91999E0807

WRITTEN QUESTION E-0807/99

by Nikitas Kaklamanis (UPE) to the Commission

(6 April 1999)

Subject: Turkish exports of steel products

Turkey has been exempted from the Community surveillance system for iron and steel products covered by the EEC and ECSC Treaties, despite opposition from Greece which duly lodged its objections with the competent management committee of the European Coal and Steel Community (ECSC).

The above exemption has had the effect of promoting exports of Turkish steel products, which are offered at low prices to the detriment of Member States' production. According to the latest statistics, Turkish exports of steel products increased by 105 % last year, delivering a devastating blow to Greek iron and steel in particular. Recently, Greece made an official request that Turkish exports of steel products should be subject to the Community surveillance system. Will that happen and when?

Has an assessment been made of the impact on Community production of steel products if the corresponding Turkish products infiltrate European markets?

Answer given by Mr van den Broek on behalf of the Commission

(29 April 1999)

EC Treaty steel products originating in Turkey were excluded from the Community's prior surveillance regime in March 1998 and European coal and steel Community (ECSC) Treaty steel products were excluded in January 1999, when Turkey eliminated its remaining tariffs on steel imports from the Community.

The Community's steel imports from third countries generally increased dramatically in 1998, to around 23,5 million metric tonnes, around 45 % higher than in 1997. Community imports from Turkey increased by 66 % to around 1,7 million tonnes, and Greece's steel imports from Turkey increased by 90 % to 406 000 tonnes. Greece accounts for around 23 % of total Community steel imports from Turkey.

These developments took place when most of Turkey's steel products were still covered by prior Community surveillance, a system which provides advance information on probable import trends based on automatic licensing of imports. The inclusion or exclusion of countries in the prior Community surveillance system does not, therefore, explain the increase in imports during 1998. The increase in Community steel imports from third countries generally, including Turkey, is due to the turbulence on international steel markets resulting from the crises in South East Asia and Russia.

The Commission is closely monitoring the impact of the international financial crisis and has regular dialogue with a wide range of third countries, including Turkey, to discuss developments in the steel sector. The Commission and Turkey exchange detailed statistics on trade in steel products each month.