OECD takes a further step to ban subsidies regarding steel industry

OECD takes a further step to ban subsidies regarding steel industry

The Organization for Economic Cooperation and Development (OECD) has recently made a statement about its plan of banning all forms of state subsidies with respect to steel industry. The proposal of banning steel subsidies is also presented by International Iron and Steel Institute (IISI), with the claim of steel subsidies' putting market into difficult position. According to the statement released by OECD, the draft agreement for limiting steel subsidies is to be submitted in May and the final agreement to take place by September latest. In line with this schedule, next negotiations are expected to take place on March 31- April 5, 2004 and May 6-11, 2004. However, it is stated that various issues should be discussed thoroughly before a draft agreement is prepared. The issues that are to be discussed are stated to be research and development, environment and economic development, together with the coverage of steel subsidies, whether it will cover steel manufacturing or entire production chain, beginning with raw materials. Moreover, India, China and Brazil asked for being treated as a developing country in the issue of steel subsidy bans. This demand is stated to be the other issue to be discussed before the draft agreement.