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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Shipbuilding

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

SAFE Boats Delivers First CIV for Air and Marine Operations

SAFE Boats International (SBI), a manufacturer of aluminum boats located in Bremerton, Wash., has completed the first Coastal Interceptor Vessel (CIV) on contract from U.

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Sonar
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: 0.0902 sec (11 req/sec)