“Over the past 15 months of governmental negotiations to achieve a multilateral Steel Subsidies Agreement (SSA), complex SSA issues have been clarified, views of the various governments involved have been set forth and consensus has been achieved on a number of draft SSA Articles. The Nafta steel industry wishes to commend the OECD Secretariat and its outstanding staff, who deserve a great deal of credit for their attempts to achieve significant progress.

“While we would have welcomed a successful conclusion to the SSA talks in 2004, the Nafta steel industry agrees with the assessment of the OECD High Level Group (HLG) on steel, at its meeting on June 28-29. We concur that — in order to preserve the potential for further progress and the prospects for an effective SSA — it is beneficial that this negotiation take a pause. There is not yet a consensus on the fundamental issues of exceptions, preferential treatment and trade laws. Governments need additional time to reflect upon outstanding issues.

“As the HLG has concluded, it is important to continue the effort to achieve an effective SSA. Market forces have not been restored to the world steel industry. Notwithstanding current market conditions, excess and inefficient global steel capacity has not gone away. Subsidized steel capacity increases worldwide are again on the rise. The Nafta steel industry continues to support the goal of a meaningful, "WTO-plus" SSA.

“The Nafta steel industry supports continuation of the OECD Steel Committee. The global steel sector is facing serious challenges. The Steel Committee can play a constructive role in advancing the SSA discussion. The OECD Steel Committee is the only entity in which government and steel industry officials — from both OECD and non-OECD countries — can meet in an intergovernmental world steel industry forum to explore issues of common concern, including the continued need for an SSA.”