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OECD Accord On Subsidies Faces D.C. Vote by Bridget A. Murphy, assistant editor r he future of shipbuilding in the U.S. will be influenced by an upcoming Congressional ote on a measure that, if passed, ill eliminate government subsi- ies to shipyards, and necessitate lodifications to the Title XI loan uarantee program that has been luded by many as the fuel for a ^launch of commercial shipbuild- lg in the U.S. The Organization >r Economic Cooperation and De- elopment (OECD) organized a r orld forum of shipbuilding giants ist year and ratified an accord that illed for worldwide elimination of overnment subsidies to the ship- uilding industry in order to create ivel ground that would foster fair )mpetition among international ards. The U.S., Japan, the Euro- ean Union and Korea were all arties to the OECD accord, and le subsidy regulation policy is :heduled to commence in 1996, ending the passage of cooperative overnment policy in each nation, s the U.S. government prepares ) address the OECD accord, de- ate over subsidy elimination has )me into the forefront of the ation's maritime policy. As the debate begins to heat up 1 Washington, the underlying is- le has become apparent, namely: . the domestic shipbuilding indus- y ready to convert to commercial upbuilding without the support of avernment loan guarantees, as rovided by the existing provisions ? Title XI? Those opposed to the ECD accord say that U.S. yards eed more time, a longer "transi- onal phase" to convert yard pro- iiction techniques from those re- aired to build military vessels to lose suited to building ships for ie commercial market. It has been estimated that close ) ninety percent of the shipbuild- ig jobs in the U.S. are represented y six major yards, whose interests re jointly represented by the merican Shipbuilding Association lSA), the organization that broke tvay from the Shipbuilders Coun- 1 of America (SCA) after judging tat its interests were not being presented by the U.S. Trade Rep- isentative to the OECD conven- on. The ASA member yards are: ational Steel and Shipbuilding o., San Diego, Calif.; Newport ews Shipbuilding, Newport News, a., Avondale Shipyards, New Or- ans, La.; Ingalls Shipbuilding, ascagoula, Miss.; Bath Iron Works, ath, Maine; and General Dynam- s' Electric Boat Division, Groton, onn. In an interview with MR / N, Tom Bowler, a former Navy iptain, and recently appointed sad of the ASA, said, "If this agree- ent is signed it will be the death lell for the commercial opportuni- es for these six yards. This agree- ent would lock these shipbuilders it of the international market, oreign shipbuilders have been subsidized on a massive scale where we've been focusing on naval build- ing ... You can't turn off U.S. subsi- dies when other countries turn on the subsidy faucet at full throttle." Mr. Bowler went on to say that: "OECD will slam the door shut on Title XI, and revert the U.S. back to old terms, erasing the first glimmer of hope for the commercial ship- building industry." Some decision makers on Capitol Hill have echoed similar sentiments, including Congressman Billy Tauzin (D-La.), who said the OECD accord will damage the U.S. indus- try dramatically unless there are comparable reductions of subsidies across the world. "If we make the unilateral step, the question is, will they follow?" asked Congressman Workshop * Repair Bay * Yacht Storage Maintenance * Boathouse * Field Office * Heavy Equipment Storage WIDTHS AVAILABLE: 10' TO 65' LENGTHS IN 5' INCREMENTS ALL WEATHER PROTEC TION—FAST ASSEMBLY APPROVED FOR GOVERNMENT CONTRACT BIDDING 1-800-297-8724 UNIVERSAL SHELTERS U.S. Hwy. 19 South * Pelham, GA 31779 912-294-9633 * fax 912-294-7816 Circle 276 on Reader Service Card ^ / iA Ma"ne Deck Hardware 4 and Equipment • ANCHORS: • 50 to 60,000 Lbs. - New and Used Stockless - Dan forth - L.W.T. - Halts - Snug Stowing • CHAIN • 3m" to 5Ve" - New and Used Stud Link - Cast Steel - Grades 2 and 3 - Oil Rig Quality for Moorings, Towing, Barge Handling, Ship's Replacement • WINCHES - WINDLASSES - CAPSTANS • Vertical or Horizontal Hand, Electric, Diesel, Hydraulic or Repowered to your specs • HATCHES - WATERTIGHT DOORS MANHOLE COVERS - SCUTLES PORTHOLES • All Sizes • New or Reconditioned • PANAMA CHOCKS - DOUBLE BITTS SINGLE BITTS - CAST STEEL CLEATS AND KEVELS • ' GIGANTIC\ A" Sizes Available, New & Used • FENDERS PNEUMATIC • For Rent or Sale All Sizes, New & Used SERVING THE MARINE 6 OIL INDUSTRIES FOR OVER 35 YEARS WE ARE DIRECT FACTORY DISTRIBUTORS 6 IMPORTERS WATERMAN SUPPLY CO., IMC. P.O. BOX 596 WILMINGTON, CA 90748 PH: (310) 436-4288 FAX: (310) 495-1045 Circle 239 on Reader Service Card INTERIORS QUALITY PRODUCT AND SERVICE FOR NEW CONSTRUCTION, CONVERSION OR REFURBISHING Jamestown Metal Marine Sales, Inc. 4710 Northwest Second Avenue Boca Raton, Florida 33431 (407) 994-3900 FAX: (407) 994-3969 Circle 244 on Reader Service Card July, 1995 11
