Steel Summit on Overcapacity Opens Thursday
11/29/2017 - Representatives of the Group of 20 countries, along with those from certain others, are to begin a new round of talks Thursday over the world’s excess steelmaking capacity -- and America’s potential response to the problem.
The Global Forum on Steel Excess Capacity will bring together the G20 countries along with certain members of the Organisation for Economic Co-operation and Development.
The European Steel Association said that through the meeting, it is expecting the represented nations to assess the current capacity situation and define policies to address it.
"The European steel industry welcomed the Global Forum when it was first proposed in 2016," said Axel Eggert, the association’s general director. “G20 leaders recognized excess capacity as a global problem requiring urgent collective attention. Establishing verifiable principles and guidelines would kick-start the much needed response," he said.
"This situation cannot continue. It is not sustainable. The Global Forum must reach a concrete arrangement that will tackle the plague of global overcapacity," he added.
Germany, meanwhile, hopes to avert a trade war that might erupt if the U.S. follows through on new steel tariffs.
The Trump administration is considering broad protective measures under the Trade Expansion Act of 1962, which allows the president to impose import restrictions in the name of national security.
The European Union has promised to retaliate if the U.S. places tariffs on its steel.
"Each country has to realize that it’s not good to act unilaterally -- neither in the form of imposing trade restrictions nor in the form of developing its own ideas about how much it should export," German Minister of Economic Affairs and Energy Brigitte Zypries told the Reuters news service.
Reuters also reported that U.S. Trade Representative Robert Lighthizer will not attend the summit, but will send his chief of staff, Jamieson Greer.
The European Steel Association said that through the meeting, it is expecting the represented nations to assess the current capacity situation and define policies to address it.
"The European steel industry welcomed the Global Forum when it was first proposed in 2016," said Axel Eggert, the association’s general director. “G20 leaders recognized excess capacity as a global problem requiring urgent collective attention. Establishing verifiable principles and guidelines would kick-start the much needed response," he said.
"This situation cannot continue. It is not sustainable. The Global Forum must reach a concrete arrangement that will tackle the plague of global overcapacity," he added.
Germany, meanwhile, hopes to avert a trade war that might erupt if the U.S. follows through on new steel tariffs.
The Trump administration is considering broad protective measures under the Trade Expansion Act of 1962, which allows the president to impose import restrictions in the name of national security.
The European Union has promised to retaliate if the U.S. places tariffs on its steel.
"Each country has to realize that it’s not good to act unilaterally -- neither in the form of imposing trade restrictions nor in the form of developing its own ideas about how much it should export," German Minister of Economic Affairs and Energy Brigitte Zypries told the Reuters news service.
Reuters also reported that U.S. Trade Representative Robert Lighthizer will not attend the summit, but will send his chief of staff, Jamieson Greer.
