Select Committee on European Scrutiny Twenty-Ninth Report


8 EU shipbuilding initiative (LeaderSHIP 2015)

(25094)

15288/03

COM(03) 717

Commission Communication: LeaderSHIP 2015 — Defining the Future of the European Shipbuilding and Repair Industry — Competitiveness through excellence

Legal base
DepartmentTrade and Industry
Basis of considerationMinister's letter of 23 June 2004
Previous Committee ReportHC 42-ix (2003-04), para 13 (4 February 2004)
Discussed in Council26-27 November 2003 Competitiveness Council
Committee's assessmentPolitically important
Committee's decisionCleared

Background

8.1 We considered the Commission Communication on the EU shipbuilding initiative (LeaderSHIP 2015) on 4 February 2004. We noted that the initiative sought to ensure the long-term prosperity of the European shipbuilding and repair industry and to make EU shipbuilders (naval and commercial) and marine equipment suppliers world leaders in their field by 2015.

8.2 In relation to trade policy, the Commission commented that it supported the effective enforcement of World Trade Organisation (WTO) rules in shipbuilding and that it had been particularly active in tackling the unfair trading practices of the Republic of Korea. We asked the Minister if the WTO Dispute Settlement Procedure, which appeared to us to be protracted, was proving effective in this case.

The Minister's reply

8.3 In her letter of 23 June 2004 the Minister of State for Industry and the Regions and Deputy Minister for Women and Equality (Jacqui Smith) provides a progress report on the action being taken in the WTO against unfair competition from Korea. The Minister explains that the Commission had been working to achieve a bilateral settlement with the Republic of Korea, but that when these attempts failed, the Commission began proceedings in the WTO in November 2002.

8.4 The Minister explains that a WTO Dispute Settlement Panel was set up in August 2003 and has since held two meetings. The first was held in March 2004 and second was scheduled for April 2004 but did not take place until 17 and 18 June, owing to the death of the Panel Chairman. The Minister adds that the death of the former Panel Chairman has led to a delay of several months in the publication of the Panel's Interim Report and Final Decision and that these are now expected in September/mid-October and the end of the year, respectively, with a completion of the WTO procedure in early 2005.

8.5 The Minister reassures us that the LeaderSHIP 2015 Advisory Group fully supports the Commission's approach towards Korea and does not consider that any action over and above that which is being taken within the WTO is necessary .

Conclusion

8.6 We thank the Minister for this further information. In the light of the Minister's explanations, we are content to clear the document.


 
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