Resolution of the ECSC Consultative Committee for the need for effective implementation of the trade defence instruments to safeguard the sustainable competitivity of the European Union steel industry
9. 11. 1999 EN Official Journal of the European Communities C 321/7 RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE FOR THE NEED FOR EFFECTIVE IMPLEMEN- TATION OF THE TRADE DEFENCE INSTRUMENTS TO SAFEGUARD THE SUSTAINABLE COMPETITIVITY OF THE EUROPEAN UNION STEEL INDUSTRY (1999/C 321/07) (adopted unanimously during the 347th Session of 15 October 1999) THE ECSC CONSULTATIVE COMMITTEE - referring to its previous resolutions devoted totally or partially to problems concerning EU imports and most recently to that dated 23 October 1998 (1), - referring to the comunication on the state of the competi- industry in the European Union tiveness of adopted by the Commission on 5 October 1999 (2). the steel NOTING THAT: - the retention of an indigenous steel industry is essential to the long-term viability of the EU as a manufacturing base, the steel industry constitutes an essential element of the industrial framework of the European economy, all other manufacturing sectors depend to varying degrees on steel as a material, - this price collapse occurred in the positive phase of the business cycle putting the industry in a loss situation, from building the preventing the reserves necessary for the negative phase of the cycle, weakening therefore the industry in Europe and placing its workforce under threat. industry therefore the viability of THEREFORE THE ECSC CONSULTATIVE COMMITTEE, - CONSIDERS that the maintenance of fair trade is in the interests of the steel industry, its workforce and customers. It is an essential condition for the maintenance of an efficient, competitive steel industry in the EU, - REQUESTS the Commission urgently to re-establish the and steel producers, workforce stability that market customers require, - CONSIDERS that such market stability can be achieved by from unfairly traded and injurious giving urgent relief imports, - consumers of steel require an effective and competitive steel industry quality capable of providing product requirements with competitive prices (see point 2. 3 of the communication on competitivity), and - OBSERVES that the communication on durable competitivity affirms that áan essential condition is the existence of fair steel markets. The Commission is competition on all for strict resolved to promote and ensure the respect discipline in competition. í, - customers of the steel industry to continue industry therefore look to the EU steel investment substantial programme in new plant processes and in research and development the communication on competitivity), (see point 4. 1. 3 of its - however, forward investment by the steel industry was the price threatened by the financial consequences of collapse caused by the development of imports in 1998 endangering research programmes and risking undermining thereby the competitivity of the industry and its ability to respond to the needs of its clients. Prices fell as from the second quarter 1998 by 30 % in one year to their lowest level in 25 years, (1) OJ C 371, 1. 12. 1998. (2) Doc. COM(1999) 453 final. - CONSIDERS that today the way in which the trade defence instruments are used by the EU and by its major trading partners constitutes an important factor in the competi- tivity of the steel industry, - STRESSES the importance of the European Union applying its trade laws effectively, - STRONGLY REGRETS the decision by Sir Leon Brittan on the eve of the end of his mandate as a European Commissioner to propose the imposition of provisional measures not against from South Africa, Bulgaria, Iran, Taiwan and Yugoslavia which were the subject of a complaint filed by Eurofer in November 1998 on behalf of 11 European producers, imports of hot rolled coil India, C 321/8 EN Official Journal of the European Communities 9. 11. 1999 - CONSIDERS that the necessary conditions for the imposition of provisional duties - dumping margins, causality and the presence of injury in the investigation period - were clearly established by the Commission services and that provisional duties were entirely appropriate in this case. Failure to propose such measures ignored well-founded evidence of injury and could therefore be considered to be based more on political reasoning than on technical criteria, - NOTES that imports of hot rolled coil from the six countries subject to the complaint represented less than 50 % of coil imports in 1998. The complaint therefore was not designed to close the European market to third country imports but rather to request action against predatory imports traded under conditions which do not conform to WTO rules, - URGES therefore the European Commission to conclude rapidly the investigation on the hot rolled coil complaint with a decision imposing definitive duties. RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE FOR THE EVALUATION BY THE EUROPEAN COMMISSION OF THE MEASURES TAKEN BY THE MEMBER STATES IN FAVOUR OF THEIR COAL MINING INDUSTRIES (adopted less five abstentions during the 347th Session of 15 October 1999) (1999/C 321/08) THE ECSC CONSULTATIVE COMMITTEE, - referring to the position taken in the past regarding the situation of the coal industry in the European Union, and particularly to the Declaration adopted on 25 June 1999 on the role of coal in the 21st century, - referring to the report from the Commission on the application of the Community Rules for State aid to the coal industry in 1996 and 1997, AFTER THE FOLLOWING CONSIDERATIONS: - the conclusions of the Commission report provide a biased evaluation of the situation of the European coal industry, namely by declaring áthat the indigenous coal is sometimes of lower quality than imported coalí, whereas the contrary could also be true, - the biased conclusions of the report may lead into the wrong direction: the Commission should rather recognise efforts made by the European coal industry to supply high- quality coal and to promote efficient use of coal, - the conclusions are in contradiction with the principle of a balanced energy policy based on sustainable development, such as has been explained in the above Declaration of the consultative committee, the and historical disregards - declaring that the aid programmes have promoted a type of álife of its owní and áhabits become standard practiseí is incorrect evolution, the seventies and particularly during the oil crises of eighties, and the fact the Commission itself has continuously taken an active part in implementing State through Commission Decision No aid the coal the framework for 3632/93/ECSC, which is policies of all Member States until July 2002, as well as the enormous efforts made by the industry in terms of capacity and workforce reduction which are a clear indi- cation that such bad habits do not exist, rules, that last - the conclusions do not take account of an objective evaluation of the whole production chain both of EU and imported coal compared to other energy sources. the environmental consequences of Therefore the ECSC consultative committee, - cannot accept the conclusions of the report in their present form, - requests the Commission to recognise the importance of solid fuels for a future energy policy in Europe and to take these remarks into account for the next report