UNDERTAKINGS AND THEIR ASSOCIATIONS ARE ENTITLED TO PRESENT ANY SUGGESTIONS OR COMMENTS TO THE HIGH AUTHORITY ON QUESTIONS AFFECTING THEM . FURTHERMORE , THE APPLICANT , LIKE ANY OTHER STEEL UNDERTAKING , IS BOUND REGULARLY TO FURNISH THE COMMISSION WITH ITS PRODUCTION FIGURES AND PRICES . IN ADDITION THE COMMISSION CARRIED OUT SPECIFIC STUDIES CONCERNING THE REQUIREMENTS OF THE QUOTA SYSTEM . THESE VARIOUS FACTORS CONSTITUTE THE STUDIES WITHIN THE MEANING OF ARTICLE 58 ( 2 ) OF THE ECSC TREATY WHICH THE COMMISSION WAS ABLE TO TAKE INTO ACCOUNT .
6 ALTHOUGH THE COMMISSION IS OBLIGED TO CONSULT UNDERTAKINGS AND ASSOCIATIONS OF UNDERTAKINGS IN CONDUCTING SUCH STUDIES , THAT OBLIGATION DOES NOT IMPLY THAT IT MUST CONSULT EACH UNDERTAKING INDIVIDUALLY OR THAT IT MUST OBTAIN THE AGREEMENT OF THE STEEL PRODUCERS TO THE MEASURES PROPOSED UNDER ARTICLE 58 . IN THIS CASE THE COMMISSION INFORMED THE STEEL PRODUCERS OF THE MEASURES WHICH IT INTENDED TO TAKE AND IT HELD MEETINGS WITH THE ASSOCIATIONS OF UNDERTAKINGS CONCERNED , INCLUDING THE ASSOCIATION OF ITALIAN PRODUCERS OF CONCRETE REINFORCING BARS , ALLOWING THEM TO BRING THEIR PROPOSALS TO THE COMMISSION ' S ATTENTION . ALTHOUGH THE APPLICANT IS NOT A MEMBER OF THAT ASSOCIATION IT COULD HAVE PUT FORWARD ITS POINT OF VIEW INDIVIDUALLY IF IT HAD SO REQUESTED . THE COMMISSION THUS DISCHARGED ITS DUTY TO CONDUCT STUDIES JOINTLY WITH UNDERTAKINGS AND ASSOCIATIONS OF UNDERTAKINGS .
THE INFRINGEMENT OF ARTICLE 58 ( 1 ) OF THE ECSC TREATY
7 THE APPLICANT CONSIDERS THAT THE CONDITIONS REQUIRED BY ARTICLE 58 ( 1 ) OF THE ECSC TREATY , NAMELY THE EXISTENCE OF A DECLINE IN DEMAND CONSTITUTING A MANIFEST CRISIS AND THE INSUFFICIENCY OF THE MEANS OF ACTION PROVIDED FOR IN ARTICLE 57 TO DEAL WITH IT , WERE NOT FULFILLED AS REGARDS CONCRETE REINFORCING BARS AND ACCORDINGLY THE QUOTA SYSTEM ESTABLISHED IN THAT SECTOR WAS IN NO WAY JUSTIFIED .
8 WITH REGARD TO THE DECLINE IN DEMAND , THE APPLICANT DISPUTES THAT CONCRETE REINFORCING BARS WERE AFFECTED . REFERRING TO A DOCUMENT OF JULY 1980 IN WHICH THE COMMISSION DESCRIBED THE DECLINE IN DEMAND FROM THE UNITED STATES AND IRANIAN MARKETS , THE APPLICANT CONTENDS THAT CONCRETE REINFORCING BARS ARE NOT CONCERNED WITH THE FIRST MARKET BY REASON OF THE COST OF TRANSPORT , WHILST THE FALL RECORDED ON THE SECOND REQUIRED A SEARCH FOR ALTERNATIVE MARKETS RATHER THAN A CUT IN PRODUCTION . THE FALL IN THE PRICES OF CONCRETE REINFORCING BARS MENTIONED BY THE COMMISSION WAS CAUSED BY A REDUCTION IN THE PRICE OF THE RAW MATERIAL AND AN INCREASE IN COMPETITION . THE COMMISSION ' S ARGUMENT THAT THE PRICE OF FERROUS SCRAP , THE RAW MATERIAL FOR CONCRETE REINFORCING BARS , IS DETERMINED BY THE PRICE OF THE FINISHED PRODUCT IS NOT DECISIVE SINCE SCRAP CONSTITUTES THE RAW MATERIAL FOR A WHOLE RANGE OF FINISHED OR SEMI-FINISHED PRODUCTS . FURTHERMORE , IN ITS REQUEST FOR THE COUNCIL ' S ASSENT , THE COMMISSION STATED THAT PRODUCTION