Canada working with G20 partners to reduce excess steel production
Too much steel flooding world markets affects Canadian steelworkers and our steel industry
OTTAWA, Nov. 30, 2017 /CNW/ - Canada's world-class steel producers are important contributors to our economy and manufacturing supply chains. Global steel excess capacity has negatively impacted production, trade and workers in many economies, including Canada's, and continues to do so.
To address this problem, Canada is playing an active role in the 33-member G20 Global Forum on Steel Excess Capacity (GFSEC). The GFSEC, which represents 90 percent of global steel production and capacity, has agreed to information sharing on data related to steel production, capacity and policies taken at the central government level and to concrete policy solutions in the form of six principles.
The GFSEC released a report today that details the solutions agreed to by all members to address this critical global problem.
Minister Bains congratulated Germany on its stewardship as Chair of the GFSEC and congratulated Co-Chairs China and the United States. He noted the importance of maintaining this momentum moving forward under the direction of the incoming G20 Chair, Argentina. Canada looks forward to productive sessions and continued collaboration and information sharing in 2018.
The Government of Canada will continue to work with its partners in the GFSEC to reduce excess capacity in the steel sector, to the benefit of Canadian steelworkers and the companies that they supply.
Quotes
"Canada appreciates the work of the Global Forum on Steel Excess Capacity and welcomes the policy solutions it recommends in order to encourage market function and reduce excess capacity in this sector. The report agreed to by Forum members is a testament to the collaborative efforts of G20 and other steel-producing member countries of the Global Forum to reduce the damaging effects of excess production on our respective economies."
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
"I am pleased that all major steel-producing countries have reached agreement on the principles that should guide actions to address the root causes of excess capacity and ensure a level playing field for the global steel industry and reduce trade frictions in the sector."
– The Honourable François-Philippe Champagne, Minister of International Trade
"The Canadian Steel Producers Association would like to thank Minister Bains and the Government of Canada for their leadership throughout this important process. Global excess steel capacity has harmed domestic producers and steel workers by eroding prices and disrupting supply chains. We are encouraged by the policy recommendations adopted by the Global Forum, and we are hopeful that these measures will be transparently implemented by member countries. The positive results from this critical multilateral initiative, in addition to recent improvements to Canada's domestic trade remedy system, represent important steps forward in ensuring the sustainability of Canada's innovative steel industry."
– Joseph Galimberti, President, Canadian Steel Producers Association
Quick facts
- The steel industry is a key economic sector for Canada, employing over 22,000 Canadians and contributing $3.9 billion to Canada's GDP in 2016. It is a key supplier to the Canadian manufacturing, energy, automotive and construction industries.
- The GFSEC was established as a result of a G20 initiative mandated by the 2016 Hangzhou Summit, which called on G20 and interested Organisation for Economic Co-operation and Development members to address global steel excess capacity.
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SOURCE Innovation, Science and Economic Development Canada
For further information: Karl W. Sasseville, Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 343-291-2500; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, [email protected]
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