OTTAWA, April 20, 2016 /CNW/ - The Canadian Steel Producers Association (CSPA) today welcomed the joint statement on excess capacity and structural adjustment in the steel sector made by high-level representatives of the governments of Canada, the European Union, Japan, Mexico, the Republic of Korea, Switzerland, Turkey and the United States. This follows the Organization for Economic Co-operation and Development's (OECD's) High-Level Symposium on Excess Capacity and Structural Adjustment in the Steel Sector.
The CSPA appreciates that governments have recognized the need to quickly address the global steel crisis and were able to agree on a series of proposed actions, including identification of effective policies for addressing excess capacity through the removal of market distorting policies and the promotion of greater transparency in the steel sector.
"While encouraged by the overall meeting outcomes, we do want to register our disappointment that certain countries, including China, prevented a broad consensus in support of the statement's commitments. Unfortunately, those countries have chosen not to participate at this time." stated CSPA President, Joseph Galimberti.
The CSPA also believes that the inability to reach a consensus underscores Canada's need to fortify the domestic trade remedy system through the implementation of our Trade Remedy Modernization proposals; the importance of continued enforcement of China's Non-Market Economy status; and the need to work closely with our international partners, including within NAFTA, to ensure that the integrated North American steel market is defended against distortions associated with unfair trade.
The CSPA specifically highlights concurrence among signatory governments on a number of specific steps which could be taken, including ensuring that governments and government-supported institutions do not provide subsidies to build or sustain uneconomic steel plants and that enterprises in which governments have full or partial ownership do not receive special benefits that distort competition.
"Further dialogue through the OECD will now require sustained efforts by the signatory governments in working to build consensus for the implementation of principles as outlined in the statement" said Galimberti. "We believe that continued multilateral engagement towards meaningful action to address the causes of the current excess capacity problem is crucial to achieving stability in the sector."
The Canadian Steel Producers Association (CSPA) is the national voice of Canada's $14 billion primary steel production industry. Canadian steel producers are integral to the automotive, energy, construction, and other demanding industrial supply chains. CSPA seeks to work with governments and industry partners to advance public policies that enable a globally competitive business environment for its member companies and supply chain stakeholders.
SOURCE Canadian Steel Producers Association
For further information: Media Contact: Joseph Galimberti, President, Canadian Steel Producers Association, 613-238-6049