Shipbuilding talks deadlocked

Negotiations over the actions of Korea?s shipbuilders entered into by the EU and the OECD are both deadlocked. Representatives of the EU and the Korean government met in Seoul to discuss what the Europeans see as anti-competitive practices, but the Korean delegation says the low prices in its yards are a result of a greater degree of competitiveness.

Meanwhile EU member states are seeking further clarification and assurances that IMF funds have not been channelled into uncompetitive industries. In addition, the Commission has said it is serious about bringing a case against Korean yards at the WTO.

At the OECD work is underway to resolve the differences in the figures Korea put on its shipbuilding capacity and the estimates made by the EU and Japan. Both Japan and the EU calculate shipbuilding capacity in Korean yards is over one million gct lower than Korea?s figures.

This is believed to be a political ploy so offset any capacity reduction eventually required. In compiling its figures it is understood that Korea assumed a two-hour increase in the working day, six-day working, and all workers on offshore projects switched to shipbuilding.