Strasbourg, 15/12/2000 (Agence Europe) - By adopting a resolution based on the Werner Langen Report on shipbuilding, the European Parliament deplored the "Commission's decision of 29 November 2000 and the Council decision of 5 December 2000 not to extend aid to construction in favour of contracts for European shipbuilding companies". At the last Industry Council, ministers followed the Commission, agreeing to the European system of State aid to shipbuilding ending as scheduled on 31 December. As counterpart, the Commission did, however, undertake to submit a temporary aid mechanism in April to defend the Community industry against Korea's unfair practices should no agreement by then be found with the South Korean authorities. In that case, the EU would request the initiation of a dispute settlement procedure within the WTO and the mechanism would serve to protect European shipyards for the duration of the procedure.
For the European Parliament, abandoning the current State aid system nevertheless risks plunging "European shipbuilding into a phase of uncertainty due to the persistence of unfair international conditions of competition, at least during the period stretching from January to May 2001". MEPs want the State aid system to be extended for two years.
The European Parliament, moreover, considered inadequate the procedure the Commission used for its enquiry on unfair Korean practices, in the framework of the regulation on obstacle to trade. The Euro-MPs call on the Commission to immediately begin a litigation settlement procedure within the World trade Organisation (WTO). They also call on it to "consider taking anti-dumping measures against imports from the Republic of Korea." EUROPE has reason to believe that the European Commission is nevertheless reluctant to initiate either an anti-dumping procedure or a WTO panel, as its legal arguments and proof of Korean dumping seem inadequately supported.