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European Shipyards’ Executives Voice Concerns

Maritime Activity Reports, Inc.

May 23, 2002

At the AWES and CESA annual meetings held in Nyborg, Denmark on May 16 and 17, shipyards and their associations from 15 European Countries discussed the situation in shipbuilding and related policies. Concern was expressed acknowledging recent developments regarding the trade dispute between the European Union and the Republic of Korea over illegal subsidies to the Korean shipbuilding industry. This dispute is going on since three years without any progress, leaving shipyards in Europe with great uncertainty over the framework they have to operate in. Neither side has taken any concrete action – Korea has not changed its unsustainable business practises and the European Union have not launched any counter measures. The aim to restore normal competitive conditions in the world shipbuilding industry has remained far away to the detriment of business worldwide. The Shipyards, also from non-EU member countries, voiced their deep concerns about the apparent lack of political means or will of the EU to tackle the Korean violation of globally accepted rules, for which so much and so clear evidence has been collected and published by EU authorities. During its 57th General Assembly, AWES, the Association of European Shipbuilders and Shiprepairers also welcomed as new AWES member the Association of Croatian Shipbuilders and Shiprepairers. Niels Ørskov Christensen of Denmark handed the AWES Chairmanship to Patrick Boissier of France. As new Vice Chairmen of AWES Frederico Spranger of Portugal was elected, while and Vito Busalacchi of Italy, representing the Shiprepairers, was confirmed as second vice Chairman.

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