US ‘severely disappointed’ in lack of G20 consensus on overproduction

US trade representative Jamieson Greer expressed severe disappointment on Friday regarding the lack of consensus among G20 members on a draft ministerial statement addressing excess industrial capacity. The statement, aimed at tackling structural overcapacity in economies, garnered support from all but a handful of members according to Greer, who is also chair of the G20 trade ministerial meeting. The draft called for all countries to work towards eliminating these excess capacities, among other actions.

The absence of agreement on this matter has raised concerns, as the statement specifically criticized unfair cost reductions driven by overproduction, a charge commonly leveled at China. However, the specific countries that disagreed remained unnamed in the statement released by Greer on Friday.

China's representative at the finance ministers' meeting, Li Chenggang, declined to comment on the issue, stating that various opinions were expressed during the discussions. Similarly, the issue of eliminating forced labor from supply chains did not yield a unified stance among G20 members. The only countries to co-sign a statement with the US on this issue were Mexico and Argentina.

Earlier this year, the US had imposed tariffs on dozens of economies, including G20 nations, citing concerns over forced labor. Yet, G20 trade ministers agreed that trade in food and agricultural products should not be used as a means for economic or political coercion, according to Greer's statement.