IISI displeased with lack of progress on subsidy ban

IISI displeased with lack of progress on subsidy ban

During the OECD meeting held last week in Rome, the International Iron and Steel Institute (IISI) Board of Directors expressed its discontent with regard to the developments in setting up a subsidies code to prevent further government subsidies. The IISI pointed out to the existence of a strong consensus on such ban in the global steel industry, yet complained about the lack of support from certain governments for further progress. The Board believes that the governments participating in the OECD steel negotiations should be acting in unity for the benefit of the steel industry rather than seeking opportunities to raise trade issues during these negotiations. This requirement of banning subsidies found support from the OECD secretariat as well as US officials, however was not agreed to by certain governments in the last gathering. Therefore the Board of IISI will get in discussions with the governments participating in the OECD negotiations collectively and individually to discuss the possible solutions for banning subsidies in the steel industry. IISI believes a subsidy code is required to be set up for the benefit of the industry and progress should be made shortly. The Board set up a Working Group from its members to advise it on how the industry can assist the successful implementation of a general accord of subsidies. The Working group will also seek alternative solutions to assist the governments with the social and financial problems after the closure of excess capacity facilities. IISI aims to bring forth the subject in the next Paris gathering to take place in December.