India has joined the US and 13 other economies in signing a joint ministerial statement to address structural excess capacity and production in key manufacturing sectors, as Washington steps up efforts to tackle market distortions linked to non-market policies and practices.
The statement was signed on October 7 on the sidelines of the Organisation for Economic Co-operation and Development (OECD) Trade Committee, following discussions at the G20 Trade Ministerial in Milwaukee, Wisconsin, the Office of the United States Trade Representative (USTR) said.
The signatories include Argentina, Australia, Canada, the European Union, France, Germany, India, Italy, Japan, South Korea, Mexico, Poland, Türkiye, the United Kingdom and the US.
The economies have agreed to work through dedicated sectoral platforms to examine and take effective action to address structural excess capacity and production in key manufacturing sectors.
The statement also calls on countries to take steps to end the use of non-market policies and practices that distort markets and perpetuate excess capacity and production.
US Trade Representative Jamieson Greer said several economies had raised concerns during the US presidency of the G20 about structural excess capacity and production in countries where output persistently exceeded global demand.
He attributed the problem to government policies and practices that distort markets, warning that these could undermine domestic industries and displace local production.
“Left unchecked, these issues will continue to cripple domestic industries, displace local production, and hinder our ability to raise the standard of living for workers and their families,” Greer said.
The US administration would continue engaging with trading partners to protect domestic industries, workers and the economy from what it considers market distortions arising from such policies, he added.
India among 16 economies under US excess capacity probe
India is also among 16 economies targeted by a separate USTR investigation into structural excess manufacturing capacity and production, launched in March under Section 301 of the US Trade Act.
The investigation examined whether excess capacity and production in economies including India were linked to government policies and practices that could harm US commerce. The probe formed part of Washington’s broader efforts to address what it views as unfair trade practices and manufacturing imbalances.
The October 7 joint statement represents a separate initiative, bringing together the US and 14 other economies to work on addressing excess capacity through dedicated sectoral platforms. The statement does not announce specific tariffs or identify individual countries as targets of the proposed action.
The statement calls for countries to address non-market policies and practices that sustain excess capacity, but the specific sectors to be examined and the measures that may follow will depend on the subsequent work undertaken by the participating economies.
The announcement follows discussions at the G20 Trade Ministerial in Milwaukee, where participating economies raised concerns about excess capacity and production. The USTR said the new platforms would provide a dedicated mechanism for examining these issues and pursuing effective responses.
