U.S. Trade Representative Lighthizer stated that the United States would push for a new coordinated framework to address steel overcapacity during the G20 trade ministers’ meeting. Reports indicate that this initiative aims to jointly tackle the issue of China’s excess steel capacity.
According to reports from AFP and Radio France Internationale (RFI), the G20 trade ministers’ meeting opened on Wednesday (September 30) in Milwaukee, a city in the U.S. Midwest. The meeting takes place amidst an escalating trade dispute between the U.S. and Canada, a series of U.S. tariff measures, and ongoing investigations by the Trump administration into industrial overcapacity among member nations.
Given the ongoing trade tensions, analysts believe it is unlikely that the meeting will yield any major breakthroughs.
China frequently faces criticism regarding overcapacity; critics allege that China produces more steel than its domestic market requires, leading to a global supply glut. Beijing denies these accusations.
While chairing the Global Forum on Steel Excess Capacity (GFSEC) in Milwaukee on Wednesday, U.S. Trade Representative Lighthizer announced that the forum would release a framework agreement for coordinated action against steel overcapacity.
He stated, “G20 nations will take measures they deem appropriate, but we hope for coordination. The U.S. has already taken strong actions, and it may be reasonable for other countries to do the same.”
However, Lighthizer did not specify whether this implied that nations should erect trade barriers against Chinese steel.
The Global Forum on Steel Excess Capacity comprises 28 economies—many of which are G20 members, such as the European Union, Australia, Japan, and South Korea—but does not include China.
Later that day, Lighthizer issued a statement announcing that the GFSEC ministerial meeting had reached a consensus on a “comprehensive framework for joint action,” officially designated the “Milwaukee Framework.” He said the framework would encourage like-minded nations to adopt more effective measures to address global steel overcapacity and the resulting market distortions. Under the “Milwaukee Framework,” members of the Global Forum on Steel Excess Capacity agreed—in addition to plans to reduce or eliminate “market-distorting subsidies”—to enhance data sharing to help identify “suspicious steel trade patterns.”
In recent years, the U.S. government has prioritized the issue of structural overcapacity in its trade policy, with China being a primary focus of relevant U.S. measures.
In March of this year, the Office of the United States Trade Representative (USTR) initiated an investigation into overcapacity involving 16 economies—including China, the European Union, Japan, India, and Singapore—citing Section 301 of the Trade Act.