CELEX: 51973PC0104
Language: en
Date: 1973-01-29
Title: PROPOSALS FROM THE COMMISSION TO THE COUNCIL RELATING COMMUNITY CONTRIBUTE TO THE FIGHT AGAINST INFLATION

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 104
Vol. 1973/0015
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 ---pagebreak--- CCMMIcSION       OF  THE    S- II P. C F S 1 3" COMMUNITIES
                                  COM(73)104 final
                                  Brussels , 29 January 1973
     PROP:OSALS FROM THE COMMISSION TO THE COUNCIL
       RELATING     COMMUNITY
      CONTRIBUTE TO THE FIGHT AGA^T X™.AjnTIG^
 ---pagebreak---         As its meeting of 30 and 31 October 1972 held at Luxembourg , the
 Council , when discussing point VI of the Resolution on the measures to be
 taken against inflation , understood to reach a decision , upon a proposal to
 be submitted by the Commission before 31 January 1973 , on commercial policy
                                                                *
 measures regarding quantitative restrictions , the application of generalized
preferences and possible specific traffic reduction likely to contribute to
the fight against inflation .
                                       0
                                  o          o
       In view of the persistent rise in consumer prices , the rate of which
has accelerated over the last months , the measures proposed under Council
Resolution of 5 December 1972 must all be pursued vigorously . The Commission
remains here of the firm opinion that an effective trade on the trend of
prices , in particular , of finished products can only be applied through urgent
Community action in the trading field , to add to and reinforce the measures of
economic policy taken or to be taken by Member States .
       Tariff reductions and the raising of existing quotas might be major factors
in initiating an abatement of price rises , particulary by stiffening competition
on internal markets . Although tariff reductions may not in themselves prove
effective , the fight against inflaction must be looked at as a combined operation
consisting of a number of measures complementing and reinforcing each other .
Besides their consequential effects , these measures could also and might well
have the added effect of bringing together the various economic and social
groups for a more active participation in the fight against inflation . They
would be particulary effective in they were accompanied by other measures which
would ensure that the incidence of tariff reductions is reflected in consumer
prices . Consequently , it would be necessary to involve the price control
instruments to which reference is made at point II of the Resolution of 5 December
1972 .
       In order to apply as prompt a chek as possible on the trend of prices ,
the Commission considers it essential that the tariff reductions to be granted
by the Community as originally constituted should bear on finished industrial
products . But as these are a part of total imports the reduction in duties
 ---pagebreak---  should not be lower than 20% . To simplify the procedure the tariff reduction
 should cover the whole of each chapter of the G.C.T. which relates entirely
 or mainly to finished industrial products , without exception of any particular
 heading the proposed reduction could be implemented easily without amendement
 to the C.C.T. by simply reducing by 20fo the amount of duty which would
 otherwise have been charged . If excessive price rises were subsequently to
 affect any particular product the Commission would then propose supplementary
tariff reductions in respect such product or would suspend altogether the
 duties relating to it .
       The measures under consideration must on no account prejudice the trade
negotiations to be held in 1973 under GATT . Caution is therefore essential and
this is why the Commission considers that , so as not compromise the negotiation
position , the effect of tariff reductions should be limited to 6 months . A
reduction of duties limited to products likely to have an immediate effect on
the level' of prices is in itself evidence of a short-term economic policy
measure which can be no means be taken as an indication of the future negotiation
intentions of the Community .
       So as to mitigate possible unfavorable effects on the employment level ,
a safeguard clause might be inserted providing for exemption of certain specific
products from the effect of the measures wherever these measures might entail
serious disturbances in specific industrial sector .
       If the Council shares the opinion of the Commission over the proposed
tariff reductions the Commission will submit to the Council a draft instrument
embodying the proposal .
       As regards quantitative restrictions and the application of generalized
preferences , the Commission acting in pursuance of point VI of Council Resolution
of 5 December 1972 on the measures to be taken against inflation , submits to
the Council ( see Annexes 1 , 2 and 3 ) J
       - a proposal for a Decision under Article 113 raising by to 10$ for the
year 1973 the quotas subsisting in one or more of the Member States in respect
of agricultural and industrial products , excluding textiles , imported from
countries which are parties to GATT' or treated ^ likewise as well as from
territories with a planned economy :
 ---pagebreak---                                - 3 -
      - a proposal for a Regualtion under Article 113 raising by IQffo for
the year 1973 the quotas and. ceilings fixed by the Council for the application"
of generalized preferences in 1973 ;
      – a draft Decision of the Representatives of the Governments of the
Member States of the Coal and Steel Community relating to a similar raise
as regards generalized preferences in respect of products covered by the
E.C.S.C. Treaty .
 ---pagebreak---                                   -   1 -                     ANNEX  I
                             Proposal for a
                           COUNCIL DECISION
                            of
                                                               &
provisionally raising "by 10 % quantitative restrictions on imports .
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
having regard to the Treaty establishing the European Economic Community ,
and particular Article 113 thereof ;
having regard to the proposal from the Commission *,
whereas comprehensive measures are "being taken on a Community scale against
inflationary tendencies ;
whereas a provisional measure raising quantitative restrictions on goods im­
ported into the European Economic Community as originally constituted is likely
to contribute to abatement of those tendencies ;
whereas the increase should be fixed at 10 $ and be effective throughout 1973 ;
whereas , however , textiles , provision for which is being made elsewhere ,
should be exempted from the effect of this measure ;
HAS ADOPTED THIS DECISION :
                                Article  1
The Member States of the Community as originally constituted shall , in the year
1973 , raise by  10 per centum the importable quantity of products subject to
quantitative restrictions applying to anyone or more third countries .
 ---pagebreak---                                Article   2
This Decision shall not apply to textile products falling within Chapters
5 6 to 62 of the Common Customs Tariff .
                               Article   5
This Decision is addressed to the Member States ,
Done at Brussels ,                         Por the Council
                                           The President
 ---pagebreak---                                      -   3  -                ANNEX  2
                                Proposal for a
                REGULATION (EEC ) NO      /73 OP THE COUNCIL
 raising by 10 $ the quotas and ceilings fixed in respect of the application
                    of generalized preferences in 1973
 THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
 having regard to the Treaty establishing the European Community , and in particular
Article 113 thereof ?
having regard to the proposal from the Cosmssion ;
whereas comprehensive measures are being taken on a Community scale against
inflationary tendencies ;
whereas under Regulations (EEC ) Nos 2761 to 2766/1972        tariff quotas and. ceilings
have been opened in respect of generalized tariff preferences to be applied
in 1973 ;
whereas an increase of 10 fa in the quotas and ceilings fixed in respect of the
application of generalized preferences in 1973 is likely to contribute to the
abatement of inflationary tendencies felt within the Community ;
HAS ADOPTED THIS REGULATION :
                                   Article 1
Quota amounts or volum.es maximum amounts in respect of each country or territory
and quota-shares allocated to Member States in respect of each of the products
listed at Annex A of Regulations (EEC ) 2761 , 2763 arxd 2765/72 are raised by
10 per centum .
Community ceilings , the amounts or volumes of which are calculated for each
product in accordance with Article 1 ( 3 ) of Regulations (ESC ) 2762 , 2764 and
2766/72 , are raised by 10 per centum .
( l ) OJ No L 296 , 30,12.1972 , p.
 ---pagebreak---                               -  4  -
                              Article  2
This Regulation shall enter into force on 1 April 1973 .
This Regulation shall "be "binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                                   Por the Council
                                                     The President
 ---pagebreak---                                  -  5  -                     ANNEX  3
                                BRAFT DECISION
 of the Representatives of the Governments 01' the Member States of the
 Coal and Steel Community meeting in the Council raising by 10 ^ the quotas
 and ceilings fixed in respect of the application of generalized preferences
 in 1973 for products covered "by the E.C.S.C. Treaty .
THE REPRESENTATIVES OF THE GOVERNMENTS OP THE MEMBER STATES OF THE EUROPEAN
COAL AND STEEL COMMUNITY MEETING IN THE COUNCIL ,
in Agreement with the Council ,
HAVE DECIDED :
                                 Sole Article
Quotas , ceilings , and maximum amounts in respect of each country or territory
fixed in respect of the application of generalized preferences in 1973 by
Decisions Nos 432 and 433 ( l ) are raised by 10 per centum .
Done at Brussels ,                                   For , the Council
                                                     The President
( 1 ) OJ No L 296 , 30.12.1972