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Ministerial meeting of the Global Forum on Steel Excess Capacity Held

On November 30, 2017, the Ministerial meeting of the Global Forum on Steel Excess Capacity (GFSEC) was held in Berlin, the Federal Republic of Germany. Mr. Tadao Yanase, Vice-Minister for International Affairs, the Ministry of Economy, Trade and Industry (METI) represented Japan at the meeting.

Agreement reached at the Ministerial meeting of the GFSEC

At the meeting, members reached agreement on six principles through which each member should address steel excess capacity, such as refraining from market-distorting government support measures and ensuring a level playing field between state-owned and private enterprises.

Going forward, it is incumbent upon all members to steadily implement the concrete policy solutions including the six principles, and to strengthen the functioning of the market. It is vital to follow up on these efforts through effective information sharing and review in the Forum. Japan will continue to play an active role in effectively solving this problem, utilizing its past experience of structural adjustment and cooperating with other countries

Outline of the six principles agreed in the meeting

  1. Global challenge, collective policy solutions: Steel excess capacity is a global issue which requires effective policy solutions to enhance the market function and reduce steel excess capacity.
  2. Refraining from market-distorting government support measures: Governments and government-related entities should refrain from providing market-distorting subsidies and other types of support measures that sustain uneconomic steel plants, encourage investment in new steelmaking capacity which otherwise would not be built.
  3. Fostering a level playing field in the steel industry: Irrespective of ownership (whether state-owned or privately owned), all enterprises acting in the steel market should follow the same regulations including bankruptcy procedures, and a level playing field should be ensured among steel enterprises of all types of ownership.
  4. Ensuring market-based outcomes in the steel industry: New investment, production and trade flows should reflect market-based supply and demand conditions.
  5. Encouraging adjustment and thereby reducing excess capacity: Governments have a role in advancing policies that facilitate the restructuring of the steel industry while minimizing the social costs to workers and communities.
  6. Ensuring greater transparency: governments should increase transparency through regular information sharing as well as analysis, review, assessment and discussion on the information among the members

The whole report can be found at the website below.

About the Global Forum on Steel Excess Capacity

On the basis of discussions in international fora including the G7 Ise-Shima Summit, in which Leaders recognized for the first time the need to address excess capacity in the steel industry by enhancing market function, Leaders agreed to establish the Global Forum on Steel Excess Capacity at the G20 Hangzhou Summit. In December 2016, the Forum was formally established with the participation of 33 members, which consist of G20 members and interested OECD members. Over the course of 6 meetings attended by officials, the Forum members conducted information sharing on crude steel capacity and government support measures, and discussed policy solutions to address excess capacity.

The agreement at the Ministerial meeting serves as the report with concrete policy solutions to address excess capacity called for in the G20 Hamburg Summit.

Release date

December 4, 2017

Divisions in Charge

  • Metal Industries Division, Manufacturing Industries Bureau
  • International Economic Affairs Division, Trade Policy Bureau
Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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