CELEX: 51987PC0417
Language: en
Date: 1987-08-17
Title: Proposal for a COUNCIL DECISION concerning coordinated action to safeguard free access to ocean trades and freedom to provide services in maritime transport with West African and Central African States (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 417
Vol. 1987/0220
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(87 ) 417 final
                                               Brussels , 17 August 1987
                                              NOT FOR PUBLICATION
          \
                                  Proposai for a
                                 COUNCIL DECISION
            concerning coordinated action to safeguard free access
                to ocean trades and freedom to provide services
                  in maritime transport with West African and
                              Central African States
                          ( presented by the Commission )
 C0MC87 ) 417 final
 ---pagebreak---                                           Λ
                                    ExpLanatory Mémorandum
I.      Introduction
        1.   This Communication is presented in response to the request of
             20 July 1987 to the Commission by the Danish Government concerning
             the interests of Danish shipowners and shippers who consider that
             they are adversely affected by the measures taken by the West and
             Central African States regarding the organization of the trade
             between Europe and West and Central Africa .
             These measures concern , in particular , cargo distribution
             arrangements , the setting up of freight reservation offices and
             the exclusion of outsiders from the trade .
             In its request for action by the Community , the Danish Government
             cites in particular the following provisions of Community
             legislation :
             (i)       Article 6 of Council Régulation ( EEC ) N° 4055 / 86 of
                       22 December 1986 applying the principle of freedom to
                       provide services to maritime transport between Member States
                                                                        1
                       and between Member States- and third countries , and also
                       Council Regulation ( EEC ) N° 954 / 79 of 15 May 1979 concerning
                       the ratification by Member States of , or their accession to ,
                       the United Nations Convention on a Code of Conduct for
                              „ ;_ 2
                       Liner Conférences ;
              ( ii )   Article 10 of Council Regulation ( EEC ) N° 4056 / 86 of
                       22 December 1986 laying down detailed rules for the
                       application of Articles 85 and 86 of the Treaty to
                       maritime transport ^;
              ( iii )  Article 3 of Council Régulation ( EEC ) N° 4058 / 86 of
                       22 December 1986 concerning coordinated action to safeguard
                                                                 1
                       free access to cargoes in ocean trades .
1 0J N° L 378, 31.12.1986, p.p . 1 , 4 and 21 .
20J N° L 121 , 17.05.1979, p.1 .
                                                                                  ./.
 ---pagebreak---                                     - 2 -
        In addition to these specific provisions account must be taken of
        competition policy rules and the provisions of the Lome Convention
        which govern relations between the Community and its Member States and
        the countries of West and Central Africa concerned by the Danish complaint .
II .    The facts
        2.  The current situation in maritime transport between Europe and
            West and Central Africa is characterized by restrictions on freedom
            of commerce and navigation which are the result of developments dating
            back several years .    A number of factors are implicated , both at
            national level with regard to the Member States concerned and at the
             level of bilateral and multilateral relations .    These factors are
            discussed below .
        3.  The aim of the United Nations Convention on a Code of Conduct for
            Liner Conferences , adopted in April 1974 , was to facilitate the
            expansion of world shipping trades , to stimulate the development of
             liner services and to ensure a balance between the various interests
            concerned .  It introduced a principle for the distribution of liner
            cargo carried by shipping lines which are conference members , wrongly
            called the 40/ 40 / 20 system , under which national shipping lines
            belonging to the conference at each end of a trade are allocated an
            equal share of the trade and third-country lines belonging to
            conferences are allocated a significant share of the order of 20% .
            This Convention took effect in October 1983 .
        4.  On 15 May 1979 the Council of the European Communities adopted
            Council Regulation ( EEC ) N° 954 / 79 concerning the ratification by
            Member States of , or their accession to , the United Nations
                                                                     1
            Convention on a Code of Conduct for Liner Conferences .
            This Regulation is based on the idea that the Code constitutes the
            appropriate means of meeting the aspirations of developing countries
            in the field of shipping , while maintaining the commercial principles
1 0J NO L 121 , 17.5.1979, P.1
                                                                                  ./.
 ---pagebreak---                                   - 3 -
      applied by the shipping lines of the OECD countries ;         it sets out the
     procedures for ratification of or accession to the Code by the
      Member States of the European Community .
      It provides for certain reservations , in particular a mechanism
      for redistributing the volume of cargo to which the shipping
      lines of the Community Member States belonging to a conference
      are entitled ( Article 3 of Regulation ( EEC ) N° 954 / 79 ).
 5.   The West and Central African States meeting in the Ministerial
      Conference on Shipping of West and Central African States ( CMEAOC )
      adopted in July 1981 a Resolution ( N° 49 / 5 / 81 ) on certain measures
      connected with the implementation of the Code of Conduct which
      led to the introduction of unilateral cargo distribution measures
      intended to reserve a share of shipping trades to their national
      shipping lines :    these measures are in breach of the Code .
      Some of these States ( listed in point 15 ) set up central freight
     offices to distribute cargo in trades between Europe and themselves .
      The activity of these offices is not restricted to cargo carried
      by liner conferences but covers all liner trades .       Finally , in
      some cases these measures also cover bulk trades and all other
      cargoes carried by tramp services .
      This generally means that shippers no longer have any freedom
      of choice of transport service , that shipping lines encounter
      difficulties in exercising their right to carry cargo and that
      the participation of lines operating outside a conference , even
      where they compete on a fair and commercial basis , is compromised .
6.  "In Europe , at the other end of the trade , the Member States tried
      to react to these new practices at government or commercial level .
          In France , shipowners who are members of shipowner associations
           based in the French-speaking countries of West Africa and
           in several OECD European member countries set up SECRETAMA
           ( Shipping Secretariat ), which became operational in 1982 .
           Its role is to produce statistical reports and organize trade
           routes .  Some shipowners complain of not obtaining cargoes
           because they are not members of SECRETAMA .
 ---pagebreak---                                - 4 -
        Following a cargo reservation measure taken by the Ivory Coast ,
        it would appear that France has adopted a measure having equivalent
        effect , with the result that trades between France and the
        Ivory Coast are now split 50 / 50 between their vessels .
   -    Other European countries ( Belgium , Germany , Netherlands ), following
        the establishment of agents of the central freight offices on
        their territory by some African countries , declared the activities
        of the freight offices illegal in 1985 and started talks at
        government and commercial level .
        These talks led to a protocol ( Hamburg , 9 April 1987 ) which has
        been accepted by representatives of the governments of the
        European side ( Belgium , Germany , Netherlands ) and on the African
        side , and a draft agreement was drawn up at Kinshasa between      the
        trading partners .
        This draft met with objections from the governments , and the
        shipping lines on the European side drew up a revised draft .
        The discussions are not yet completed , but there is a risk that as
        a result of pressure from the African side a solution may finally
        be accepted that infringes Community rules .
7.   On 8 December 1984 the Member States and the Commission signed the
     third Lome Convention with the African , Caribbean and Pacific States .
     All the African States concerned in the CMEAOC and in the West and
     Central African liner trade with the Community are signatories to
     the Lome Convention .    Articles 86 to 91 of the Convention deal with
     EEC / ACP relations in the field of shipping .   In particular the
     Convention makes provision for the participation of outsiders in
     liner trades covered by the Code of conduct and upholds the
     principle of unrestricted access to the trade on a commercial basis .
     Article 91 provides for consultation to take place in accordance
     with the procedures of the Convention in order to ensure the
     effective implementation of the Articles relating to shipping .
                                                                         ./.
 ---pagebreak---                                 - 5 -
 .8 . In 1985 the Community reacted to the new central freight
      offices by delivering on 5 June a diplomatic note to the Member States
      of the CMEAOC affirming its disquiet that the principles set out in
      several declarations and in particular resolution N° 49/ 5 / 81 had
      prompted some States to adopt regulations and introduce prior unilateral
      cargo distribution measures , in particular through the expansion of the
      central freight offices and the activity of their agents in certain
      European Community ports .
 9.   There was no reply to this initiative . On 19 June 1987
      Mr Clinton Davis , as Member of the Commission responsible for
      transport , sent a letter to Mr Nguema Mathieu , the Gabonese Minister
      for Transport and President of the CMEAOC , recalling the diplomatic
      note of June 1985 , communicating his concern at the growth of the
      practices which were the subject of that note and proposing
      exploratory talks .
10 .  On 22 December 1986 the Council of the European Communities adopted
      the three Regulations ( EEC ) Nos . 4055 / 86 , 4056 / 86 and 4058 / 86 which
      are relevant to the case .
      Regulation 4055 / 86 entered into force the day following its publication
      and the other two on 1 July 1987 .
      The basic principle on which Community action in maritime matters
      is based is the pursuit of a policy to safeguard the application of
      commercial principles in international shipping trades .
11 .  On 20 July 1987 the Danish Government sent the Commission the request
      for intervention referred to in the introduction concerning trades with
      West Africa and based on Regulations ( EEC ) Nos 4055 / 86, 954 / 79,
      4056 / 86 and 4058 / 86 .
      the text of this letter is given in Annex I.
                                                                           ./.
 ---pagebreak---                                      - 6 -
III . Coordinated action
      12 . The complaint brought by Denmark makes reference to Article 6 of
           Regulation ( EEC ) No 4055 / 86, Regulation ( EEC ) No 954/ 79, Article 10
           of Regulation ( EEC ) No 4056/ 86 and Article 3 of Regulation ( EEC )
           No 4058 / 86 and invites the Commission to take appropriate action .
           Article 3 of Regulation ( EEC ) No 4058 / 86 refers to proposals for
           coordinated action and provides that the Commission must make a
           proposal within four weeks of receipt of the complaint . This
           proposal is considered to come with the scope of Article 3 .
      13 . Article 6 of Regulation ( EEC ) No 4055 / 86 provides for the Commission
           to make proposals for action to overcome restrictions on free access
           to a trade and sets out procedures in the event of Community action
           not being adopted within six months . This proposal is also considered
           to come within the scope of Article 6 .
      14 . Coordinated action as defined under Article 4 of Regulation ( EEC )
           No 4058 / 86 can consist of a ) diplomatic representation and
           b ) counter-measures .
           Diplomatic representation is to be considered particularly where
           actions threaten to restrict access to trade . This is the principal
           complaint of the Danish authorities as regards the ACP States in West
           and Central Africa . Article 4 also provides that diplomatic
           representation must in all cases precede the taking of counter-measures
      15 . The third countries concerned are :     Angola , Benin , Burkina Faso ,
           Cameroon, Cape Verde , Congo , Ivory Coast , Central African Republic ,
           Gabon , Gambia , Ghana , Guinea , Guinea-Bissau , Equatorial Guinea , Liberia
           Mali , Mauritania , Niger , Nigeria , Sao Tome and Principe , Senegai ,
           Sierre Leone , Chad , Togo and Zaire .
           The countries which have set up the cargo distribution systems
           complained of , that appear to infringe their international commitments
           and in particular the Code of Conduct and the Lome III Convention
           are : Benin , Burkina Faso , Cameroon , Congo , Ivory Coast , Gabon , Ghana ,
           Mauritania , Nigeria , Senegal , Togo and Zaire .
                                                                                    ./.
 ---pagebreak---                                 - 7 -
     They are all signatories of the Lome Convention jointly with the
     Member States and the Commission .       The Lome Convention sets out
     detailed provisions covering cooperation between the ACP and the
     Community on shipping . Any coordinated action under Article 4 of
     Regulation ( EEC ) No 4058 / 86 "WVSfc be compatible with the provisions of
     the Convention . The Convention provides in Article 86 that the
     objective of cooperation in the field of shipping shall be to
     ensure the harmonious development of efficient and reliable shipping
     services on economically satisfactory terms by facilitating the
     active participation of all parties according to the principle of
     unrestricted access to the trade on a commercial basis .        Articles 87
     and 88 refer , inter alia , to the need to respect the position of
     outsiders in the application of the Code of Conduct for Liner
     Conferences and the obligation not to impair competitive access to
     the trade . Article 91 provides that , in order to ensure the
     effective implementation of the provisions on shipping, consultation
     may take place at the request of either Contracting Party . Procedures
     for consultation are those set out in the Lome Convention .
16 . It would appear from the Danish complaints and independent evidence that
     the countries of West and Central Africa members of the Ministerial
     Conference are in breach of their obligations under the Lome Convention
     and it is open to the Community to ask for consultation under Article 91 .
     The Commission therefore considers that , in accordance with
     Article 4(1 ) ( a ) of Regulation ( EEC ) No 4058/ 86, the coordinated action
     requested by Denmark should be diplomatic representation , and that this
     should take the form of consultations within the framework of the Lome
     Convention with a view to obtaining results within a reasonable time .
     In view of the fact that the last diplomatic demarche took place as
     recently as 19 June it is proposed that consultation should not be
     engaged before a reply has been received to Mr Clinton Davis' letter
     or by November 1 , whichever is earlier . In this respect the non-EEC
     countries which associated themselves with the previous demarche in
     June 1985 should be informed of the Community 's intention .
                                                                          ./.
 ---pagebreak---                                      - 8 -
     Parallel action at the European end of the trade
17 . In the European countries with the most trade with the West and Central
     African countries - essentially France , Belgium , the Netherlands and
     Germany - reactions to the African countries' practices have varied .
     Yet it appears that despite these attempts the conferences in particular
     have been unable so far to play their role as envisaged in Article 2
     of the code of Conduct , mainly as the result of the activity of the
     Union of Committees of African Shippers .
18 . The aim is that existing arrangements set up at the European end of the
     trade should be brought into line with the Code of Conduct and
     Regulation 954 / 79 , in particular Article 3 concerning the redistribution
     of cargo among European countries , and with Regulation 4055 / 86 , in
     particular Article 4 concerning the adjustments to be made by the
     Member States in accordance with Community legislation . This implies
     among other things the autonomous organization of the conferences , the
     possibility of redistribution and free access to cargoes for outsiders .
     It is up to the Member States of the Community and to the Commission
     to ensure that compliance is achieved . Action should take the form of
     applying the practices of SECRETAMA and the " principles " of the
     Hamburg Protocol in such a way that they meet these requirements .
19 . In the matter of competition , every commercial arrangement must respect
     the rules ( Regulation 4056 / 86 ). The Treaty prohibits Member States
     from introducing or maintaining in force measures which could nullify
     the impact of the rules of Articles 85 and 86 of the Treaty . That would
     be the case , for example , if a Member State imposed or encouraged the
     conclusion of an agreement which infringed Article 85 , or strengthened
     the effects of any such agreement .
     The Commission 's action will therefore be to examine the facts presented
     by the Danish authorities and if necessary to request documentary
     evidence of the facts alleged and of current practices in Europe , and
     to remind Member States of their obligations under Community legislation .
                                                                            ./.
 ---pagebreak---                               - 9 -
20 . As regards the shipping Lines , the aim will be to seek ways of
     strengthening the role of the conferences in the trades while ensuring
     that every commercial arrangement complies with the competition rules
     and with the Code of Conduct   ( in particular Article 2 ) and
     Regulation 954 / 79 .
     Independently of these steps , and acting under Regulation 4056/ 86,
     the Commission will take the necessary measures in response to the
     complaints submitted .
                                *
                                    *
21 . The Council is asked to note the Commission 's intention to act
     as described above in points 17 to 19, and to adopt the attached
     proposal for a Decision relating to the re-establishment of free
     access to ocean trades and the freedom to supply services in maritime
     transport between Member States and non-Community countries .
 ---pagebreak---                                                        ANNEX I
Letter of 20 July  1987
From : The Office of the Danish Permanent Representative
To : Mr  Clinton Davis
As instructed by my Government , 1 would draw the Commission 's
attention to the fact that Danish shipping companies and
shippers have for many years been adversely affected by the
growing protectionist stance of West African States in
connection with imports and exports of goods transported by sea
between Western Europe and West Africa .
At their meeting in December 1986 , the Council of Ministers
responsible for maritime transport adopted a number of
Regulations , the specific objective of which in Denmark 's view
was to safeguard against protectionism against and between
Member States of the Community , namely
Council Regulation ( EEC ) No 4055 / 86 applying the principle of
freedom to provide services to maritime transport ;
Council Regulation ( EEC ) No 4056 / 86 laying down detailed rules
for the application of Articles 85 and 86 of the Treaty to
maritime transport ;
Council Régulation ( EEC ) No 4057 / 86 on unfair pricing practices
in maritime transport , and
Council Regulation ( EEC ) No 4058 / 86 concerning coordinated
action to safeguard free access to cargoes in ocean trades .
Following the entry into force on 1 July 1987 of these
Regulations , which are an essential part of a Community shipping
policy , the Danish Government hereby calls on the Commission to
support Denmarks position and initiate the procedures provided
for in the regulations with a view to the adoption of a Council
Decision .
 ---pagebreak---                                 - If
In Denmark 's view the following points in particular conflict
with the Community 's common shipping policy :
the cargo-sharing arrangements
establishment of central cargo-sharing offices in Western Europe
exclusion of outsiders from the trade .
We would refer you to the following provisions in the
Regulations :
Article 6 of Council Regulation No 4055 / 86 on the freedom to
provide services , and also Regulation No 954 / 79 on the
conditions for Member States' accession to the UN Code of
Conduct for Liner Conferences ;
Article 10 of Council Regulation No 4056 / 86 on the application
of the rules of competition to maritime transport ;
Article 3 of Council Regulation No 4058 / 86 concerning
coordinated action to safeguard free access to cargoes in ocean
trades .
We would also refer you to the letter of 2 July 1987 from
Denmark 's Shipowners Association lodging a complaint with the
Commission regarding infringement of the competition rules .
The Danish Government   calis on the Commission  to take the
necessary action so that the relevant procedures can be
initiated as soon as possible . As the Commission has arranged a
meeting for 23 July 1987 specifically to discuss issues
concerning West Africa , it would be highly appropriate if the
procedure could be initiated before then .
The office of the permanent Representative should of course be
happy , if requested , to supply documentation on the difficulties
facing the shipping industry in trade between western Europe and
West Africa .
Yours faithfully
( signed )
Torben Mailand Christensen ,
Minister ,
Deputy to the Permanent Representative
cc   Mr Peter Sutherland , commission Member
 ---pagebreak---                                                            ANNEX II
   Indication of the relative importance and organization of
    liner trades between Europe and the states of West and
                             Central Africa
Liner   trades with West and Central       Africa account    for a
significant share of world trades : in 1980 they amounted to
29 million t or 7% of world shipping trades .            of this total ,
83% was with Europe ( 54% northern Europe and 29% with
Mediterranean countries ); the only other trades of any
importance were with Asia ( 7.7% ) and North America ( 4.6% ).
In cargo volume terms the most important African countries
are Nigeria and the Ivory Coast , Togo , Cameroon , Senegal and
Zaire .    In 1980 Nigeria and the ivory Coast accounted for
half the total cargo volume .
Trades with northern Europe are covered by three
conferences :
COWAC   ( Continent West African Conference ),       which is divided
into COWAC North and South .       COWAC North covers      the northern
ports as far as Le Havre , COWAC South from Le Havre ;
UKWAL ( United Kingdom West African Lines );
CEWAL   ( Association Central West African Lines ).
By way of examplae , COWAC comprises 30 shipping lines of
which   12 are African ,    13 are from EEC member countries ,      2
from non-Community European members of OECD and 3 from East
European countries .
The most important conference for the Mediterranean is MEWAC
( Mediterranean West African Conference ).
The   share   of conferences   in Liner  trades  is much    smaller
than it used to be .       The decline may be general , but it is
particularly marked in trades between Europe and West and
Central Africa ,     in which the conferences now cover only
about   50-60% of    total  liner trades .   There   has  also been a
decline in absolute terms during the         1980s :
- for MEWAC , there has been a drop in tonnage of 29.2% from
   1980   to  1985 ;
- for COWAC , trades fell by 17.4% in freight units from 1981
   to  1985 .
 ---pagebreak---                                    '3
      Proposal for a Council Decision concerning coordinated
  action to safeguard free access to ocean trades and freedom
  to provide services in maritime transport with West African
                     and Central African States
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European
Economic Community ,
Having regard to Council Regulation ( EEC ) No 4058 / 86 of
22 December 1986 concerning coordinated action to safeguard
free access to cargoes in ocean trades , and in particular
Article 3 thereof ,
Having regard to Council Regulation ( EEC ) No 4055 / 86 of 22
December 1986 applying the principle of freedom to provide
services to maritime transport between Member States and
between Member States and third countries , and in particular
Article 6 ( 2 ) thereof ,
Having regard to the proposal from the Commission ,
Whereas a Member state has requested the Commission to take
coordinated action and has supplied information to the
Commission on the difficulties encountered by the commercial
parties in participating in the trades ;
Whereas these difficulties involve countries which are
signatories to the Lom § Convention ;       whereas these
countries appear to be in breach of Articles 86 , 87 and 88
of    that Convention .
Whereas on 5 June 1985 a diplomatic note from the Community
and its Member states and from Finland , Norway , Sweden and
Switzerland was delivered to the Ministerial Conference ;
whereas no reply has been received to that note ;
Whereas it is necessary to take coordinated action to
safeguard free access to cargoes in ocean trades and the
freedom to provide services in maritime transport between
the member States and the African States concerned ;
( 1 )    OJ No L 378 , 31.12.1986 , p . 21
(2)      OJ No L 378 , 31.12.1986 , p . 1
 ---pagebreak--- Whereas the action should consist of following up diplomatic
initiatives with the African States ;             whereas this should
be done   in the  framework of    the Lome Convention with a view
to resolving these difficulties ;
Whereas the consultations should take place in such a way as
to permit the appropriate technical , regional and national
expertise to be considered ;
Whereas                    the application of countermeasures as
provided for in Article 4(1)(b ) of Regulation ( EEC )
No 4058 / 86 will be reconsidered at a later stage in the
light of results obtained from the diplomatic
representations ;
Whereas this Decision is without prejudice to           the right of
any Contracting Party to the Lome Convention to seek
consultations within the      framework and in accordance with
the provision of that Convention ,
HAS DECIDED AS FOLLOWS :
                               Article     1
1.  In accordance with Article 4 of Regulation ( EEC )
    No 4058 / 86 the Community shall undertake consultations on
    unrestricted access to trade in shipping with the African
    States which are members      of  the Ministerial Conference    on
    Shipping of West and Central African States which are
    listed in the attached      Annex .    The consultations shall
    take place in the framework and in accordance with the
    procedures of the Lom § Convention and in particular
    Article 9 thereof .     These consultations shall replace and
    supersede all other diplomatic initiatives taken
    individually or in conjunction with others by the Member
    States .
2 . The structure of the consultations should permit
    appropriate technical , regional and national expert
    contributions from interested parties at both ends of the
    trade .
3 . Notwithstanding paragraph 1 , no consultations shall be
    initiated until a reply has been received to the previous
    diplomatic initiatives undertaken by the Commission or
    until 1 November ,    whichever is the earlier .
                              Article    2
The Council    shall   reexamine  the   situation on  the  basis of a
report from the Commission in June 1988 at the latest .
                                             Done at Brussels ,
                                             For the Council
                                             The President
 ---pagebreak---                                                ANNEX
List of Member States of the Ministerial Conference of West
                 and central African States
     Angola , Benin , Burkina Faso , Cameroon , Cape verde ,
     Congo , ivory Coast , Central African Republic , Gabon ,
     Gambia , Ghana , Guinea , Guinea Bissau , Equatorial
     Guinea , Liberia , Mali , Mauritania , Niger , Nigeria , Sao
     Tome and Principe , Senegai , Sierra Leone , Chad , Togo
     and Zaire .
 ---pagebreak---                                      \€
                                                                   ANNEX
              COMPETITIVENESS AND  EMPLOYMENT IMPACT  STATEMENT
I.    What is the main reason for introducing the measure ?
      To guarantee free access to cargoes in liner trade .
II .  Features of the business in question .     In particular :
      ( a ) Are there many SMEs ?                            (
      (b)   Have any mergers been noted in any regions       (
            which   are :                                    ( Not Known
            li )   eligible for regional aid in the Member   (
                   States ?                                  (
            ( ii ) eligible under the ERDF ?                 (
III . What direct obligations does this measure impose on business ?
      NONE
IV .  What indirect obligations are local authorities iikely to
      impose on business ?
      NONE
V.    Are there any special measures in respect of SMEs ?
      NONE
      Please specify
VI    What is the likely effect on :
      ( a ) the competitiveness of businesses ?  ( Beneficial  effects
                                                 ( are expected in both
      lb ) employaient ?                         ( respects because EC
                                                 ( undertakings will be
                                                 ( better protected
VII . Have both sides of industry been consulted ?
      YES
      Please indicate their opitions
      POSITIVE