The OECD welcomes the outcomes of the Ministerial meeting of the Global Forum on Steel Excess Capacity, and congratulates Germany on this important achievement on the last day of its G20 Presidency. The Global Forum was created by G20 Leaders, at their Hangzhou summit in September of last year. The OECD is honoured to be serving the Global Forum as its Facilitator and to contribute to its achievements to date.
“I am very pleased with the result agreed, which confirms the relevance of the G20 in crafting collective solutions to global problems. Ministers agreed on a roadmap to reduce steel excess capacity. 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 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 emphasize 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.
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.
“The outcome is the crowning achievement of a successful German G20 Presidency which the OECD has been delighted to support in areas such as inclusive growth, climate change, tax policy, and the digital economy,” said Gabriela Ramos, the OECD Chief of Staff and G20 Sherpa.
The OECD will continue to serve as the Facilitator of the Global forum and to work with GFSEC members in implementing the roadmap.
To read – The Global Forum on Steel Excess Capacity report – click here