EU seek action on ship prices

Following the report by the EU Commission which concluded that some Korean yards were making losses of up to 40 per cent on some contracts, the EU Industry Council is to enter into talks with Korea to try and resolve the situation. In addition, EU member states are to request the IMF and World Bank to investigate whether the conditions attached to loans to Korea have been fully respected.

“The Industry Council sent a strong message which we hope will be heard in Korea,” said a spokesman. The Industry Council will seek assurances that these practices will stop, and to ensure fair competition and will take the opportunity like the forthcoming OECD meeting to pursue the matter.

In the meantime Council has requested that member states continue to gather information on shipbuilding prices in Korea with a view to taking action at the World Trade Organisation should diplomacy fail. The Japanese government is also studying the report, and directors responsible for the shipbuilding industry from the two countries have a pre-arranged meeting at the end of November.