Canada concludes chairing the Global Forum on Steel Excess Capacity and continues participating as a member of its steering committee in 2024

Addressing excess capacity through an international platform like the GFSEC is essential to enable North American steel producers to thrive

OTTAWA, ON, March 1, 2024 /CNW/ - Canada took on an important leadership role as chair of the Global Forum on Steel Excess Capacity (GFSEC). This role concluded at the end of 2023. Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, and the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, acknowledged Canada's achievements as chair and welcomed the country's continued roles as a member of the GFSEC Steering Committee and as outgoing chair for 2024.

Established in 2016, the GFSEC is an international platform to discuss market functioning in the global steel sector and find collective solutions to the challenge of excess steelmaking capacity. The GFSEC includes members from 28 steel-producing economies.

Global excess steelmaking capacity is due to market-distorting policies in countries where government subsidies have enabled the non-market growth of steelmaking capacities. This trend has led to unstable market conditions, creating significant challenges for North American producers?including demand saturation leading to low prices and excess competition from unfairly traded (dumped and subsidized) imports. Excess capacity also poses challenges to the sector's decarbonization efforts, with capacity growth happening predominantly at high-emissions plants. Addressing excess capacity through an international platform like the GFSEC is essential to enable North American producers to thrive.

Over the past year as chair of the GFSEC, Canada advanced various activities, including developing an analysis that revealed the problems arising from steel excess capacity and the need to address it. Canada also renewed the strategic direction of the GFSEC by securing buy-in and consensus from members on new three-year terms of reference and by developing a new governance structure.

A highlight of Canada's participation in the GFSEC was the Ministerial Council Meeting of the Organisation for Economic Co-operation and Development (OECD) and GFSEC, held in June 2023 in Paris. The meeting concluded with the successful issuing of a joint ministerial statement on the need to continue tackling global steel excess capacity to preserve the viability of steel industries. Further details on the achievements and other results stemming from Canada's chairmanship of the Forum are featured in the 2023 GFSEC Results Report that was recently released by the OECD.

Quotes

"We are proud to have led the Global Forum on Steel Excess Capacity for the past year and to have worked alongside some of the world's largest steel-producing stakeholders. Canada is honoured to participate as a member of the Forum and on its steering committee as we work toward collective solutions to the challenge of excess capacity. Canada will maintain an outgoing chair role that will include supporting the United Kingdom as lead chair for 2024."
? The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

"As chair of the Global Forum on Steel Excess Capacity, Canada helped set the Forum up for future success by making sure that steel trade is fair for everyone. We look forward to continuing this great work through our ongoing participation on the Forum and on its steering committee so that we create benefits for Canadian workers and businesses."
? The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development

"The work of the Global Forum remains a priority as governments across the G20 collaborate and seek solutions to the devastating impacts of global excess steel capacity. The Canadian Steel Producers Association applauds Canada's success in chairing the Global Forum on Steel Excess Capacity, culminating in the hosting of the ministerial meeting to ensure that this pressing challenge is being discussed at the highest levels around the world. It was an honour to have participated in the ministerial meeting, with Canada's Minister Mary Ng as the Chair, to share industry views with the ministers and high-level officials from 28 steel-producing economies."
? Catherine Cobden, President and CEO, Canadian Steel Producers Association

Quick facts

• The Global Forum on Steel Excess Capacity (GFSEC) is facilitated by the Organisation for Economic Co-operation and Development, which provides technical, analytical and meeting assistance to support the Global Forum, its steering committee and chairmanship.
• The GFSEC is an open platform for all G20 members and interested members of the OECD.
• In 2024, the United Kingdom will be lead chair of the GFSEC.

Associated links

• Global Forum on Steel Excess Capacity
• Minister Ng meets with OECD and international partners to advance trade and economic priorities

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SOURCE Innovation, Science and Economic Development Canada