OECD welcomes outcome of global forum on steel excess capacity agreement

The OECD has welcomed the outcomes of the ministerial meeting of the Global Forum on Steel Excess Capacity, which was created by G20 Leaders, at their Hangzhou summit in September of last year.

The 33 Members of the Global Forum agreed on a report with six guiding principles for governments on the basis of which the OECD has worked closely with members to develop specific policy recommendations – concrete policy solutions the G20 Leaders asked for over one year ago.

These emphasise the importance of having the right policy framework conditions; they call for the removal of subsidies and other measures that distort steel markets; they stress the need for a level playing field among steel enterprises of all types of ownership; they highlight the importance of the Forum regularly updating its information on capacity and policy measures.

“This will contribute not only to a more stable and sustainable steel sector, but is also an opportunity to reduce trade distortions and improve our trade relations more generally,” said OECD Secretary-General Angel Gurría.

The Global Forum’s work is underpinned by an information-sharing mechanism put in place by the OECD.

Forum members now share detailed information on the steel plants currently in existence, the new plants or additions of capacity that are taking place, and the extent to which steelmaking facilities are being closed in member economies.

In addition, for the first time, through the inventory of policy measures, members can now “map” the policy landscape in a fairly exhaustive manner and have information on a broad spectrum of policies that can directly or indirectly affect excess steelmaking capacity.

Download the Global Forum on Steel Excess Capacity report

Download a factsheet on the Forum and steel market data

Prashant has worked in the publishing industry for 17 years. His keen interest in commodities developed while working for organisations such as like Thomson Reuters, Wolters Kluwer & McGraw-Hill eventually brought him here. In his free time, Prashant consults with businesses in the digital space.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *