CELEX: 51993PC0111
Language: en
Date: 1993-03-18
Title: Proposal for a COUNCIL REGULATION (EEC) extending the measures taken under the agreement between the European Economic Community and the United States of America for the conclusion of negotiations under GATT Article XXIV.6

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   C0M(93) 111 f i n a l
                                                   Brussels, 18 March 1993
;.3f
                                 Proposal for a
                            COUNCIL REGULATION (ESC)
        extending the measures taken under t h e agreement between
        t h e European Economic Community and t h e United S t a t e s of
           America for the conclusion of n e g o t i a t i o n s under GATT
                                A r t i c l e XXIV.6
                          (presented by the Commission)
  I
 ---pagebreak---                                                           3.
Whereas the Community applied these measures during 1992
by virtue of Council Regulation (EEC) No 3919/91 of 19
December 1991 (3) ;
Whereas the reasons still exist for the prolongation of
these measures,
HAS ADOPTED THIS REGULATION
                         Article 1
The measures referred to in the Exchange of Letters
supplementing the Agreement between the European Economic
Community and the United States of America for the
conclusion of negotiations under GATT Article XXIV.6
shall be applied by the Community until 31 December 1993.
                         Article 2
This Regulation shall enter into force on the day of its
publication in the Official Journal of the European
Communities.
It shall apply with effect from 1 January 1993.
This Regulation shall be binding in its entirety and
directly applicable in all Member States.
Done at Brussels,
                               For the Council
                               The President
 (3) OJ No L 372, 31.12.1991, p. 35
 ---pagebreak---                                                           X
                       Proposal for a
                  COUNCIL REGULATION (EEC)
 extending the measures taken under the agreement between
 the European Economic Community and the United States of
   America for the conclusion of negotiations under GATT
                       Article XXIV.6
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 113
thereof,
Having regard to the proposal from the Commission,
Whereas by an Agreement between the European Economic
Community and the United States of America for the
conclusion of negotiations under Article XXIV.6 of the
General Agreement on Tariffs and Trade (GATT) (1) which
was extended by the conclusion of an Exchange of Letters
(2) supplementing that Agreement until 31 December 1991,
the Community agreed to take certain measures;
 (1) OJ No L 98, 10.4.19^87, p. 1.
 (2) OJ No L 17, 23.1.1991, p. 17.
 ---pagebreak---                                                           :>
     IMPACT ON COMPETITIVENESS AND EMPLOYMENT RECORD
The present draft proposal will not alter the current
situation in respect of competitiveness and employment.
On the contrary, without these measures the United States
of America might consider retaliating against Community
exporters for a number of sensitive products.
 ---pagebreak---                                                        4-
                   FINANCIAL RECORD
1. Budge line concerned;    Chap. 12 Art. 120
   Title of the measure concerned:    Draft proposal
   for a Council Regulation (EEC) extending the
   measures taken under the agreement between the
   European Economic Community and the United States of
   America for the conclusion of negotiations under
   GATT Article XXIV.6
3. Legal basis:    Art. 113 of the Treaty
   Objective:     To ensure the continued application
   of the reduction of certain autonomous duties in the
   Combined Nomenclature by virtue of "Agreement for
   the Conclusion of Negotiations between the European
   Economic Community and the United States of America
   under GATT Article XXIV.6" on an autonomous basis
5. Cost of this measure:    No significant change in
   the situation as compared with the previous year
 ---pagebreak---                      EXPLANATORY MEMORANDUM
Subject:   The 1987 bilaterial agreement between the
            European Economic Community and the United
            States of America
1.    In   1987 an "Agreement for the Conclusion of
      Negotiations between the European Economic Community
      and the United States of America under GATT Article
      XXIV.6" was entered into between the two parties by
      which they agreed upon a number of rights and
      obligations (1).       Consultations between the two
      parties as foreseen in the Agreement subsequently
      took place in an attempt to find a solution to the
      disagreement existing between the Community and the
      United States, on whether or not new actions, if
      any, might be appropriate.
2.    It was not possible to conclude these consultations
      by the end of 1990, notably in view of the
      prolongation of the Uruguay Round, and therefore in
      respect of those rights and obligations which were
      foreseen to expire on that date an agreement was
      reached between the Community and the United States
      to extend these until 31 December 1991.             The
      Community     implemented   this   prolongation  by   a
      Decision by the Council to approve an Exchange of
      Letters between the Community and United States
      complementing the Agreement (2).
3.    The Commission considered it appropriate that on the
      one hand it was desirable to continue to apply these
      measures, in particular to avoid a worsening of the
      disagreement on this issue, and on the other hand
      that it was preferable to do so on an autonomous
      basis.     Consequently, the Commission submitted to
      the Council a draft regulation extending these
      measures     from   1   January   1992   for   a  year.
      Subsequently, the proposal was adopted by the
      Council late 1991 and published in Regulation (EEC)
      No 3919/91 (3).
4.    As the negotiations under the Uruguay Round are
      continuing into 1993, a resolution of this issue is
      still not possible.        The Commission, therefore,
      proposes to extend these measures for another year
      with effect from 1 January until 31 December 1993.
 (1) OJ No L 98, 10.4.1987, p. 1.
 (2) OJ No L 17, 23.1.1991, p. 17
 (3) OJ No L 372, 31.12.1991, p. 35
 ---pagebreak---                                                                     ISSN 0254-1475
                                                              COM (93) 111 final
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