U.S. and 14 Other Economies Sign Joint Statement on Industrial Overcapacity

The United States and 14 other economies signed a joint statement Wednesday to address industrial overcapacity in key manufacturing sectors, while China, Russia, Brazil and Saudi Arabia were among those that did not sign.

The signatories include South Korea, Japan, Argentina, Australia, Canada, the European Union, France, Germany, India, Italy, Mexico, Poland, Turkey and the United Kingdom.

The statement calls for sector-specific platforms addressing overcapacity and production in autos and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels. The platforms will examine structural excess capacity and take action in response.

The participating economies said structural overcapacity can distort prices and production patterns, weaken innovation and competition, and leave other countries vulnerable to economic coercion. The initiative focuses on manufacturing sectors where excess production can affect domestic industries and employment across borders.

Technical meetings are scheduled before December to define the scope of the platforms and establish information-sharing arrangements. The work is expected to provide a framework for discussions among the participating economies on specific industries and production conditions.

The statement followed the Group of 20 trade ministers’ meeting in Milwaukee, held Sept. 30 through Oct. 1. Discussions addressed food supplies used as geopolitical leverage, manufacturing overcapacity, changes to most-favored-nation rules and efforts to remove forced labor from supply chains.

China, Indonesia, Saudi Arabia, Russia, Brazil and the African Union did not sign the overcapacity statement. The Group of 20 summit is scheduled for December in Miami.