Commissie stemt in met tijdelijke staatssteun Spaanse scheepsbouw (en)

The European Commission has authorised Spain under EU state aid rules to grant aid to its shipbuilding industry in order to offset the effects of unfair competition from the Republic of Korea. The Spanish aid measures will allow for subsidies of up to 6 % of a ship's contract value for the construction of container ships, product and chemical tankers and Liquefied Natural Gas (LNG) tankers in case of unfair competition from Koran yards.

The authorisation of the Spanish aid measures is based on the Council Regulation concerning a temporary defensive mechanism to shipbuilding (OJ l 172 of 2.7.2002, p.1), the so called "TDM". The TDM is part of the EU's twin-track strategy to counter unfair practices from the Republic of Korea in the shipbuilding sector put in place after the failure to reach an amicable settlement with Korea.

In October 2002 the EU initiated WTO proceedings against Korea. At the same time the EU gives the shipbuilding industry of its Member States the opportunity to benefit from temporary support for the period during which the case is heard.

The Spanish aid scheme, which has been approved by the Commission today, allows for aid of up to 6 % of a ship's contract value. This aid may be granted for the construction of container ships as well as product tankers mostly used for the carriage of petroleum products in liquid form - and chemical tankers.

As of 25 June 2003 the day when the Commission gave notice in the Official Journal that the Community industry has suffered material injury and serious prejudice caused by unfair Korean practice in the market segment of LNGs (OJ C 148, 25.6.2003 p.14) the application of the Regulation also extends to final contracts for the construction of Liquefied Natural Gas (LNG) tankers.

Under the scheme approved today, Spanish yards are eligible for aid where there has been competition for the contract from a Korean yard offering a lower price. However, Spain has agreed that no new aid will be granted under the present scheme to the public Spanish yards until previous aid to public yards that was not in line with the EU rules (see OJ L 37, 12.2.2000, p.22) has been recovered.

Background

The main provisions of the TDM which also govern the application of the Spanish measures are the following:

The maximum intensity of aid is limited to 6% of the ship's contract value;

Aid may cover container ships; product and chemical tankers and Liquefied Natural Gas (LNG) tankers.

As of 25 June 2003 LNG tankers may benefit from the aid following a new Commission investigation under the Trade Barriers Regulation (TBR) covering the full year 2002. The study confirms that Community yards building this type of ship suffer material injury and serious prejudice, caused directly by unfair Korean practices, which was concluded and published in June 2003;

The TDM Regulation will expire on 31 March 2004.