EU Agrees Strategy to Counter Korean Shipbuilding Practices
Today the Council of the EU approved the twin-track strategy proposed by the European Commission to counter unfair Korean practices in the shipbuilding sector. The EU has set a deadline of the end September to resolve the dispute amicably, failing which it will immediately launch procedures for a Panel against Korea in WTO and activate a temporary defensive mechanism (TDM) for European shipbuilding. The Commission will now hold a series of further negotiations with Korean authorities in an attempt to restore normal trading practices in this sector. Welcoming the decision, EU Trade Commissioner Pascal Lamy said "Korea now knows that if we fail to resolve this dispute in the few weeks between now and the end of Septemberā¦
South Korea Faces WTO Action For Shipbuilding Practices
The European Union is considering taking action against South Korea under the World Trade Organization, accusing the country of using western subsidies to sell ships at below construction cost and putting European rivals out of business. "The sector is facing a critical situation worldwide with very low prices and a serious overcapacity caused by the Republic of Korea," EU industry ministers said after a regular meeting where they discussed a European Commission report on the world shipbuilding situation. The ministers asked industry, national governments and the Commission to seek "as much detailed evidence as possible...in order to take appropriate action under the WTO".
