Argentina signs up to US-led statement on industrial overcapacity

Argentina has joined the United States and 13 other nations in signing a statement urging action to tackle industrial overcapacity. The US Trade Representative's office announced the declaration at a meeting of the Organisation for Economic Cooperation and Development's Trade Committee, following discussions at the recent G20 trade ministers meeting in Milwaukee, Wisconsin.

The statement warns that industrial capacity consistently exceeding global demand, often due to non-market policies, poses a challenge. While China is not named, the excess industrial capacity has long been a source of tension between Beijing and the US and other major economies. The 15 signatories agree to examine these issues and collaborate through sectoral platforms, initially focusing on sectors like automobiles, electric vehicles, batteries, semiconductors, and solar panels.

However, major G20 players such as China, Brazil, Indonesia, Russia, Saudi Arabia, and South Africa did not endorse the statement. The US asserts that overproduction supported by non-market policies distorts global markets and puts pressure on producers overseas. The initiative calls on participating economies to address policies and practices that maintain structural excess capacity.