BRUSSELS, Feb 12: The European Commission has agreed to compromise with Poland over steel import duties on condition Warsaw put forward a serious restructuring plan for its steel industry.Poland's plan to extend a phase-out of duties on steel imports from the European Union has brought it into conflict with Brussels, which invited the country last year to join the EU early next century.
The restructuring of Poland's steel industry, seen as old-fashioned and overstaffed, is considered one of the main tasks facing Warsaw before it joins the EU. Brussels has linked the duties row to the restructuring.
The commission, the EU's executive body, said it had adopted a proposal on Wednesday to negotiate with Poland an agreement on a six-per cent import tariff for the first half of 1998.
The proposal must still be approved by the EU's 15-member nations.
"This proposal is being put forward on the strict understanding that the Polish government will present the EU with a serious restructuring plan for itssteel industry before June 30, 1998," EU Foreign Affairs commissioner Hans van den Broek said in a statement.
"Our own member states have taken steel restructuring, with all its social and economic effects, very seriously. It is only reasonable for Poland as an aspirant for early EU membership to do likewise."
Van den Broek said it would not be in Poland's interest "further to delay action in a sector which is crucial for its preparations for membership. Provided it is willing to act decisively in this sector, Poland can count on continuing EU support".
Under a previous agreement with the EU, Poland was to reduce the duties from nine per cent in 1997 to three per cent in 1998 and to eliminate them in 1999.
Last year, Poland told the EU it planned to keep the tariff at nine per cent in 1998 to aid its steel industry and to keep some duties in 1999 and 2000, the EU said.
After talks with the commission in December, Poland reduced the tariff to six per cent from the beginning of this year, thecommission said.
It said Polish authorities had said they planned to adopt in the first half of 1998 a comprehensive restructuring programme aimed at establishing a viable steel sector in Poland. It would also co-operate with the commission in working out this programme.
Under the commission's proposal, the level of import tariffs to be applied in the second half of 1998 and afterwards would be decided between both sides before June 30.
Polish officials believed they had reached a compromise on duties with the Commission late last year but the proposed agreement was rejected by EU member governments representatives, Polish news reports said.
A spokeswoman for the Polish mission in Brussels could not immediately be reached to comment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
