CELEX: 51973PC1311
Language: en
Date: 1973-07-25
Title: PROPOSAL FOR A COUNCIL DECISION authorizing the Federal Republic of Germany to increase the amount of the general quota currently in force for imports of certain textile products other than cotton from certain third countries (countries on list B) (submitted to the Council by the Commission)

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COM (73) 1311
Vol. 1973/0246
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(73 ) 1311 final
                                                        Brussels , 25 July 1973
                         PROPOSAL FOR A COUNCIL DECISION
     authorizing the Federal Republic of Germany to increase the amount
       of the general quota currently in force for imports of certain
       textile products other than cotton from certain third countries
                             ( countries on list B)
                  ( submitted to the Council by the Commission)
   CCM73 ) 1311 final
 ---pagebreak---                               EXPLANATORY MEMORANDUM
In accordance with Artiele 1 of the Council Decision of 19 December 1972
laying down certain transitional measures for the progressive standardi­
zation of the import terms of Member States as regards third countries ,
the German Government imformed the Commission on 22 June 1973 that it
proposed to increase certain quotas and to liberalizse imports of certain
products as part of the fight against inflation in Germany .
At the request of the Commission consultations concerning these measures
were held on 4 » 5 » 31 and13 July.
The proposed measures include a de facto liberalization of certain textiles
products other than, cotton , covered by about 100 statistical items in
the customs tarrif of the Federal Republic of Germany and falling within
headings Nos 51.Q4 , 53.07 , 53.10 ,. 53 . lit 56.07 and 61.02 of the CCT . The
            • '  . • T ». ...     ' .          • L) .
products ii question may currently be imported from list B oountries into
the Federal Republic of Gennany up to a general quota of IM 20 million.
At the consultations referred to above , the German delegation clarified its
                                                          i i:
position on the proposed measures by specifying :
– that as in other cases these were economic measures , taken in exceptional
    oircumstanoes in order to keep prices down ty increasing importation
    facilities ;
- that the goods were imported mainly from Asian countries at low prices ,
  . so that the desired downward pressure in prioes would indeed be strong ;
- that the resulting increase in imports would not create difficulties for
    the other Member States since the relevant goods would most certainly be
    absorbed by the German market ;
- that the proposed liberalization was a de faoto liberalization whioh
    would consequently not in striot terms alter the law gove'Wiing importations .
 ---pagebreak--- The representative of the Commission stated that the liberalization in
question seemed unacceptable to him for the following reasons ;
– the relevant products are at the moment almost all subjected to restrict
   in seven or six oustoms zones of the Community (l ). Their liberalization
   by one Member State would thus create a barrier to the , establishment
   of common import terms ;         ..                                .
– these are sensitive products imported mainly from highly competitive
   Asian oountries (Japan , Korea , Taiwan ). Their liberalization would
   have repercussions both on the discussions going on within GA.TT with
   a view to finding a general arrangement on textile produots and on
   bilateral negotiations to be opened by the Community with its prinoipal
   suppliers . If one Member State announced such a liberalization at a
   time when the whole question of world trade in textiles was being
   examined at multilateral level , the Commission 's position would bo made
   more difficult since third countries would be giVen the impression that
   the attitudes of the Member States lacked coordination . Moreover , in
   the context of bilateral negotiations , the relevant products will probabl;
   be considered sensitive products for which supplier third oountries will
   be asked to accept voluntary restraint . .
At the consultative meetings , several delegations (Benelux, Franoe , Italy )
were generally reluctant to accept this liberalization and indicated that
they shared the Commission 's opinion .
Despite attempts to reach a compromise solution , no agreement was
reached , the German delegation being unable to aocept the compromises
proposed.
 (l ) Only wool fibres put out for retail sale are subject to quotas in
      Germany only . Their liberalization was aocepted unanimously .
 ---pagebreak---                                  3
Accordingly the Commission believes , on the basis of the factors which
it set out at the consultative meetings t that :
- the produots in question should not be liberalized ;
- Germany should be enabled to increase its imports by raising the
  quota currently in force from HI 20 million to IM 40 million.
The Commission therefore proposes that the Council adopt the decision
set out in the Annex hereto .
 ---pagebreak---                    PROPOSAL FOR A COUNCIL DECISION
         authorizing the Federal Republic of Germany to increase the
         amount of the general quota currently in foroe for imports
         of certain textile produots other than cotton form certain
         third countries ( countries on list B)
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European . Economio Community
and in particular Artiole 113 thereof ;
Having regard to the Council Decision of 19 December 1972 (l ) laying
down certain transitional measures for the progressive standardization
of the import terms of Member States as regards third countries , dand in
particular Article 3 thereof ;
                                            I
Having regard to the      proposal from the Commission ;
Whereas in accordance with Article 1 of the Council Decision cited above
the German Government has informed the Commission and the other Member
States that it proposes to liberalize , as part of its fight against
inflation , the importation of certain textiles produots whioh are
currently subject to restrictions under a general quota of IM 20 million
as regards countries on list B ;
Whereas the produots in question are sensitive products , subject to
restrictions in most Member States of the Community ;
Whereas international trade in textile products is faced with particular
problems , currently being examined at multilateral level with a viow to
reaching a general textiles agreement ;
 (l ) Otf No L 299 , 31 December 1972
 ---pagebreak---                                 w 2 -
Whereas , therefor?, the position to be adopted by the Community both in
multilatered negotiations and in bilateral negotiations which the
Community may open in the future with its main suppliers in accordance
with the general textiles agreement should not be prejudiced in any way ;
HAS ADOFrED THIS DECISION
                           Sole  Article
                                                          \
The Federal Republic of Germany is authorized to increase from HI 20 million
to HI 40 million the amount of the general quota for certain textile
products other than cotton currently in force for imports from countries
on list B.
This authorization shall apply until 31 December 1973 .
This Decision is addressed to the Federal Republio /of Germany .
Done at Brussels                             For the Council
                                              The Prosident