RESOLUTION B3-0929 AND B3-0939/92

Resolution on the free trade agreement to be concluded between the Community and the Gulf Cooperation Council

The European Parliament,

-having regard to the Council's decision, at its meeting of 19 December 1989, authorizing the Commission to open negotiations with a view to concluding an Agreement supplementing the Cooperation Agreement between the European Economic Community, of the one part, and the countries party to the Charter of the Cooperation Council for the Arab States of the Gulf (the United Arab Emirates, the State of Bahrain, the Kingdom of Saudi Arabia, the Sultanate of Oman, the State of Qatar and the State of Kuwait), of the other part, and concerning trade relations between the European Economic Community and the customs union to be set up by those countries,

-having regard to the Council's decision of 1 October 1991 to issue amended directives to the Commission,

whereas Parliament decided on 19 November 1989 to ask the Council to be consulted on the mandate to the Commission for the negotiation of an agreement between the Community and the Gulf Cooperation Council,

whereas the Council in its answer of 21 December 1989 stated that no such consultation would take place,

whereas the Council on 19 December 1989 adopted the negotiating mandate for the Commission without consulting Parliament and further adopted the amended negotiating mandate on 1 October 1991 without consulting Parliament,

whereas Parliament, in its resolution of 13 July 1990 on the significance of the free trade agreement to be concluded between the EEC and the Gulf Cooperation Council (GCC)OJ No. C 231, 17.9.1990, p. 216, expressed its concern as to the likely consequences of such a trade agreement,

whereas in January 1986 the Commission produced a report on the likely industrial consequences of such a trade agreement which showed that it could have a serious adverse effect on the EC petrochemical sector,

whereas, in its above-mentioned resolution, Parliament called on the Commission to update and publish its report in the light of subsequent events,

Reiterates its strong criticism of the Council for not consulting Parliament on the negotiating mandate;

Condemns the Commission for its failure to produce the report on the likely industrial consequences of the free trade agreement which has been demanded by Parliament;

Demands that the report be produced as soon as possible;

Reaffirms it commitment to multilateral trade liberalization in the context of GATT rules and the present Uruguay Round negotiations; further emphasizes that the free trade agreement must comply with the provisions of the GATT agreement;

Insists that respect for human rights and democracy is a prerequisite for the implementation of the agreement; in addition, calls for ILO standards to be observed;

Expresses its concern over estimates by the European Chemical Manufacturers Federation (C.E.F.I.C.) that the free trade agreement could cost up to 75,000 jobs in the European petrochemical industry;

Is aware that similar concerns have been expressed by the non-ferrous metal and fertilizer industries;

Questions therefore the wisdom of proceeding with the agreement but believes that if negotiations should continue, the strongest possible safeguards should be maintained to protect European industry from unfair competition; further underlines that any infant industry clause should be applicable for a limited period only;

Considers that the problems of safeguarding the environment should be dealt with during the negotiations between the parties and be included in the final agreement;

Calls on the Commission to keep Parliament regularly informed during the course of the negotiations;

Instructs its President to forward this resolution to the Commission, the Council, the governments of the Member States and the governments of the member states of the Gulf Cooperation Council.