WRITTEN QUESTION E-2657/96 by Gerhard Schmid (PSE) to the Commission (15 October 1996)

Subject: Structural crisis cartel in the European porcelain industry

Since 1992 the German porcelain industry has lost more than 5000 jobs. The situation is similar in other Member States. Cheap imports from East Asia and the Eastern European countries are largely responsible.

1. Will the Commission approve the imposition of quotas on porcelain imports from China in 1997 as well? If not, why not?

2. What is the Commission's view of the effectiveness of a structural crisis cartel in the European porcelain industry? Would the Commission agree to the temporary creation of a structural crisis cartel? If not, why not?

Answer given by Sir Leon Brittan on behalf of the Commission (15 November 1996)

Council Regulation (EC) No 519/94 of 7 March 1994 ((OJ L 67, 10.3.1994. )) which is currently in force, lays down common rules for imports from certain third countries, including the People's Republic of China. Annex II lays down quotas for certain products originating in China which are applicable, inter alia, to porcelain tableware or kitchenware.

In its December 1995 report to the Council on the quantitative quotas applied under the above Regulation ((COM(95) 614. )), the Commission considered that, in the light of the condition of the Community industries concerned, as well as of the markets for the products in question, the system of quotas on imports from China should be maintained, especially for porcelain and ceramic tableware. After considerable debate on this issue, the Council, in April 1996, decided by Regulation (EC) No 752/96 ((OJ L 103, 26.4.1996. )) on a limited increase in the said quota for these products. The Commission is now in the process of assessing the available data with a view to finalizing this year's report.

The Commission is not aware of the setting up of a 'structural crisis' cartel of the European porcelain industry and is thus not able to comment on it. Should the Honourable Member be able to explain in more detail the scope and activities of such an association, the Commission would of course be prepared to supplement the present answer.