47 Amendments of Markus BUCHHEIT related to 2021/0297(COD)
Amendment 110 #
Proposal for a regulation
Recital 3
Recital 3
(3) The Union's common commercial policy is to be consistent with and to consolidate the objectives of the Union policy in the field of development cooperation, laid down in Article 208 of the Treaty on the Functioning of the European Union (TFEU), in particular the eradication of poverty and the promotion of sustainable economic, social, and environmental development and good governance in the developing countries. It n the context of a new, more sustainable growth model, the Union needs a new trade policy strategy and the green transition must go hand in hand with social equity and reciprocity. It is to comply with World Trade Organisation (‘WTO’) requirements, in particular with the Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries (the ‘Enabling Clause’), adopted under the General Agreement on Tariffs and Trade (‘GATT’) in 1979, under which WTO Members may accord differential and more favourable treatment to developing countries.
Amendment 115 #
Proposal for a regulation
Recital 5
Recital 5
(5) The general objectives of the GSP are to support eradication of poverty in all its forms, in line with Agenda 2030 and Sustainable Development Goal 17.12 and, to promote the sustainable development agenda and to encourage exports diversification from GSP beneficiary countries, while averting harm to EU industry’s interests. The 2018 GSP Mid- term Evaluation and the 2021 supporting Study for the Impact Assessment underpinning this Regulation concluded that the GSP framework under Regulation (EU) No 978/2012 has delivered on these main objectives, which were at the core of the 2012 overhaul of Council Regulation (EC) No 732/200815 . _________________ 15 Council Regulation (EC) No 732/2008 of 22 July 2008 applying a scheme of generalised tariff preferences from 1 January 2009 and amending Regulations (EC) No 552/97, (EC) No 1933/2006 and Commission Regulations (EC) No 1100/2006 and (EC) No 964/2007 (OJ L 211, 6.8.2008, p. 1).
Amendment 120 #
Proposal for a regulation
Recital 6
Recital 6
(6) Those objectives remain relevant in the current global context and they are consistent with the analysis and perspective of the recent Commission Communication Trade Policy Review “An Open, Sustainable and Assertive Trade Policy”16 (‘TPR’). According to the TPR, the Union has a “strategic interest to support the enhanced integration into the world economy of vulnerable developing countries” and it “must fully use the strength provided by its openness and the attractiveness of its Single Market” to support multilateralism and to ensure adherence to universal values. For GSP specifically, the TPR notes its important role in “promoting respect for core human and labour rights” and sets the objective for the GSP “to further increase trading opportunities for developing countries to reduce poverty and create jobs based on international values and principles”. Together with openness to trade, the scheme should support GSP beneficiary countries to develop a strong industrial base and to create an infrastructure that facilitates access to knowledge and information to foster diversification of trade flows. Moreover, the scheme should assist beneficiaries in recovering from the COVID-19 impact and in re-building their economies in a sustainable manner, including with respect to international human rights, labour, environmental and good governance standards. By prioritising diversification of exports from GSP beneficiary countries, the scheme should focus preferences on less competitive products which should ultimately contribute to sustainable development and poverty eradication. Coherence should be ensured between the GSP and its objectives and the assistance provided to beneficiary countries, in line with Union’s Policy Coherence for Development (PCD), which constitutes a key pillar of Union’s efforts to enhance the positive impact and increase effectiveness of development cooperation17 . _________________ 16 COM(2021) 66 final, 18 February 2021 17 Article 208 of the Treaty on the Functioning of the EU concerning PCD reads: “The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries”.
Amendment 133 #
Proposal for a regulation
Recital 7
Recital 7
(7) By providing preferential access to the Union market, the scheme should assist developing countries in their efforts to reduce poverty and achieve and promote good governance and sustainable development by helping them to generate additional revenue through international trade, which can then be re-invested for the benefit of their own development and, in addition, to diversify their economies. The scheme's tariff preferences should focus on less competitive products originating from those developing countries that have greater development, trade and financial needs.
Amendment 134 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7 a) Union policies increasingly entail an escalation in obligations to comply with Union standards on quality and sustainability of production, with a significant impact on production costs, which are not fully taken into account in international trade negotiations or in the GSP, despite the leading role of the Union in these areas. The limits and obligations that European producers have to respect should equally apply to imports into the Union internal market, being also monitored regularly. The latter imports should reflect the soaring requirements that Union farmers are bounded to implement as the GSP must not, under any circumstance, be a tool to promote unsustainable production or triangular trade. This should become a non- negotiable factor in free trade negotiations or access through the Union's GSP, alongside with equivalence which should also be a prerequisite, covering the entire value chain. The creation of a level playing field for production based on an equivalent political approach would strengthen the competitiveness, employment and growth of agri-food production in the beneficiary countries of the GSP schemes, while safeguarding the European producers.
Amendment 162 #
Proposal for a regulation
Recital 19
Recital 19
(19) The special arrangement for the least-developed countries (EBA) should continue to grant duty free access to the Union market for products originating in the least developed countries, as recognised and classified by the United Nations (UN), except for trade in arms. For a country no longer classified by the UN as a least-developed country, a transitional period should be established, to alleviate any adverse effects caused by the removal of the tariff preferences granted under that arrangement. If a beneficiary country of the EBA scheme no longer meets certain economic, environmental and social conditions, that country should be excluded from the list of beneficiary countries of the EBA scheme. If a product imported from EBA beneficiary countries does not meet certain economic, environmental and social production criteria, that product should be excluded from the tariff preference scheme and the Common Customs Tariff should be reintroduced for that product. Tariff preferences provided under the special arrangement for the least- developed countries should continue to be granted for those least developed countries, which benefit from another preferential market access arrangement with the Union.
Amendment 165 #
Proposal for a regulation
Recital 21
Recital 21
(21) Common Customs Tariff duties on non-sensitive products should continue to be suspended, while duties on sensitive products should enjoy a tariff reduction, in order to ensure a satisfactory utilisation rate while at the same time taking account of the situation of the corresponding Union industriesown production industries and agriculture.
Amendment 168 #
Proposal for a regulation
Recital 22
Recital 22
(22) Such a tTariff reductions should be sufficiently attractive, in order to motivate traders to make use of the opportunities offered by the scheme. Therefore, the ad valorem duties should generally be reduced by a flat rate of 3,5 percentage points from the 'most favoured nation' duty rate, while such duties for textiles and textile goods should be reduced by 20 %. Specific duties should be reduced by 30 %. Where a minimum duty is specified, that minimum duty should not apply.
Amendment 171 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23 a) Safeguards are essential mechanisms to reduce beneficiary countries’ dependency on a few products, to focus preferences on less competitive products and to stimulate economic growth. The scheme should reinforce the Union’s financial and economic interests by providing effective and enforceable safeguards to sensitive products which should at the same time improve the implementation of social and environmental rights in beneficiary countries
Amendment 178 #
Proposal for a regulation
Recital 25
Recital 25
(25) The reasons for temporary withdrawal of the arrangements under the scheme should include serious and systematic violations of the principles laid down in international conventions concerning core human rights (including certain principles of international humanitarian law enshrined in those conventions), labour rights, climate and environmental protection, and good governance, so as to promote the objectives of those conventions. Furthermore, temporary withdrawal should be made possible in case of severe and systemic breach of the obligation of the beneficiary country towards not respecting the Members States’ interests and not complying with international trade obligations and creating some retaliatory or discriminatory measures. Tariff preferences under the special incentive arrangement for sustainable development and good governance should be temporarily withdrawn if the beneficiary country does not respect its binding undertaking to maintain the ratification and effective implementation of those conventions or to comply with the reporting requirements imposed by the respective conventions, or if the beneficiary country does not cooperate with the Union's monitoring procedures as set out in this Regulation. The temporary withdrawal should continue until the reasons justifying it no longer apply. In situations characterised by an exceptional gravity of the violations, the Commission should have the power to respond rapidly by adopting measures within a shorter timeline. Under the Union’s zero tolerance approach for child labour the reasons for temporary withdrawal should include exports of goods made by internationally prohibited child labour, as well as forced labour including slavery and prison labour, as identified in the relevant Conventions in Annex VI.
Amendment 185 #
Proposal for a regulation
Recital 25 a (new)
Recital 25 a (new)
(25 a) Trade defense instruments are becoming increasingly important and should be enforced as soon as imports harm Union producers. Thereunder, the latter instruments should be used to manage situations where unfair trade practices take place in the form of price dumping or public subsidies, not WTO compliant. As trade within agri-food products is increasingly concentrated on processed products, the activation of trade defense instruments is progressively becoming more complex, as evidenced by the evolution of imports of semi-finished or processed rice from Cambodia. For this purpose, a certain establishment of the origin of the raw material used in the transformation of the product should be ensured.
Amendment 196 #
Proposal for a regulation
Recital 35
Recital 35
(35) The Commission should also adopt immediately applicable implementing acts where, in duly justified cases relating to safeguard investigations, imperative grounds of urgency relating to the deterioration of the economic and/or financial situation of Union producers which would be difficult to repair so require. Safeguards should be promptly activated if there were to exist a substantial negative impact on the Union agri-food production sector. Any delay or hesitation in the application of safeguard measures in the agri-food sector could lead to irreversible economic damage for Union farmers and the agri-food industry overall, with consequent loss of jobs and damage to the local, national and European socio-economic framework.
Amendment 200 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 a (new)
Article 2 – paragraph 1 – point 9 a (new)
(9 a) "sensitive products" means goods whose excessive utilisation rate by standard GSP beneficiary countries could have a negative impact on the market for basic or processed goods and other European commodities, in the medium and long term. In this regard and for the purposes of this definition, processed agri-food products - such as rice and sugar - are products obtained with basic raw materials whose origin or place of origin is ascertained in a Member State.
Amendment 202 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 b (new)
Article 2 – paragraph 1 – point 9 b (new)
(9 b) For the purpose of this Regulation, agricultural and agri-food products are considered sustainable when they are certified in accordance with voluntary sustainability certification schemes recognized by the European Commission on the basis of pre- established sustainability criteria and minimum requirements. The latter should be based, inter alia, in consistency with the ambitious objectives of the European Green deal and the "Farm2Fork" strategy, as well as with internationally recognized standards such as relevant international conventions listed in Annex VI, adequate standards of human rights, environmental sustainability, economic equality and decent income. Criteria is also to include reliability, transparency, traceability, independent and accredited audit and adequate appeal procedures.
Amendment 215 #
Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)
Article 4 – paragraph 1 – point b a (new)
(b a) it has not ratified all the conventions listed in Annex VI (the 'relevant conventions') or the Commission has identified, based on available information, in particular the most recent available conclusions of the monitoring bodies under those conventions, a serious failure to effectively implement any of those conventions.
Amendment 234 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The tariff preferences referred to in Article 7 shall be suspended, in respect of products of a GSP section originating in a standard GSP beneficiary country, when the average value of Union imports of such products over three consecutive years from that standard GSP beneficiary country exceeds the thresholds listed in Annex IV. The thresholds shall be calculated as a percentage of the total value of Union imports of the same products from all GSP beneficiary countries. Additionally, such a threshold shall be applied to a specific Taric code, or to a restricted number of Taric codes.
Amendment 236 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
3. The Commission shall, every three years, review the list referred to in paragraph 2 of this Article and adopt an implementing act in the year preceding the review year, in accordance with the advisory procedure referred to in Article 39(2), in order to suspend or to re-establish the tariff preferences referred to in Article 7. That implementing act shall apply as of 1 January of the year following its entry in force.
Amendment 240 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. The list referred to in paragraphs 2 and 3 of this Article shall be established on the basis of the data available on 1 September of the year in which the review is conducted and of the two years preceding the review year. It shall take into account imports from GSP beneficiary countries listed in Annex I as applicable at that time. However, the value of imports from GSP beneficiary countries, which upon the date of application of the suspension no longer benefit from the tariff preferences under Article 4(1), point (b), shall not be taken into account.
Amendment 271 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. By 1 January 2027, and every three years thereafter, the Commission shall present to the European Parliament and to the Council, in the most transparent way, a report on the status of ratification of the relevant conventions, the compliance of the GSP+ beneficiary countries with any reporting obligations under those conventions and the status of the effective implementation thereof.
Amendment 292 #
Proposal for a regulation
Article 15 – paragraph 9
Article 15 – paragraph 9
9. Where the Commission considers that the findings justifya temporary withdrawal for the reasons referred to in paragraph 1 of this Article, it is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I and Annex II in order to temporarily withdraw the tariff preferences provided under the special incentive arrangement for sustainable development and good governance referred to in Article 1(2), point (b). In adopting the delegated act the Commission may, when appropriatejustified, consider the socio-economic effect of the temporary withdrawal of tariff preferences in the beneficiary country, including with regard to impacts on women’s employment and unemployment, with a view to minimising the negative socio- economic impact on the GSP+ beneficiary countries population while maximizing the leverage on its government.
Amendment 297 #
Proposal for a regulation
Article 15 – paragraph 10
Article 15 – paragraph 10
10. Where the Commission decides on temporary withdrawal, such delegated act shall become applicable sixone months after its adoption.
Amendment 299 #
Proposal for a regulation
Article 17 – paragraph 1
Article 17 – paragraph 1
1. An eligible country shall benefit from the tariff preferences provided under the special arrangement for the least- developed countries referred to in Article 1(2), point (c), if that country is identified by the United Nations as a least-developed country and if it has not ratified all the conventions listed in Annex VI (the "relevant conventions") or the Commission has identified, based on available information, in particular the most recent available conclusions of the monitoring bodies under those conventions, a serious failure to effectively implement any of those conventions.
Amendment 304 #
Proposal for a regulation
Article 17 – paragraph 2 – subparagraph 1
Article 17 – paragraph 2 – subparagraph 1
Where an EBA beneficiary country no longer fulfils the econditionsomic, environmental and social criteria referred to in paragraph 1 of this Article, the Commission is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I in order to remove the country from the EBA arrangement following a transitional period of three years as from the date on which the EBA beneficiary country no longer fulfils the econditionsomic, environmental and social criteria referred to in paragraph 1 of this Article.
Amendment 321 #
Proposal for a regulation
Article 19 – paragraph 1 – point d
Article 19 – paragraph 1 – point d
(d) serious and systematic unfair trading practices including those affecting the supply of raw materials, which have an adverse effect on the Union industry and which have not been addressed by the beneficiary country. For those unfair trading practices, which are prohibited or actionable under the WTO Agreements, the application of this Article shall be based on a previous determination to that effect by the competent WTO body; Commission following a trade Barrier investigation under Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the field of the common commercial policy in order to ensure the exercise of the Community's rights under international trade rules, in particular those established under the auspices of the WTO. For the other unfair trading practices, including - but not limited to - breaches of intellectual property rights, trade distorting investment practices, trafficking and smuggling, breaches of competition rules and any other unfair trading practices that may hinder market access and the national treatment principle, the application of this Article shall be based on a previous determination to that effect under the conditions laid down in Paragraph 3;
Amendment 335 #
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Where the Commission, acting upon a complaint or on its own initiative, considers that there are sufficient grounds justifying temporary withdrawal of the tariff preferences provided under any preferential arrangement referred to in Article 1(2) on the basis of the reasons referred to in paragraph 1 of this Article it shall adopt an implementing act to initiate the procedure for temporary withdrawal in accordance with the advisory procedure referred to in Article 39(2). The Commission shall inform the European Parliament and the Council of the adoption of that implementing act. Sufficient grounds justifying temporary withdrawal of the tariff preferences provided under any preferential arrangement referred to in Article 1(2) on the basis of the reasons referred to in paragraph 1 of this Article are prima facie deemed to exist in case a Trade Barrier investigation has already been concluded by the Commission in relation to the unfair trading practices at stake.
Amendment 340 #
Proposal for a regulation
Article 19 – paragraph 4 – point b
Article 19 – paragraph 4 – point b
(b) state that the Commission will monitor and evaluate the situation in the beneficiary country concerned during the monitoring and evaluation period referred to in Paragraph 5. During this process the Commission shall inform the Parliament and share, in the most transparent way, the relevant information out of the latter monitoring with the Council and the European Parliament;
Amendment 342 #
Proposal for a regulation
Article 19 – paragraph 5
Article 19 – paragraph 5
5. The Commission shall provide the beneficiary country concerned with every opportunity to cooperate during the monitoring and evaluation period of six months from the date of publication of the noticmonitoring and evaluation period will be of three months from the date of publication of the notice. During this period, the Commission shall provide the beneficiary country concerned with every opportunity to cooperate.
Amendment 345 #
Proposal for a regulation
Article 19 – paragraph 7
Article 19 – paragraph 7
7. Within thre one months from the expiry of the period referred to in paragraph 5, the Commission shall submit a report on its findings and conclusions to the beneficiary country concerned. The beneficiary country has the right to submit its comments on the report. The period for comments shall not exceed one month. This paragraph does not apply in case a trade barrier investigation has already been concluded in relation to the unfair trading practices at stake.
Amendment 349 #
Proposal for a regulation
Article 19 – paragraph 8 – introductory part
Article 19 – paragraph 8 – introductory part
8. Within sixtwo months from the expiry of the period referred to in paragraph 4, point (b)5, the Commission shall decide:
Amendment 352 #
Proposal for a regulation
Article 19 – paragraph 10
Article 19 – paragraph 10
10. Where the Commission considers that the findings justify temporary withdrawal for the reasons referred to in paragraph 1 of this Article, it is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I and Annex II, in order to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2). In adopting the delegated act the Commission may, where appropriate, consider the socio-economic effect of the temporary withdrawal of tariff preferences in the beneficiary country.
Amendment 357 #
Proposal for a regulation
Article 19 – paragraph 12
Article 19 – paragraph 12
12. Where the Commission decides on temporary withdrawal, such delegated act shall become applicable sixone months after its adoption.
Amendment 363 #
Proposal for a regulation
Article 19 – paragraph 16
Article 19 – paragraph 16
16. Where the Commission considers that there is sufficient evidence to justify temporary withdrawal for the reason set out in paragraph 1, point (a) and the exceptional gravity of the violations calls for a rapid response in view of the specific circumstances in the beneficiary country, it shall initiate the procedure for temporary withdrawal in accordance with paragraphs (3) to (15). However, the period referred to in paragraph 4, point (b)5 is reduced to 21 months and the deadline referred to in paragraph 8 is reduced to 52 months.
Amendment 366 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. Where a product originating in a beneficiary country of any of the preferential arrangements referred to in Article 1(2) is imported in volumes or at prices which cause, or threaten to cause, serious difficulties to Union producers of likeproducts obtained in the Union for similar or directly competing products, normal Common Customs Tariff duties on that product may be wholly or partially reintroduced.
Amendment 368 #
Proposal for a regulation
Article 22 – paragraph 1 – subparagraph 1 (new)
Article 22 – paragraph 1 – subparagraph 1 (new)
"Products obtained in the Union" are the primary basic products, processed products and other goods of EU producers. Processed agri-food products are products obtained with raw materials whose origin or place of origin is ascertained in one of the Member States.
Amendment 373 #
Proposal for a regulation
Article 22 – paragraph 3 a (new)
Article 22 – paragraph 3 a (new)
3 a. For the purposes of this Chapter, "directly competing products" means a product which, after or prior to an industrial transformation, can be compared to another product.
Amendment 377 #
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
4. An investigation, including the procedural steps referred to in Articles 25, 26 and 27, shall be concluded within 129 months from its initiation.
Amendment 380 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
On duly justified grounds of urgency relating to deterioration of the economic or financial situation of Union producers of products obtained in the Union, and where delay might cause damage which would be difficult to repair, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 39(4) to reintroduce normal Common Customs Tariff duties for a period of up to 12 months.
Amendment 384 #
Proposal for a regulation
Chapter VI – Section II – title
Chapter VI – Section II – title
II Safeguards in the Textile, Footwear, Agriculture and Fisheries Sectors
Amendment 388 #
Proposal for a regulation
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
1. Without prejudice to Section I of this Chapter, on 1 January of each year, the Commission, on its own initiative and in accordance with the advisory procedure referred to in Article 39(2), shall adopt an implementing act in order to remove the tariff preferences referred to in Articles 7 and 12 with respect to the products from GSP sections S-11a, S-11b and S-11b2a or to products falling under Combined Nomenclature codes 1006, 1701, 2207 10 00, 2207 20 00, 2909 19 10, 3814 00 90, 3820 00 00, 38249956, 38249957, 38249992, 38248400, 38248500, 38248600, 38248700, 38248800, 38249993, and 38249996 where imports of such products, originate in a beneficiary country and their total value:
Amendment 395 #
Proposal for a regulation
Article 29 – paragraph 1 – point a
Article 29 – paragraph 1 – point a
(a) for products falling under Combined Nomenclature codes 2207 10 00, 2207 20 00, 2909 19 10, 3814 00 90, 3820 00 00, and 38249956, 38249957, 38249992, 38248400, 38248500, 38248600, 38248700, 38248800, 38249993, and 38249996 exceeds the share referred to in point 1 of Annex IV of the value of Union imports of the same products from all countries and territories listed in Annex I, columns A and B C, during a calendar year
Amendment 399 #
Proposal for a regulation
Article 29 – paragraph 1 – point a a (new)
Article 29 – paragraph 1 – point a a (new)
(a a) for products falling under Combined Nomenclature codes 1006 and 1701 exceeds the share referred to in point 2 of Annex IV of the value of Union imports of the same products from all countries and territories listed in Annex I, column C, during a calendar year;
Amendment 403 #
Proposal for a regulation
Article 29 – paragraph 1 – point b
Article 29 – paragraph 1 – point b
(b) for products under GSP sections S- 11a, S-11b and S-11b2a exceeds the share referred to in point 3 of Annex IV of the value of Union imports of products in GSP sections S-11a, S-11b and S-11b2a from all countries and territories listed in Annex I, columns A and B, during a calendar year.
Amendment 410 #
Proposal for a regulation
Article 29 – paragraph 2
Article 29 – paragraph 2
2. Paragraph 1 shall not apply to EBA beneficiary countries, nor shall it apply to countries with a share for the relevant products referred to in paragraph 1 not exceeding 6 % of total Union imports of the same products.
Amendment 415 #
Proposal for a regulation
Article 40 – paragraph 1
Article 40 – paragraph 1
By 1 January 2027 and every threewo years thereafter, the Commission shall submit to the European Parliament and to the Council a report on the effects of the scheme covering the most recent three- wo-year period and all of the preferential arrangements referred to in Article 1(2).
Amendment 420 #
Proposal for a regulation
Annex IV – subheading 1
Annex IV – subheading 1
Modalities for the application of Article 8 and Article 29
Amendment 426 #
Proposal for a regulation
Annex IV – point 1
Annex IV – point 1
1. Article 8 and Article 29 shall apply when the percentage share referred to in paragraph 1 of thatose Articles exceeds 470 %.
Amendment 431 #
Proposal for a regulation
Annex IV – point 2
Annex IV – point 2
2. Article 8 shall apply for each of the GSP sections S-2a, S-3 and S-5 of Annex III, when the percentage share referred to in paragraph 1 of that Article exceeds 17,5 0 %. Article 29 shall apply for products falling under Combined Nomenclature codes 1006 and 1701 when the percentage share referred to in paragraph 1 of Article exceeds 10%.