Upcoming OECD meetings to focus on developing countries issue
The upcoming OECD meetings to be held to discuss the global overcapacity problems and the state subsidies on steel will take place in Paris between the dates of June 10-13, 2003.
A draft text of a steel subsidy agreement has been prepared by the delegates, over which certain objections arose by the developing countries. OECD currently plans to get the agreement signed towards the end of 2003.
The main topics to be discussed are predicted to be these objections from the developing countries, mainly from
India asking for certain exceptions to be granted to such countries considering their status. The argument is brought forth based on the idea that the developing countries cannot be compared to the developed industrial countries, and consequently might need different kinds of policies and treatment.
The industry insiders believe that this is the right time to reach an agreement on the subsidy issue with a wide range of countries seeking a solution like this for a variety of reasons.
It appears that conditions in detail will be discussed in order to get a clear picture. The issues to be discussed are expected to include an evaluation period of a proposed subsidy; product range and coverage, in order to outline whether upstream products used in the
production of steel products or downstream products will be included in the scope and exemptions to be granted.
Meanwhile it is also a matter of interest what stance will
China take during these meetings as its support is seen as a must for the success of subsidy bans. However, experts see it as a possibility that
China might partake with countries such as
India,
Brazil and
Egypt seeking a different treatment in the matter.