Japan PM Abe calls for structural reforms to address steel overcapacity

Prime Minister Shinzo Abe of Japan arrives to attend the G20 Summit in Hangzhou, Zhejiang province, China, September 4, 2016. Picture taken September 4, 2016. REUTERS/Etienne Oliveau/Pool

HANGZHOU, China (Reuters) - Japanese Prime Minister Shinzo Abe told the G20 summit on Monday that the issue of steel overcapacity should be addressed by pressing ahead with structural reforms based on market mechanisms, a senior Japanese government spokesman said.

“Regarding overcapacity of steel and others, market distortion by subsidies and export credit is the fundamental problem... I would like to urge structural reforms based on market mechanisms, while maintaining transparency,” Abe was quoted by Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda as saying.

Abe also urged that freedom of navigation and overflight be thoroughly observed according to law, Hagiuda said. He said Japan has lodged a stern protest to North Korea over its latest missile launches.

Reporting by Kiyoshi Takenaka; Editing by Nick Macfie