- having regard to the second report from the Commission (COM(2000) 263 - C5-0436/2000),

- having regard to the first report from the Commission to the Council on the situation in world shipbuilding of 13 October 1999 (COM(1999) 474),

- having regard to Council Regulation (EC) No 1540/98 of 29 June 1998 establishing new rules on aid to shipbuilding(1),

- having regard to Articles 87, 133 and 157 of the EC Treaty,

- having regard to Rule 47(1) of its Rules of Procedure,

- having regard to the report of the Committee on Industry, External Trade, Research and Energy(A5-0371/2000),

A. whereas the world market in merchant ships remains in crisis on account of dumping by Korean shipyards, with the logical consequence that market shares have altered in favour of Korea and to the detriment of the EU and other states,

B. whereas the EU has successfully restructured its shipbuilding industry, making quantitative and qualitative adjustments,

C. whereas the competitiveness of existing EU shipyards ought to be safeguarded and equality of opportunity attained on the world market,

1. Welcomes the second report from the Commission on the situation in world shipbuilding and broadly supports the Commission's conclusions and recommendations;

2. Notes that the Commission submitted its third report (COM(2000) 730) on 15 November 2000;

3. Regrets that the Commission does not indicate what specific measures are to be used to help the shipbuilding industry to further improve its international competitiveness;

4. Urges the Commission not only to produce reports on the situation in the sector but also to take proper, specific, effective action as a matter of urgency in order to ensure the survival of the European shipbuilding industry;

5. Recalls that the EU has already radically restructured its shipbuilding industry so as to reduce production capacity in orderly manner, with social consequences which are well known;

6. Notes that, as part of the qualitative adjustment, productivity has been increased and competitiveness improved, particularly in the European market niche of the building of cruise ships and specialised ships;

7. Stresses that shipbuilding is a high-technology industry and that European shipbuilders have amply demonstrated their ability to compete in all fields where fair competition has left them a chance;

8. Draws the Commission's attention to the many advantages of cooperation amongst the Member States with a view to specialisation, taking into account technological development, the socio-economic consequences for traditional shipbuilding regions and the need for a strategy to cope with new environmental challenges;

9. Regrets the Commission's decision of 29 November 2000 and the Council's decision of 5 December 2000 not to extend contract-related operating aid to European shipyards; acknowledges the clear position of the Commission and Council on practices by the Korean shipbuilding industry which distort competition; is concerned that if international competitive conditions remain as distorted as they are at present, the Commission and Council will be leaving the European shipbuilding industry unprotected, at least from January until May 2001, which will be a period of uncertainty for the industry;

10. Calls on the Commission to discuss the measures it envisages with the European Parliament without delay; considers that these measures must ensure a level of protection equal to that afforded by the scheme which has operated to date;

11. Calls on the Commission, before the end of this year, to submit a proposal for extending by two years the contract-related operating aid provided for in Article 3 of Regulation (EC) 1540/98 establishing new rules on aid to shipbuilding;

12. Calls in this connection likewise for a review of capacity restrictions for shipyards in the Community and flexible adjustment to demand, particularly in the field of specialised ships;

13. Notes that, at its meeting on 6/7 July 2000, the OECD Working Party on Shipbuilding decided to intensify efforts to prevent a further deterioration of the world shipbuilding market;

14. Calls on the Commission, jointly with other OECD States affected by the crisis in shipbuilding and other appropriate international fora, to cooperate effectively to ensure fair competition worldwide;

15. Calls on the Commission, under the auspices of the OECD, to seek a review of the OECD Agreement respecting normal competitive conditions in the commercial shipbuilding and repair industry of 21 December 1994 in order to ensure that OECD Member States base their shipbuilding measures on the full-cost principle;

16. Draws attention to Article 8 of the Framework Agreement on trade and cooperation between the European Community and its Member States of the one part and the Republic of Korea of the other part, signed on 28 October 1996;

17. Calls on the Commission to consider initiating antidumping measures against imports from the Republic of Korea;

18. Recognises that the Agreed Minutes relating to the world shipbuilding market signed by the EU and Korea on 22 June 2000 constituted progress in the negotiations with that country; deplores, however, the fact that Korea has not abided by its commitments regarding transparency of pricing, as demonstrated by the failure of the Commission's on-the-spot mission of anti-dumping experts last September;

19. Urges the Republic of Korea to comply fully with the obligations in the Agreed Minutes;

20. Notes that the recommended complaint pursuant to Council Regulation (EC) No 3286/94 of 22 December 1994 concerning trade barriers cannot be regarded as an adequate or effective measure, bearing in mind the special nature of a ship as a product;

21. Calls on the Commission to initiate a dispute settlement procedure with the Republic of Korea before the World Trade Organisation (WTO);

22. Calls on the Commission to inform it before the decision to initiate the dispute settlement procedure, and to inform it regularly of the progress of the dispute settlement procedure and propose appropriate further measures to it;

23. Calls on the Commission to continue to investigate what impact the advent of new competitors such as the People's Republic of China is having on the European shipbuilding industry;

24. Calls on the Presidency of the Council to inform Parliament of the state of bilateral negotiations with the Republic of Korea;

25. Instructs its President to forward this resolution to the Council, the Commission and the Member States.