WRITTEN QUESTION P-3210/03 by Pietro-Paolo Mennea (NI) to the Commission. Unfair competition in the textile sector.
Date: 2003-10-23
Institutions: European Parliament, Provisional data
Subjects: competition law, customs fraud, customs inspection, import (EU), industrial counterfeiting, labour market, restriction on competition, textile industry

C 70 E/238

Official Journal of the European Union

EN

20.3.2004

Joint answer
to Written Questions P-3209/03 and E-3215/03
given by Mr Liikanen on behalf of the Commission

(12 November 2003)

The concerns regarding potential hurdles to research have been taken on board and were discussed during
a Pharmaceutical Committee meeting held on 15 May 2003 between Member States and the Commission.

The Commission and Member States discussed the responsibilities of the Member States to take into
consideration the recommendation given in Directive 2001/20/EC (1), recital 14, for non-commercial trial.

It is clearly not the intention of the Commission that the implementation of the clinical trials directive in
national law should have a prohibitive effect on prospects for European research.

On the contrary, it is the intention of the Commission to strengthen a European clinical trials environment
in the interests of
the European Research Area and the European citizens as stated in the G 10
recommendations.

The Commission understands the researchers’ concerns but has at this stage no intention to propose a
modification to Directive 2001/20/EC.

The Commission is currently working together with the Member States in the preparation of
the
implementing guidelines of this Directive. We are therefore confident that most of these concerns will be
addressed during this preparation.

(1) Directive 2001/20/EC of the Parliament and of the Council of 4 April 2001 on the approximation of the laws,
regulations and administrative provisions of the Member States relating to the implementation of good clinical
practice in the conduct of clinical trials on medicinal products for human use, OJ L 121, 1.5.2001.

(2004/C 70 E/257)

WRITTEN QUESTION P-3210/03

by Pietro-Paolo Mennea (NI) to the Commission

(23 October 2003)

Subject: Unfair competition in the textile sector

The Italian textile sector has been in difficulty for some years now.

The causes of this crisis include, first and foremost, competition from Asian companies following their
incorporation into the WTO. These companies not only have infinitely lower labour costs, but also lack
adequate and minimum internal rules as regards the labour market and the protection of their workers,
who are often minors, and thereby violate the most fundamental citizens’ rights and seriously infringe the
freedom of the individual.

This unlawful conduct culminates in the customs clearance of the goods at Community ports, often
without any invoices being presented or with the wrong qualities and quantities being declared, and with
the systematic counterfeiting of local trade marks, including the most general trade mark ‘Made in Italy’,
and frequent bypassing of tax legislation.

This unlawful situation subsequently becomes the basis for the sale of the finished product at a price
considerably lower than the Community price, with the accompanying risk of closure of a significant
proportion of the EU’s textile firms and a serious knock-on effect on employment levels.

The manner in which these extra-Community companies compete on the EU market is unfair, unlawful
and fraudulent.

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Official Journal of the European Union

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In the light of the above, will the Commission intervene with the competent institutional bodies of the
Member States to ensure they apply more frequent and stricter checks on goods entering Community
countries?

it monitor and check whether extra-Community legal entities that own individual or collective
Will
companies and operate on Community territory conform to EU law, or in other words that they respect
the right of competition and Member States’ rights in the area of the labour market?

Is it within the Commission’s powers to launch an official investigation in respect of the textile sector?

Answer given by Mr Lamy on behalf of the Commission

(19 November 2003)

Crucial challenges face the textile and clothing sector not just in Europe. A number of issues were
highlighted by the conference held in Brussels to consider the future of
the sector after 2005.
The Commission adopted a communication (1) on the subject on 29 October 2003 which contained
measures to improve competitiveness in the textile and clothing sector prior to the elimination of textile
quotas in 2005. The Commission’s position is unequivocal and takes a clear line on the concerns expressed
with the aim of providing practical responses for a sector with a future in the European Union, particularly
as regards the points raised by the Honourable Member.

The Commission is very aware of the problems of fraud and counterfeiting. A number of Community rules
and programmes already exist to guarantee fair competition for European producers on world markets.
It should however be said that the various Community measures could not succeed without the closer,
coordinated involvement of the Member State authorities. The same applies to intellectual property.
The Commission is stepping up its efforts to improve the protection and enforcement of intellectual
property rights in non-member countries and monitoring of compliance with the WTO agreement on
trade-related aspects of intellectual property rights (TRIPs). This will increase the effectiveness of action
against trade in counterfeit goods and protect our strong points in the sector, i.e. innovation, branding,
fashion and design.

To return to the two specific points raised, the Commission has already taken a number of initiatives.
Customs controls are naturally harmonised at Community level and meet the requirements of the various
regulations in force. All goods must conform to a harmonised nomenclature. The main frauds are well
known to customs and subject to risk analysis, also increasingly harmonised.

In view of the sheer quantity of imports, the customs authorities clearly cannot check all textile and
clothing products entering the European Union. Sampling rather than systematic checking is the norm.
But clearly if there is genuine evidence of fraud in a particular sector, the customs authorities will
exchange the information without delay via the European Anti-fraud Office OLAF and conduct enquiries.

In answer to the second question, given that the economic or legal entity, even if it is a non-Community
one, is established in EU territory, it must comply with the legislation in force in the Member State in
which it is based. Member State authorities are responsible for ensuring compliance with the relevant
labour market and other laws, some of which have been harmonised at European level.

As regards the suggestion of launching an investigation in the textile sector, the Commission possesses
instruments which allow it to take action against certain practices (e.g. trade protection measures), but this
is normally done in response to complaints by Member States or the party concerned, as the case may be,
regarding specific subjects or practices, which should first be clearly identified and then examined before a
decision is taken regarding a possible investigation.

(1) COM(2003) 649 final.