The OECD Secretary General Angel Gurría has called on the governments of steel producing economies to address the root causes of today’s steel crisis through multilateral approaches, and in particular through the Global Forum on Steel Excess Capacity (GFSEC). The collaborative approach of the Global Forum remains the only long-term solution to this problem and to addressing its substance rather than only its manifestations, he stated.
A ministerial meeting of the Global Forum on Steel Excess Capacity is planned for next June, under the Argentinean presidency of the G20. “In view of the urgency of the situation, the GFSEC needs to take swift and tangible action in 2018,” said Mr. Gurría.
"Rapidly expanding production capacity during recent years has resulted in significant shifts in global trade flows and in a rise in protectionist measures. Many steel companies are struggling to remain afloat. Excess capacity is the principal cause for the current crisis. Some governments continue to provide subsidies and other support to steel production that preserves excess capacity and exacerbates imbalances of supply and demand. While countries are making efforts to address these different issues, they do not go far or fast enough. Implementing the necessary reforms in a coordinated and cooperative manner is the only way to ensure the sector’s long-term viability and resilience," the statement from the OECD said.