CELEX: 51972PC1607
Language: en
Date: 1972-12-11 00:00:00
Title: COMMUNICATION OF THE COMMISSION TO THE COUNCIL CONCERNING THE COMMUNITY'S RELATIONS WITH NORWAY#Draft Recommendation for a Council Decision concerning the opening of negotiations with Norway#Draft Decision of the Representatives of the Governments of the ECSC Member States, meeting within the Council, concerning the opening of negotiations with Norway

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (72) 1607
Vol. 1972/0225
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---              . t .* .
                                                                                                            COM(72)1607 final
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 ---pagebreak---         THS COMMUNITY'S RELATIONS
                 WITH NORiVAY
( Communication of the Commission to the Council )
 ---pagebreak--- 1.     Following the Norwegian request of 25 October 1972 for the
opening of negotiations with the Community . with a .view to concluding
an agreement between it and Norway , the Council , at its meeting of
6 November last , invited the Commission to conduct exploratory talks
as had been requested by the Norwegian Government .
       These talks took place on several occasions during November and
were essentially devoted to the explanations and clarifications
provided by the Commission as to the scope and raison d'etre of the
various provisions in the agreements concluded with the other
non-acceding EFTA countries . At the end of the talks , the Norwegian
Government informed the Community in the Memorandum it submitted on
k December of its wishes as regards the contents of the agreement it
aimed at negotiating with the Community .                 ;'
2.     In its Memorandum the Norwegian Government confirmed that the
agreements signed with the other non-acceding EFTA States on
22 July of this year constituted a reasonable basis for an agreement
with the Community . The Commission feels that this being so the
negotiations could begin in the very near future , with the preparatory
work at Community level being limited to those aspects which are ;
particular to the agreement envisaged with Norway .
       The Norwegian Government also set out in its Memorandum "certain
wishes as regards departures from the pattern of the agreements iwith the
other EFTA States .   For the most part they concern fishery^ products ,
industrial products subject to special arrangements and matters bf
sea transport .                               '   '•
 ---pagebreak---               M  Industrial products subject to special arrangements
3.      As regards the most important products subject in the agreements
with the other EFTA States to special arrangements , the Norwegian
Government analyzed the economic and business situation in the
industries concerned . It went on to request that exceptions to the
normal timetable for tariff reductions be limited as far as possible
in view of the considerable effect that such exceptions are likely to
have owing to the composition of Norwegian exports .
        It. may be noted in this respect that the economic problems
raised in this field are similar to those the Community faced with the
other 2FTA countries . It does not therefore appear that the list
of products subject to special transitional arrangements when
imported into the Community should differ substantially from the list
appearing in the Protocols on sensitive products in the agreements
concluded with countries having a comparable economic structure , -
        This list covered the following products , if those products ,
are omitted for which Norwegian exports are negligible or nil : staple
fibre , paper and paperboard , ferro-alloys , special steels , lead ,
zinc , aluminium , rare metals ; it accounted for about 3G/° of the
Community 's imports from Norway.^- </hen this percentage is considered ,
it .must also be borne in mind that subject to the optional re­
introduction of custows duties where indicative ceilings are exceeded ,
on most of the products exported from Norway the acceding States will
not be increasing customs duties .
                                                         * • •/ « • •
 Calculated on the basis of the average for imports from 19&9
 1971 .
 ---pagebreak---                                            1
                                         3 -
          Two products call Jbr special attention :
   (i)    Unwrought aluminium
          Norway xs one of the Community 's main suppliers oF this product .
       When concluding the agreements with the other non-applicant iSS'TA
       countries , the Community had based the tariff arrangements applicable
       to aluminium on the assumption that Norway would accede to the
       Community , hence full integration of Norwegian production in the
       Community 's production over a four and a half year transitional
       period . Now integration will not take place . It would therefore
       seem sufficient to apply to Norway the same seven year tariff
       dismantlement arrangements as have been adopted for aluminium
       originating in the other non-acceding SFTA countries .
          Under these circumstances , measures designed to impose
       quantitative guidelines on the basis of the principles already
       negotiated with the other SFTA countries should.be applied to
       imports of aluminium originating in Norway .
 ( ii)    Silicon carbide (CCT heading No . 2è.56A)
          This product is manufactured in. Norway mostly for export ... ...
       purposes and benefits from extremely low production costs due to
       the presence of cheap sources of electric power . It would therefore
       seem desirable to allow Community enterprises manufacturing this
       product a longer period of adaptation than' the '*noi1mal"'transitional
       period and to institute special measures imposing guidelines
       for imports . Silicon carbide should therefore be made subject to
       the seven year arrangements with the possibility of introducing
       indicative ceilings .      '
        With the inclusion of this product , the percentage of products
-   ~   subject to special ' arrangements up'on import into the Community
        would increase by less than 1$ ,
 ---pagebreak---                                           - U -
             The Norwegian Memorandum also pointed out that products subject
     to special transitional arrangements in the other JSFTA agreements would
     cover , where Norway is concerned , a very large 'proportion of its
     exports to the Community . This percentage is in fact only exceeded
     by Finland .
             In this respect , the Commission feels that , as was done for
     the other EFTA countries , any requests made by Norway for the
     introduction of special transitional arrangements for certain products
     of its industry should be considered at the proper time on their own
     economic merits .
     Farming and fishery products in particular
     4.      The pattern adopted by the Community for the agreements with
     the non-acceding JSFTA States was the progressive attainment of a free
     trade area covering industrial products . In the cases of Austria ,
     Finland , Switzerland and Sweden , it covers the bulk of trade in accord­
     ance with Article XXIV of the GATT , as may be seen in the Table
     below , which indicates the approximate percentage of products not
     covered .    Although for Norway this percentage is substantially
     higher than that for the other four countries , it does not affect.,
     conformity with GA^T criteria .
        ohare o.f agricultural products in the enlarged Community 's trade
        with the non-acceding iiiFTA States ( Basis t value of imports for
        average, of 1968-70 )
                       Austria Finland Iceland  Norway Portugal  oweden owitzerland
uommunityis iaports
from each country       6.9      2.9    68.9     11.4     22.6    3.5       4.9
Imports into , each
country from the
Com ''.unity          ' 7.1      5.3    21.7      5.8      2.7    4.7      10.2
"rade in both
directions              7.0      4.0    40.4      8.4      9.8    4.1       8.2
 ---pagebreak---             Only in the cases of Iceland and Finland did provision have to
be made for concessions by the Community for certain agricultural
products in order to obtain a cover which corresponded to GATT
requirements .                  .
            Norway 's case may not therefore be assimilated to that of the
above two countries . Its exports not covered by industrial free
trade mostly concern the fishing industry . As regards fresh fish and
preserved fish , the Comaunity' s internal suppliers are already
incapable of meeting demand , which furthermore continues to expand
rapidly . The incidence of the customs duties to be reintroduced
progressively by the acceding countries in accordance with the .
timetable laid down by the Treaty of Accession might not under these
circumstances have a decisive influence on the trend of trade ; any
difficulties could be examined by the Joint Committee
imder the provision in the agreements for agricultural questions .
            Further , the customs duty indicated in the CCT for fish meal
is only 2% and for most crude fats and oils of marine manraals the duty
is zero .      The inclusion of these products would not therefore be of any
real economic significance . .
      ■ * ,     ·'·    .:          ."··  «·
        ■ These various points may lead the Community to consider , as
it did for the other non-acceding 5FTA countries in circumstances
similar to'Morway 's , that it does not appear advisable to go beyond
the framework limited to industrial products which was adopted by the
Community in the agreements in question , despite the pressing requests
formulated by certain partners in respect of one or other of their product
which until now had a big market for example in the United Kingdom .
 ---pagebreak--- 5*      Stressing in its Memorandum the importance for its country of
fishing , the Norwegian Government pointed to the special significance
of this industry for its northern regions and to the fact that the
situation in those regions is not very different from that in . Iceland ,
a country which has obtained concessions from the Community for its
fishery products ,
        Without in any way wishing to contest these regional features
( which had been duly taken - into account during the membership
negotiations), the Commission must nonetheless make the point that the
agreements with the non-acceding EFT A. States are limited to trade
questions .
        '.That is more , the concessions made to Iceland were tied up with
the problem of fishing rights . Similarly , this problem of fishing
rights was taken into consideration^" with a view to achieving free
trade , in accordance with the Stockholm Convention , for quick frozen
fish fillets .
        In this respect , it might be useful to ascertain during the
negotiations how the Norwegian Government views the question of fishing
limits in its future relations with the Community in connection with
its requests in the fishing sector , for the Norwegian Memorandum of
k December makes no reference to this question , the importance of
which must not be underestimated if at a later stage the Council
should wish to examine the Norwegian requests in greater detail .
On the basis of the information so obtained , the Commission 'could if'
necessary make further points with regard to the elements of the
agreement as a whole .
                                                        • • •/ • • •
 "During the negotiations on the Stockholm Convention , it was
  understood , in addition to a quantitative limitation by the United
  Kingdom , that free trade would be ended , barring a unanimous vote by
  the Council , should the conditions of competition in the fishing
  industry be changed fundamentally .
  when Iceland acceded to the Convention in 1970 , it was agreed to
  widen the quantitative limit on access to the United Kingdom by
  adding to it a system of minimum export prices .
 ---pagebreak---         faea transport
6.      Of the other points raised in the Norwegian Memorandum , only
the problem of     sea    transport requires a special position to be
adopted . The Member States have for a long time been taking part
in the work carried out in this field in the various international
organizations , in particular in the O.HEC , and later in the OJSCD .
The Community as such has not yet worked out a common policy to deal
with these problems , and it is not excluded that the situation will
change as a result of enlargement *
        The position adopted by the Community as regards the other
EFTA partners on questions of the same kind has led it to refuse any
treaty commitment involving an obligation to hold- consultations of
this kind at a later date .                 ■  * ■?•
        This in no way excludes the possibility in the future , however ,
where circumstances make it desirable , of holding continuing contacts
with the Norwegian Government on questions of common interest in this
field . Contacts of this kind might well prove to be useful and
desirable . The same considerations might also apply to other problems ,
such as petroleum .                                                   -
        The Commission intends to bring the above points to the notice
of the Norwegian Delegation during the negotiations .
        It is obvious that a possible future application of the
" evolutionary clause " would not in any way be affected .
 ---pagebreak--- 7.      The Council , and the representatives of the iCCSC Member States
meeting within the Council , will find annexed to this Communicatioh
the proposals for decisions on the opening of negotiations with
Norway . The proposals include in annex the guidelines on the basis
of which these negotiations should be c'nducted . These stem partly
from the general principles in the original guidelines for the'
negotiations with the other non-acceding iSi'TA States ( Internal Council
Document No . 697 of 9 November 1971 ) and from the elements which are
conmon to the agreements signed or' initialled on 22 July 1972 with
the countries having an economic structure similar to that of Norway .
        In order to take into account the wish expressed by the Norwegian
Government that tariff reductions begin on 1 April 1973 » it would
appear to be highly desirable for the Council to deliberate on the
annexed draft decisions as soon as possible .
 ---pagebreak---          Draft
     jRecommendation
  for a Council Décision
concerning the opening of
 negotiations with Norway
 ---pagebreak--- THE COUNCIL OF THii SJHOPEAIm COMMUNITIES ,
Having regard to Article 113 of the Treaty establishing the EEC ,
Having regard to the Recommendation of the Commission ,
            !
Whereas the Government of the Kingdom of Norway lodged a request on
25 October 1972 ;
HA3 DECIDED A.o FOLLOJS :
                               S CLE AKTICLE
The Commission is authorized to open negotiations with a view to
concluding an agreement between the EEC and Norway .
It shall conduct these negotiations in accordance with the annexed
guidelines , subject to any subsequent guidelines , with the assistance
of the Special Committee on Article 113 »
 ---pagebreak---                                                                   ANNEX
        The general principles of the Agreement will be those appearing
on pages 1 to M of Internal Document No . 697 of 9 November 1971 •
        The Agreement will cover products of Chapters 25 to 99 ®f the
Brussels Nomenclature , except products of those chapters' listed in
Annex II to the Treaty and products of Chapters 1 to 2b listed in
Table I ®f the Annex to Protocol No . 2 of the Agreements signed by the
Cemmunity on 22 July 1972 .
        The provisions ©f the Agreement shall in principle be the same as
those in the agreements of 22 July 1972 . with Sweden , Switzerland ,
Austria and Finland .
        As regards spécial import arrangements :
(a)     In the Cemmunity :                               »
          The provisions of the of the Agreement will take over
          Articles 1 to 3 of Protocol No . 1 of the above Agreements ,
          The list to be put to the Norwegian Delegation for Article 2
          of this Protocol is given below :
Common Customs
Tariff                                    Description                                    !
heading No »
      28.56          Carbides ( for example , silicon carbide , boron carbide , :
                     metal carbides ):           '     '    '                        i
                                                                                     .   I
                     A. 0? silicon                     '    -                            j
                                                                                         i
      56.01          Han-made fibres ( discontinuous ), not ; carded , combed or         !
                     otherwise prepared for spinning*:                                   !
                     B. Regenerated textile fibres                                       !
                                                                                         l
      56,02          Continuous filament for the manufacture of man-made                j
                     fibres ( discontinuous ):                                          j
                     B. 0f regenerated textile fibres                              ,   j
                                                                                       >
                                                                                   ;   l
 ex 73.02            Ferro-alloys , excluding ferro-nickel                             i
                                                                                       1
    . 73.15          Alloy steel and high carbon steel in the forms mentioned !
                     in headings Nos . 73«06 to 73«1 ^                        '' ■     ;
                                 tv ?                                                  ;
                                                                    • i ■/• • •
 ---pagebreak---                                  T 2 "
Coramon Customs
Tariff                                  Description
heading No .
    76.01         Unwrought aluminium ;     aluminium waste and scrap :
                  A.   Unwrought
    78.01       j Unwrought lead ( including argentiferous lead );
                  lead waste and scrap
                  A»   Unwrought :
                       II . Other
    79.01         Unwrought zinc ; zinc waste and scrap:                  I
                  A.*  Unwrought
    18.01         Tungsten ( Wolfram ), unwrought or wrought , and
                  articles thereof
    81.02         Molybdenum , unwrought or wrought , and articles
                  thereof -
    81.03         Tantalum , unwrought or wrought , and articles thereof
    81.01»        Other base metals , unwrought or wrought , and
                  articles thereof ; cermets , unwrought or wrought ,
                  and articles thereof :
                  B.   Cadmium
                  C.   Cobalt
                       II . Wrought
                  D.   Chromium                                          I
                  E.   Germanium                            !            I
                  F.   Hafnium ( celtium )              .
                  G.   Manganèse
                  H.   Niobium ( colombium )
                  IJ . Antomony
                  K.   Titanium
                  L.   Vanadium                                         I
                  M. . Uranium depleted in U 235                        I
                  0.   Zireonium
                  P.   Rhénium
                  Q.   Gallium ;   indium ;  thallium
                  R»   Cermets                                          !
                                                                        i
 ---pagebreak---                                        - 3 -
           The indicative ceilings will be established by the Commission
    with the help of the Special Committee on Article 113 » on the same
    bases as those adopted for establishing the ceilings for 1973 in the
    agreements referred to above ;
(b)        in Norway :
           The Commission , helped by the Special Committee on Article 113 »
    will consider any Norwegian requests , taking care to establish a
    balance corresponding to that achieved in the agreements of
    22 July 1972 .
 ---pagebreak---                     Draf t
       Decision of the Representatives
of the Governments of the ECSC Member States ,
   meeting within the Council , concerning
   the opening of negotiations with Norway
 ---pagebreak---                                    - 1 -
         The Representatives of the Governments of the Member States of
the European Coal and Steel Community , meeting within the Council ,
'.'hereas the above Member States have concluded between them the Treaty
establishing the European Coal and Steel Community ;
             !
Whereas they have also concluded the Treaty establishing the
European Economic Community , Article 232 of which stipulates that the
provisions of that Treaty shall not modify the provisions of the
Treaty establishing the European Coal and Steel Community , in
particular as regards the rights and obligations of Member States ;
Whereas the Government of the Kingdom of Norway lodged a request
on  ...
KAV2 D3CIDED AS FCLLO./S :
1,       The Commission is requested to open negotiations with Norway
on behalf of the Member States . The aim of these negotiations will
be to ascertain whether an agreement is possible for products
covered by the European Coal and Steel Community on the bases
appearing in the annex and subject to subsequent guidelines .
2.       In implementing this decision , the Commission will be
assisted by representatives of the Member State .
                                                          . • • •/ •••
 ---pagebreak---                                                   ANNEX
         The provisions of the Agreement shall in principle be the
sarae^" as those in the Agreements with the other non-acceding EFTA
States of 22 July 1972 , according to the choice to be made by the
Norwegian Government as regards price rules between the two solutions
appearing on page *+5 of Internal Document No . 697 of 9 November 1971 *
 Certain products for which special import arrangements in the
 Community should be made are included in the list given in the draft
 SEC Council Decision .