Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | INTA | ZALBA BIDEGAIN Pablo (PPE) | LANGE Bernd (S&D), THEURER Michael (ALDE), JADOT Yannick (Verts/ALE), STURDY Robert (ECR), SCHOLZ Helmut (GUE/NGL) |
Legal Basis TFEU 207-p2
Activites
- 2011/05/31 Final act published in Official Journal
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2011/05/11
Final act signed
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2011/05/11
End of procedure in Parliament
- #3081
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2011/04/11
Council Meeting
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2011/04/11
Act adopted by Council after Parliament's 1st reading
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2011/02/17
Decision by Parliament, 1st reading/single reading
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T7-0061/2011
summary
The European Parliament adopted by 495 votes to 16 with 75 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council implementing the bilateral safeguard clause of the EU-Korea Free Trade Agreement. It adopted its position at first reading under the ordinary legislative procedure. The amendments are the result of a compromise agreement between Parliament and Council. It should be noted that a first series of amendments were adopted on 7 September 2010 but the issue had been referred to the competent committee for reconsideration on the same date. The amendments made here replace the amendments adopted on 7 September 2010.The main amendments to the Commission’s proposal are as follows :Definitions: several definitions in the proposal are clarified. The definition for “Union industry” has been amended and a new definition for “interested parties” has been inserted. The concept of threat of serious injury has also been amended in order to stress that a determination of the existence of a threat of serious injury shall be based on verifiable facts and not merely on allegation, conjecture or remote possibility. A new definition of “products" meaning goods originating in the Union or Korea, has been inserted. Types of safeguard measures: safeguard measures may take one of the following forms: suspension of further reduction of the rate of customs duty on the product concerned provided for under the Agreement; orincrease in the rate of customs duty on the product to a level which does not exceed the lesser of: (a) the most-favoured-nation (‘MFN’) applied rate of customs duty on the product in effect at the time the measure is taken; or (b) the base rate of customs duty specified in the Annex 2-A to the Agreement. Monitoring based on evolution of statistics: the text provides that the Commission shall monitor the evolution of import and export statistics of Korean products in sensitive sectors potentially affected by duty drawback from the date of application of the Agreement and shall cooperate and exchange data on a regular basis with Member States and the Union industry. Upon a duly justified request by the industries concerned, the Commission may consider extending the scope of the monitoring to other sectors. The Commission shall present an annual monitoring report to the European Parliament and the Council on updated statistics on imports from Korea of products in the sensitive sectors and those sectors to which monitoring has been extended.. For the purposes of this article, at least the following products shall be considered as falling within the category of sensitive products: textiles and clothing, consumer electronics, passenger cars and also those products included in the additional list drawn up in accordance with the text. For a period of five years following the date of application of the Agreement and upon a duly reasoned request from the Union industry, the Commission shall pay particular attention to any increase in the import of finished sensitive products originating in Korea into the Union where such an increase is attributable to increased use of parts or components imported into Korea from third countries which have not concluded a free trade agreement with the Union and which are covered by the provisions on customs duty drawback or exemption from customs duty. Initiation of proceedings: the text provides that an investigation shall be initiated upon request by a Member State, by any legal person or any association not having legal personality, acting on behalf of the Union industry, or on the Commission's own initiative if it is apparent to the Commission that there is sufficient prima facie evidence to justify such initiation. The request to initiate an investigation shall contain evidence that the conditions for imposing the safeguard measure are met. It shall generally contain the following information: 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. This list is not exhaustive and other relevant factors may also be taken into consideration by the Commission for its determination of the existence of serious injury or threat of serious injury, such as stocks, prices, return on capital employed, cash flow, and other factors which are causing or may have caused serious injury, or threaten to cause serious injury to the Union industry. An investigation may also be initiated in the event that there is a surge of imports concentrated in one or several Member States, provided that there is sufficient prima facie evidence that the conditions for initiation are met.The text also contains provisions clarifying the rules and time-limits regarding the conclusion of the investigation: six months of its initiation, which may be extended by a further period of three months in exceptional circumstances such as the involvement of an unusually high number of parties, or complex market situations. .Prior surveillance measures: where the trend in imports of a product originating in Korea is such that it could lead to market instability, imports of that product may be subject to prior surveillance measures. The Commission may introduce prior surveillance measures for a limited period in the event that there is a surge of imports of products falling into sensitive sectors concentrated in one or several Member States. Provisional safeguard measures: the text provides that provisional safeguard measures shall be applied in critical circumstances where a delay would cause damage to Union industry which would be difficult to repair. In cases of imperative grounds of urgency, the Commission shall adopt applicable provisional safeguard measures immediately. On-line platform: in cases where an investigation commences, the Commission shall ensure password-protected online access to the non-confidential file (‘online platform’), which it shall manage. All relevant, non-confidential information must be disseminated. Interested parties to the investigation as well as Member States and the European Parliament shall be granted access to this online platform. Procedure for the application of Article 14 of the Rules of Origin Protocol: Parliament wanted the establishment of criteria for the application of Article 14 of the Rules of Origin Protocol, in order to ensure the effective operation of the mechanisms provided for therein and to provide for a comprehensive exchange of information with relevant stakeholders. In this regard, the Commission shall, from the date of application of the Agreement, monitor closely the evolution of relevant import and export statistics. Confidentiality: no information of a confidential nature or any information provided on a confidential basis received pursuant to the Regulation shall be disclosed without specific permission from the supplier of such information.Report: the Commission shall make public an annual report on the application and implementation of the Agreement. The report shall include information about the activities of the various bodies responsible for monitoring the implementation of the Agreement and fulfilment of the obligations arising from the latter, including obligations concerning barriers to trade. The report shall also present a summary of the statistics and the evolution of trade with Korea. Specific mention shall be made of the results of the monitoring of duty drawback.The European Parliament may, within one month from the Commission making public the report, invite the Commission to an ad hoc meeting of its competent committee to present and explain any issues related to the implementation of the Agreement.Procedural rules: the text also makes amendments to the rules on the adoption of provisional and definitive safeguard measures, prior surveillance measures and the termination of investigation and proceeding without measures. Declarations: it should be noted that in Statement annexed to the text, the indicates that it will present a yearly report to the European Parliament and Council on the implementation of the EU-Korea FTA and will be ready to discuss with the responsible committee of the European Parliament any issues arising from the implementation of the Agreement. It places some emphasis on the particular attention to the small car sector. In a joint declaration, the Commission and the European Parliament agree on the importance of close cooperation in monitoring the implementation of the EU-Korea Free Trade Agreement (FTA) and the Safeguard Regulation. Towards this end they establish the rules to be followed where the European Parliament adopts a recommendation to initiate a safeguard investigation.
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T7-0061/2011
summary
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2010/09/07
Results of vote in Parliament
- Results of vote in Parliament
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T7-0301/2010
summary
The European Parliament amended, under the ordinary legislative procedure (the former co-decision procedure), the proposal for a Regulation of the European Parliament and of the Council implementing the bilateral safeguard clause of the EU-Korea Free Trade Agreement. The final vote on the legislative resolution has been postponed to a later session. The main amendments made to the Commission proposal are:Definitions: Parliament made a number of amendments with the purpose of clarifying the definitions used in the proposal. In particular, they amended the definition relating to “Union industry” and that relating to “threat of serious injury”, and added a new definition for “interested parties” which means parties affected by the imports of the product in question. Members also added the following definitions:“products”: this means goods produced in the European Union and the Republic of Korea. It does not include goods or components the production of which is contracted out to external manufacturing zones. Before the regulation’s scope can be extended to include products contracted out to external manufacturing zones, it shall be amended in accordance with the ordinary legislative procedure;“such conditions as to cause or threaten to cause”: this includes such factors as the production capacity, utilisation rates, currency practices and labour conditions of a third country with regard to the manufacturing of components and materials incorporated into the product concerned.Regional safeguard measures: Parliament proposes that there should be the option of applying safeguard measures at regional level in exceptional cases in order to cause the least possible disruption to the internal market. The aim is to take due account of the major differences between the specific circumstances obtaining in each Member States and the fact that the FTA with South Korea may have a very different impact on the industry in each. Accordingly, where industries in one or more Member States are particularly severely affected, it should be possible for 'regional' safeguard measures to be brought to bear in order to enable them to adjust to the new situation.Statistical monitoring and surveillance measures: for safeguard measures to be used effectively, the Commission (Eurostat) shall present an annual monitoring report to the European Parliament and the Council on updated statistics on imports from Korea impacting sensitive sectors in the EU as a result of the Agreement (in particular, the automobile sector). In case of a proven threat of injury reported to the Commission by the Union industry, the Commission may consider broadening the scope of the monitoring for other impacted sectors.Monitoring: the Commission shall monitor the evolution of import and export statistics of Korean products, and shall cooperate and exchange data on a regular basis with Member States and the Union industry. The Commission shall ensure that Member States provide adequate and good quality statistical data diligently. The Commission shall closely monitor Korean and third party statistics and forecasts for the range of products potentially affected by duty drawback from the day of entry into force of the Agreement.Surveillance measures: where the trend in imports of a product originating in the Republic of Korea is such that they could lead to one of the situations referred to above, imports of that product may be subject to prior European Union surveillance. The decision to impose surveillance shall be taken by the Commission. Surveillance measures shall have a limited period of validity. Unless otherwise provided, they shall cease to be valid at the end of the second six-month period following the first six months after the measures were introduced. Surveillance measures may be restricted to the territory of one or more regions of the Union where necessary.Timing and deadlines: Parliament wants the investigation period to last a maximum of 200 days instead of the six months, renewable for three months proposed by the Commission, so as to ensure that industry is not left unprotected while an investigation is in progress. The investigation period will be deemed to have started on the day the decision to initiate an investigation is taken or the day on which provisional safeguard measures are adopted.Criteria applicable to the opening of an investigation procedure: in the context of an investigation, the Commission shall assess 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. This list is not exhaustive and other relevant factors may also be taken into consideration by the Commission for its injury determination, such as stocks, prices, return on capital employed, cash flow, and other factors which are causing or may have caused serious injury, or threaten to cause serious injury. In the event that third-country content commonly accounts for a significant amount of the manufacturing cost of the product concerned, the Commission should also evaluate, as bearing on the situation of the Union industry, the production capacity, utilisation rates, currency practices and labour conditions of the third countries concerned. Moreover, in the investigation, the Commission shall evaluate, the observance by the Republic of Korea of the social and environmental standards laid down in Chapter 13 of the Agreement and any consequent effects on price building or unfair competitive advantages potentially leading to serious injury or the threat of serious injury to producers or specific sectors of the economy in the European Union. The Commission shall also evaluate observance of the Agreement’s rules on non-tariff barriers to trade and any serious injury to producers or individual sectors of the economy in the European Union that may result therefrom.Evidence: Members consider that the type of evidence required in order for a proceeding to be initiated needs to be clearly defined, in order to place industries that may be affected in a more secure position. They propose that the adequacy of the evidence supplied should be determined on the basis of the factors that the regulation lays down for the investigation phase. The range of factors should be extended to include others that could be relevant when determining whether serious injury is being caused or there is a threat of it being caused.Involvement of industry and Parliament: Members propose that industry and Parliament should be able to request that an investigation be opened and provisional measures be applied, and should be afforded access to information relating to the investigation process. An investigation shall be initiated upon request by a Member State, the European Parliament, the Domestic Advisory Group, by any legal person or any association not having legal personality, acting on behalf of the Union industry and representing at least 25% of it or on the Commission's own initiative if it is apparent to the Commission that there is sufficient prima facie evidence to justify such initiation. It is proposed that an online platform be set up, on which all non-confidential information supplied to the Commission will be shared. The information must be kept up to date, so as to ensure that the latest information on safeguard proceeding investigations is available. The tasks of following up and reviewing the Agreement and, if necessary, imposing safeguard measures should be carried out in the most transparent manner possible and with the involvement of civil society, as well as interested parties.Duty drawbacks: because it will not be possible to limit customs duty drawback until five years after the Agreement comes into force, it may be necessary, on the basis of this Regulation, to impose safeguard measures in response to a serious injury or threat of serious injury to Union producers that is caused by duty drawback or exemption from duty. Therefore, from the day of the Agreement’s entry into force, the Commission should monitor particularly closely, in particular in sensitive sectors, the rate of inclusion in products imported from the Republic of Korea of components or materials from third countries, any changes in that rate and the impact of such changes on the market situation.Members also want criteria to be drawn up concerning the application of Article 14 of the Rules of Origin Protocol in order to ensure that its provisions are properly applied and that there is close cooperation and effective information sharing with stakeholders.Reintroduction of a request for a safeguard clause: if the European Parliament expresses an objection to the draft decision not to impose bilateral safeguard measures, on the grounds that this decision would negate the intention of the legislator, the Commission shall re-examine the draft decision. Taking the reasons for the objection into account and within the time-limits of the procedure underway, the Commission may submit a new draft decision to the committee or submit a proposal to the European Parliament and the Council in accordance with the Treaty. The Commission shall inform the European Parliament, the Council and the committee of the action which it intends to take and of its reasons for doing so. The Commission shall publish a report setting forth its findings and reasoned conclusions reached on all pertinent issues of fact and law with due regard to the protection of confidential information.Reporting: Parliament asks that the Commission should duly substantiate decisions to terminate proceedings without imposing safeguard measures or to impose measures. It also proposes that it should publish an annual report providing an overview of the requests to initiate investigations that have been submitted, the investigations conducted and their outcome, and decisions to impose provisional or definitive measures, together with statistics showing the trends in trade with Korea, with specific reference being made to duty drawback data. Parliament or the Council may, within one month, summon the Commission to appear before the competent committee of Parliament or of the Council to present and explain any issue related to the application of the safeguard clause, the duty drawback or the FTA in general.Comitology: amendments as regards comitology were also proposed.
- 2010/09/06 Debate in Parliament
- 2010/06/28 Committee report tabled for plenary, 1st reading/single reading
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2010/06/23
Vote in committee, 1st reading/single reading
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2010/02/25
Committee referral announced in Parliament, 1st reading/single reading
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2010/02/09
Legislative proposal published
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COM(2010)0049
summary
PURPOSE: to lay down rules on implementing the bilateral safeguard clause of the EU-Korea Free Trade Agreement.PROPOSED ACT: Regulation of the European Parliament and of the Council.BACKGROUND: on 23 April 2007 the Council authorised the Commission to open negotiations with the Republic of Korea with a view to conclude an EU-Korea Free Trade Agreement. The agreement was then initialled on 15 October 2009. The agreement incorporates a bilateral safeguard clause that provides for the possibility of re-imposing the MFN (Most Favoured Nation) rate when as a result of a trade liberalisation imports take place 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 producing the like or directly competitive product.In order for these measures to be operational, such safeguard clause must be incorporated in EU law not least because the procedural aspects of the imposition of safeguard measures as well as the rights of interested parties, such as the right of defence, need to be specified. CONTENT: this proposal constitutes the legal instrument for the implementation of the safeguard clause of the EU-Korea FTA. The main points are as follows: Principles: a safeguard measure may be imposed in accordance with the provisions set out in the 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 producing a like or directly competitive product. Safeguard measures may take one of the following forms:suspensions of further reduction of the rate of customs duty on the good concerned provided for under the Agreement; orincreases of the rate of customs duty on the good to a level which does not exceed the lesser of: (i) the MFN applied rate of customs duty on the good in effect at the time the measure is taken; or (ii) the base rate of customs duty specified in the Schedules in the Annex of the Agreement.The terms "serious injury", "threat of serious injury" and "transition period" are defined in the text.Initiation of proceedings: the proposal lays down detailed provisions on the initiation of proceedings. The Commission should receive information including available evidence from Member States of any trends in imports which might call for the application of safeguard measures. If there is sufficient evidence to justify the initiation of a proceeding the Commission will publish a notice as provided for in the Agreement in the Official Journal of the European Union.The investigation: the proposal lays down detailed provisions on the opening of investigations, access and inspections by interested parties to the information gathered, hearings for the parties involved and the opportunities for those parties to submit their views as provided for in the Agreement. The Commission shall notify the Republic of Korea in writing of the initiation of an investigation and consult with the Republic of Korea as far in advance of applying a bilateral safeguard measure as practicable, with a view to reviewing the information arising from the investigation and exchanging views on the measure.Pursuant to the Agreement, the proposal sets time limits for the initiation of investigations and for determinations as to whether or not measures are appropriate, with a view to ensuring that such determinations are made quickly, in order to increase legal certainty for the economic operators concerned.Imposition of provisional safeguard measures: an investigation should precede the application of any safeguard measure. However, there is the reservation that the Commission be allowed to apply provisional measures in critical circumstances where a delay would cause damage which it would be difficult to repair, pursuant to a preliminary determination that there is clear evidence that imports of an originating good from Korea have increased as the result of the reduction or elimination of a customs duty under the Agreement, and such imports cause serious injury, or threat thereof, to the domestic industry. Provisional measures shall not apply for more than 200 days.Termination of investigation and proceeding without measures: where bilateral safeguard measures are deemed unnecessary the investigation and proceeding shall be terminated. Imposition of definitive measures: where the facts as finally established show that the circumstances set out in the text are met, a decision to impose definitive bilateral safeguard measures shall be taken in accordance with the Comitology procedure referred to in the proposal. Duration and review of safeguard measures: 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 years, unless it is extended. The initial period of duration of a safeguard measure may exceptionally be extended by up to two 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. The total duration of a safeguard measure may not exceed four years, including any provisional measure. A safeguard measure shall not be applied beyond the expiration of the transition period, except with the consent of the Republic of Korea.Lastly, the proposal lays down rules on confidentiality, committee and decision making process. IMPACT ASSESSMENT: not applicable.FINANCIAL IMPLICATIONS: not applicable.
- DG {'url': 'http://ec.europa.eu/trade/', 'title': 'Trade'}, DE GUCHT Karel
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COM(2010)0049
summary
Documents
- Legislative proposal published: COM(2010)0049
- Committee report tabled for plenary, 1st reading/single reading: A7-0210/2010
- Debate in Parliament: Debate in Parliament
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament, 1st reading/single reading: T7-0301/2010
- Decision by Parliament, 1st reading/single reading: T7-0061/2011
- : Regulation 2011/511
- : OJ L 145 31.05.2011, p. 0019
| Amendments | Dossier |
| 102 |
2010/0032(COD)
2010/06/10
INTA
101 amendments...
Amendment 100 #
Proposal for a regulation Article 6 – paragraph 1 a (new) Amendment 101 #
Proposal for a regulation Article 6 1. Where bilateral safeguard measures are deemed unnecessary the investigation and proceeding shall be terminated on the basis of the procedure referred to in Article 11.2. 2. Without prejudice to paragraph 1, if the European Parliament expresses an objection to the draft decision not to impose bilateral safeguard measures, on the grounds that this decision would negate the intention of the legislator, the Commission shall re-examine the draft decision. Taking the reasons for the objection into account and within the time-limits of the procedure underway, the Commission may submit a new draft decision to the committee or submit a proposal to the European parliament and the Council in accordance with the Treaty. The Commission shall inform the European Parliament, the Council and the committee of the action which it intends to take and of its reasons for doing so. 3. The Commission shall make public, with due regard to the protection of confidential information within the meaning of Article 9, a report with a summary of the material facts and considerations relevant to the determinations.
Amendment 102 #
Proposal for a regulation Article 6 Where bilateral safeguard measures
Amendment 103 #
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
Amendment 104 #
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
Amendment 105 #
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
Amendment 106 #
Proposal for a regulation Article 8 – paragraph 1 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. Th
Amendment 107 #
Proposal for a regulation Article 8 – paragraph 1 a (new) 1a. A safeguard measure shall remain in force, pending the outcome of the review, during any extension period.
Amendment 108 #
Proposal for a regulation Article 8 – paragraph 2 2. The initial period of duration of a safeguard measure may exceptionally be extended
Amendment 109 #
Proposal for a regulation Article 8 – paragraph 3 3. Extensions shall be adopted in accordance with the procedures of this Regulation applying to investigations and
Amendment 110 #
Proposal for a regulation Article 9 – paragraph 5 a (new) 5a. The Commission shall undertake, as soon as the necessary technical framework is in place, to set up a password-protected online portal, which it will manage and through which all relevant information not confidential within the meaning of this article will be disseminated. Member States, registered Union producers, the Domestic Advisory Group and the European Parliament must be granted access to this online platform on request. The information shall include statistics relevant for determining whether evidence shows that the requirements under Article 2(1) have been met, as well as any further information of significance in connection with an investigation.
Amendment 111 #
Proposal for a regulation Article 10 a (new) Article 10a 1. The Commission shall make public an annual report on the application and implementation of the Agreement. The report shall include information about the activities of the various bodies responsible for monitoring the implementation of the Agreement and fulfilment of the obligations arising therefrom, including obligations concerning barriers to trade. 2. Special sections of the report shall deal with the fulfilment of obligations under Chapter 13 of the Agreement and with the activities of the Domestic Advisory Group and the Civil Society Forum. 3. The report shall also present a summary of the statistics and the evolution of trade with Korea. Specific mention shall be made of the results of the monitoring of duty drawback. 4. The European Parliament or the Council may, within one month, invite the Commission to an ad hoc meeting of the competent committee of Parliament or of the Council to present and explain any issues related to implementation of the FTA.
Amendment 112 #
Proposal for a regulation Article 10 a (new) Amendment 113 #
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.
Amendment 114 #
Proposal for a regulation Article 10 c (new) Amendment 115 #
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.
Amendment 116 #
Proposal for a regulation Article 10 e (new) Amendment 117 #
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.
Amendment 118 #
Proposal for a regulation Article 11 a (new) Article 11a 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.
Amendment 119 #
Proposal for a regulation Article 11 a (new) Amendment 120 #
Proposal for a regulation Article 11 a (new) Article 11a Availability of the European Globalization Adjustment Fund For the purposes of the Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund ("EGAF Regulation"), it shall be understood that: (a)"major structural changes in world trade patterns due to globalisation", as used in Article 1(1) of the EGAF Regulation shall include an increase in Korean imports to Europe, or failure to increase EU exports to Korea; (b) redundancies in the automotive industry: – have "significant adverse impact on the regional or local economy," and "serious impact on employment and the local economy", as used in, respectively, Articles 1(1) and 2(c) of the EGAF Regulation; and – are "exceptional circumstances" as used in Article 2(c) of the EFAF Regulation.
Amendment 121 #
Proposal for a regulation Article 11 a (new) Article 11a Competition 1. 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 industrial sector in the Republic of Korea. 2. The European Commission shall determine whether there is a reasonable indication that anticompetitive practices are present in the industrial 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 paragraph 1, subject to requirements of preserving the confidentiality and business secrets of private undertakings. 3. 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 an industrial 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.
Amendment 122 #
Proposal for a regulation Article 11 b (new) Amendment 123 #
Proposal for a regulation Article 11 b (new) Article 11b Availability of the European Globalization Adjustment Fund For the purposes of the Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund ("EGAF Regulation"), it shall be understood that: (a)"major structural changes in world trade patterns due to globalisation", as used in Article 1(1) of the EGAF Regulation shall include an increase in Korean imports to Europe, or failure to increase EU exports to Korea; (b) redundancies in the automotive industry: – have "significant adverse impact on the regional or local economy," and "serious impact on employment and the local economy", as used in, respectively, Articles 1(1) and 2(c) of the EGAF Regulation; and – are "exceptional circumstances" as used in Article 2(c) of the EFAF Regulation.
Amendment 124 #
Proposal for a regulation Article 11 b (new) Article 11b 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.
Amendment 125 #
Proposal for a regulation Article 11 b (new) Amendment 126 #
Proposal for a regulation Article 11 c (new) Article 11c Availability of the European Globalization Adjustment Fund For the purposes of the Regulation (EC) No 1927/2006 of the European Parliament and of the Council of 20 December 2006 on establishing the European Globalisation Adjustment Fund ("EGAF Regulation"), it shall be understood that: (a)"major structural changes in world trade patterns due to globalisation", as used in Article 1(1) of the EGAF Regulation shall include an increase in Korean imports to Europe, or failure to increase EU exports to Korea; (b) redundancies in the automotive industry: – have "significant adverse impact on the regional or local economy," and "serious impact on employment and the local economy", as used in, respectively, Articles 1(1) and 2(c) of the EGAF Regulation; and – are "exceptional circumstances" as used in Article 2(c) of the EFAF Regulation.
Amendment 127 #
Proposal for a regulation Article 11 c (new) Amendment 128 #
Proposal for a regulation Article 11 d (new) Article 11d 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.
Amendment 129 #
Proposal for a regulation Article 11 e (new) Article 11e 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 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.
Amendment 130 #
Proposal for a regulation Article 11 f (new) Amendment 30 #
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.
Amendment 31 #
Proposal for a regulation Recital 5 (5) Safeguard measures may be considered only if the product in question is imported into the Union in such increased quantities or the economic activity in question is increased in such a measure, and under such conditions as to cause, or threaten to cause, serious injury to the Unions producers of like or directly competing products or economic activities as laid down in Article 3.1. Chapter 3 of the Agreement;
Amendment 32 #
Proposal for a regulation Recital 5 a (new) (5a) Serious injury or the threat of serious injury to Union producers may also be caused by the non-fulfilment of specific obligations under Chapter 13 of the Agreement – particularly in respect of the social and environmental standards laid down therein – thus necessitating the imposition of safeguard measures.
Amendment 33 #
Proposal for a regulation Recital 5 b (new) (5b) Whether there is serious injury or the threat of serious injury to producers or specific sectors of the economy in the Union also depends on whether the Agreement’s rules on non-tariff barriers to trade are observed. This consideration could necessitate the imposition of safeguard measures.
Amendment 34 #
Proposal for a regulation Recital 6 a (new) (6a) The tasks of following up and reviewing the Agreement and, if necessary, imposing safeguard measures should be carried out in the most transparent manner possible and with the involvement of civil society. To that end, the Domestic Advisory Group and the Civil Society Forum need to be included at every stage of the process.
Amendment 35 #
Proposal for a regulation Recital 6 b (new) (6b) The Commission should submit a report once a year on the application and implementation of the Agreement and the application of the safeguard measures. Should it become apparent that the safeguard measures are insufficient, the Commission should submit a comprehensive proposal for more far- reaching safeguard measures, such as limits on quantities, quotas, import authorisation arrangements or other corrective measures.
Amendment 36 #
Proposal for a regulation Recital 7 a (new) (7a) The reliability of statistics about all imports from Korea to the EU is therefore crucial to determine the existence of a threat of serious injury to Union industry as a whole or its different sectors from the day of entry into force of the Agreement.
Amendment 37 #
Proposal for a regulation Recital 13 a (new) (13a) The Commission, the Member States and the Union producers should monitor and evaluate, on an ongoing basis, the import and export statistics for all product lines covered by the Agreement from the day that it comes into force, so that any serious injury or threat of serious injury to Union producers can be identified in good time.
Amendment 38 #
Proposal for a regulation Recital 13 b (new) (13b) Because it will not be possible to limit customs duty drawback until five years after the Agreement comes into force, it may be necessary, on the basis of this regulation, to impose safeguard measures in response to a serious injury or threat of serious injury to Union producers that is caused by duty drawback or exemption from duty. Therefore, from the day of the Agreement’s entry into force, the Commission should monitor particularly closely the rate of inclusion in products imported from the Republic of Korea of components or materials from third countries, any changes in that rate and the impact of such changes on the market situation.
Amendment 39 #
Proposal for a regulation Recital 13 c (new) (13c) In order to prevent serious injury or the threat of serious injury to producers or sectors of the economy in the Union, the Commission should closely monitor production capacities in those third countries in which components or materials which are included in products covered by the Agreement are manufactured, as well as the observance in those countries of ILO and UN standards in relation to social and working conditions and environmental standards.
Amendment 40 #
Proposal for a regulation Recital 13 d-f (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.
Amendment 41 #
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.
Amendment 42 #
Proposal for a regulation Recital 14 (14) The
Amendment 43 #
Proposal for a regulation Recital 14 a (new) (14a) This regulation should extend only to goods produced in the European Union and in the Republic of Korea. It should not cover products, parts or components the production of which is contracted out to manufacturing zones such as Kaesong. Before the scope of the regulation can be extended to include products contracted out to external manufacturing zones, it should be amended in accordance with the ordinary legislative procedure. In any extension of the regulation’s scope, it should be ensured that obligations under Chapter 13 of the Agreement are also met in external manufacturing zones.
Amendment 44 #
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
Amendment 45 #
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;
Amendment 46 #
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
Amendment 47 #
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;
Amendment 48 #
Proposal for a regulation Article 1 – paragraph c (c) "threat of serious injury" means serious injury that is clearly imminent; a determination of the existence of a threat of serious injury shall be based on facts and not merely on allegation, conjecture or remote possibility; forecasts, estimations and analyses made on the basis of factors laid down in Article 4(5), shall inter alia, be taken into account to determine the existence of a threat of serious injury;
Amendment 49 #
Proposal for a regulation Article 1 - paragraph c (c) "threat of serious injury" means serious injury that is clearly imminent; a determination of the existence of a threat of serious injury shall be based on verifiable facts and not merely on allegation, conjecture or remote possibility; forecasts, estimations and analysis made on the basis of factors laid down in article 4, paragraph 5, shall inter alia, be admissible to
Amendment 50 #
Proposal for a regulation Article 1 - paragraph c (c) "threat of serious injury" means serious injury that is clearly imminent; a determination of the existence of a threat of serious injury shall be based on facts and not merely on allegation, conjecture or remote possibility; analyses made on the basis of factors laid down in Article 4(5), shall inter alia, be taken into account when determining the existence of a threat of serious injury;
Amendment 51 #
Proposal for a regulation Article 1 - paragraph d Amendment 52 #
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.
Amendment 53 #
Proposal for a regulation Article 1 - paragraph f (new) (f) "Interested parties" means parties commercially affected by the imports of the product in question and includes Union industry.
Amendment 54 #
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.
Amendment 55 #
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.
Amendment 56 #
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;
Amendment 57 #
Proposal for a regulation Article 1 - paragraph f (new) (f) “products” means goods produced in the European Union and the Republic of Korea. It does not include goods or components the production of which is contracted out to external manufacturing zones. Before the regulation’s scope can be extended to include products contracted out to external manufacturing zones, it must be amended in accordance with the ordinary legislative procedure.
Amendment 58 #
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.
Amendment 59 #
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;
Amendment 60 #
Proposal for a regulation Article 1 - paragraph g (new) Amendment 61 #
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;
Amendment 62 #
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;
Amendment 63 #
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 or an economic activity originating in Korea is, as a result of the reduction or the elimination of the customs duties or market opening on that product
Amendment 64 #
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.
Amendment 65 #
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,
Amendment 66 #
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.
Amendment 67 #
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.
Amendment 68 #
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.
Amendment 69 #
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(1) are met in one or more areas of the Union, the Commission may, after having examined alternative solutions, exceptionally authorise the application of surveillance or safeguard measures limited to the area(s) of the Union concerned if it considers that such measures applied at that level are more appropriate than measures applied throughout the Union. These measures must be temporary and must disrupt the operation of the internal market as little as possible. They shall take one of the forms provided for in Article 2(2).
Amendment 70 #
Proposal for a regulation Article 2 - paragraph 2 2. Safeguard measures may take one of the following forms: (a) suspensions of further reduction of the rate of customs duty on the good concerned provided for under the Agreement; or (b) increases of the rate of customs duty on the good to a level which does not exceed the lesser of: – the MFN applied rate of customs duty on the good in effect at the time the measure is taken; or – the base rate of customs duty specified in the Schedules to Annex 2-A
Amendment 71 #
Proposal for a regulation Article 2 a (new) Article 2a Monitoring The Commission shall monitor the evolution of import and export statistics of Korean products, and shall cooperate and exchange data on a regular basis with Member States and the Union industry. The Commission shall ensure that Member States provide adequate and good quality statistical data diligently. The Commission shall closely monitor Korean and third party statistics and forecasts for the range of products potentially affected by duty drawback from the day of entry into force of the Agreement. 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. 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 any useful information on legislative and regulatory proposals, on technical and/or juridical decisions that could directly or indirectly affect the automotive and textile sector of the Agreement. Such report shall also determine whether Korean tax measures affecting de facto or de jure Union industry automotive or textile products violate the Agreement on Technical Barriers to Trade ("TBT Agreement") or Chapter 4 of the Agreement.
Amendment 72 #
Proposal for a regulation Article 2 a (new) Article 2a Monitoring The Commission will monitor the evolution of import and export statistics of Korean products, and will cooperate and exchange data on a regular basis with Member States, the European Parliament and the Union industry. The Commission will ensure that Member States provide adequate and good quality statistical data diligently.
Amendment 73 #
Proposal for a regulation Article 2 - paragraph 3 (new) 3. (a) For safeguard measures to be used effectively, the Commission (Eurostat) shall present a quarterly monitoring report to the European Parliament and the Council on updated statistics about imports from Korea impacting sensitive sectors in the EU as a result of the Agreement; (b) In case of a proven threat of injury reported to the Commission by the Union industry, the Commission may consider broadening the scope of the monitoring for other impacted sectors (interested parties);
Amendment 74 #
Proposal for a regulation Article 3 - paragraph 1 1. An investigation shall be initiated upon request by a Member State, the European Parliament, or by any legal person acting on behalf of the Union industry and representing at least 25% of it, or on the Commission’s own initiative if it is apparent to the Commission that there is sufficient
Amendment 75 #
Proposal for a regulation Article 3 – paragraph 1 1. An investigation shall be initiated upon request by a Member State, the European Parliament, the Domestic Advisory Group or a representative of producer associations or sectors of the economy or on the Commission’s own initiative if it is apparent to the Commission that there is sufficient evidence to justify such initiation.
Amendment 76 #
Proposal for a regulation Article 3 – paragraph 1 1. An investigation shall be initiated upon request by a Member State, a Union industry and its members or on the Commission’s own initiative if it is apparent to the Commission that there is sufficient evidence to justify such initiation.
Amendment 77 #
Proposal for a regulation Article 3 – paragraph 1 a (new) 1a. The request to initiate an investigation shall contain evidence of the meeting of the conditions for imposing the safeguard measure within the meaning of Article 2(1). The request should generally contain the following information: 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.
Amendment 78 #
Proposal for a regulation Article 3 – paragraph 1 a (new) 1a. The request to initiate an investigation shall contain evidence of the meeting of the conditions for imposing the safeguard measure within the meaning of Article 2(1). The request should generally contain the following information: 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.
Amendment 79 #
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.
Amendment 80 #
Proposal for a regulation Article 3 – paragraph 1 a (new) 1a. In applying the first paragraph of this article, and for a period of five years after the Agreement’s entry into force, the Commission shall pay particular attention to finished products from the Republic of Korea being imported into the European Union at an increased rate where such an increase is attributable to increased use in the finished products of parts or components imported into the Republic of Korea from third countries which have not concluded a free trade agreement with the European Union and which are covered by the provisions for customs duty drawback or exemption from customs duty.
Amendment 81 #
Proposal for a regulation Article 3 - paragraph 1 b (new) 1b. 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.
Amendment 82 #
Proposal for a regulation Article 3 - paragraph 2 2. The Member States or the Union industry shall inform the Commission should trends in imports from the Republic of Korea appear to call for safeguard measures. That information shall include the evidence available as determined on the basis of factors laid down in Article 4. The Commission shall pass that information on to all Member States within three working days.
Amendment 83 #
Proposal for a regulation Article 3 - paragraph 3 3. Consultation with the Member States shall take place within eight working days of the Commission’s sending the information
Amendment 84 #
Proposal for a regulation Article 3 - paragraph 4 a (new) 4a. Evidence collected for the purpose of initiating proceedings in accordance with Article 14(2) of the Rules of Origin Protocol annexed to the Agreement (Drawback of, or exemption from, customs duties) may also be used for investigations with a view to the imposition of safeguard measures where the conditions stipulated in this article are met.
Amendment 85 #
Proposal for a regulation Article 3 c (new) 3c. 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. There is reason to believe that the Korean automotive market is highly protected and that 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 automotive products, for such time as the overall import penetration of the Korean automotive market is lower than 20 percent.
Amendment 86 #
Proposal for a regulation Article 4 – paragraph 1 1. Following the initiation of the proceeding, the Commission shall commence an investigation. The investigation period as set in Article 4(3) shall start on the day on which the notice of initiation of a proceeding is published in the Official Journal of the European Union in accordance with Article 3(3).
Amendment 87 #
Proposal for a regulation Article 4 – paragraph 1 1. Following the initiation of the proceeding, the Commission shall commence an investigation. The investigation period as set in Article 4(3) shall start on the day of the publication in the Official Journal of the European Union of the notice as set in Article 3(3).
Amendment 88 #
Proposal for a regulation Article 4 – paragraph 2 a (new) 2a. The Commission shall ensure that all the data and statistics required for an investigation are available, comprehensible, transparent and checkable.
Amendment 89 #
Proposal for a regulation Article 4 – paragraph 3 3. The investigation shall
Amendment 90 #
Proposal for a regulation Article 4 – paragraph 3 a (new) 3a. The Commission shall implement definitive bilateral safeguard measures within 200 days after the publication of the notice in the Official Journal of the European Union.
Amendment 91 #
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
Amendment 92 #
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
Amendment 93 #
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.
Amendment 94 #
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.
Amendment 95 #
Proposal for a regulation Article 4 – paragraph 5 a (new) 5a. If inputs, parts and components from third countries benefitting from duty drawback are targeted by EU anti- dumping and/or anti-subsidy investigations, the Commission will analyze the additional adverse effects that the duty drawback would have on EU producers. The Commission shall assess the merits of excluding from the scope of the investigation and subsequent measures, the inputs, parts and components incorporated into EU industrial assemblies against the risks of a change in the pattern of trade which may be deemed to circumvent the remedial effects of the duties. Such an exclusion shall be granted unless the risks of circumvention outweigh the benefits.
Amendment 96 #
Proposal for a regulation Article 4 – paragraph 5 a (new) 5a. In the investigation, the Commission shall evaluate, in particular, the observance by the Republic of Korea of the social and environmental standards laid down in Chapter 13 of the Agreement and any consequent effects on price building or unfair competitive advantages potentially leading to serious injury or the threat of serious injury to producers or specific sectors of the economy in the European Union.
Amendment 97 #
Proposal for a regulation Article 4 – paragraph 5 b (new) 5b. In the investigation, the Commission shall also evaluate observance of the Agreement’s rules on non-tariff barriers to trade and any serious injury to producers or individual sectors of the economy in the European Union that may result therefrom.
Amendment 98 #
Proposal for a regulation Article 4 – paragraph 6 a (new) 6a. If inputs, parts and components from third countries benefitting from duty drawback are targeted by EU anti- dumping and/or anti-subsidy investigations, the Commission will analyze the additional adverse effects that the duty drawback would have on EU producers. The Commission shall assess the merits of excluding from the scope of the investigation and subsequent measures, the inputs, parts and components incorporated into EU industrial assemblies against the risks of a change in the pattern of trade which may be deemed to circumvent the remedial effects of the duties. Such an exclusion shall be granted unless the risks of circumvention outweigh the benefits.
Amendment 99 #
Proposal for a regulation Article 5 – paragraph 1 1. Provisional safeguard measures shall be applied in critical circumstances where a delay would cause damage which it would be difficult to repair, pursuant to a preliminary determination that there is
source: PE-442.964
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