Important steps taken towards subsidy ban in OECD talks

Important steps taken towards subsidy ban in OECD talks

The OECD meetings held in Paris during the dates February 24-25, 2003 under the presence of government officials and representatives of producers from major steel making economies, were concluded yesterday on elements of a steel subsidies agreement. This meeting was held in consequence of the December 2002 meetings where a decision to officially launch talks to reduce and eventually eliminate the government subsidies distorting the global steel market for years. One US Commerce official stated that considerable progress have been made on many of the 17 elements of a potential agreement designed to eliminate the government supports for the steel industry, during the meetings concluded yesterday. The next meeting of the group is scheduled for May 10, 2003. Until that date, the participating countries will review the discussions. The OECD initiated talks on eliminating subsidies 18 months ago, when the over capacity was the major problem of the industry. It is aimed to conclude an extensive agreement prior to the WTO Ministerial Meeting in Cancun in September 2003, when WTO is likely to take over the role as the forum for international agreements covering the steel trade.