OECD DELIBERATIONS ON
STEEL SUBSIDY
RAJYA SABHA
At the
initiative of the of the Organisation of Economic Cooperation
and Development (OECD), countries with interest in international
steel trade have been deliberating upon issues relating to effectiveness
of existing multilateral disciplines on market distorting measures
relevant for trade in the steel sector. The proponents of the
OECD steel deliberations are of the view that subsidies and related
government support have caused and are causing significant distortions
in the steel markets and these will be required to be reduced
and where possible eliminated. Elements of a possible Steel Subsidy
Agreement are being discussed by the participating countries.
While remaining
countries are engaged in the negotiating process, India is primarily
trying to preserve the special and differential treatment provisions
available to the developing countries under the existing WTO Agreement
on Subsidies and Countervailing Measures. These provisions enable
India to provide crucial export incentives to the industry and
if these are preserved, there is not likely to be any significant
impact on the Indian steel industry.
This information
was given by the Minister for Steel Shri Braja Kishore Tripathy
in a written reply in the Rajya Sabha today. Replying to a question
on India's effort to ensure support of other steel exporting countries,
the Minister said that there is divergence in the core interests
of Egypt, Brazil and India. While India has been essentially trying
to preserve the flexibility to provide export incentives available
under Article 27 of the WTO Agreement on Subsidies and Countervailing
Measures, Egypt's main interest is protecting its ability to provide
assistance for re-structuring of the steel industry including
its privatisation. Brazil's core interests lie in protecting their
ability to provide assistance to correct deficiencies in their
financial markets and aid to disadvantaged regions.
