Steel: Commission welcomes new Global Forum to tackle root causes of overcapacity
The European Commission today welcomed the establishment of a new Global Forum on Steel Excess Capacity. Designed to address overcapacity in the global steel industry, the Forum will support the creation of growth and jobs. It comprises the Group of 20 economies (G20), as well as other members of the Organisation for Economic Cooperation and Development (OECD). It will report annually to the G20 ministers within its three-year, renewable mandate. Vice-President for Jobs, Growth, Investment and Competitiveness Jyrki Katainen said: “With this Forum we have created a global space to respond jointly to the worldwide problem of steel overcapacity. This will protect growth and jobs in an efficient, sustainable EU steel industry.” Commissioner for trade Cecilia Malmström said: “As long as governments outside the EU support their steel industries in ways that distort the market, we will use all the available tools to ensure a level playing field for the EU’s steel producers. But we must also address the root causes of overcapacity in the global steel industry.” The creation of the Global Forum today in Berlin responds to a call by the G20 leaders at the Hangzhou Summit in September 2016 to create such a body. It includes all the world’s major producers. It recognises that subsidies and state support contribute to overcapacity and require attention. Members will exchange information and policies, and address overcapacity, by enhancing the role of the market and changing the structure of the industry. The forum will be facilitated by the OECD and report to G20 ministers every year.