18.1.2002 Official Journal of the European Communities L16/3 COMMISSION REGULATION (EC) No 76/2002 of 17 January 2002 introducing prior Community surveillance of imports of certain iron and steel products covered by the ECSC and EC Treaties originating in certain third countries THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3285/94 of 22 December 1994 on common rules for imports and repealing Regulation (EC) No 518/94 (1), as last amended by Regulation (EC) No 24742000 (3, and in particular Article 11 thereof, Having regard to Council Regulation (EC) No 519/94 of 7 March 1994 on common rules for imports from certain third countries and repealing Regulations (EEC) No 1765/82, (EEC) No 1766/82 and (EEC) No 3420/83 (?), as last amended by Regulation (EC) No 1138/98 (¥, and in particular Article 9(1) thereof, Consultations having taken place within the committees set up under the Regulations referred to above, Whereas: (1)  In accordance with Regulations (EC) No 3285/94 and (EC) No 519/94, products covered by the Treaty estab- lishing the European Coal and Steel Community are subject to the common rules for imports, and it is therefore necessary that the arrangements for Community surveillance measures in respect of ECSC products be adopted in accordance with those Regula- tions. (2)  The situation on the steel market has worsened consid- erably in 2001 under the combined impact of a number of factors, chief among them being a marked downturn in the world economy evident from the outset of the year and the recession that began to affect some econo- mies, including that of the United States, in the latter half of the year. (3)  The steel market has also been unsettled by the uncer- tainty and hedging caused by the possibility of import restrictions on the US market following the US adminis- tration's ‘Section 201’ safeguard investigation. 1 () O L 349, 31.12.1994, p. 53. () O] L 286, 11.11.2000, p. 1. () O] L 67, 10.3.1994, p. 89. (% O] L 159, 3.6.1998, p. 1. (4) Should import restrictions actually be applied on the US market, they are likely to cause major fluctuations in the structure of international trade, and in particular the deflection of trade towards the Community market. Such deflection could seriously harm the Community steel industry. Available economic indicators and estimates for 2001 show the following trends: (A) Production. Production of crude steel in the Community in 2001 is expected to be about 159 million tonnes. This estimate is not only 2,5% lower than production in 2000 (163,2 million tonnes), it is also lower than the levels recorded in 1997 (159,4 million tonnes) and 1998 (159,7 million tonnes). (B) Imports. Imports of ECSC iron and steel products into the Community from all third countries will remain appreciably the same as in 2000, at about 25 million tonnes. By way of comparison, Community imports of these products totalled 12,2 million tonnes in 1996. This means that steel imports into the Community have more than doubled in the past five years. (O) Exports. At a probable level of about 21 million tonnes, Community exports of ECSC iron and steel products in 2001 are about 8 % down on the previous year. By way of comparison, Community imports of these products amounted to 28 million tonnes in 1996. Community exports to the US and Canada have been hit particularly hard, falling by an estimated 36 % and 32 % respectively. This trend will worsen in 2002 if restrictions are introduced on the US market. For 2001 as a whole, the Community is expected to be a net importer of iron and steel products, with a trade deficit in excess of 4 million tonnes. In 1996 the Community recorded a trade surplus of the order of 15,8 million tonnes. (D) Prices. Prices for iron and steel products in 2001 were 18 % lower on average than in 2000.