CELEX: 51973PC1304
Language: en
Date: 1973-08-08
Title: PROPOSAL FOR A REGULATION (EEC) OF THE COUNCIL subjecting to authorization the importation into the United Kingdom of yarn of jute from third countries#REGULATION (EEC) OF THE COUNCIL subjecting to authorization the importation into the United Kingdom of cotton yarn from third countries (submitted to the Council by the Commission)

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DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1304
Vol. 1973/0245
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(73)1304 final
                                                         Brüssels , 8 August 1973
              PROPOSAL FOR A REGULATION ( EEC ) OF THE COUNCIL
           subjecting to authorization the importation into the
            United Kingdom of yarn of jute from third countries
                       REGULATION ( EEC ) OF THE COUNCIL
           subjecting to authorization the importation into the
            United Kingdom of cotton yarn from third countries
               ( submitted to the Council "by the Commission)
   CCM73 ) 1304 final
 ---pagebreak---                           EXPLANATORY K3M0RANDUM
1.        Since 1 April 1973 Council Regulation ( EiDC ) No . 1025/70 establishing
common rules for imports from third countries is applicable in the United.
Kingdom .
Jute yarn ( Tariff heading no . 57*06 ) is listed in Annex I to that Regulation .
Imports of jute yarn are therefore not subject to quantitative restrictions .
2.        Before 1 April 1973 imports of jute yarn into the United Kingdom
were subject to quota restrictions within a total quota applied by the
British Government . Application of Regulation 1025/70 removed the restri­
ctions in force for jute. - yarn ..
On 31 March 1973 the British Government informed the Commission of the
serious difficulties with which the United Kingdom would be faced if trade
in jute yarn were liberalised , , At the present time , the jute-spinning industry
is. centred around Dundee , where it constitutes the only industry of any size .
A. sudden liberalization of imports would undoubtedly pose a serious threat to
this industry and would inevitably increase unemployment , which is already
high in that area .
Moreover , the Community is currently negotiating with India , and is due to
negotiate with Bangladesh , agreements relating to trade in jute products .
Taking into consideration the instructions given by the Council to the
Commission for these negotiations , jute yarn should also appear in this
agreement (voluntary restraint was provided for in the Agreements with
Pakistan and Bangladesh , which did in fact also cover jute yarn and which
expired at the end of 1972 , although the Agreement with Bangladesh was extended
de facto and by common assent until 30 June 1973 ). The United Kingdom
Government considers that the liberalization of the products in question
threatens to cause substantial injury to the British jute industry , in
particular in view of the increase in imports arising from the change in
 ---pagebreak---                                        - 2 -
the import riJes . The -British Government adds a further consideration
regarding      the current situation , namely that it would be inappropriate
for a system of liberalization of imports to be introduced when it is pro-
pable that a different system could be brought in under the negotiations
taking place or proposed in the near future .
The British importers would find it difficult to accept passing so quickly
from a system of quota restrictions to a situation of liberalization , in
turn by measures of voluntary restraint . According to the British Government
these fluctuations would cause chaos in traditional trade flows . The Bri­
tish Government has therefore requested the Commission to take protective
measures under Title IV of Regulation 1025/70 in view of the possibility
of regulating by agreement trade in these products between the Community
and the main supplier oountries , these would be interim measures only .
3.      On 9 April 1973 there was a meeting of the Advisory Committee set up
by Article 5 Pt Regulation 1025/70 * On the Basis pf the information supplied
by the British delegation , all the delegations and the Commiaa.on acknowledged
the difficulty of the situation and the . risk of substantial injury which ,
would arise in the United Kingdom as a result of a sudden and probably
temporary liberalization , and also saw the expediency of adopting interim
protective measures for the jute industry in this Member State*
4.      The Commission consequently considered it necessary that as a protective
measure the importation into the United Kingdom of jute yarn ( Tariff heading
No . 5706 ) should be made subject , under Article 10 ( l ) of Regulation. 1025/70 ,
to production of an import authorization (.Commission Regulation ( SjSC ) .          ;
no »    , ■     - ,     .  , . .. ). .               • -'i
     1   t                                   •                          m m «j • • •
 ---pagebreak---                                       - 3 -
 5.        Article 10 ( 5) of Regulation 1C25/ 70 provides that any decision
 taken "by the Commission shall be communicated to the Council and to the
Member States . Any Member State shall , within ten working days following the
 day of the communication , refer such decision to the Council .
 The annexed proposal is presented to the Council pursuant to this provision •.
 6.        Taking into account the abovementioned factors , the proposed measures
 do not differ from those contained in the Regulation which has already been
 provisionally adopted by the Commission .
 These measures , which apply only to the United Kingdom , provide that imports
 into that Member State will be limited to a level corresponding to that of
 the quantitative restrictions in force in the United Kingdom until 1 -April
 1973 .
 With this aim in mind , it is proposed that a quota of 380 metric tons be
 established for the period 1 April to 31 December 1973 . This period would
 allow the Commission either :
 - to complete the negotiations on jute products now in progress or th take
  " place in the near future ; or
 - alternatively , to continue its detailed study of the situation and ,
    if necessary , to recommend that further measures bo taken .
        As regards the geographical area to which the proposed measures
 are to apply , it seems advisable , in view of Article XIX of the GATT , to
 adopt a non-discriminatory formula. The measures will Iherefore be applied
 to all third countries listed in Annex II to Regulation 1025/70 » with the
 exception , howewer , of the SETA countries , in respect of wlich the United
 Kingdom applied no quantitative restrictions for jute yarn before 1 April
 1973 .
 7.        It is therefore proposed , in view of the time limits laid down in
 Article 10 of Regulation 1025/70 , that the Council adopt the annexed pro­
 posal for a Regulation .
 ---pagebreak---        PBOPOSAL FOR A REGULATION ( EEC ) OP THE COUNCIL
    subjecting to authorization the importation into the United. Kingdom
                      of jute yarn from third countries
THE3 COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to tho Treaty establishing the European Economic Community !
Having regard, to Regulation (EEC ) No 1025/70^" of the Council establishing
common rules for imports from third countries , and. in particular Article 11 ( l )
thereof 5
Aftor consultation with tho Advisory Committee set up by Article 5        that
Regulation !
Having regard to the proposal from the Commission 5
Whereas in response to a request from the Bri&ish Government the Commission ,
                             2
by Regulation No . 1832/ 73 of 4 July 1973 establishing a system of permits
covering the import of yarn of jute from non-member countries into the
United Kingdom , took interim protective measures limiting the importation
into the United Kingdom of jute yarns
Whereas it appears from the information supplied by the British Government ,
in particular during the consultation in the above-mentioned Committee , and
also from other informationj that until 1 April 1973 » the date on which
Regulation ( EEC ) N o . 1025/70 came into operation in the United Kingdom ,
importation into the United Kingdom of the products in question was subject
to quantitative restrictions in relation to the countries concerned ! whereas
the increase in such imports which would follow the liberalization thereof would
bo likely to cause substantial injury , which it would be difficult to repair ,
to the jute spinning industry in the United Kingdom and to affect the employment
situation in tho region where this industry is centred ;
 OJ No L 124 , 8 June 1970
20J No L 185, 7 July 1973
 ---pagebreak--- Whereas interim protective measures must therefore be taken , due regard
being had to the relevant international provisions , in respect of the
importation of the products in questions whereas . these measures should consist
in a limitation of imports 5
Whereas , since such measures are of an interim nature , they must remain in
force no longer than is necessary to allow the negotiations with the two
third countries which are the main suppliers to be completed , or , if these
negotiations are unsuccessful , no longer than is necessary to enable the
question to be considered of what measures , if any , should be taken$ whereas
the Community is negotiating at the present time , or proposes to negotiate
in the near future , agreements on trade in jute products with the third
countries which are the main suppliers , and the protective measures should
therefore bo adopted for a period extending up to the date of entry into force
of such agreements , but not beyond 31 December 1973 5
Whoreas , given that the threat of substantial injury originated in imports
intended afor United Kingdom markets , it appears justified at present , having
regard to existing trade . flows , to restrict the application of protective
measures to imports into the United Kingdom ;
Wha*eas these imports should be restricted to the relevant level in the
United Kingdom before 1 April 1973 >
Wfcareas , these protective measures may be amended or repealed in the light
of the trend in imports into other regions of the Community !             -
HAS AD0PT3D THIS REGULATION :
 ---pagebreak---                                      - 3 -
                                    Article 1
1 . The importation into the United Kingdom of Great Britain and Northern
    Ireland from the third countries listed in Annex II to Council Regu­
    lation ( SiiC ) No . 1025/70 , excepting those countries set out in the
    Annex hereto , of the product shown below shall be subject to production
    of an authorization , and the total tonnage so imported during the period
    1 April 1973 to 31 December 1973 inclusive shall not exceed the number
    of metric tons indicated against the name of that produ ct :
           CCT heading No
                  57 V 06            Yarn of jute        380 metric tons
2 . The import authorization referred to in paragraph 1 shall be iHsued
    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 Communilass .
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
Austria
Fini and
Iceland
Norway            '  1
Portugal
Sweden
Switz'.erland ( together with Liechtenstein )
 ---pagebreak---                              ■ EXPLANATORY ?^.!ORAtfTXJM
1.      Council Regulation (EEC ) NO 1025/ 70 of 25 Hay 1970 establishing
common rules for imports from third countries has "been applicable in the
United Kingdom since 1 April 1973 .
        Cotton yarn whether or not put up for retail sale (Tariff headings
55.05 and 55*06) is listed in Annex I to that Regulation; its importation
into the Community is not therefore subject to any quantitative restric­
tions .
2, T    Before 1 April - 1973 imports of . cotton yarn into the United King­
dom were subject to quota restrictions , both under the provisions of inter­
national agreements and under certain national or special quota arrange­
ments .                                 .....
        On 25 March 1973 the British Government infomed the Commission
of the serious difficulties with which the United Kingdom would be faced
if trade in cotton yarn were liberalized . According to information supplied
by the British Government , the cotton yarn industry is concentrated in the
north-west of England , where it employs approximately 35 000 persons j
in 1952 the number of persons employed in that industry was 115 000 . The
British authorities stated that the release of the labour force concerned
and their re-deployment in other sectors of the economy had taken place
gradually and without too many harmful effects , thanks to the maintenance
of the system of quota restrictions . However , a sudden liberalization would
seriously jeopardize this process and would most certainly cause unem­
ployment in that region .
                                                                            /
 ---pagebreak---                                    - 2 -
       The British Government has therefore asked the Commission to take
protective measures under Titl6 IV of Regulation Wo IO25/7O .
3.      On 2 April 1973 the Advisory Committee set up "by Article 5 of
Regulation No 1025/70 was convened . All delegations acknowledged the
difficulty of the situation and the substantial injury which a sudden
liberalization of imports could cause to the textile industry in the
United Kingdom . They also realized that - a suitable solution to this
situation must be found quickly .
      During the meeting delegates were reminded that , among other
things , the Community had signed agreements with its principal supplier
countries on voluntary restraint in respect of trade in cotton textiles
pursuant to Article 4 of the long-term Agreement , "but that these agree­
ments did not cover cotton yarn * It was also stated that the United Kingw
dom had concluded bilateral agreements which also covered cotton yarn
with most of these countries before 1 January 1973 (date of accession of
the United Kingdom to the Community). As the Act Concerning the Condi­
tions of Accession provides that the rights and obligations arising
from agreements concluded with third countries before accession shall not
be affected , it was stated that the United Kingdom is still entitled to ;
call upon the parties to the abovementioned agreements to honour their
commitments , including the obligation not to exceed the quantities fixed
in those agreements as regards cotton yarn. In this connection the United
Jingdom stressed that , although the prinoipal supplier countries are so
committed , there is nothing to provent sizeable transactions from being
carried out with other supplier third countries , and therefore the -
injuiy suffered by the British textile industry as a result of libera­
lization would be the same#
 ---pagebreak--- 4.      Taking into account the different points noted during the meeting ,
                                 τ  >·;;
the British view that the restrictive measures requested "by the United
                                      r
Kingdom as from 1 April 1973 should apply only to those third countries
to which restrictions applied on that date (which implies keeping the
existing situation unchanged) , and the fact that "the problem is an excep­
tional one wholly connected with the accession of the United Kingdom to
the Community , tho Commission considers it. necessary to make imports of
cotton yarn (Tariff headings 55*05 and 55*06) into the United Kingdom
temporarily subject to the production of an import authorization , pursuant
to Article 10 ( l) ( b) of Regulation Eo 1025/70. (Commission Regulation
(EEC ) No ... of ....).
5.      In accordance with Article 10 (6) of Regulation 1025/70 the
Commission must , within 10 days of the entry into force of the emergency
measure referred to in paragraph 4 above , sv.bnit to the Council a proposal
on the appropriate and necessary measures .
        The proposal for a Regulation annexed hereto is therefore sub­
mitted to the Council in accordance with that provision .
6.      Taking into account the factors and considerations given above ,
the proposed measures do not differ from those contained in the Regular-
tion which has already been adopted for a provisional period by the
Commission .
        These measures , which apply only to the United Kingdom , provide
that imports into that Member State shall be restricted within limits
to be fixed taking into account the amount of quantitative restrictions
in force in the United Kingdom until 1 April 1973 * It is therefore
                                                                       ./
 ---pagebreak--- proposed to establish a quota of 12 750 metric tons for the period from 1
April to 31 December 1973 inciLisive . This period would allow the Commission
to continue its detailed study of the situation and , if necessary , to
recommend that further measures "be taken .
       As regards the geographical limit of application of the proposed
measures it seems advisable in view of Article XIX of GATT to adopt
a non-discriminatory formula . The measures will therefore be applied to
all third countries listed in Annex II of Regulation 1025/70 with the
exception of :
       - certain countries (MemtteSfS Of the Commonwealth or EFTA) in
         respect of which the United Kingdom did not apply quantitative
         restrictions on cotton yarn before 1 April 1973 ?
       - 9 Mediterranean countries in respect of which the United King­
         dom abolished existing quantitative restrictions on the products
         in question pursuant to the Treaty of Acoession .
7.     Depending upon future trends in the imports of those products
into the Community , the Commission reserves the right to propose the
amendment of the proposed measures or their repeal , if the threat of
injury has been eliminated or , if events so justify , the extension of the
measures to other parts of the Community or to the whole Community . ,
8.     It is proposed that the Council adopt the proposal for a Regu­
lation annexed hereto within the time limit prescribed in Article 10
of Regulation 1025/70 .
 ---pagebreak---             -  PROPOSAL FOR A REGULATION (EEC ) OP THE COUNCIL
           subjecting to authorization the importation into the United
                   Kingdom of cotton yarn from third countries
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community }
Having regard to Regulation (EEC ) No 1025/70"*" of the Council establishing
common rules for imports from third countries , and in particular Article
11 ( l ) thereof }
After consultation with the Advisory Committee set up by Article 5 of that
Regulation }
Having regard to the proposal from the Commission }
Whereas in response to a request from the British Government the Commission ,
by Regulation No 1831/73 of 4 July 1973 providing for licences for the
import of cotton yarn into the United Kingdom originating in and coining :
from non-member countries , 1 took interim protective measures limiting the
importation into the United Kingdom of ootton yarn } ,,
Whereas it appears from the information supplied by the British Govern­
ment , in particular during the consultation in the above-mentioned
Committee , and also from other information , that until 1 April 1973 , the .
date on which Regulation (EEC ) No IO25/7O came into operation in the
United Kingdom , importation into the United Kingdom of the products in
1 OJ No L 124, 8 June 1970          '' '                                v
2 OJ No L I85 , 7 July 1973               ' '    ' "      '
 ---pagebreak--- question was subject to quantitative restrictions in relation to the coun­
tries concerned } whereas the increase in such' imports which would follow
the liberalization thereof would be likely to cause substantial injury ,
which it would be difficult to repair , to the cotton spinning industry in
the United Kingdom and to affect the employment situation by interfering
with the process of redeployment in that industry ;
Whereas interim protective measures must therefore be taken and should
consist in a limitation on the importation of cotton yarnf
Whereas to remove the threat of injury protective measures should be
adopted for a period extending up to 31.12.1973 ; "
Whereas given that the threat of substantial injury originated in imports
intended for United Kingdom markets , it appears justified at present having
regard to existing trade flows , to restrict the application of protective
measures to imports into the United Kingdom ;
Whereas these imports should be restricted to the relevant level in the
United Kingdom before 1 April 1973 ?
Whereas these protective measures may be amended or repealed in the light
of the trend in imports into other regions of the Community ;
HAS ADOPTED THIS REGULATION i
                                 Article 1
1.     The importation into the United Kingdom of Great Britain and
Northern Ireland from the third countries listed in Annex II to Council
Regulation (EEC ) NO 1025/70 , excepting those countries set out in the
Annex hereto , of the products shown below shall be subject to production
of an import authorization , and the total tonnage so imported during the
period 1 April 1973 to 31 December 1973 inclusive • shall not exceed the
number of metric tons indicated against the names of those products :
 ---pagebreak---                                              - 3 -
CCT heading No         . 'Yir; 4 .: v •              v
55.05 Cotton yarn, not put up for retail sale )        12 ^ metric ±ons
                                                       12 750 metric tons
55.06 Cotton yarn , put up for retail sale         <
2.    The import authorizations 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 he binding in its entirety and directly appli­
   cable in all Member States .
   Done at Brussels                                Por the Cotuicil
                                                   The President
 ---pagebreak---                      Annex referred to in Article 1
Australia  !
Austria             • /       ' . .  :
Canada
Cyprus
Finland
Greece
Iceland
Israel
Lebanon
Malt a
Morocco
New Zealand
Norway
Portugal
Spam
Sweden '
Switzerland ( including Liechtenstein)
Tunisia
Turkey
USA