EU To Ban Subsidies, Monitor S. Korea

Wednesday, November 29, 2000
The European Commission plans to bar state aid to European shipyards from the year-end, but could reinstate it within months if South Korea fails to halt alleged unfair help to its shipbuilders, an EU source said. The Commission is also threatening to launch a WTO complaint against South Korea if it does not reform its shipbuilding practices by next May. The European Union executive decided at its weekly meeting to press ahead with its previous intention to halt government operating aid to European shipyards from the end of this year. But in an olive branch to European shipbuilders, which say the aid should be extended to help them face alleged unfair competition from South Korea, the Commission threatened to reinstate EU operating aid from next May if South Korea fails to stop bailing out its own shipbuilders, the EU source said. The Commission proposal has to be endorsed by EU industry ministers next Tuesday. The source said the EU will pursue bilateral discussions with South Korea to get it to lift what it believes are unfair state subsidies which have driven down the world price of new ships, threatening European shipbuilders. If it gets no satisfaction by May 1, the EU will launch a WTO case against South Korea and reinstate European aid to allow its own firms to compete, the source said. "We think we have a strong WTO case but the time to May 1 should be for serious discussions with the Koreans," the EU source told Reuters. "If no satisfactory solution is found we reserve the right to apply operating aid matching South Korea's illicit practices up to a ceiling of nine percent," he said. The EU would authorize selective state aid to companies that could prove they have been directly hit by unfairly cheap prices from South Korea, he said. The Commission alleges South Korean government aid means its shipyards can sell vessels at less than the cost of production -- dumping cheap products on the market and squeezing European firms out of business. The EU executive, which polices European state aid to ensure a level playing field between the 15 EU countries, is keen to do away with subsidies to shipbuilders but is wary of leaving its own industry vulnerable to cheap Asian competition. South Korean shipbuilders, who dominate the world shipbuilding market, have said they could counter a WTO case by taking similar action against countries like Germany, Spain and Italy which have subsidized their own shipyards.
Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


MECNW Appoints New CEO

Terry Weston has been confirmed as Chief Executive of Maritime and Engineering College North West (MECNW) following the retirement of his predecessor, Jim Teasdale, at the end of September.

MacGregor's Deck Machinery for Sentinel Marine ERRV

MacGregor, part of Cargotec, will supply deck machinery for a new 65m emergency rescue & response vessel (ERRV) for Sentinel Marine. The ship has been designed

Maersk to Install Inmarsat's Entertainment Service

The leading provider of global mobile satellite communications services, today announced that Maersk Tankers, the owner and operator of one of the world’s largest fleets of product tankers,

Tanker Trends

Teekay LNG Partners Declare Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended September 30, 2015. The

TMS Cardiff Gas Orders First LPG Carriers

TMS Cardiff Gas Ltd. has signed a contract with Hyundai Heavy Industries of Korea for the construction of two 78,700 cbm LPG carriers with the option to build another two.

Odfjell's Tanker Overhaul Seeks to Slash Emissions by 20%

Norwegian tanker shipper Odfjell announced it is upgrading the propulsion systems aboard 19 of its chemical tanker vessels in a move that aims to reduce its fuel

Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Pod Propulsion 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: 0.1247 sec (8 req/sec)