G20 Trade Ministers Fail to Agree on Excess Capacity, Forced Labor Statements

G20 trade ministers agreed Thursday to denounce the weaponization of food through coercive trade actions but failed to reach consensus on statements addressing forced labor in supply chains and structural excess industrial capacity, U.S. Trade Representative Jamieson Greer said. Greer told a news conference that many ministers at the Milwaukee meeting raised concerns about excess industrial capacity, particularly in China, flooding their markets with cheap exports. "Nearly all countries agree that this is an issue that requires action," he said, adding that current trade remedies are inadequate — justifying U.S. unilateral tariff action. China had objected to a similar G20 statement denouncing forced labor at a finance leaders' meeting a month ago in Asheville, North Carolina. European Trade Commissioner Maros Sefcovic said excess capacity has exploded over the past decade, threatening European autos and steel, warning that "whole sectors could be put in danger within a couple weeks or months." The G20 is expected to release a joint statement denouncing food coercion later Thursday.