EU Ministers Fail To Agree on Shipbuilding Aid

Monday, December 17, 2001
The main item discussed at the European Council meeting of European industry ministers on December 5 was shipbuilding. In May 2001 the Commission presented to the Industry Council the fourth report on the situation of world shipbuilding. Once more, the conclusions pointed to anti-competitive practices by South Korean shipyards: i.e. debt forgiveness, debt moratoria, advantageous refund credits, fresh credits and guarantees, allowing them to offer ships at below-cost prices.

Efforts to address these unfair practices through bi-lateral talks with South Korean authorities failed and the Commission adopted a two-pronged strategy to improve the situation: a request for dispute settlement at the World Trade Organization and a Temporary Defensive Mechanism for the EU shipbuilding industry.

The Commission has insisted that both elements of the proposed strategy would have to be implemented in combination. In the Council, however, there has been unanimous support for the first element but not for the second. Indeed, on the issue of EU shipbuilding aids, the Member States have been divided into two blocks: the Scandinavian countries, the UK and the Netherlands, who continued to be firmly against the granting of any aid, and the Southern countries (Greece, Spain and Italy) and Germany, who were in favour, with France, being rather indecisive, in the middle.

The Temporary Defensive Mechanism would allow aid to those market segments in which the Commission investigation found that EU industry has been considerably harmed by unfair Korean trade practices, namely container ships and product and chemical tankers. The Commission has emphasized, however, that the new mechanism must not result in distortion of competition within the European Union.

After a series of bilateral meetings, the Belgian Presidency decided not to proceed to a vote but to pass on the issue to the Spanish Presidency. The main problem remains, however, that the Council as a whole feels itis now up to the Commission to launch a complaint against South Korea at the WTO without waiting for new aid regimes to be implemented in Europe. So far, the Commission has declined to separate the two. Source: INTERTANKO

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

TEN Charters Tanker at 20% Premium

Tsakos Energy Navigation Limited announces two-year charter renewal at a 20 percent premium to prior contract reflecting strong tanker market fundamental, oil price

Huntington Ingalls Cites Interest in Building US Icebreakers

Huntington Ingalls Industries Inc, which builds aircraft carriers and U.S. Navy warships, on Tuesday said it was keen to bid to build new icebreakers for the U.

MN: Foss Maritime Company

The Company: Foss Maritime Company is wholly owned by Saltchuk Resources, a privately owned family investment company formed in 1982 and based in the Pacific Northwest.

Shipbuilding

Huntington Ingalls Cites Interest in Building US Icebreakers

Huntington Ingalls Industries Inc, which builds aircraft carriers and U.S. Navy warships, on Tuesday said it was keen to bid to build new icebreakers for the U.

New Tanker Stena Imperial Named in Savannah

A new 50,000 DWT MR chemical and product tanker based on the IMOIIMAX concept, Stena Imperial, was named yesterday in Savannah, Ga.   Built by Chinese shipyard

Bulk Carrier Ship Delivered to Pioneer Marine

Pioneer Marine, a shipowner and drybulk handysize transportation service provider, announced  it has accepted delivery of a 38,464 DWT Green Dolphin eco-design handysize vessel, the M.

 
 
Naval Architecture Navigation Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.7273 sec (1 req/sec)