CELEX: 51977PC0356
Language: en
Date: 1977-07-12
Title: PROPOSAL FOR A COUNCIL REGULATION maintaining the arrangements for the authorization of imports into the Community or into a number of Member States of cotton yarn and of garments originating in certain third countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 356
Vol. 1977/0118
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                            COM(77)356 final.
                                            Brussels , July 12 . 1977
                          PROPOSAL FOR A COUNCIL REGULATION
                                                     ,
             maintaining the arrangements for the authorization of imports
             into the Community or into a number of Member States of cotton
            yarn and of garments originating in certain third countries
                       ( submitted to the Council "by the Commission)
                                                       . .1
C0m ( 77) 356 final .
 ---pagebreak---                         EXPLANATORY MEMORANDUM
 1.  As a result of a sharp increase in the early months of this year
 in imports into Prance of certain textile products ( cotton yarn, men f s
shirts , T-shirts and the like , women * s shirts and blouses ) that Member
State gave notice on 17–18 June of its intention to take safeguard measures
 in respect of these products where they come from low–wage economies .
2.   On 21 , 23 and 29 June the Member States and the Commission held
consultations on this matter on the basis of the relevant provisions of
the various Community implementing regulations , inter alia Article 3
                                               1
of the Council Decision of 19 December 1972      and Articles 4 and 12 of
                               2
Council Regulation No 1439/ 74 •    At the first of these consultations ,
on 21 June , one Member State and the Commission objected to the use
by France of national measures and to a recourse to Article XIX of the
GATT .   These objections were subsequently supported by a second
Member State .    It was also confirmed during these consultations that
other Member States suffered from similar problems .
3.   In particular a substantial increase in imports of the products in
question from all third countries xfas noted .     In 1976 these imports
already accounted for a considerable share of the market .       Since that
time this share has increased further either o?i the Community market as
a whole or on the market of certain Member States , although the increase
has varied from Member State to Member State .      As regards these products
with a high rate of market penetration special objectives have been set
in the negotiating directives for the renewal of the MPA .
loj No L 299, 31.12.1972
  OJ No L 159 , 15.6.1974.
 ---pagebreak--- 4 . A considerable part of imports into the Comra-unity of the products m
question is already subject to quantitative limits negotiated with
certain major supplying countries .     However , examination of the
state of affairs revealed that the trend of imports from other sources
was such as to justify the establishment of limits on the products in
question for the Community as a whole or for certain regions of the
Community .   This examination also served to identify the low-salary
supplying countries contributing to disruption of the market .
5 . On 6 July the Commission decided in principle on emergency measures
to be brought in for the second half of this year and , with regard to
the supplying countries , which Cpmmunity regions should be protected
and which procedures applied .     On the question of import stabilization ,
the following approach 'was adopted :
( i ) maintenance of the amounts and procedures fixed pursuant to the
      bilateral agreements on voluntary restraint , unless these are
      renegotiated ;
                 in this context the Commission is prepared
                 to begin consultations – at Prance 's request –
                 with Singapore and Macao , with a view to
                 reducing the share of men 's shirts allocated
                 to Prance , offsetting an increase in the
                 French share for other products ;
( ii ) application in appropriate cases of the compulsory consultation
       clauses ( CCC ) in the bilateral agreements .
 ---pagebreak--- ) in certain special cases , the extension to one or another
  Member State of import arrangement s already in force in
  one region of the Cone-unity vis-a–vis a supplying country ;
 in all other cases where strict import limits are necessary ,
 the application of a formula limiting imports in the second
 half of 1977 in such a way as to avoid any exacerbation of
 the market disturbance caused "by imports of the products in
 question , "bearing in mind the Community * s international
 obligations ;   for countries with which the Community has
 concluded bilateral agreements establishing special trade
 arrangements , the introduction of measures based on the
 safeguard clauses in those agreements ;
 in the case of Greece , in respect of which country there is
 no safeguard clause , and in cases where there is no wish to
 impose strict limits upon the imports of certain textile
 products (Cyprus – Israel – Malta – Morocco – Tunisia –
 Turkey ), diplomatic action aimed at stabilizing imports .
 ---pagebreak---                                     - 4 -
  (vi ) in certain other cases , renewed, vigilance with regard to
        imports of the products in question , with a view to applying
        appropriation measures should it become necessary .
 6 . Consultations have taken place with the following countries , with which
 the Community has concluded "bilateral agreements establishing special
 arrangements for trade , to discu.ss the proposed measures "based on certain
provisions of those Agreements :
                Morocco :  7 July 1977
                Tunisia :  8 July 1977
                Turkey :   7 July 1977
                Spain :    8 July 1977
Egypt was asked for consultations within the Joint Committee of the
Agreement with the Community "but was unable to take part .     A note verbal e .
has been sent to notify Egypt of import restraint measures concerning it .
Requests for consultations have been sent to those MFA member countries in
respect of which it is planned to take import restraint measures either
under the MFA or under the bilateral Agreements on textiles negotiated or
concluded with the Community within the framework of the MFA ( Colombia -
Malaysia – Pakistan – India - Romania ).
7 . In the case of Romania the question of import restraint on cotton yarn
has been dealt with by a Commission Decision of 12 July 1977 , in accordance
with Decision 75/21 O/EEC applicable to state-trading countries ( See Doc .
                  ) and with the EEC-Romania Agreement initialled on 10 November 1976.
 ---pagebreak---                                 - 5 -
8 . In view of the urgent nature of the problem the Commission has
decided to take appropriate steps to remedy the disruption of the
market for the products in question .   As regards restraint measures ,
since the immediate introduction by a number of the third countries
concerned of arrangements for voluntary export restraint for the
products in question appears out of the question , it has been
necessary to envisage a system of import licences .
In the course of consultations a number of the countries affected
by these measures requested that the safeguard measures concerning
them should be applied in the form of voluntary restraint .    The
Commission is continuing consultations with these countries , and
with any others who might so request , with a view to working out
details for the application of such voluntary restraint arrangements
backed up by a double control system .
9 . On the basis of paragraph 6 of Article 12 ( laying down an
emergency intervention procedure ) of Council Regulation (EEC ) Ho 1439/74t
the Commission has established for the products and the countries
of origin in question import restraint arrangements for the Community
as a whole or for certain regions of the Community ( see Regulation
(EEC ) No      /77 of 12 July 1977 ).
Commission regulations adopted by virtue of Article 12 of Regulation
(EEC ) NO 1439/74 expire six weeks following their entry into force
unless they are confirmed by the Council .
Consequently the Commission proposes that the Council adopt the
Regulation proposed hereunder , the purpose of which is to confirm
the measures adopted by the Commission regulation regarding products
originating in Colombia, Egypt , India, Malaysia , Pakistan , Morocco
or Tunisia .
10 . The Commission considers that this proposal , together with the
other measures and initiatives taken , is adequate both to remedy the
problems complained of by Prance and other Member States during the
consultations referred to in paragraph 2 above , and to meet the
objections raised against the intentions of France as notified by that
country on 1 7–1 8 June 1977 .
 ---pagebreak---                    Proposal for a Council Regulation
       maintaining the arrangements for the authorization of imports
       into the Community or into a number of Member States of cotton
       yarn and of garments originating in certain third countries
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community,
Having regard to Council Regulation (EEC ) Ho 1439/74 of 4 June 1974
                             1
on common rules for imports , and m particular Article 13 thereof ,
After consultation within the Advisory Committee established "by
Article 5 of the above Regulation ,
Having regard to the proposal from the Commission ,
                                                     2
Whereas by Regulation (EEC ) NO      /77 of July 1977 the Commission made
inter alia the importation into certain Member States of cotton yarn and
garments originating in Colombia, Egypt , India, Malaysia , Morocco ,
Pakistan or Tunisia subject to authorization ;
Whereas the grounds justifying the introduction of the measures have
persisted and whereas it is accordingly necessary for the measures to
remain in force until 31 December 1977 »
HAS ADOPTED THIS REGULATION:
                               Article 1
The arrangements for the authorization of imports into certain Member
States of cotton yarn and of garments originating in Colombia, Egypt ,
India, Malaysia, Morocco , Pakistan or Tunisia , adopted by Regulation
(SEC ) No     /77 , shall remain applicable until 31 December 1977-
                               Article 2
This Reflation shall enter into force on the day following the day of
its publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
 in all Member States .
  Done at Brussels                                   For the Commission
 1                                                   The President