EU yards get subsidies for LNG carriers

The European Commission has extended the granting of state aids in the shipbuilding sector to LNG carriers. EU trade commissioner Pascal Lamy explains: “Today’s decision offers a temporary relief to European LNG shipyards which are facing serious difficulties, while Korea continues to price ships below cost. I trust the WTO will soon condemn these unfair practices and that Korea will put an end to them.” EU Commissioner for competition, Mario Monti adds: “While State aid is certainly not the way forward to make EU shipbuilding more competitive globally, today’s decision does show that the Commission recognises the exceptional circumstances in this case where Community interests are at stake”. Korean shipbuilders vehemently refute European shipbuilders? allegations about their pricing practices. They had anticipated that the temporary defensive mechanism, which has, since October 2002, been available for containerships and product and chemical tankers, would be extended to LNG carriers.