OECD discusses steel subsidies

OECD discusses steel subsidies

In recent industry news, The Organization of Economic Corporation and Development (OECD) is reported to be in talks for conclusion of steel subsidies by May 2004. At the interim negotiation that was held on dates December 4-8, 2003 in Paris, India requested for rectification of steel subsidy bans that were put forward by OECD. Indian government asserted that steel subsidy bans shouldn't be valid for developing countries as steel industry in these countries needs the government to finance the sector. Hence, the Indian government requested for rectification of subsidy bans, depending on OECD's determination that subsidies are allowed to any developing country whose GDP per capita does not exceed $3'000. Chinese government also expressed that it needs to finance the steel sector of its country. On the other hand, US defended the subsidy bans. At the same session, various countries expressed their views on the subsidies, however OECD has not reached a consensus yet. The final discussion will be held at the session scheduled to take place on dates February 9-13, 2004.