CELEX: 51978PC0094
Language: en
Date: 1978-03-06
Title: Draft for a COMMISSION DECISION ECSC prohibiting alignment on offers of iron and steel products, (including pig iron), originating in certain third countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 94
Vol. 1978/0034
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---      COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(78)94 final
                                                Brussels , 6 March 1978
                                        Draft for a
                               COMMISSION "DECISION ECSC
                   prohibiting alignment on offers of iron and
                   steel products , ( including pig iron ), originating
                              in certain third countries
                 ( submitted to the Council by the Commission )
C0M ( 78 ) 94 final
 ---pagebreak---             9
       On 28th December 1977 the Consultative Committee gave its
opinion on the first draft of this Decision .
       On 17th January 1978 the Council of Ministers gave its unanimous
assent to this first draft .
       However , the annex listing the countries with whom an Arrangement
was to be signed , h;id still to be drawn up . This annex is now attached to
the new draft Decision .
       Further , during the course of negotiations with certain third
countries it has become clear that it is necessary to specify those
products where the ban on alignment would apply . Article One of the
draft Decision has been modified accordingly , and the old Article 2 ,
overtaken by event sj, has been cancelled . The preambles to the draft
Decision have also been altered accordingly . Finally , various changes
to the wording of the draft Decision have been made in response to the
requests of both the Council and the Commission 's Legal Service .
       Since the Arrangements mentioned in the annex to the draft Decision
may be signed in the very near future , the Commission suggests that the
Council Secretariat ask for the Council 's assent by means of the
accelerated written procedure . For the same reason , it is suggested that
the Consultative Committee 's Office too asks for the Committee 's opinion
by means of the accelerated written procedure .
 ---pagebreak---       COMMISSION DECISION              'ECSC
        prohibiting alignment on offers of iron and steel products ,
                              originating in certain third countries .
THE COMMISSION OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Coal and Steel
Community , and, in particular, the first and second paragraphs of
Article 95 , thereof ,
Whereas the Commission has taken measures relating to prices on the common
market in steel ; whereas the governments of certain third countries have
assured the Commission of their cooperation over the measures which it has
taken ; whereas in particular these countries will ensure that deliveries
of iron steel products do not exceed tonnages compatible with the situation
of the common market ; whereas furthermore these countries will ensure that
the invoiced prices of their deliveries of iron and steel products in the
Community are compatible with the levels of guidance prices and minimum
prices published by the Commission ;
Whereas experience has shown that compliance with the minimum prices and
guidance prices published by the Commission cannot be secured if offers
at lower prices and for only small quantities may be used as base for
alignments ; whereas these factors would increase downward pressures on
Community prices were the Commission not to abolish the right of Community
undertakings to align their prices on these low-priced offers from third
countries ;
Whereas the Treaty , and more particularly Article 60 thereof , makes no
provision for a prohibition of this nature ; whereas prohibition of such
alignments is necessary for the attainment , in the functioning of the
common market in steel and in conformity with Article 5 of the Treaty ,
one of the Community 's objectives as defined in Articles 2 , 3 and A ;
whereas Article 2 of the Treaty lays upon the Community the task of
pursuing its objectives in harmony with the general economy of the
 ---pagebreak---                                - 2 -
Member States ; whereas the economic and social objectives set out in
Article 3(c ) , ( e ) and ( g ) also necessitate the taking of this Decision ;
Whereas the general principles regarding intervention by the Commission ,
laid down in Article 5 of the Treaty , apply ; whereas , under present
market conditions , the continued weakening in the prices of iron and steel
products ( including pig iron ) can be halted only by the prohibition of
such alignment ;
Whereas the cooperation with certain of the countries in question may
cover only some iron and steel products ; whereas it is therefore necessary
to specify the iron and steel products covered by the measure ;
                     *
Whereas cooperation by the countries concerned applies only for a limited
period ; whereas the prohibition of alignment must have a time limit ;
Whereas the Commission may contact the governments of certain other
third countries in order to secure the same cooperation ; whereas the
arrangements now in force might be cancelled for unforeseen reasons ;
whereas consequently the Commission must be able to alter the list of
countries involved ;
Whereas , as regards those third countries from whom the Commission has
not got this cooperation , it is necessary that Community undertakings
continue to have the right to align their prices on those of offers from
these third countries ;
Whereas observance of the prohibition must be assured by penalties ;
whereas the application of the penalties laid down in Article 64 of the
Treaty for breaches of price measures would be suitable ;
Having consulted the Consultative Committee , and with the unanimous
assent of the Council of Ministers ,
HAS ADOPTED THIS DECISION :
 ---pagebreak---                          - 3 -
                       Article One
       Community undertakings are prohibited from aligning their offers
on the terms of offers of third country undertakings situate in the
countries listed in the Annex and for the products set out therein .
       The Commission shall amend this list if need be .
                       Article 2
       Should Article 1 of this Decision be breached / the penalties re­
ferred to in Article 64 of the Treaty shall be applicable .
                       Article 3
       This Decision shall enter into force on               1978 . It
shall expire on 31 December 1978 .
       The Commission reserves the right to repeal this Decision wholly
or in part before that date should market conditions and the interests
of the Community undertakings so require .
       This Decision shall be binding in its entirety and directly
applicable in all Member States .
Done at Brussels ,                  For the Commission
                                    The President
                                    Roy JENKINS
 ---pagebreak---                     Annex
           The ban on alignment introduced by this Decision covers the
terms offered by undertakings situate in the following countries :
1.      Republic of Austria                                               ,
2 . Republic of Finland
3 . Kingdom of Norway
A. Kingdom of Sweden
5 . Republic of Portugal
and as regards the iron and steel prtducts for which the Commission
has fixed base prices ( 2 ) for the purposes of applying Recommendation
77 / 329 / ECSC ( 1 )^ with the exception of f erromanganese, OCT Heading
n° 73.02 A I
6 . Swiss Confédération
and as regards
Concrete reinforcing bars with minor identations , flanges , grooves or
other deformations produced during the rolling process , whether or not
twisted after rolling, NIMEXE number ( 3 ) 73-10 A II a ;
smooth reinforcing bars , NIMEXE number ( 3 ) ex 73-10 A II b .
 ( 1 ) O.J. N° L 114 of 5.5.1977 as amended by Recommendation
        N° 3004 / 77 / ECSC - O.J. N° L 352 of 31.12.1977
 ( 2 ) O.J. N° L 353 of 31.12.1977
  ( 3 ) Nomenclature of goods for the external trade statistics of the
        Community and statistics of trade between Member States ,
        O.J. No L 325 of 19 December 1977