Liner Conferences

HC Deb 17 May 1979 vol 967 cc3-4W

Mr. Costain

asked the Secretary of State for Trade if he will make a statement on the outcome of the discussions within the EEC on the question of the United Nations code of conduct for liner conferences.

Mr. Tebbit

My precedessor in the previous Administration gave the House on 22 February a report on the Transport Council of 20 February at which certain compromise proposals from the Presidency and the Commission for a common EEC position were discussed—[Vol. 963, c. 259–61.] It has now proved possible to reach a final agreement on the basis of these proposals. A Council regulation embodying a common Community approach was formally adopted in Brussels on 15 May.

The regulation opens the way for member States to become contracting parties to the code, subject to a number of reservations and internal Community arrangements. New legislation will be required before the United Kingdom can accede to the code convention.

The essence of the Community position is that the member States will not apply the code's cargo-sharing provisions and certain other of its rigid features in conference trades with other OECD countries parties to the code—provided these countries offer reciprocity. These arrangements are without prejudice to the opportunities for participation in these trades by national lines of developing countries in accordance with the principles reflected in the relevant part of the code. In trades between the EEC and developing countries parties to the code, developing country lines will enjoy full codist rights. The shares of trade falling to Community lines will be redistributed on a commercial basis and the lines of other OECD countries will—subject to reciprocity—be able to participate in this redistribution process. Conciliation will be available in the case of disputes.

Other provisions of the regulation deals with the treatment of lines from one member State established in another under the right of establishment provisions of the EEC Treaty and the basis on which the code's national line veto right is used.

The United Kingdom welcomes the common position which has been achieved within the Community and hopes that it will facilitate a more general solution among developed and developing countries to this difficult issue.