COMMITTEE OF E.U. SHIPBUILDERS ASSOCIATIONS

The European Shipbuilders have acknowledged the Commission proposals from today with dissatisfaction and preoccupation. CESAs main concern is that this proposal could be misperceived in Korea as a signal of weakness. After the EU Commission has reconfirmed the massive Korean market distortions, the factual reaction is in the form of another threat, while at the same time the only effective defense instrument, the operating aid, is eliminated.

The European shipyards are facing since many years the trade distortions, demonstrated in the Commission's third report on world shipbuilding released two weeks ago. Only since late 1999, Europe has started to use trade policy in a serious way to act against these distortions. It could be regarded as the normal procedure to tackle trade problems by constantly increasing pressure on the counterpart. The latest step in this respect was the move of CESA to launch its complaint under the Trade Barrier Regulation(TBR-complaint). CESA welcomes that the Commission has committed itself to pursue the TBRcomplaint rigorously, once it is accepted.

However, to demonstrate massive trade distortions and to state commitments in the area of trade policy on the one hand and to eliminate the only defense instrument available to European shipyards - the operating aid - at the same time seems confusing. Instead of eliminating operating aid with the perspective to reintroduce it, if no change in Korea can be reached, it would have been more convincing to keep it in place until progress is made. Actually, all arguments presented by the Commission would support such a conclusion and not the proposal now tabled by the Commission. CESA is looking forward to the Council meeting on 5 December 2000, to strengthen European shipbuilding policy.

　

Madrid/Brussels 29-11-2000

　

For more information please contact:

　

Mr. Jose Esteban Perez

Secretary General of CESA

Tel.: +34 91 417 0433

Fax: +34 91 555 0185

E-mail: uninave@retemail.es