eventual sanctions could
create to Communbity interests which was after all the stated objective of the whole exercise. Following
consultations, on 28 March 2003, Member States adopted unanimously a final list of products that could
be subject to any eventual countermeasures. This final list will be posted on the following Commission’s
website address: http://trade-info.cec.eu.int/europa/index_en.php when formalised.