OECD's blueprint bites into steel subsidy limits

In a blueprint of a global steel subsidies agreement proposed by the Organization for Economic Cooperation and Development (OECD), Argentina, Brazil, China, Egypt and India would qualify for special and differential treatment. The blueprint marks the first time the OECD specifically delineated which countries would receive special treatment under an agreement, the principal benefit of which would extend the use of a 0.5-percent de minimis subsidy beyond aid for research and development. Under the blueprint, no subsidized loans or loan guarantees would be permitted for the five countries, but additional aid to restructure small companies would be allowed. Wolfgang Hubner, head of Paris-based OECD's steel unit, made the presentation Tuesday during a joint luncheon of the American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA).