CELEX: 51975PC0328
Language: en
Date: 1975-07-02 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an Agreement between the European Economic Community and Japan negotiated under Article XXVIII of the General Agreement on Tariffs and Trade (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (75) 328
Vol. 1975/0116
 ---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
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(75)328 final
                                                     Brussels ,, 2 July 1975
                          RECOMMENDATION FOR A
                             COUNCIL DECISION
            on the conclusion of an Agreement between the
                 European Economic Community and Japan
       negotiated tinder Article XXVIII of the General Agreement
                          on Tariffs and Trade
             ( submitted to the Council "by the Commission)
COM(75) 328 final
 ---pagebreak---                                                                     1/163/7 5-E
                                                                    Annex I
 Report on the results of "the renegotiations on ski boots
 1.   On 4 November 1974 "the Japanese Government informed the GATT Secretariat of
 its intention to open negotiations with the European Community under
Article XXVIII (5 ) of the General Agreement with a view to modifying the tariff
 concession on .
           ex 64 . OI Ski boots       Bound rate of duty 10$ ,
the Community being the principal supplier and , since this concession was granted
during the Kennedy Round , the initial negotiator of the concession .
2.    To take account of the difficulties facing the national ski-boot industry
and the resulting plans for its reorganization , the Japanese authorities decided
to raise the tariff level to 27$ ;    in their opinion , this rate should simply
maintain the present level of national production , with no growth , thus allowing
imports to profit from the expanding market .
3.    On the basis of the average over 1971 -72-73, "the direct injury to the
Community caused by the modification of this concession on ski boots amounted to
¥ 1 0^9 million in termp of the volume of trade and to ¥ 1^2 million in terms of
customs receipts ( raising of duty from 10$ to 27$ ).
4.    In order to offset the damage done to the Community , Japan had originally
offered reductions in bound rates on eight products ( including marble , musical
instruments , lifters ( for cigarettes , etc .) and furniture ), covering a volume
of trade with the Community of ¥ 1 879 million and involving an improvement in
terms of customs receipts of ¥ 49 million .     In making this offer of compensation ,
Japan in particular pointed out that pursuant to Article XXVIII the comparison
should be made in terms of volume of trade .
5.    The Commission felt that this offer was clearly inadequate , particularly
from the qualitative point , of view , and noted that customs receipts are one of the
factors to be taken into account here ;    the Commission has therefore asked the
Japanese authorities to reconsider their initial standpoint and make a more
 ---pagebreak---                                    - 2 -                            1/163/7 5-E
balanced offer.     To this end., the Commission has made additional requests
involving reductions in customs duties and the binding of an unbound rate of
duty . Also , though it appreciates the difficulties facing the Japanese industry
in question , the Commission has requested that the new customs duty on ski boots
be fixed at a level of less than 27$ and that the new rate be re-bound to avoid
any. uncertainty as to the future .
6.    A series of negotiations with the Japanese authorities was held between
December 1974 and the beginning of March 1975 an<i the Article 113 Committee was
kept regularly informed of progress in the negotiations . Although some of the
additional headings of interest to the Community were able to be included in
Japan 's final list for compensation , others were rejected for economic and social
reasons and replaced by other products (notably knitted or crocheted fabrics ,
tractor engines and lighters plated with precious metals).      It should be stressed
that the Japanese authorities have on several occasions mentioned that , if the
Community refused the improved offer, they might not modify the concession at
this stage but , after examining the trend of Japanese imports of ski boots next
autumn , might instead adopt other measures under the GATT (in particular under
Article XIX ) whose effects would possibly not have had the same consequences for
Community exports .
7 . The improved and final offer of compensation made by Japan consists of the
following!
(a) re-binding of the concession on ski boots at the rate of 27/6 ?
(b ) reduction in bound rates of duty on fourteen products (Annex II ) covering
      a volume of trade with the Community of ¥ 4 483 million (392/S of compensation
      for harm) and involving an improvement in terms of customs receipts of
      ¥ 160 million (88$ compensation for harm).                      ,
 ---pagebreak---                                     - 3 -                          1/163/75-E
8 . Taking these factors into' account , the Commission feels that the final offer i
of compensation is satisfactory and fair and proposes to conclude the renegotiations
with the Japanese Government on this "basis .                                       !
                                                                                    t
                                                                                    i
9.   During its meeting of 6 March 1975 "the Article 113 Committee delivered an
opinion corresponding to the Commission 's proposal , a provisional reservation "by
one Member State "being lifted a .few days later.
                                                                              ■
10 . The document recording the results of the renegotiations (Annex II ) was
initialled on 15 April 1975 *
11 . The new rate of 2755 on ski "boots entered into force in the Japanese
tariff on 5 June , 1975 ». at the same time as the reductions in the rates on
the products offered ill compensation.                                      '
 ---pagebreak---            ri                                             Annexe II  r
           NEGOTIATIONS RELATING TO SCHEDULE XXXVIII - JAPAN
      The Delegations of Japan and of the Commission of the European
Communities have concluded their negotiations under Article XXVIII
for the modification or withdrawal of concessions provided for
in Schedule XXXVIII - Japan as set out in the report attached .
For the Delegation of                        For the Delegation of
Japan                                        the Commission of the
                                             European Communities
                                                         A <A|
                                                            i
                                             15 Aprii 1975
 ---pagebreak---                                                                          3.
            RESULTS OF NEGOTIATIONS WITH THE EUROPEAN ECONOMIC COMMUNITY
                         UNDER ARTICLE XXVIII FOR THE MODIFICATION OR
                    WITHDRAWAL OF CONCESSIONS IN THE SCHEDULE OF JAPAN .
                              CHANGES IN SCHEDULE XXXVIII - JAPAN
B.     CONCESSIONS' TO BE MODIFIED
                                                                                            l
                                                            :ate of DutyRlate of Duty       i
Tariff Item
                Description of Products • .
                                                             bound in
                                                          I Existing        to be bound     i
                                                                                            i
                                                                                            \
    Number                                                                                  i
                                                             Schedule                        !
-      I
                                                                                             I
                                                                                              I
                                                                                              !
 ex 64.01        Footwear with outer soles and                                                 ί
                                                                                               i
                 uppers of rubber or artificial                                                l
                                                                                               i
                  plastic material :                                                           t
                                                                                                I
                                                                                                I
                      Ski boots                                 10%      i     27%              i
                                                                                                (■
                                                                                                l
                                                                                                 î
                                                                                                 !■
_
                                                                                                  I
                                                                                                  !_
                                                                                                  î
  C. NEW CONCESSIONS ON ITEMS IN THE EXISTING SCHEDULES                                           i
  Tariff Item                                               Rate of Duty late of Duty
                   Description of Products                    bound in      to be bound
    Number                                                    Existing
                                                              Schedule
                                                                          j                j
  ex 60.01         Knitted or crocheted fabric ,
                   not elastic nor rubberised :
                       1 . Plain or rib ( other
                           than goods specified                                                      !
                           in 2 below ) :
                                                                                                     i
                            ( 3 ) Of man-made                                *        '  •
                                  fibres :
                                  A. Containing more                 *
                                      than 50% by
                                      weight of
                                      synthetic fibres
                                      or acetate
                                      fibres                     12.5%          10%
                 <                i '  i i i. ■ i  i
     r                     " ■ '      ■ . l ' • -,                                      //
 ---pagebreak---                                      - 2 -
                                                  Rate of Duty
Tariff Item                                        bound in    Rate of Duty
   Number   Description of Products                Existing     to be bound
                                                   Schedule •
   68.02      Worked monumental or building
              stone ; and articles thereof
               ( including mosaic cubes ) ,
              other than goods falling
              within heading No . 68.01 or
              within Chapter 69 : •
                   1 . Marble , polished ,- and
                       articles of marble :
                         Slabs and sheets of
                         marble , polished             6.25 %       Free
                         Other                         7.5 %        Free
                 . 2 . Other                           2.5 %        Free
    70.09     Glass' mirrors ( including
              rear-view mirrors ) , un­
              framed , framed or backed               12.5 %        10 %
ex 70.14      Illuminating glassware ,
              signalling glassware and
              optical elements of glass ,
              not optically worked nor
              of optical glass :
                   Illuminating glassware
                   for electric lamps ,
                   excluding those for
                   filament lamps                     10 %           8 %
fex 84.06     Internai combustion piston
              engines :
                                 » •
                   1 . Engines :
                   ex ( 1 ) For motor. vehicles :
 ---pagebreak---  "     *            •   •               - 3 -
                                                  *ate of Duty
Tariff Item                                        bound in »  Rate of Duty
                                                   Existing     to be bound
 Number         Description of Products            Schedule
ex 84 . 06
    ( con . )                  Intended for
                               use in tractors
                                falling within
                               heading No .
                                87.01 :
                                  Other than
                                  gasoline
                                  enqines             30%          15%
2X 84 . 52 *     Calculating machines ; account­
                 ing machines , cash registers ,
                 postage-franking machines ,
                 ticket-issuing machines and
                 similar machines , incorporating
                 a calculating device :
                 ex 2 . Electric calculating
                        machines other than
                        those specified in 1
                        above :
                          Other than those with
                          3 rules or more calcu­
                                                        7.5%         6%
                          lating mechanisms
 îx 85.13         Electrical line telephonic and
                  telegraphic apparatus ( includ­
                  ing such apparatus for carrier-
                  current line systems ) :
                    Apparatus for carrier-                           6%
                    current line Systems                7.5%
         /
              V
 ---pagebreak---                                       - 4 -
                                                  Rate of Duty
Tariff Item | . ■                                  bound in    Rate of Duty
  Number    I Description of Products              Existing     to be bound
                                                   Schedule ■
   92.05       Other wind musical instruments          7.5%       6%
ex 94.03       Other furniture and parts
               thereof :
               ex 3 . Other :
                      . Other than those
                        made of wood or
                        base metal                    10%          8%
ex 98.10       Mechanical lighters and
               similar lighters , including
               chemical and electrical
               lighters , and parts thereof /
               excluding flints and wicks :
               ex 1 . Made of , or combined
                        with , precious metals ,
                        rolled precious metals ,
                        metals plated with
                        precious metals ,
                        precious or semi­
                        precious stones ,
                        pearls , coral ,
                        elephants * tusks
                        or Bekko :
                          Made of , or combined .
                          with , rolled silver
                          or platinum group
                          metals or metals
                          plated with silver
                          or platirium group
                          metals                        20% ■      16%
                ex 2 . Other :
                                                        10%          8%
                           Lighters
(
 ---pagebreak---                                                                  I/163/75-E
                                                                Annex III
                      RECOMMENDATION     FOR A
                            COUNCIL DECISION
on the conclusion of an Agreement between the European Economic Community and
Japan negotiated under Article XXVIII of the General Agreement on Tariffs and
Trade .
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community , and in
pa.rticular Article 113 thereof ;
                                  i
Having regard to the Council Decision of 25 May 1970 authorizing the Commission to
enter into negotiation or consultation in specific circumstances with third
countries which are Contracting Parties to the GATT ;
Having regard to the Recommendation of the Commission ;
Whereas , in accordance with Article XXVIII of the General Agreement on Tariffs and
Trade , the Government of Japan has notified its wish to modify a concession
affecting the European Economic Community ;   whereas that modification has been the
subject of negotiations for compensatory adjustment;                                   j
Whereas the concessions offered by Japan in compensation for the modified concession
                                                                                       ! .
are satisfactory ,                                                                     !
                                                                                       i   .
                                                                                       !
                                                                                       i
HAS DECIDED AS F0LL0WS :
                                    Article 1
The Agreement negotiated with Japan under Article XXVIII of the General Agreement      j
on Tariffs and Trade is hereby concluded on behalf of the European Economic            j
Communityi The text of the Agreement is annexed to this Decision.                      !
                                                                     <        .        *
                                    Article 2                               ,
                                                                                      j!
The Contracting Parties to the General Agreement on Tariffs and Trade shall be
notified of the conclusion of this Agreement .                                        j
                                                                                      i
Done at Brussels              •
                                                                                   • ji
                                                                                      j
                                                                                      i
                                                           For the Council           !
                                                                                     I
                                                           The Président             !