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

People & Company News

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Shipbuilding

Imabari to Build 20,000TEU Containerships

Imabari Shipbuilding Co., Ltd. announced it has secured newbuild orders with the cooperation of Marubeni Corporation for 11 units of 20,000TEU Ultra-Large Container Carriers,

SSI Launches ShipConstructor 2015 R2.1

SSI has today released ShipConstructor 2015 R2.1 software.   The software release comes in response to emerging ship design, engineering and building trends as

HII Acquires Engineering Solutions Division

Huntington Ingalls Industries (HII) has acquired the Engineering Solutions Division of The Columbia Group, a designer and builder of unmanned underwater vehicles

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Ship Electronics Ship Simulators Sonar
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: 0.2536 sec (4 req/sec)