CELEX: 51977PC0255
Language: en
Date: 1977-06-02
Title: PROPOSAL FOR A COUNCIL REGULATION maintaining the arrangements making the importation into the Benelux countries of jute yarn originating in the Kingdom of Thailand subject to authorisation (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 255
Vol. 1977/0089
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       COM (77) 255 final.
                                                       Brussels , 2 June 1977*
                               PROPOSAL FOR A
                             COUNCIL REGULATION
       maintaining the arrangements making the importation into
       the Benelux countries of jute yarn originating in the
       Kingdom of Thailand subject to authorisation
                   ( submitted -to the Council "by the Commission)
       \
                                /
CCM(77) 255 final*
 ---pagebreak---                                EXPLANATORY MEMORANDUM
                                                                   (1 )
1.    By Commission Regulation ( EEC ) No . 969 / 77 of 4 May 1977      , adopted
pursuant to Article 12 of Regulation ( EEC ) No . 1439 / 74 , imports into the
Benelux countries of jute yarn originating in the Kingdom of Thailand
were made subject to authorization ;     the authorizations are to be issued
for a quantity which will be such as to ensure that the total volume of
imports in 1977 does not exceed 4,030 tonnes .
2.    These measures were taken in order to remedy the market disruption
caused in the Benelux countries by the sharp and substantial increase in
the imports in question .
       Since 1975 , Thai exports of jute yarn to the Community and in particular
to the Benelux countries have increased very substantially .        Exports to
                                                          (2)
the Benelux countries rose from 1,145 tonnes in 1975          to 4,459 tonnes in
1976 , including temporary imports , which represents an increase of 300% .       Imports
from Thailand accounted for 73.3% of total Benelux imports in 1976 as against .
42% in 1975 .
      Moreover , the prices of    Thai jute yarn are considerably lower than the
prices ruling on the Benelux market ;       depending on the " kind of yarn , the
difference varies between 10% and 40% but is about 30% in most cases .
      This sharp increase in low-priced imports of Thai jute yarn has
unquestionably caused disruption of the Benelux market , the situation being
all the more serious since that market is shrinking as a result of various
 factors :    for example , contraction of outlets as a consequence of
 competition from synthetic substitutes in manufacturing , contraction of
 the formerly substantial demand for carpet yarn as a result of the tufted
 carpet boom .   Belgian production of jute yarn has fallen from 76,000
 tonnes in 1970 to the present figure of around 35,000 tonnes . In the same
 period the workforce declined from 4,400 to 2,100 persons and the number
 of firms was reduced from twenty-five to thirteen .
 (1)   O.J. No . L 115 , 6.5.1977, p. 12
 (2)   1973 :   556 tonnes .
 ---pagebreak---                                    *  2 -
3.    As early as 1975 the Community drew the attention of the Thai authorities
to the seriousness of the situation and requested their cooperation in
seeking a solution .    The Community was also concerned to ensure fair
play with regard to other supplier countries ( India and Bangladesh )
which , within the framework of the generalized tariff preferences , have
given undertakings to exercise voluntary restraint .
      Consultations took place between Thailand and the Community in
January and February last .      A further consultation took place in April ,
without a mutually acceptable solution having been found ;       on this occasion
it was specified , however , that the measure that the Community would be
forced to take would not prejudice the continuation of consultations with
a view to reaching such a solution .
4.    The Commission therefore considers that , given the situation and
the fact that the factors makng for disruption persist , it is essential
that the arrangements which were adopted as an interim protective measure ,
making importation subject to authorization , should be maintained .
      It is pointed out that the interim protective measure adopted by
the Commission pursuant to Article 12 of the above-mentioned Regulation ( EEC )
No . 1439 / 74 expires six weeks following its entry into force unless it is
confirmed by the Council ..
      Accordingly the Commission , in accordance with Artilce 12(6 ) of that
Regulation ( EEC ) No . 1439 / 74 , submits to the Council the following proposal
for a regulation on the appropriate measures te be adopted in this matter .
 ---pagebreak---                        PROPOSAL FOR COUNCIL REGULATION No .
                         of
     maintaining the arrangements making the importation into the Benelux countries
     of jute yarn originating in the Kingdom of Thailand subject to authorization
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to Council Regulation ( EEC ) No . 1439 / 74  of 4 June 1974 on
                            (1)
common rules for imports        , and in particular Article 13 thereof ,
Consultations having taken place within the Advisory Committee set up
under Article 5 thereof ,
Having regard to the proposal from the Commission ,
                                                          (
Whereas by Regulation ( EEC ) No . 969 / 77 of 4 May 1977    the Commission
made the importation into the Benelux countries of jute yarn originating in the
Kingdom of Thailand subject to authorization ;
Whereas the reasons justifying the introduction of these measures persist
and whereas the measures should accordingly be maintained until 31 December
1977,
HAS ADOPTED THIS REGULATION :
                            Article 1
      The arrangements for the authorization of imports into the Benelux
countries of jute yarn originating in the Kingdom of Thailand , adopted
by Regulation ( EEC ) No . 969/ 77, shall remain applicable until 31 December 1977 .
(1)   OJ No . L 159 , 15.6.1974 , p. 1
(2)   OJ No . L 115 , 6.5.1977, p. 12
 ---pagebreak---                            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 the Member States .
Done at Brussels .                        For the Council
                                           The President