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SCA: OECD Talks Fail On Jones Act, European Export Credit Issues

The most recent round of the Organization for Economic Cooperation and Development (OECD) talks on shipbuilding subsidization have broken down, reportedly due to lack of agreement on two remaining bones of contention: U.S. Jones Act policies and European export credit policies.

The postponement of further talks was a mutual decision on the part of the U.S. and the European Union (E.U.).

Shipbuilders Council of America (SCA) ChairmanJohn Stocker said the SCA was disappointed by the outcome of the talks, and that the E.U. had given the impression of true political commitment to settle the remaining issues. However, he said he was not prepared to speculate on what the next step might be.

According to Mr. Stocker, the U.S. made it clear that the Jones Act was too sensitive an issue for it to be repealed and tried to ease European concerns on the "potential production impact of future Jones Act orders," but the issue could not be resolved.

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cently, when the E.U. insisted on exempting them, according to the SCA. SCA also said the provision of export financing is a major form of shipbuilding assistance within the E.U., and that U.S. yards have not had access to export credit financing for ships until the expanded Title XI loan guarantee program was authorized for fiscal year 1994.




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