Shipbuilders Complain About S. Korean Shipbuilding Aid

Tuesday, October 24, 2000
European shipbuilders recently complained to the European Union over South Korean state aid to its shipbuilders, opening the way for a possible EU case against Seoul at the World Trade Organization (WTO), Reuters reported. The Committee of EU Shipbuilders' Associations (CESA) said it had filed a complaint with the European Commission under the EU's Trade Barriers Regulation over alleged trade distortions in global shipbuilding caused by South Korean aid to its industry. "We are complaining about the state aid that Korean companies are receiving," Reinhard Lueken, the head of CESA's Brussels office. He said there were a number of bankrupt shipyards in Korea still offering prices which did not cover their costs. "By doing so they have a very harmful effect for the European industry," he said. The EU has repeatedly accused South Korea of setting unfairly low prices for shipbuilding, undercutting European yards. The EU and South Korea hammered out an agreement in April aimed at stabilizing the world shipbuilding market, which the EU says suffers from overcapacity and steadily falling prices. But the EU has accused South Korea of not fully implementing the agreement. When further talks broke down in September, the EU said it could launch a WTO dispute against South Korean shipbuilding practices. But, it said it would first have to receive a complaint from European shipbuilders before it could do so. European Commission spokesman Anthony Gooch said that the Commission had received the CESA complaint and had 45 days to examine it. If the Commission decided the complaint was valid, it would launch its own investigation under the Trade Barriers Regulation. The Commission would then have five months to investigate, including on-the-spot enquiries in South Korea. On the basis of its probe, the EU would then have the option to file a case under the WTO's dispute settlement procedures, he said. Gooch said EU Trade Commissioner Pascal Lamy had set a deadline of the end of October to try to make progress with South Korea based on the April agreement. "We have given the Koreans a lot of time and we have given them leeway to see if we couldn't find an amicable solution and it appears that it is beyond reach. So we have to set the wheels in motion," he said. If it went to the Geneva-based WTO, the EU would first demand consultations with South Korea and, if that failed, could ask for a dispute settlement panel to arbitrate. The EU and South Korea began talks last December on shipbuilding after the Commission accused South Korea of using International Monetary Fund aid received after the 1997 Asian financial crisis and other subsidies to undercut European shipbuilders. South Korea denied the charge.
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Global Ocean Trade: Latest Shipbuilding Orders

No tankship orders noted the past week by Clarkson Hellas in their latest S&P Weekly Bulletin, but no lack of orders in the dry bulk carrier market, all from Far East shipbuilders.

Scorpio Tankers: Latest Financial & Ship Delivery News

Scorpio Tankers Inc. says it has updated its stock buyback program; lists its latest new vessel deliveries, and gives the release date of its second quarter 2014 earnings report.

Hyde Marine Makes BWTS Installation Agreements

Hyde Marine, Inc., a wholly owned subsidiary of Calgon Carbon Corporation, says it has established two partnership agreements for installation of the chemical-free

Patrol Boats

Andrew Weir to Support UK Navy in Antarctica

Andrew Weir Shipping Ltd. announced that it has been awarded the contract for the support and maintenance of HMS Protector (A173), following a competitive tendering process.

Italy Rescues 1,800 Refugees, Five Bodies Recovered

Italy's navy said it rescued nearly 1,800 migrants in overcrowded boats in the Mediterranean over the weekend, and a merchant ship recovered five bodies from a

Manila Urges Unity in China Sea Dispute

The Philippines is pushing for a meeting among four Southeast Asian nations with conflicting claims to waters in the South China Sea so that they can hammer out a common stand in dealings with China,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1137 sec (9 req/sec)