Commission welcomes agreement during Global Forum on Steel Excess Capacity

Further information:

According to the agreed package, Global Forum members must ensure market-based outcomes in the steel industry, refrain from market-distorting subsidies and other government support measures that contribute to overcapacity, provide a level playing field between state-owned and private companies, and enact effective adjustment polices.

This agreement spells out the market-distorting practices at the root of overcapacity and is underpinned by a robust monitoring mechanism on capacity and policy developments to track implementation in 2018 and 2019.

Background information:

The global surplus in steelmaking capacity reached around 737 million metric tonnes in 2016, the highest ever seen. This has driven down steel prices to unsustainable levels and had a damaging impact on the steel sector, as well as related industries and jobs.

In March 2016 the Commission issued a Communication presenting a series of measures to support competitiveness of the EU steel industry. The Global Forum on Steel Excess Capacity was set up in December 2016, comprising the Group of 20 biggest economies (G20), as well as other members of the OECD.

The European Commission welcomed on 30 November 2017 an agreement reached during a meeting of the Global Forum on Steel Excess Capacity on a package of policy solutions to tackle the issue of global overcapacity in the steel sector.

Deutsche Welle, 30.11.17: US and China still at odds over steel overcapacity at Berlin summit http://p.dw.com/p/2oYtj

Reuters, 30.11.17: China, U.S. at odds over steel overcapacity at G20 forum https://www.reuters.com/article/idUSKBN1DU1TQ

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