NewsleHer JanlFeb 1981 Vol. 4 No. 1

The Takes Shape

Under the presidency of , - Development. former Luxemburg Prime Minister, the fol­ Kari-Heinz Narjes - Internal market lowing are the members (with their respec­ and industrial innovation, Environment tive portfolios) of the new Commission, who and consumer protection. took up office on January 6 this year:- Francois-Xavier Ortoli, Vice President - - Relations with the responsible for Economic and Financial European Parliament, Competition policy. affairs, credit and investment. Poul Dalsager- Agriculture. , Vice President - lvor Richard - Employment, social responsible for External Relations. policy and education. , Vice President - -Co-ordination of EC responsible for Enlargement, Information funds, Regional policy and global policy concerning Mediterra­ nean countries Georges Contogeorgis - Transport policy, Fisheries, and co-ordinating ques­ Etienne Davignon, Vice President - tions relating to tourism Industrial affairs, Energy policy including Euratom supply agency, and Research Michael O'Kennedy - President's and Science. delegate, Personnel and Administration Christopher Tugendhat, Vice President Mr. Poul Dalsager was named belat­ - Budget and Financial control, finan­ edly after the tragic death of Mr. Finn cial institutions and taxation. Gundelach.

ECIUS-EI Salvador

Ambassador Eagleburger, who has now stressed that the aid was destined only to been formerly named as Deputy Secre­ relieve the suffering of the Salvadorian tary of State for Europe, visited the EC population, and that before being granted headquarters in Brussels in mid­ the Commission insisted on receiving February where he met with President guarantees for its use, for this reason the Thorn of the EC Commission. Commission was in contact with the In­ Mr Eagleburger bore a message of ex­ ternational Committee of the Red Cross treme concern by the American Adminis­ The Commission has proposed on aid tration about the rnternal situation in El to the tune of $V2 million (plus food aid). Salvador, and consequent worry that the This aid-destined for the the people of aid the had pro­ El Salvador-is conditional on the report posed would be sidetracked to serve par­ due in mid-March of the International tisan goals. President Thorn, for his part Committee of the Red Cross

Death of EC Commissioner, Finn Gundelach

The new Commission presided over by 1973. Under the Presidency of Francois­ Gaston Thorn has lost one of its most emi­ Xavier Ortoli, he handled the customs nent members, Mr , union and the internal market. Betwee who died in Strasbourg on January 13 at 1977 and 1980, he was a vice preside the age of 55. of the Commission and was responsible Mr. Gundelach has been the Danish for one of the most important sectors of member of the Commission since his European policy, the common agricul­ country's entry rnto the Community in tural policy State of the Bilateral Trading Relations At the bilateral level tensions resulting Community from commercial imbalances with Japan must be eliminated. Solutions must also Message be found to particular problems with im­ portant commercial partners such as the In an address before the European Parlia­ United States, New Zealand, Australia ment on February 11, 1981, Mr. Gaston and Yugoslavia. Thorn, President of the European Commis­ sion outlined the main problems facing the Multifibre Arrangement European Community in the 1980's and The Multifibre Arrangement, in respect of in the Commission's view the consequent which the Council will have to adopt main areas for action. negotiating directives by the summer of In the industrial field the prime aim, 1981, will be renegotiated during the se­ according to the Commission, must con­ cond half of the year. A balance must be centrate on adjusting production struc­ found between the interests of the tures to the trend in the relative cost of developing countries and the Member energy and manpower, as well as changes States of the Community as well as bet­ in international demand. ween the textiles sector and the whole of On energy policy, the Commission will the economy. Certain international make sure that measures are taken in the agreements on raw materials will also Member States and on a Community­ have to be renewed or concluded in the wide basis to achieve the objectives course of 1981. already set for 1990. The Commission will look at the possible use of subsidies to en- Global Negotiations: North-South ourage a convergence of Member States' Strengthened links with developing coun­ nergy policies. Focus too, will be put on tries and the integration of these coun­ taxing and pricing policies within the dif­ tries within the world economy are of ferent Member States to assess their im­ great economic and political importance pact on industry. Nuclear energy will re­ to the Community. Priority will be given to main an essential element in the EC four major areas of work. The first con­ energy strategy. cerns the North-South Dialogue within The work on environment and consumer which work must be pursued in order to protection will involve the drafting of a establish Community position on the third action program. questions of energy supply and demand, Concerning external affairs, the Presi­ the supply of raw materials, as well as dent, Mr. Gaston Thorn, outlined the food questions and financial problems. following priorities:- The Commission will shortly be address­ Open World Trade ing a communication to the Council. The second area concerns the application of As the single biggest exporting group in the second Lome Convention and its new the world, the Community has a vital inter­ provisions. est in maintaining a liberal world trading system and in the careful application of the Relations with Other Non· rules and procedures of the GATI. In the Associated Countries same context close cooperation needs to Strengthened relations with the non­ be maintained with the EFT A partners, as associated developing countries with well as with the United States and Japan. which the Community will continue over Links with developing countries also the next few years to improve links in the need strengthening and the most ad­ fields of finance and cooperation, com­ vanced of them have to be persuaded of prises the third area. At the same time the need to assume obligations cor­ agreements with India and the Andean responding to their economic strength, Pact should be signed. Particular attention especially in the GATI framework. will be paid to strengthening relations with Latin America. Fourthly, after the deci­ sion of the European Council the Euro­ Arab Dialogue will have a more important and active role in the course of 1981. Mediterranean Policies and Enlargement EC-Japan Community policies in the Mediterranean After hearing the EC Commission's basin will become increasingly important report on the results of the latest High­ in 1981 and particular attention will have Level Consultations with the Japanese to be given to both bilateral and multi­ authorities, which took place in Tokyo at lateral relations. In the eastern Mediter­ the end of January, the EC Council of ranean the Community will need to apply Foreign Ministers issued the following its new agreement with Yugoslavia (while statement: adapting it to take Greek entry into ac­ 1. The EC Council of Ministers reaffirmed count) and will have to reach a clearer its statement of 25 November 1980 in view of its future relations with Turkey. which it expressed its serious concern The Community will also have to renegoti­ at the present state of trade between ate in 1981 the financial protocols to the Japan and the European Community agreements signed with the countries of and its likely future development. lt the southern Mediterranean, since these regretted that the Japanese response protocols require renewal within the se­ to the statement had not been such as cond half of this year. to remove the Council's concern. The Community will pursue the entry 2. The Council of Ministers took the view negotiations with and and that economic factors were one facet will need to pay particular attention to the of the overall relationship between consequences which the entry of these Europe and Japan; the European countries could have both for the present Community should therefore press its Community and for other Mediterranean preoccupations on these economic countries. difficulties at a high political level. T Community's concern should be c veyed forthwith by the representatives of the Member States and of the EC Commission in Tokyo. 3. The Council of Ministers noted in par­ President Sadat ticular that the situation as regards Japanese car exports continued to Addresses the give rise to increasing and very serious European concern, in particular the position in certain regions of the Community espe­ Parliament cially the Benelux countries. The work and the contacts should be promptly President Sadat became the first foreign pursued in this and other relevant Head of State to address the European sectors Parliament, on February 10, when he 4. The Council of Ministers, further noted chose that forum to elaborate on his view that the EC Commission intended to of Europe's role on the Middle east. introduce Community-wide surveil­ The following are the principal points lance forthwith in order to make more of his speech: rapidly available statistical informa­ • Europe, the Middle East and Africa tion on imports from Japan of passen­ should join in tripartite cooperation for ger cars, color television sets and development. tubes and certain machine tools. lt re­ • Europe should join Egypt in per­ quested the Commission to monitor suading the Israelis and Palestinians the results of this surveillance and to to accept a formula of mutual and si­ report to the Council as soon as the multaneous recognition. outcome for the first three months of • An invitation to take part in additional this year was clear, and regularly security guarantees as a European thereafter. contribution to peace in the Middle East. • The declaration of 2nd December 1980 (cf EC Newsletter Dec. 1980, vol 3, No. 7.) is a turning point likely to have a constructive im­ pact on peace in the near future. 5. The Council of Ministers took note that strument of development. (The combined the EC Commission had circulated an total of the cereals aid programs of the initial analysis of the concentration of Community and its Member States will in­ Japanese exports to the Community crease from 1 ,287,000 tons last year to and invited the Commission to pursue 1 ,650,000 tons this year.) the studies requested by the Council in its November statement. A 29% Increase of Cereals Aid 6. The Council of Ministers recognized Of the total aid of 933,000 tons of cereals that it was for European enterprises to from the Community as such in 1981, take advantage of the growing Japan­ 636,000 tons will be given direct to the ese market and to develop positive needy cour]tries, 167,000 tons chan­ strategies to deal with Japanese com­ neled through international aid agencies, petition.lt called upon the EC Commis­ and 130,000 tons set aside for emer­ sion to continue to pursue vigorously gency use. For milk powder the figures with the Japanese authorities the are: 81 ,550 tons as direct aid, 60,632 opening up of the Japanese market. through international organization and 7. At the next EEC/Japan High-Level 7,818 tons for emergencies. For butter Consultations which should be held as oil: 30,730 tons direct, 13,400 tons soon as possible, the Commission through international organizations, and should check on the progress of the 870 tons for emergencies. various discussions and report to the The proposals to improve the effective­ Council on the results achieved. ness of its food aid programs include the 8. Since the question of trade with Japan integration of food aid planning with has implications for all major indus­ general development policies and with trialized trading countries, the Council the food strategies of beneficiary coun­ took the view that it should be raised tries, as well as steps to provide food aid with them on every possible occasion in forms which correspond to the real and in particular at the Western Eco­ needs of the people who receive it. nomic Summit in Ottawa next July in the These proposals are in line with the context of the customary exchange of Parliament's resolution that the Com­ views on world trading problems. munity not only has to concern itself with food aid, but also has to help achieve the fundamental objectives of the developing countries by promoting their rural develop­ ment and increase their food production. ECFoodAid The European Investment Bank The bank has presented its annual report Programs on its activities in 1980. According to this report, the EIB's financing operations for 1981 last year amounted to US$ 4.6 billion. Of this sum, US$ 3.9 billion was for financing The European Commission has submit­ within the Community and the remainder ted to the Council of Ministers its pro­ for outside the Community. Loans to 30 posals for the 1981 food aid programs. In non-member states which have agree­ its proposals the Commission recom­ ments with the Community amounted to mends an allocation of a total of US$ 715 million, of which US$ 523 million 1 ,128,000 tons of food aid, worth US$ were to Mediterranean countries. 785.2 million, for the needy countries. The bank is preparing to expand its The totals for the different products are: financing facilities within the framework cereals 933,000 tons, milk powder of the Lome 11 convention. 150,000 tons, butter oil 45,000 tons. In accordance with suggestions by the European Parliament during its hearing on hunger in the world the 1981 programs contain two main features. The first is a arge increase in the quantity of cereals allocated. The second consists of im­ provements in the planning of food aid to ensure its greater effectiveness as an in- )-

A European The Draft Regulation The proposed legislation would define a Communities Community trade mark that would have identical effect throughout the length and Trade Mark breadth of the Community. Such a trade mark could consist of words (including There are roughly two million trade marks surnames), designs, letters, combination in the EC-about 25% of which sound of colors, the shape of goods or their similar to another registered in a different packaging, or of any other signs which Member State-yet they often relate to are capable of distinguishing the goods entirely different products. This leads to or services of one enterprise from those confusion; added to which are the dif­ of another ficulties encountered by exporters when The Regulation would stipulate rules they try to register their branded goods for eligibility of ownership and registra­ for import in another Member State. The tion of Community trade marks; the rights net result is another barrier to trade and conferred, International exhaustion of further limitations for the consumer choice such rights, infringement, the prohibition To counter all this confusion, ideas for of dual protection by a national mark and an EC Trade Mark have been tossed a Community mark and so on But the around since 1959. The latest idea, which most Important innovation would be the promises to come to fruition in the near estabishment of a Community Trade future is a draft directive for the approx­ Mark Office. imation of national laws on trade marks and a draft regulation to complement such Community Trade Mark Office legislation by the establishment of a par­ (CMTO) allel Community trade mark (CMT) and a At present those wishing to register their Community trade mark office (CMTO). trade marks in other Community coun­ The aim is to ensure that trade marks en­ tries have to apply to up to ten trade mark joy uniform protection under the law of all registration off1ces, each with 1ts dif­ member countries. This would require ferent rules and regulations With CMTO, broad common agreement on what con­ the Commission points out, it would be stitutes an acceptable trade mark and possible to obtain one trade mark for one what does not. The draft directive indi­ territory, comprising all the Community cates rules governing eligibility for regis­ member countries by means of one ap­ tration, e.g. trade marks would be invalid plication to one TMO under one pro­ if devoid of a distinctive character, or cedure governed by one law. were liable to mislead the public, where, Such a procedure could be expected unless the need was proven, branded to promote econom1c expansion in line goods were marketed under different w1th the principles of the Rome Treaty, trade marks in different countnes, and so and open up new and extended channels on. it also sets out the nghts conferred by of economic activity. trade marks, their use, and the amicable The Comm1ssion sees the CMTO as an settlement of disputes. autonomous body, but under its general Where a trade mark is eligible for pro­ supervision, and with an Advisory Com­ tection, the Commission favors a simple, mittee with the task of advising the Presi­ flexible and inexpensive procedure for dent of the Office on matters within his registration. Ideally trade mark law would competence. develop in such a way that one day Com­ munity law would totally replace national laws; even so there would always be those f1rms who wished to limit the sale of goods to within their own country, and certain trade marks des1gned to give in­ formation to the consumer that are un­ suitable on linguistic grounds for use in a different language. Community and na­ tional trade marks therefore are likely to run in parallel for a long time. \' I

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