CELEX: 51979PC0219
Language: en
Date: 1979-04-26 00:00:00
Title: Recommendation for a COUNCIL DECISION concerning the amendment of the tariff concession for manioc

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 219
Vol. 1979/0092
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 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM ( 79 ) 219 final
                                                    Brussels . 26 April 1979
                                  Recommendation for a
                                     COUNCIL DECISION
               concerning the amendment of the tariff concession for
                                          manioc
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C0M(79 ) 219 final
 ---pagebreak---                             EXPLANATORY MEMORANDUM
1.    During the Kennedy Round negotiations under GATT in 1967 , the Community
bound the 67. duty on imports of manioc under tariff heading 07.06 A, so that
the ceiling for the levy applicable pursuant to Community rules was at the
level of the consolidated rate *
      Although the Kingdom of Thailand is not a member of GATT it benefits
from this binding by virtue of the most - favoured-nation clause®
2m    Since this binding , imports of manioc have increased rapidly .  In 1967
imports from all countries amounted to 672 000 t and those from Thailand to
375 000 t .
      In 1977 imports reached the level of 3 801 000 t from non-member countries
as a whole , of which    3 640 000 t came from Thailand *
3.    Since this development has had consequences for the proper functioning "
of the common organization of the market in cereals and derived products
( pigmeat , etc .), the Commission has during the last two years regularly
pointed out to the Thai authorities that a further increase might force the
 Community to take measures to limit these imports#
                                                    A
4.    Although the Thai Government did take some measures in 1978 to limit
production and therefore the amounts available for export , imports from
Thailand amounted in 1978 to the record figure of 5 553 000 t , compared with
total imports of 5 840 000 t «
 ---pagebreak--- 5,    Since the increase in imports was likely to increase the difficulties
on the internal market , the Commission took the initiative in raising these ^
problems with the Thai authorities * The purpose of the discussions was to
obtain a limitation of imports at reasonable levels acceptable to both
sides .  This initiative was helped by the fact that the Thai Government had
in the meantime taken measures enabling it to supervise and control exports
so that it was in a position to comply with any agreements concluded with
importing countries ,
6,    In the course of exploratory contacts with the Thai Government ,
Mr , Gundelach , Vi ce-President , emphasized the importance and the urgency of
reducing Community imports substantially within a reasonable period , and
the Thai Government agreed to limit the volume of exports for 1979 to that
of 1978 and to start negotiations with the Community with a view to ensuring
a gradual reduction in exports to the EEC from 1980 onwards ( see document in
Annex B describing the results of these contracts ).     This was agreed on the
understanding that the customs duty of 6% would be applicable to the
restricted quantities .
      The Commission will forward to the Council as soon as possible a proposal
on directives for negotiating such an agreement ,
7,    To avoid placing Thailand in a less favourable position than other
suppliers , the tariff concession which at present exists under GATT needs to
                                                    *
be amended , replacing it by binding at the same 6% rate but within the limits
of a tariff quota the volume of which corresponds to Community imports from
the contracting parties to GATT ,
8,    Consequently , the Commission recommends that , under Article 113(3) of the
Treaty , the Council authorize it to conduct the negotiations provided for in
Article XXVIII(1)of the General Agreement with a view to amending the con­
cession granted with regard to manioc . The Article 113 Committee will assist
the Commission in the negotiations .
      The Commission hereby forwards to the Council the draft Decision contained
in Annex A ,
 ---pagebreak---                                                             ANFig&A
                    RECOMMENDATION FOR A COUNCIL DECISION
               concerning the amendment - of the tariff concession for manioc
                8SSSS8S8SSSSSSSSSSS5SSSSS58SS8SS3S383S83SS33
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community and
in particular Article 113 thereof ,
Having regard to the recommendation from the Commission ,
Whereas , during the Kennedy Round tariff negotiations concluded in 1967 within
the framework of GATT , the Community bound a customs duty of 6% on manioc ,
arrowroot , salep , Jerusalem artichokes , sweet potatoes and other similar roots
and tubers with high starch or inulin content , fresh or dried, whole or sliced
sago pith ( h'eading No 07*06 A of the Common Customs Tariff ), and whereas such
binding is embodied in the European Economic Community list ( List L XXII -
EEC ) annexed to the General Agreement on Tariffs and Trade ;
Whereas these concessions should be amended;
Whereas , to this end tariff negotiations or consultations must be entered into ,
 pursuant to Article XXVIII of the General Agreement , with the contracting
 parties to GATT which have rights in respect of these concessions,
HAS DECIDED AS FOLLOWS :
                                                     *
                                 Sole Article
The Commission is hereby authorised , pursuant to Article XXVIII of the General
 Agreement , to open tariff negotiations or consultations with the contracting
 parties holding rights , for the purpose of amending the tariff concession in
 respect of the 6% duty on "manioc , arrowroot , salep and other similar roots
 and tubers with high starch content , excluding sweet potatoes " ( heading No
 07.06 A of the Common Customs Tariff ).
 ---pagebreak---                             DRAFT NOTIFICATION
Sir-
with reference to my previous communication dated 19 September 1978 on
the Community 's wish to invoke the provisions of paragraph 5 of Article
XXVIII of the General Agreement , I have the honour of requesting you to
inform the Contracting Parties that the European Economic Community wishes
to conduct negotiations with a view to correcting or amending a concession
contained in the European Economic Community 's list .
The Annexes hereto give the wording and the rate of bound duty for the
concession to be negotiated and statistics on Community imports of the
products concerned .
Formal ending
                                     Signature   *
 ---pagebreak---                                                           ANNEX I
Tariff Heading                  Description                        Bound rate
    07.06      Manioc , arrowroot , salep , Jerusalem artichokes ,
               sweet potatoes and other similar roots and
               tubers with high starch or inulin content , fresh
               or dried , whole or sliced ;   sago pith :
               A * Manioc , arrowroot , salep and other similar
                   roots and tubers with high starch content ,
                   excluding sweet potatoes                            6X
 ---pagebreak---                                                                   ANNEX II
      Statistics of imports of products falling within heading 07.06 A
     from the principal non-Community supplier country and /or direct
                       beneficiaries of concessions
                  Average for the years 1975 - 1976- 1977
                                                           Tonnes          21 000
Extra-EEC                                                 3 002 438        355 475
       of which Thailand                                  2 766 179        324 501
Members of 6ATT                                             232 105         30 398
Principal 6ATT suppliers
       Indonesia                                            169 415         25 399
Direct GATT beneficiary
       Brazi l                                                3 502            856
 ---pagebreak---                                                           ANNEXE B
                              AGREED MINUTES
1 . H.E. Nam Phoonwathu , The Minister of Commerce of Thailand , and
Mr. Finn 0 . Gundelach , Vice-President of the Commission of the European
Communities , met in Bangkok on 21 and 22 March 1979 to discuss , in the
spirit of ASEAN - EEC cooperation , the problems arising from Thai exports
of tapioca products to the Community .
2 . In the light of Community market developments » the Vice-President
stressed the urgent need of achieving a halt in the growth of tapioca imports
falling under Common Customs Tariff Heading No.0706A from Thailand into the
Community and of achieving over a reasonable period of time substantial •
reductions of these imports . These goals should be attained through agreement
between Thailand and the Community .
3 . The Minister stated that any reduction of tapioca exports without suitable
alternatives would create a chain of adverse effects on socio-politico-economic
development and stability not only of Thailand but of the ASEAN region . At
the same time , he recognized the internal problems of the Community and ,
therefore , agreed that tapioca shipments from Thailand to the Community in
1979 would not exceed the total quantity shipped in 1978 and further stated
his willingness to negotiate measures , in a spirit of cooperation , with a
view to ensuring a gradual reduction of the quantity exported to the Community .
4.  The Vice-President noted that the Government of Thailand has taken measures-
to contain the cultivation and production of tapioca products as well as
providing possibilities for stabilizing the exports of these products
particularly through the promulgation of the Royal Decree empowering the
Minister of Commerce to impose desired export quotas , premiums , and other
restrictive measures .
       The Minister emphasized that thi3 Decree was promulgated by the
Government of Thailan » as a demonstration of its good faith towards arriving
at mutually acceptable solutions to the Community 's problems .
 ---pagebreak--- 5 . The Vice-President further noted the willingness of the Government of
Thailand to take , in full cooperation with the Community , appropriate
measures for the diversification of tapioca production towards other crops .
Both sides agreed that such measures should diminish the dependence of
Thailand on tapioca exports to the Community .
       They should however not be implemented in such a way as to adversely
affect Thailand 's balance of payments , or to hamper the economic and social
development and political stability of Thailand .                             •
       The Minister acknowledged that the Community is already making some
contribution towards the goal of diversification and is prepared , within
the means at its disposal , to make substantially larger contributions on
the basis of projects to be submitted by the Government of Thailand .
6 . The Vice-President noted that the Thai Government might consider the
introduction of a levy on tapioca exports which should Result in some
increase in export prices , and that the proceeds from such a levy could be
used for crop diversification and , where necessary , for financing the costs
of absorbing tapioca in excess of requirement , so as to stabilize agricultural
incomes .
7.  The Vice-President informed the Minister of the Commission 's intention
to propose to the Council of the European Communities the engagement of
the procedures necessary under Article XXVIII of the GATT for the deconsolidatior
of the bound rate of duty on tapioca .
       The Vice-President particularly stressed that such action or any other
actions directed towards imports of tapioca would not be taken with the
intention of increasing Community 's protection against Thailand but should
only be seen as measures to prevent other suppliers undermining specific
arrangements with Thailand .
 ---pagebreak--- 8 . It was decided to establish a joint working group to examine and
recommend the modalities to ensure the satisfactory implementation of the
measures envisaged .
9.  The Minister of Commerce of Thailand and the Vice-President will meet
before the end of November 1979 to reach agreement on the arrangement to be
implemented as from the beginning of 1988 and there after , on the basis of
a report of the joint working group .