Goyal flags supply chains as key G20 trade issue

Commerce Minister Piyush Goyal emphasized the importance of distinguishing between the weaponization of food supply chains and legitimate measures taken by countries to address food security concerns during the G20 Trade Ministers meeting in Milwaukee. Goyal stressed that food should be a source of security, stability, and cooperation.

He warned against the weaponization of food through coercive trade actions, as it can have severe consequences for economies and their populations. US Trade Representative Jamieson Greer echoed Goyal's concerns, stating that coercive trade actions involving food, agricultural products, and agricultural inputs can have significant repercussions.

Greer also highlighted the issue of structural excess capacity and production, noting that non-market policies and practices that allow production to surpass domestic demand can have far-reaching effects on global markets. Additionally, Greer pointed out that the Most-Favoured-Nation (MFN) principle, while essential to the global trading system, should be periodically examined to ensure it continues to support the evolving needs of the economy.

Greer emphasized that the MFN principle, when applied unconditionally, can hinder a country's ability to respond to distortive policies and adapt to changing market conditions. Lastly, Greer stressed that forced labor in global supply chains is not just a humanitarian issue but also a trade concern. Goods produced using forced labor can enter markets with an artificial price advantage, creating unfair competitive conditions for workers and businesses, while undermining trust in the fairness of the global trading system.