BIG ENOUGH TO LEAVE USERS A CHOICE OF SUPPLIER AND SECURITY OF SUPPLY AND TO PRECLUDE THE DANGER OF MONOPOLIES DEVELOPING ON NATIONAL MARKETS .
NUMBER OF PRODUCERS OF EACH PRODUCT
* SIGNATORIES
* BEFORE AGREEMENT * AFTER AGREEMENT * IN EUROPE
ACRYLIC STAPLE * 7 * 6 * 10
POLYESTER STAPLE * 8 * 6 * 12
POLYAMIDE STAPLE * 6 * 5 * 11
POLYAMIDE CARPET YARN * 6 * 4 * 11
POLYAMIDE TEXTILE YARN * 7 * 5 * 21
POLYESTER TEXTILE YARN * 8 * 6 * 19
( 41 ) TEXTILE MANUFACTURER USERS OF THE PRODUCTS COVERED BY THE AGREEMENT HAVE EXPRESSED FEARS ABOUT FUTURE PRICE LEVELS .
IT IS TRUE THAT A CAPACITY REDUCTION AGREEMENT MAY LEAD TO A SHORT-TERM INCREASE IN PRICES TO THE USER . HOWEVER , IN THE PRESENT CASE THIS TENDENCY MAY BE EXPECTED TO BE LIMITED BY THE SPECIAL FEATURES OF THE SYNTHETIC-FIBRES MARKET WHERE EACH SIGNATORY FACES CONSIDERABLE PRESSURE IN HIS PRICING FROM SYNTHETIC-FIBRE USERS , WHO BECAUSE THEY ARE NOW OPERATING ON A VERY COMPETITIVE MARKET AND HAVE DIFFICULTIES OF THEIR OWN RESIST PRICE INCREASES WHICH THEY REGARD AS UNJUSTIFIED . USERS COULD ALSO SWITCH TO OTHER SOURCES OF SUPPLY IN EUROPE OR ELSEWHERE IF THE SIGNATORIES TRIED TO CHARGE EXORBITANT PRICES .
( 42 ) ( C ) ANOTHER IMPORTANT CONSIDERATION FOR THE APPLICATION OF ARTICLE 85 ( 3 ) IS WHETHER OR NOT ALL THE PLANNED ARRANGEMENTS FOR EFFECTING THE CAPACITY CUTBACKS ARE INDISPENSABLE TO THAT END .
( 43 ) THE AGREEMENT IS CONCERNED SOLELY WITH REDUCING EXCESS CAPACITY AND IS OF LIMITED DURATION . IT DOES NOT INTERFERE WITH THE PARTIES' FREEDOM TO DETERMINE THEIR OUTPUT OR DELIVERIES . CLAUSES WHICH MIGHT HAVE DONE SO HAVE BEEN DELETED .
( 44 ) THE AGREEMENT WILL EXPIRE ON 31 DECEMBER 1985 . ALL PARTIES CONTINUE TO BE BOUND BY THE AGREEMENT UP TO THE EXPIRY DATE , EVEN IF THEY COMPLETE THEIR CAPACITY CUTS IN ADVANCE OF THAT DATE . THE AGREEMENT ALSO CONTINUES IN FORCE UNTIL THE EXPIRY DATE FOR ALL THE PRODUCTS IT COVERS , EVEN IF THE CAPACITY REDUCTIONS FOR SOME PRODUCTS ARE COMPLETED BEFOREHAND .
THE UNIFORM DURATION FOR ALL SIGNATORIES AND ALL PRODUCTS COVERED BY THE AGREEMENT IS JUSTIFIED BY THE FACT THAT THE AGREEMENT CONCERNS THE FIBRES ( STAPLE AND YARN ) AS A WHOLE AND FURTHERMORE A UNIFORM DURATION ENSURES THAT ALL THE SIGNATORIES FULFIL ALL THEIR OBLIGATIONS TO ONE ANOTHER , PARTICULARLY THAT NOT TO INCREASE CAPACITY BEFORE THE END OF 1985 .
( 45 ) THE AGREEMENT'S SUCCESS DEPENDS ON EACH PARTY STRICTLY OBSERVING THE CLOSURE TIMETABLE IT HAS ANNOUNCED . HENCE , IT IS ESSENTIAL THAT PECUNIARY SANCTIONS MAY BE IMPOSED IF A PARTY FAILS TO DISCHARGE THIS BASIC OBLIGATION .
( 46 ) THE ADJUSTMENT OF PARTIES' OBLIGATIONS IN THE EVENT OF TRANSFERS OF CAPACITY BETWEEN THEM AND THE EXTENSION OF THE OBLIGATIONS TO NON-SIGNATORIES TO WHICH CAPACITY IS SOLD ARE NECESSARY