Local view for "http://purl.org/linkedpolitics/eu/plenary/2000-12-14-Speech-4-130"
| Predicate | Value (sorted: default) |
|---|---|
| rdf:type | |
| dcterms:Date | |
| dcterms:Is Part Of | |
| dcterms:Language | |
| lpv:document identification number |
"en.20001214.3.4-130"2
|
| lpv:hasSubsequent | |
| lpv:speaker | |
| lpv:spoken text |
"Mr President, I thank you for the opportunity to update Parliament on the market situation in world shipbuilding and on the conclusions of the Council last week. I want to thank Mr Langen for his report. Although the report refers to the Commission's second shipbuilding report of May 2000, it has been noted here that the third report was done by mid-November and I limit my comments to that third report in this delicate issue.
The market analysis contained in the third report does not indicate improvement in the market situation. South Korea has continuously increased its market share, both to the detriment of the Japanese and EU yards, and despite strenuous efforts by the Commission, including contacts at the highest level, the bilateral negotiations with the government of South Korea have not yielded concrete results that could remedy the market situation. This is despite the conclusions of accurate minutes in June which pointed to the way forward.
As a result of this failure, a complaint by industry under the trade barrier regulation has been launched in October this year and Commissioner Lamy announced on 4 December the Commission's decision to open an investigation. This process will not give quick results and if it goes to its ultimate conclusion, it will take up to two years. Under Regulation No 1540/98, the Commission is obliged to propose measures. In reality, there are limited instruments available to the Commission and Member States in order to defend the EU shipbuilding industry. The potential of trade principles has not yet been seen and their effectiveness needs to be proved.
Discussions in the OECD have made little progress, very little progress, and the possibility of an internationally binding agreement on shipbuilding seems remote. The IMF is also cautious on the issue of Korean shipbuilding, as it sees itself as dealing only with macroeconomic conditions rather than with sectoral problems. Improving competitiveness of the EU yards is encouraged by the Commission but, in the face of massive price undercutting by Korean yards, the achievable progress in productivity is not sufficient. Nevertheless, all the available instruments should be used better, including aids for research and development.
In the light of these factual elements, the Commission concluded at its meeting of 29 November that if the Commission does not achieve a satisfactory negotiated solution with Korea in the framework of the TBR procedure, the Commission will report to the Council by 1 May next year and will propose to bring the case to the WTO. In addition, and importantly, the Commission will, at the same time, propose a defensive temporary support mechanism designed to counter the unfair Korean practices. The Commission is also ready to explore the possibilities of greater use of national support for research and development and it is noted that the general operating aids will expire after 31 December 2000.
I would like to explain the rationale behind the position adopted by the Commission. The Commission believes that the Community should seek to strengthen its negotiating position vis-à-vis Korea by providing an incentive to reach a rapid agreement that would resolve the current problems. This is why the Commission decided on a defensive temporary support mechanism designed to counter the unfair Korean practices. This would be proposed if a satisfactory agreement with Korea cannot be achieved during the course of the investigation procedure under the trade barriers regulation. The mechanisms would apply until the outcome of that WTO procedure is decided. The details of the mechanisms will need to be further elaborated. They would be limited to those market segments where it has been demonstrated that EU industry has been directly injured by unfair Korean practices.
On the question of research and development in the shipbuilding sector, the Commission concluded that in addition to the substantial Community funding available under research framework programmes which provide EUR 130 m in five years, the possibility of improving the aids allowed for this purpose should be explored. Industry should seriously reflect about how these instruments can be used to adapt their activities in a way which will ensure the future of the sector on a lasting basis.
The Industry Council of 5 December this year discussed at length the shipbuilding issue based on the Commission's third report and its decision of 29 November 2000. It requested the Commission to continue with its market monitoring, to follow up closely on the TBR case with a view to bring the problem to the WTO if required and to address the issue in all relevant international fora. The Council also took note of the Commission's initiative to propose a temporary support mechanism for EU shipbuilding in case no progress is made with Korea by 1 May 2001. The Council emphasised that such a support mechanism must not distort competition inside the EU. The Commission will be reporting on this situation again in April and, of course, we are also available in the European Parliament."@en1
|
| lpv:unclassifiedMetadata |
Named graphs describing this resource:
The resource appears as object in 2 triples