[ParlTrack]

Proposal for a regulation
Recital 3 a (new)

(3a) Trade barriers in the home market of a trading partner tend to support exports from that market to the European Union and thereby generate the conditions for the application of safeguard measures. The global penetration of the Korean automotive market considerably lags the average global penetration of automotive markets throughout the OECD. The Commission should exercise particular vigilance in administering safeguard measures with respect to automotive products, for such time as the overall import penetration of the Korean automotive market is lower than 20 percent.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Recital 13 d-g (new)

(13d) Article 11.1(2) of Chapter Eleven of the Agreement establishes a requirement that the Parties maintain in their respective territories comprehensive competition laws which effectively address restrictive agreements, concerted practices and abuse of dominance by one or more enterprises. (13e) Article 11.6(2) of Chapter Eleven establishes an obligation on the Parties to co-operate in relation to their respective enforcement policies and in the enforcement of their respective competition laws, including through enforcement cooperation, notification, consultation and exchange of non- confidential information based on the Agreement between the European Community and the Government of the Republic of Korea concerning cooperation on anti-competitive activities signed on 23 May 2009 (the "Cooperation Agreement"). (13f) The purpose of the Cooperation Agreement is to contribute to the effective enforcement of the competition laws of each Party through promoting cooperation and coordination between the competition authorities of the Parties. (13g) The current market shares in the automotive sector in the Republic of Korea raise concerns that it is not accessible to car manufacturers based in other markets including the European Union because of anticompetitive activities present in that market.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 1 – paragraph a

(a) "Union industry" means the Union producers as a whole of the like or directly competitive products operating within the territory of the Union, or those Union producers whose collective output of the like or directly competitive products constitutes a major proportion of the total Union production of those products;. In the case where the like or directly competitive product is only one of several products that are made by the producers who constitute the Union industry, the industry shall be defined as the specific operations that are involved in the production of the like or directly competitive product.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 1 - paragraph f (new)

(f) “such conditions as to cause or threaten to cause” includes such factors as the production capacity, utilization rates, currency practices and labour conditions of a third country with regard to the manufacturing of components and materials incorporated into the product concerned, where such content commonly accounts for more than 5 percent of the manufacturing cost of such product.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 1 - paragraph g (new)

(g) "Regional industry" means the producers as a whole of the like or directly competitive products operating within the territory of one or more regions in the Union, or those producers whose collective output of the like or directly competitive products constitutes a major proportion of the total production of those products in one or more regions;

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 2 - paragraph 1

1. A safeguard measure may be imposed in accordance with the provisions set out in this Regulation where a product originating in Korea is, as a result of the reduction or the elimination of the customs duties on that product, being imported in the Union in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the Union industry or to the regional industry producing a like or directly competitive product.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 2 - paragraph 1 a (new)

1a. Where it emerges, primarily on the basis of the factors referred to in Article 4(5) that the conditions laid down for the adoption of measures pursuant to Article 2, paragraph 1, are met in one or more regions of the Union, the Commission shall authorise the application of surveillance or safeguard measures limited to the region(s) concerned.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 3 – paragraph 1 a (new)

1a. An investigation shall be initiated if the volume of Korean automotive imports into the Union increases by more than 5 percent on an annual basis, for such time as the overall import penetration of the Korea automotive market is lower than 20 percent.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 4 – paragraph 5

5. In the investigation the Commission shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of the Union industry, in particular, the rate and amount of the increase in imports of the product concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and employment. In the event that third- country content commonly accounts for more than 5 percent of the manufacturing cost of the product concerned, the Commission shall also evaluate, as bearing on the situation of the Union industry, the production capacity, utilization rates, currency practices and labour conditions of the third countries concerned.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 8

Duration and review of safeguard measures 1. A safeguard measure shall remain in force only for such period of time as may be necessary to prevent or remedy the serious injury and to facilitate adjustment. That period shall not exceed ~~two~~four years, unless it is extended under paragraph 2. 2. The initial period of duration of a safeguard measure may exceptionally be extended by up to ~~two~~four years provided it is determined that the safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting. 3. Extensions shall be adopted in accordance with the procedures of this Regulation applying to investigations and using the same procedures as the initial measures. The total duration of a safeguard measure may not exceed ~~four~~eight years, including any provisional measure. ~~4. A safeguard measure shall not be applied beyond the expiration of the transition period, except with the consent of the Republic of Korea.~~

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 10 a (new)

Article 10a Procedure for the Treatment of Outward Processing Zones under the Rules of Origin Protocol 1. Before the Commission agrees to any decisions within the Committee on Outward Processing Zones on the Korean Peninsula set up pursuant to Article 15.2.1. of the Agreement ("the Committee"), in particular a decision establishing the criteria for identification of geographic areas as "outward processing zones" under Annex IV to the Rules of Origin Protocol ("Annex IV"), or a decision designating specific areas as "outward processing zones" under Annex IV, it shall first comply with the procedures set out in this article. 2. The Commission shall present the Council and the European Parliament a report identifying the criteria used to designate geographical areas as "outward processing zones" under Annex IV at least 180 days before a Committee meeting, or, if a Council decision will be necessary pursuant to Article 218(9) of the Treaty on the Functioning of the European Union, at least 180 days before the Commission submits a proposal for a Council decision to the Council. The Report shall include, as one of the mandatory conditions to be fulfilled by the geographical area before it can be certified under Annex IV, compliance with core human and labour rights UN/ILO conventions, including: (a) International Covenant on Civil and Political Rights; (b) International Covenant on Economic, Social and Cultural Rights; (c) International Convention on the Elimination of All Forms of Racial Discrimination; (d) Convention on the Elimination of All Forms of Discrimination Against Women; (e) Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment; (f) Convention on the Rights of the Child; (g) Convention on the Prevention and Punishment of the Crime of Genocide; (h) Convention concerning Minimum Age for Admission to Employment (No 138); (i) Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (No 182); (j) Convention concerning the Abolition of Forced Labour (No 105); (k) Convention concerning Forced or Compulsory Labour (No 29); (l) Convention concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (No 100); (m) Convention concerning Discrimination in Respect of Employment and Occupation (No 111); (n) Convention concerning Freedom of Association and Protection of the Right to Organise (No 87); (o) Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively (No 98); (p) International Convention on the Suppression and Punishment of the Crime of Apartheid; and (q) any other conventions listed therein, and if not, the reasons therefore. 3. The report shall also specify whether workers in the proposed area enjoy the fundamental rights set out in Article 13.4(3)(a) to (d) in the Agreement, and how compliance with the criteria set out in paragraph 2 will be monitored after the designation of an area as an "outward processing zone." 4. The Commission shall notify the Council and the European Parliament of any proposal by Korea that a specific geographical area be designated by the Committee as an "outward processing zone" pursuant to Article 1 of Annex IV within 30 days of receiving such proposal from Korea, and at least 180 days prior to the meetings of the Committee in which the matter will be discussed. 5. Within 90 days of submitting the notification pursuant to paragraph 4 , the Commission shall present to the Council and to the European Parliament a detailed report assessing whether the proposed area complies with each of the conditions set out by the Committee. In addition, the report shall identify the labour conditions prevalent in the proposed area, including: (a) average wages paid in the proposed area, in comparison to average wages paid in Korea and any adjacent country; and (b) an assessment on whether core human and labour rights UN/ILO conventions listed in paragraph 2are complied with in the proposed area. 6. The Commission shall obtain the European Parliament's consent before deciding on Korea's proposals on designating a specific geographical area under Annex IV.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 10 b (new)

Article 10b Monitoring of Automotive Market Share in Korea 1. Within 60 days of entry into force of this Regulation, the Commission shall create an annual market share monitoring system in accordance with this Article. 2. The purpose of the annual market share monitoring system is to ensure that the Korean market share of the EU automotive producers is not restricted by technical barriers to trade, anticompetitive conduct, and other non-tariff measures. 3. The Commission shall, on an annual basis, provide a report which calculates the share of Korean automotive market held by Korean producers and that held by foreign producers, on the other. Foreign producers' market share shall be broken down at least to indicate the market share held by EU, US, ASEAN, China, Japan, and Other producers. 4. If the foreign producers' joint market shares do not amount to at least 20%, the Commission shall submit to the Council and the European Parliament a detailed report indicating the reasons therefor. The Report shall devote special attention to non-tariff barriers, problems with transparency, and the possibility of anticompetitive conduct in the Korea market. 5. The Commission shall raise any market access problems identified in the report submitted pursuant to paragraph 4 with Korea within the Trade Committee established under Chapter 15 of Agreement, or any of its formations, such as the Working Group on Motor Vehicles, with an aim of identifying and removing the reasons for low import market share in Korea. The Commission shall annually report to the Council and the European Parliament on results of such talks and the estimated timeframe for achieving the purposes set out in paragraph 2.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 10 c (new)

Article 10c Monitoring of Compliance with Chapters Four and Eleven of the Agreement 1. The Commission shall monitor and report to the Council and the European Parliament on Korea's compliance with Chapters Four and Eleven of the Agreement, pursuant to the provisions of this Article. 2. The Commission, after consulting with the Republic of Korea as may be necessary, shall submit a semi-annual report to the Council and the European Parliament on Korea's compliance with Chapter Four and Eleven of the Agreement. The report shall include: (a) a list of all technical regulations affecting the automotive sector, which Korea intends to propose or adopt in the six month period following the issuance of the report; (b) information on Korea's proposed standards in establishment of which Korea does not intend to rely on international standards, and what explanations were given by Korea in response to the Commission's requests, pursuant to Article 4.4(1)(b) of the Agreement; (c) information on whether Korea publishes in advance any measures of general application that it proposes to adopt or to amend (including explanation of the objective and rationale for the proposal), as required by Article 12.3(2)(a) and whether, in case of technical regulations, the Commission requested information on the objective, legal basis and rationale for the measures, under Articles 4.4(1)(c) of the Agreement, and whether satisfactory responses were provided; (d) measures that Korea has taken to comply with Articles 4.4.(1)(d), 12.3(1)(a) and (b) of the Agreement and whether the Commission finds such measures satisfactory; (e) information on whether Korea provides reasonable opportunities for interested persons to comment on proposed measures of general application, allowing sufficient time for such opportunities, as required by Article 12.3.(2)(b) of the Agreement, what such opportunities are, what time was given interested parties to comment and whether the Commission considered such time "sufficient", whether the Commission has submitted, pursuant to Articles 4.4(1)(e) and (f) of the Agreement, its views or written comments on developing of technical regulations in Korea, whether it has requested Korea to provide written responses to such comments, what the responses were, and whether the Commission finds such responses satisfactory; (f) the average time provided by Korea between adoption of new technical regulations and their entry into force, and whether in the Commission's view, such time is "sufficient" under Articles 4.4(1)(g) and 12.3(1)(c) of the Agreement; (g) information on whether the Commission considers that Korea has allowed EU interested persons to participate in formal public consultative process on terms no less favourable than those afforded to its own persons, as mandated by Article 4.4(2) of the Agreement, and whether Korea takes comments submitted by EU interested persons into account, as required by Article 12.3.(2)(c) of the Agreement; and (h) review of Ad Hoc Reports requested and carried out under paragraph 3. 3. The Commission shall, within 180 days of receiving the notification under paragraph 2, point a) , present a report of its findings to the interested party, the Council and the European Parliament. The Report shall state, inter alia: (a) whether the facts underlying the allegation were confirmed by the Commission; (b) whether the Commission considers that Korea has violated its obligations under the Agreement; (c) whether such violation amounts to a "trade obstacle," as defined in Article 2(1) of Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of common commercial policy in order to ensure the exercise of the Community's rights under international trade rules, in particular those established under the auspices of the World Trade Organization1 ("Trade Barriers Regulation"); and (d) recommendation as to the appropriate course of action, in particular whether an investigation under the Trade Barriers Regulation, consultations under the WTO Dispute Settlement Understanding or Chapter 14 of the Agreement, are warranted. 4. If, following the report described in paragraph 3, point b), the Commission initiates an investigation under the Trade Barriers Regulation, any affirmative finding of the existence of "trade obstacle" in the report shall be binding and the investigation shall focus on other elements necessary for EU action under the Trade Barriers Regulation, such as injury and adverse trade effects. _______________________ OJ L 349, 31.12.1994, p. 71

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 10 d (new)

Article 10d Competition 1. The European Commission shall promptly conduct enquiries and examine the conditions of competition and access in the automotive sector in the Republic of Korea through engagement with representatives of the European automotive industry, which shall include the establishment of a process for the formal consideration of comments from enterprises that manufacture automobiles in the Union. 2. The European Commission shall use its powers under Article 3 of the Cooperation Agreement to obtain information about the presence of anticompetitive activities (as defined in the Cooperation Agreement) in the automotive sector in the Republic of Korea. 3. The European Commission shall determine whether there is a reasonable indication that anticompetitive practices are present in the automotive sector in the Republic of Korea, and shall report to the European Parliament its conclusion on this matter and the results of its enquiries under paragraphs 1 and 2, subject to requirements of preserving the confidentiality and business secrets of private undertakings. 4. If the enquiries under paragraphs 1 and 2 lead the European Commission to determine that there is a reasonable indication that anti-competitive activities are present in the automotive sector in the Republic of Korea, then the European Commission shall exercise its powers to request that the KFTC take appropriate enforcement activities pursuant to Article 6 of the Cooperation Agreement.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 10 e (new)

Article 10e Discriminatory Taxation Measures 1. The Commission shall determine whether Korean tax measures affecting de facto or de jure Union industry automotive products violate the TBT Agreement or Chapter 4 of the Agreement and issue a report to the European Parliament and the Council. 2. In particular, the report shall specify: (a) whether such violation amounts to a "trade obstacle," as defined in Article 2(1) of Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of common commercial policy in order to ensure the exercise of the Community's rights under international trade rules, in particular those established under the auspices of the World Trade Organization ("Trade Barriers Regulation"); and (b) in the event that such violation amounts to a “trade obstacle,” a recommendation as to the appropriate course of action, in particular whether an investigation under the Trade Barriers Regulation, consultations under the WTO Dispute Settlement Understanding or Chapter 14 of the Agreement, are warranted. (c) in the event that such a violation does not amount to a “trade obstacle,” a recommendation as to the appropriate course of action for addressing and mitigating the effects of Korean tax measures on Union industry automotive products. 3. If, following this report, the Commission initiates an investigation under the Trade Barriers Regulation, any affirmative finding of the existence of "trade obstacle" in the report shall be binding and the investigation shall focus on other elements necessary for EU action under the Trade Barriers Regulation, such as injury and adverse trade effects.

2010/06/10
Committee: INTA

Ivo BELET

Proposal for a regulation
Article 10 f (new)

Article 10f Transition Period for Authorities Within 6 months of the coming into force of the Agreement, the Commission shall present to the Council and the European Parliament a report on the effect of the 5- year transition period afforded to the parties for bringing certain technical regulations on automotive products, set out in Appendix 2-C-2 and 2-C-3 of the Agreement, into compliance with international standards, reach a conclusion on the extent to which this extended period of transition will cause competitive harm to the Union automotive industry, and express an opinion on the desirability and the feasibility of accelerating compliance by both parties to a 1-year period.

2010/06/10
Committee: INTA

16 Amendments of Ivo BELET related to 2010/0032(COD)

ParlTrack - 2011-2024