The United States is pushing for action against excess industrial capacity that drives prices down unfairly, according to Washington's top trade envoy. The issue was discussed on the sidelines of a G20 meeting in Milwaukee. The US is criticizing countries with excess steel production, often targeting China, which produces more than it consumes, flooding markets. China rejects these claims.
A group of countries, excluding China, agreed to a framework to counter "persistent" excess steel production. The framework includes lowering subsidies and boosting data sharing to identify "suspicious patterns of steel trade." Members also agreed to take "trade measures" if needed on countries that overproduce. The developments came as officials from the Group of 20 major economies convened in Milwaukee over two days.
The US trade official, Jamieson Greer, told reporters that the US has taken robust measures and that other countries may need to do the same. He did not elaborate if he meant for countries to raise trade barriers on Chinese steel. Greer's comments came after a meeting of the Global Forum on Steel Excess Capacity, whose 28 members include the European Union, Australia, Japan, and South Korea.
China's international trade representative, Li Chenggang, told AFP that G20 members had yet to discuss the topic of overcapacity in earnest. He also stated that China rejects claims of producing more steel than it consumes. The US and other countries have accused China of flooding markets with cheap steel.
The G20 trade ministerial comes amid a deepening US-Canada trade war, waves of US tariffs, and Trump's investigations into member countries over excess industrial capacity. Analysts expect few breakthroughs as trade tensions simmer. The talks also come after finance ministers met in Asheville, setting the stage for a leaders' summit in Miami.
Countries are seeking deals with the Trump administration, with India pushing to get a trade pact over the finish line. Poland's Finance Minister, Andrzej Domanski, urged for a lowering of trade barriers, hoping that the US will stick to earlier agreements. Ongoing US investigations into overcapacity target 16 trading partners, including China, the EU, Japan, and India.
The G20 comprises 19 nations plus the EU and the African Union. The meeting also discussed efforts to eliminate forced labor in supply chains and target access to food supplies to pressure others. The US and other countries are working to address these issues amidst ongoing trade tensions.
Key points
- The US is pushing for coordinated action on steel overproduction, criticizing China.
- A group of countries agreed to a framework to counter excess steel production.
- The G20 meeting comes amid a deepening US-Canada trade war and ongoing trade tensions.
