CELEX: 51974PC2263
Language: en
Date: 1975-01-09
Title: PROPOSAL FOR A REGULATION OF THE COUNCIL providing for licensing arrangements in respect of the importation into the United Kingdom of cotton yarn from third countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 2263
Vol. 1974/0384
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 ---pagebreak--- COMMISSION OF THE EUROPBAN COMMUNITIES
                                                           COM(74 ) 2263 final
                                                           Brussels . 9 January 1974
                                    PROPOSAL FOR A
                              REGULATION OF THE COUNCIL
   providing for licensing arrangements in respect of the importation
       into the United Kingdom of cotton yarn from third countries
                   ( submitted to the Council by the Commission)
    COTï( 74 ) 2263 final
 ---pagebreak---                                   IJxplanatory Statement
1.       The Community set up a system of licences for the import of cotton
yarn into the United Kingdom from non-member countries for the period from
1 April till 31 December 1973 and, again, for 1974^^ •
         These measures were motivated by the fact that before 1 April 1973 »
which was the date on which Regulation (EEC ) No . 1025/70 came into operation
in the United Kingdom , cotton yarn whose importation into the Community was
liberalised by Regulation (EEC) NO . 1439/74^^ (which replaced Regulation
(ESC ) NO . 1025/70 ), 'was subject to a quota system in the United Kingdom
both under conventional provisions and in the form of national qu«$as .
         The application of Regulation (EEC ) No . 1025/70 from 1 April 1973
should have resulted in the disappearance of the quota system .
         The British government , asserting that grave economic and social
difficulties would follow a sudden liberalisation and basing its arguments
on the increased burden of imports of cotton yarns from mediterranean countries ,
in favour of which the United Kingdom had liberalised its imports under the
Treaty of Accession , sought and obtained in 1973 and. 1974 measures taken by
the Community , setting up a licensing system for the import of cotton yarns
into the United Kingdom .      For the nine months of 1973 the quantitative limit
established by these measures was fixed at 12,750 tonnes and , for 1974 f at
17,000 tonnes .
2.       On 21 November 1974 the Advisory Committee set up by Regulation ( EEC )
No . 1439/74 raet at the Commission 's request to discuss the system envisaged for
1975 .
         During the meeting, the United Kingdom representative indicated that his
government wished to be able to maintain the quota system for a further period
since the economic and social circumstances described in previous years still
existed and the burden of "mediterranean" imports had meanwhile built up .
( 1 ) Regulation ( EEC ) 1.8 31 of the Commission ( O.J. No . L 185 of 7 • 7 « 1 97 3 ) and
       Regulation ( EEC ) 2(531 of the Council ( O.J. No . L 272 of 29 . 9 . 1973 ) and
       Regulation (EEC ) 335/74 of the Commission ( O.J. No . L 37/20 of 9-2.1974 ) and
       Regulation (EEC ) 675/74 of the Council ( O.J. No . L 83/1 of 20.3-1974 )*
( 2 ) Regulation 1439/74 of the Council relating to the establishment of common
       rules for imports from third countries ( O.J. L 159 of 15.6.197 i ) •
 ---pagebreak---           The Commission pointed out that the United Kingdom import regime for
these products had to take account of the obligations of the Arrangement
regarding International Trade in Textiles (ll.F.A )., concluded within the
CATT framework and which entered into force on 1 January 1974 , raid that ,
consequently , liberalisation had to be contemplated before 1 April 1975 unless :
         -   recourse was had to the safeguard clause in Article 3 of the L.F.A.
         -    the products were included in bilateral agreements
         -    the products were included in a programme for gradual liberalisation
              culminating in liberalisation by 31 March 1977 at the latest .
         During the work of the Council ad hoc Group dealing with the preparatory
work for the Council decisions authorising the Commission to open negotiations
with certain non-member countries which are the main supply countries for
textile products , the United Kingdom delegation indicated that its government
preferred to provide , for cotton yarn , a programme for gradual liberalisation
rather than inclusion in Community bilateral agreements .
          Such an inclusion would , in any case , have caused difficulties of principle
for negotiating partners sinoe the product concerned is liberalised on the
Community level and is contained in the Annex to Regulation ( EEC ) No . 1439/74 .
         The solution which would include cotton yarns for the United Kingdom
in a programme of gradual liberalisation under the multifibres Arrangement
takes into account , as the United Kingdom delegation had stated during the
Advisory Committee meeting on 10 January 1974 ( when the 1974 system was
examined), the British government 's intention to put into effect gradual
liberalisation achieving complete liberalisation by 1 January 1977 , for which
a statistical scheme had been worked out .
3.        Consequently the Commission thought it necessary to maintain , on an
interim basis , the safeguard measures adopted by the Council in 1974 , and., for
1975 , immediately to subject the import into the United Kingdom of cotton yarn ,
whether put up for retail sale or not , ( tariff position 55«05 and- 55»0° ) "to
production of an import authorisation under Article 12 , paragraph l(b ) of Reg­
ulation ( EEC ) NO . 1439/ 74 ( Commission Regulation ( EEC ) No . 332 7 of 20 11 . l~ 7/l ) ( l )
 ( 1 ) OJ lio L. 357¡ 31.12J . r-74 . > 14
 ---pagebreak---                                       - 3 -
 4,      In conformity with the provisions of Article 12 , paragraph 6 of
Regulation ITo . 1433/74 , the Commission must submit to the Council , within
10 working days of the entry into force of the urgent measure referred to
in point 3 above , a proposal concerning the appropriate measures to be taken
in this field .
         The attached proposal for a Regulation is submitted to the Council
in accordance with the above mentioned provisions .
5.       The provisional Regulation adopted by the Commission covers the year
1975 . .
         In the attached proposal it is considered desirable , for the future ,
to fix the import rules for the entire period of the progressive liberal-
isation , that is up to 31 March 1977 *
         The measures provide , therefore , that imports into the United Kingdom
shall be granted within limits equal to :
       –    20,000 tonnes for 1975 *
        -   30,000 tonnes for the period from 1 January 1976 "to 31 March 1977 *
         These figures have been arrived at bearing in mind , on the one hand ,
the necessity under the M.F.A. to make a substantial advance in the first
year of the progressive liberalisation programme and, on the other hand ,
to ensure that , at the end of the period , a sufficiently high level will
have been reached to enable liberalisation to take place without upset .
        With regard to the geographical field of application of the measures ,
it seems proper , in view of the provisions of Article XIX of GA.TT , to
follow a non-discriminatory formula.     The measures will , therefore , continue
to apply to the same third countries as are covered by the Commission Regulation .
6.      The further development of imports of the products concerned into
the Community will be followed and the Commission reserves the right ,
if necessary , to propose the modification or repeal of the measures if the
danger of irfjiry is eliminated or , on the contrary , the extension of the
measures to other parts of the Community or to the entire Community of
the future evolution of imports is su h as to threaten serious injury to
producers in regions other than the United Kingdom .
 ---pagebreak--- 7.      It is proposed that the Council should adopt the attached proposal
                     »•                 •
for a Regulation, hearing in mind the time limits laid down in Regulation
No . 1439/74, Article 12 .
 ---pagebreak---                                           PROPOSAL FOR A
                                   REGULATION 0FTH3 COUMCIL
providing for licensing arrangements in respect of the importation into the
                                                                  ' :                              , j■ r. „
United Kingdom of cotton - yarn from third countries
                          »   *   ·       ·£.   .. ·      ·,·  *      · ' 'ν                                 'Λί"·
ΊΉ11Ι ΟΟΙΜΟΙΙ/ 0? ΤΣΒ3 ί-ΒηοΡΞΜΓ σΟΜΗΙΠΓΙΤΓΒ , ' " -              Γ'            " '■: 4 ■" Γ·          :      ":
Having regard to the Troaty establishing the European Economio Community ;
Having regard to Council Regulation (EEC) No 1439(l ) of 4 June 1974 . establishing
common rules for imports from thiid countries , and in particular Article 12
thereof ?
Having regard to the proposal from the Commission? •' ''
Having consulted the Advisory Committee established under Article 5 of thdat
Regulation ;
Whereas by Council Regulations Nos . 2631/73(2) of 27 September 1973 and 675 / 74(3)
of 21 March 1974 the importation into the United Kingdom of cotton yarn from
third countries v/as for the period 1 April is® 31 Deoember 1973 and for the
whole of 1974 made subject to licence ; *                     - '            '                - -*■ 5 ' *• (l *
Whereas following a request from the British Government the Commission acting
pursuant to Article 12 of Regulation (3HTDC ) No 1439/74 established by Regulation
No '3327 - of 20 . 12.1974(4)} under the same conditions as were provided for under
Council Regulation (TJBC) No 675/74 establishing the like                                        for 1974# a system
6f licences for the importation into th® United Kingdom of cotton yarn originating
in cad exported frorii third countries               ►   ^ .„,          .      , . .           .                 ?
                                                                                           » r ' L             -:
    ■ 1 1           '       . ' 1       .     !        ■                              «.• •. •/•
(1 }  O.J.  No L  159 , 15.6.1974 , p.l
( 2)  O.J.  No L  272 , 29.9.1973 , p . 16 í ' ^ '' " r                           -              0 ' ; • •
( 3)  O.J.  No L  83 , 21.3.1974 , P.l
(4)   OJ .  No L  357 , 31.12.1974 , P. 14
 ---pagebreak--- Whereas it appears from the statistics and other information supplied by the
British Government in the oourse of consultation with the above-mentioned
Advisory Committee that a sudden liberalization of imports from the
countries listed in Annex II to Regulation ( HEC ) No 1439/74 would in present
circumstances still involve the risk of substantial injury whioh it would be
difficult to remedy to the British cotton spinning industry , espocially since
the volume of imports from countries in the Mediterranean basin has increased
substantially }
Whereas protective measures must therefore be adopted and should consist of a
limitation on the importation of cotton yarn ;
Whereas , since the threat of substantial injury originates in imports intended
for United Kingdom markets , it appears justified at present , having regard to
existing trade flows , to restrict the application of the protective measures
to imports into the United Kingdom ;
Whereas the obligations tinder the Arrangement regarding International Trade in
Textiles , and in particular the neert  to raise gradually the levels of imports
of products subject to quantitative restrictions , require liberalisation to
be. achieved by 31 Kerch 1977 at' the latest ;
Whereas it accordingly appears appripriate to fix here and now the level of
limitation for the entire period of gradual liberalization , that is up to
31 March 1977 ;
Whereas these protective measures may be modified or withdravm in the light of
the trend of imports into Other regions of the Community ;
 ---pagebreak--- HAS ADOPTED TEIS REGULATION I
                                   Article 1
                                                                    ,v ■" i » 1 '
1 « The importation into the United Kingdom of Great Britain and Northern Ireland
from third countries listed in Annex II to Counoil Regulation (EEC) No 1439/74,
with the exception of those countries listed in the Annex hereto , of the products
shown below shall "be subject to production of an import licsnce , and shall be
limited to the following quantities :                             ,
     )
CCT Heading No .     Description of products            Quantity Year 1975        1
   55.05             Cotton yam . not put up            20 000 metric tons
                     for retail sale                              v > <
   55*06             Cotton yarn , put up for           1 January 197° to
                     retail sale                        31 Maroh 1977 .             '
                                                        30 000 metrio tons
2.               The import licences referred to in paragraph 1 shall be issued
by the United Kingdom.
                                                                            .
                                  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 President
 ---pagebreak---                             Annex referred to in Article 1
     Ai»ab Republic of Egypt
     Austral! a
     Austria
     Canada                       ,     /. -•
     Cyprus
 ■ Finland '     •
  ' Greece
                     >     >   ,             .
   * le élan d ■                    f ■
     Israël
     Lebanon
, Malta
     Marocco '
  ■ New Zealand
     Norway
     Portugal                              •   s
     Spain!
     Sweden
     Swiizerland ( including Liechtenstein )
     Tunisia
     Turkey
     USA