EU Shipbuilding Aid Extended to 2005

Sunday, March 14, 2004
European Union (EU) shipyards will continued to receive government financial aid until March 31, 2005, Reuters reported. The decision extends by one year an arrangement whereby state aid equal to six percent of a contract can be given to EU makers of container ships, chemical and product tankers and Liquefied Natural Gas carriers. The EU has taken South Korea to the World Trade Organisation (WTO), alleging the country is effectively dumping ships on the world market by subsidising its manufacturers. The EU usually has strict rules which limit aid by governments for their companies. South Korea has denied the EU's allegations of subsidies and is fighting the bloc at the WTO.
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