OECD to include China

The aim of the meeting is to avoid a subsidy war, says the OECD, but the EUÕs Industry Council is unwilling to sign an agreement which excludes the USA. Norway has already increased its subsidy level from seven to nine per cent, and it is possible that the deadline for the abolition of shipbuilding subsidies within Europe will be extended.

Initial discussions with the OECD will centre on the possibility of an agreement between the EU, Norway, Japan and Korea, with the inclusion of China. But the organisation concedes that it may have to rethink its strategy.

It is also looking at accounting transparency, and has asked the Korean Government specific questions about financing (especially in relation to Halla). But in response to the European Shipbuilders AssociationÕs demand of limiting capacity, the OECD says it could not agree to this because of the implications for competition.