Press Release: Commission’s third report on shipbuilding concludes that South Korea is responsible for continuing market crisis

In its third report on the situation of the world shipbuilding market, the European Commission finds that the market continues to face serious difficulties. Supply still outstrips demand and there are few indications that this situation may improve. Despite increased ordering activity, ship prices in general have not recovered. The Commission report concludes that the on-going depression in prices is caused by low offer prices from South Korean yards. In spite of the signing of 'Agreed Minutes' in June 2000 to secure binding commitments from South Korea in relation to non-intervention in the financing of shipbuilding, bilateral talks with South Korea ended without results. The European industry has filed a complaint under the Trade Barriers Regulation to address the problem under WTO rules. The Member States will discuss the findings and recommendations of the report on 5.12.00 at the Industry Council in Brussels.

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