DRAFT RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE

on the limitation of scrap exports to the EU by central and east european countries, the Baltic States and the CIS

(96/C 36/05)

(Text with EEA relevance)

(Adopted by the ECSC Consultative Committee at its 320th meeting, held in Luxembourg on 19 December 1995, with five abstentions)

THE ECSC CONSULTATIVE COMMITTEE:

- underlines that it has already stressed to the Commission the risk inherent in the facility granted to eastern European countries to limit their scrap exports to the EU, facility included in the association and cooperation agreements,

- notes with regret that these risks have actually materialized, since more and more eastern European countries have decided to prohibit, set a ceiling or heavily tax scrap exports to the EU,

- observes that these measures allow the steel producers of these countries to buy this important raw material at very low prices (often half the international price level), thus creating an artificial reduction in production costs compared to those operating electric arc furnaces,

- notes that this situation limits the sources of supply available to the EU producers, and moreover, that it creates abnormal conditions of competition in the EU and on the international markets for finished products, particularly for long products,

- invites the Commission to continue to take care that the eastern European countries implement the agreement according to the principles of gradual opening towards the respective markets and in compliance with the rules of normal competition,

- requests the Commission to intensify its efforts with the competent Community authorities to apply the following measures:

- negotiation with countries prohibiting scrap exports with a view to the immediate fixing of a quantity ceiling,

- negotiation of a precise schedule for the abolition of quantity ceilings,

- progressive withdrawal of any export duty,

- in the event that the above objectives prove unattainable after the Commission has exhausted all possibilities of intervention at its disposal, imposition of compensatory duties on imports of steel products from works of those countries which benefit from artificial scrap supply conditions.