STRENUOUS EFFORTS TO RECOVER FROM THE EFFECTS , EXPERIENCED OVER MANY YEARS , OF VIRTUAL STAGNATION OF PRODUCTION AND CONSUMPTION ACCOMPANIED BY CONSIDERABLE OVERCAPACITY AND EXTREMELY HIGH LOSSES ;
WHEREAS THIS PROCESS OF RECOVERY HAD ENTAILED MAJOR EFFORTS TO REDUCE CAPACITY AND TO RATIONALIZE , WHICH HAD RESULTED IN AN OVERALL REDUCTION OF APPROXIMATELY 8 % OF THE WORKFORCE SINCE 1977 , AND ATTEMPTS BY THE EUROPEAN PRODUCERS TO INCREASE THEIR SELLING PRICES IN ORDER TO COVER SHARPLY INCREASED RAW MATERIAL COSTS AND TO REACH A REASONABLE PROFIT SITUATION ;
WHEREAS , WHILST THESE ATTEMPTS WERE BEING MADE BY COMMUNITY PRODUCERS A SIGNIFICANT INCREASE IN IMPORTS HAD TAKEN PLACE ESPECIALLY FROM THE UNITED STATES OF AMERICA ; WHEREAS THE EVIDENCE AVAILABLE TO THE COMMISSION SHOWED THAT IMPORTS INTO THE COMMUNITY OF ACRYLIC FIBRES ORIGINATING IN THE UNITED STATES OF AMERICA HAD INCREASED FROM 7 611 TONNES IN 1977 TO 10 719 TONNES IN 1978 REPRESENTING AN INCREASE OF 41 % , AND TO 4 301 TONNES IN THE FIRST QUARTER OF 1979 ; WHEREAS , ON THE BASIS OF AVAILABLE STATISTICS , CONTINUOUS FILAMENT TOW REPRESENTED APPROXIMATELY 60 % AND DISCONTINUOUS ACRYLIC FIBRE REPRESENTED 40 % OF AMERICAN IMPORTS ; WHEREAS THE AMERICAN MARKET SHARE HAD NEARLY DOUBLED SINCE 1977 FROM 1.7 % IN 1977 TO 3.4 % IN THE FIRST THREE MONTHS OF 1979 ;
WHEREAS UNITED STATES ' IMPORTS WERE CONCENTRATED IN ITALY WHICH , FOR THE FIRST QUARTER OF 1979 , RECEIVED ALMOST 75 % OF AMERICAN EXPORTS TO THE COMMUNITY ; WHEREAS THESE EXPORTS TO ITALY HAD INCREASED FROM 1 794 TONNES IN 1977 TO 6 225 TONNES IN 1978 REPRESENTING AN INCREASE OF 246 % AND TO 3 181 TONNES FOR THE FIRST QUARTER OF 1979 INDICATING AN ANNUAL INCREASE OF 104 % COMPARED WITH 1978 ; WHEREAS THE MARKET SHARE OF THESE IMPORTS HAD INCREASED FROM 1.1 % IN 1977 TO 2.9 % IN 1978 AND TO 6.0 % FOR THE FIRST THREE MONTHS OF 1979 ; WHEREAS THESE INCREASED AMERICAN EXPORTS TO ITALY HAD BEEN AT EXTREMELY LOW PRICES UNDERCUTTING ITALIAN PRODUCERS BY APPROXIMATELY 25 % ; WHEREAS THIS HAD RESULTED IN A LOSS OF ORDERS FOR ITALIAN PRODUCERS AND DEPRESSION OF PRICES AND ADDITIONAL LOSSES FOR ITALIAN PRODUCERS ;
WHEREAS THE EVIDENCE AVAILABLE TO THE COMMISSION ALSO INDICATED THAT THIS SITUATION IN ITALY WHICH REPRESENTS APPROXIMATELY 30 % OF COMMUNITY PRODUCTION AND APPROXIMATELY 40 % OF COMMUNITY CONSUMPTION HAD A CONSIDERABLE IMPACT ON OTHER COMMUNITY PRODUCERS WHO TRADITIONALLY EXPORT TO ITALY AND WHO WERE ALSO FACING A DIFFICULT SITUATION CHARACTERIZED BY HEAVY LOSSES , AND WHO WERE FORCED TO MEET ARTIFICIALLY LOW AMERICAN PRICES ;
WHEREAS , THEREFORE , THERE WAS SUFFICIENT EVIDENCE TO SHOW THAT THE DUMPED IMPORTS ORIGINATING IN THE USA WERE UNDERMINING THE PROCESS OF RECOVERY OF COMMUNITY PRODUCERS ; WHEREAS , CONSEQUENTLY , THESE IMPORTS CONSTITUTED INJURY TO A COMMUNITY INDUSTRY ;
WHEREAS , SINCE THIS PRELIMINARY EXAMINATION OF THE MATTER SHOWED THAT THERE WAS DUMPING , THAT