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