Trade ministers from the Group of 20 major economies remain divided on strategies to combat industrial overcapacity, according to US Trade Representative Jamieson Greer. Speaking on Thursday during the second day of talks in Milwaukee, Greer revealed that while nearly all member nations recognize excess capacity as a critical issue requiring action, they cannot agree on specific remedies. The accusation of creating unfair market distortions through overproduction is frequently directed at China, which has rejected such criticisms.
Greer emphasized that the current global framework for trade remedies is insufficient to address the problem, a stance he argued justifies unilateral measures by the United States. Washington has initiated investigations into 16 economies regarding overcapacity, with targets including China, the European Union, Japan, and India. The US trade representative cautioned that countries engaging in excessive production risk building an economy “that rests on a house of cards.”
Beyond overcapacity, the summit also failed to reach an accord on eliminating forced labor within supply chains. This diplomatic gap comes as President Trump has imposed tariffs on 60 trading partners citing forced labor concerns. Greer, however, noted that G20 participants did achieve a unified front against the “weaponization of food” through coercive trade practices.
Tensions rose during the two-day gathering as European officials condemned Russia’s impact on Ukraine’s grain exports. French Minister Delegate for International Trade Nicolas Forissier confirmed that European representatives, including those from Germany and Britain, criticized Moscow for the ongoing attacks on Black Sea ports, which are destroying agricultural export infrastructure faster than trade flows can recover. Forissier described these accusations as “the truth” and stated there is a clear consensus that weaponizing food and agriculture is unacceptable.
Russia’s delegate, Economic Development Minister Maxim Reshetnikov, pushed back against the European remarks, with state-controlled media reporting that he accused them of relying on political slogans. Despite the friction, Forissier characterized the overall atmosphere of the negotiations as constructive.
On the sidelines of the summit, several nations are pursuing broader bilateral trade relationships. Canadian Trade Minister Maninder Sidhu announced efforts to expand trade pacts with India, Turkey, Saudi Arabia, and the EU, particularly focusing on digital trade. He indicated that negotiations with India are expected to conclude in the coming months. Sidhu also held discussions with Greer regarding further cooperation between Canada and the United States.
Meanwhile, a Mexican official reported that discussions with Washington toward a tariff deal are making “steady progress.” The official, who spoke on condition of anonymity, anticipated reductions in tariffs on steel, aluminum, and automobiles, though they noted there is no rush to finalize an agreement before the upcoming US midterm elections.
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