CELEX: 51974PC0244
Language: en
Date: 1974-02-22
Title: PROPOSAL FOR A COUNCIL REGULATION subjecting to authorization the import of cotton yarn into the United Kingdom from non-member countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 244
Vol. 1974/0046
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 ---pagebreak--- COMMISSION OP THE EUROPEAN COMMUNITTES
                                                         COM(74)244 final
                                                         Brussels , 22 February 1974
                                PROPOSAI FOR A
                              courre IL RÉGULATION
                  subjecting to authorization the import of
      cotton yarn into the United Kingdom from non-member countries
                ( submitted to the Council by the Commission)
   COM(74) 244 final
 ---pagebreak---                          EXPLANATORY MEMORANDUM
1.       The Commission set up a system of licences for the period from
1 April 1973 to 31 December 1973 for the import of cotton yarn into
the United Kingdom from non-member countries ( l ).
         The Regulations by which the Commission and Council set up this
system were motivated by the fact that before 1 April 1973 * which was
the date on which Regulation ( EEC ) No . 1025/70 ( 2 ) came into operation
in the United Kingdom , cotton yarns whose importation into the Ccmnu-
nity was liberalized by Regulation ( EEC ) No . 1025/70 , were subject to
a quota system in the United Kingdom both under conventional provisions
and in the form of national quotas .
         The application of Regulation ( EEC ) Nc . 1025/70 from 1 April 1973
should have resulted in the disappearance of the quota system . I'he
British Government , asserting that economic and social difficulties
would follow sudden liberalization , requested permission from the
Commission to take interim protective measures . After consultation
with the Advisory Comaittee set up by Regulation ( EEC ) No . 1025/70
it was decided to allow the United Kingdom to subject the importation
of cotton yarn to the production of a licence during the period from
1 April to 3*1 December 1973 and to limit such imports to 12.750 metric
tons®
2»       On 17 December 1973 the British Government requested permission
from the Commission to continue the interim protective measures for
a further period .
         The Advisory Committee set up by Council Regulation ( 3EC )
No . 1025/70 met on 10 January 197^.
                                                                           ./.
( 1 ) Commission Régulation ( EEC ) No . 1831 ( OJ No . L 185 , 7 July 1973)
      and Council Régulation ( EEC ) No . 2631 ( OJ No . L 272 , 29 September 1973 )
( 2) Council Regulation ( EEC ) No » 1025/70 establishing common rules
      for imports from third countries
 ---pagebreak---                                    - 2 -
                                       v
        During the meeting the British Delegation justified its request
by stating that , as in 1973 » the sudden liberalization of cotton yarn
impor^e would still threaten to cause substantial injury to the British
industry which is concentrated in North-West England where it employs
the majority of the labour force . For several years this labour force
has been undergoing a process of reconversion ( 1962 : 72*500 persons
employed ; 1972 : 3^.000 ). This process however can only be carried out
gradually because of , among other things , a certain measure of protection
as regards imports from third countries . Indeed , sudden liberalization
would lead to a large increase in the volume of imports from countries
offering low prices , lower production and an increase in unemployment .
During 1973 » moreover , the British cotton spinning industry had to con­
tend with increased imports from Mediterranean countries ( in particular
Turkey ) in respect of which the United Kingdom liberalized imports in
accordance with the Treaty of Accession . Any further liberalization
would therefore be a burden whiesh would cause serious consequences to
the industry .
        However , the British Government believes that recourse to interim
protective measures must create an unusual situation and it intends to
implement measures facilitating the speedy completion of the process
of reconversion ia the industry concerned .
        During the consultation certain delegations expressed the opinion
that , by accepting Regulation ( EEC ) No . 1025/70 at the time of the Ac-
cension negotiations , the United Kingdom had already provided for the
liberalization of cotton yarn imports from 1 April 1973 . If interim
protection measures had , nevertheless , been granted by the Council to
the United Kingdom , enabling it to subject to authorization the pro­
ducts in question for the period 1 April to 31 December 1973 » such
measures should have facilitated the reorganization of the British
spinning industry enabling it to liberalize imports , the detrimental
effect of which does not seem to have been sufficiently proved .
Any new interim protective measure should be very limited in time .
 ---pagebreak---             It was stated according to other delegations :
  - immediate liberalization would constitute a threat of serious damage
      to the cotton yarn industry in the United Kingdom ;
  - new interim protective measures could thus be considered , provided
      that they were for a period of not more than one year ;
  - the British Government should do everything , during the further
      period of time , to put an end to the unusual situation and to complete
      the process of reconversion of-, the industry concerned .
  3.        Consequently the Commission considered it necessary to retain on
  a temporary basis the interim protective measures adopted by the Council
  in 1973 ( 1 ) and to subject immediately for 197 ^ the importation into
  the United Kingdom of cotton yarn , whether or not put up for retail
  sale ( tariff headings 55*05 , 55«06 ), to production of an import licence
  pursuant to Article 10(1 )( b ) of Council Régulation ( EEC ) No . 1025/70 ,
  as a protection measure ( Commission Régulation ( EEC ) No . 335/7^ of
                      (?)
  8 February 197 ^)
  k.        In accordance with Article 10(6 ) of Regulation ( EEC ) No . 1025/70
  the Commission shall , within ten working days of the entry into force
1 6f the energency measure referred to in item 3 above , make a proposal
  to the Council on appropriate measures to be taken in this area .
            The proposal for a Regulation annexed hereto is submitted to the
  Council in accordance with the aforementioned provisions .
  5.        Allowing for the factors and considerations which have been noted ,
  the proposed measures are not unlike those which were the subject of a
  Regulation which has already been adopted on - a provisional basis by the
  Commission .
                                                                               ./.
  ( 1 ) Council Régulation ( EEC ) No . 2631/73 of 29 September 1973 ( OJ
        No . L 272 , 29 September 1973 )
  ( 2 ) Commission Regulation ( EEC ) No . 335/7^ of 8 February 197^ ( OJ
        No . L 37 , 9 February 197*0
 ---pagebreak---         These measures provide that imports into the United Kingdom
will be limited pro rata at a levei not less than that laid down for
the period April to December 1973®    17^000 metric tons corresponds
to these criteria and are , indeed , greater since the United Kingdom
has , meanwhile , liberalized imports of cotton yarn from Mediterranean
countries .
        It would seem appropriate , in view of Article XIX of the GATT ,
to make use of a non-discriminatory formula as regards the geographical
scope of the measures concerned . The measures will   therefore continue
to apply to the same non-member countries as are listed in the Council
Regulation quoted in item 3 »
6.      Depending on the future developments of imports of the products
in question into the Community , the Commission reserves the right to
propose future amendments or to repeal the measures concerned should
the threat of damage disappear , or on the other hand , to extend these
measures to other parts of the Community or to the entire Community
should there be a threat of serious damage to producers in regions
other than the United Kingdom .
7.      It is proposed that the Council adopt the proposal for a Regu­
lation joined to this document , allowing for the time limits laid down
in Article 10 of Regulation ( EEC ) 1025/70 *
 ---pagebreak---                                 Proposai for a
                              COUNCIL REGULATION
               subjecting to authorisation the importation
               of cotton yarn into the United Kingdom from
                            non -meEber countries
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No . 1025/70 ( l ) of 25 May 1970
establishing common rules for imports from third countries , and in par­
ticular Article 10 thereof ,
After consultation with the Advisory Committee set up by Article 5 of
that Regulation ,
Whereas in response to a request dated 17 December 1973 from the British
Government the Commission by Regulation ( EEC ) No . 335/71* ( 2 ) of 8 February
197 ^, set up , pursuant to Article 10 of Regulation ( EEC ) No . 1025/70 ,
a system of licences for the import of cotton yarn, into the United Kingdom
originating in and coming from non-member countries , under the same
conditions as laid down in Council Regulation ( EEC ) No . 2631/73 ( 3 ) Of
27 September 1973 * setting up the same system for the period 1 April
to 31 December 1973'»
Whereas it appears from the statistics and other information supplied
by the British Government during the consultation with the Advisory
Committee , that the immediate liberalization of imports of cotton yarn
from the countries listed in Annex II to Regulation ( EEC ) No . 1025/7o
would , in present circumstances , involve the risk of substantial injury ,
which      would be difficult te repair to the British cotton spinning in­
                                                                          ./.
( 1 ) OJ No . L 12*f , 8 June      1970   *
( 2 ) OJ No . L 37 , 9 February 197^
( 3 ) OJ No . L 272 , 29 September1973
 ---pagebreak--- dustry , in particular as regards employment , by disrupting the recon­
version process of the industry in that area ;
Whereas interim protective measures must therefore be renewed and
should consist of a limitation on the importation of cotton yarn ;
Whereas to remove the threat of injury , protective measures should be
adopted for a period extending to 31 December 197 ^»
Whereas , given that the threat of substantial injury originated in im­
ports intended for United Kingdom markets , it appears justified at
present , having regard to existing trade flows , to restrict the appli­
cation of the interim protective measures to imports into the United
Kingdom ;
Whereas these inteiim protective measures must be defined in such a way
as to facilitate the completion of the reconversion process and to al­
low the liberalization of the imports in question by the end of 197^?
Whereas having regard to production and consumption in the United Kingdom
and to the trend in imports from non-member countries , which have in­
creased substantially following the liberalization of imports into the
United Kingdom from certain Mediterranean countries under agreements
between the Community and those countries , provision should be made for
limiting imports at a level corresponding to that fixed for 19735
 ---pagebreak---                                    - 5 -
Whereas these protective measures may be amended or repealed 111 the
light of the trend in imports into other regions of the Community ;
HAS ADOPTED THIS REGULATION :
                                 Article 1
1.     The importation into the United Kingdom of Great Britain and
Northern Ireland from the non-member countries listed in Annex II to
Council Regulation ( EEC ) No . 1025/70 , excepting those countries listed
in the Annex hereto , of the products shown below shall be subject to
production of an import licence , and the total tonnage so imported during
the period 1 January 197 ^ to 31 December 197 ^ shall not exceed the
following quantities :
CCT heading No .
      55.05        Cotton yarn , not put up for )
                   retail sale                    )
                                                  v  17.000 metric tons
      55-06        Cotton  yarn, put up for       ^
                   retail sale
2.     The import licences referred to in paragraph 1 shall be issued
by the United Kingdom of Great Britain and Northern Ireland .
                                 Article 2
       This Regulation shall enter into force on the day following 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 Council
                                                  The Président
 ---pagebreak---                 Annex referred to in Artide 1
Australia
Austria
Canada
Cyprus
S pain
Finland
Greece
Iceland
Israël
Lebanon
Malta
Morocco
New Zealand
Norway
Sweden
Switzerland ( including Liechtenstein )
Tunisia
Turkey
USA