The OECD has welcomed the outcome of the Ministerial meeting of the Global Forum on Steel Excess Capacity. The Global Forum was created by G20 Leaders, at their Hangzhou summit in September 2016. The OECD serves as the forum facilitator and has contributed towards its achievements.
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. 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; and 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.
