G20 trade ministers split as handful reject U.S. excess-capacity push

  • G20 trade ministers rejected a U.S. proposal on excess capacity and non-market policies.
  • Trump administration tariffs of 10% or 12.5% cover goods from 59 countries and the EU.
  • Mexico and Argentina joined a U.S.-led forced-labor supply-chain statement after Milwaukee talks.

A handful of G20 trade ministers rejected a U.S. proposal to address excess industrial capacity and non-market policies, exposing divisions among the major economies. The U.S. G20 chair’s statement, issued after the Oct. 2 trade meeting in Milwaukee, said only Mexico and Argentina supported a U.S.-led statement seeking more cooperation to remove goods made with forced labor from supply chains. The dispute follows the Trump administration’s tariffs of 10% or 12.5% on goods from 59 countries and the European Union over claims that they do not adequately enforce forced-labor bans. The statement did not identify the countries opposing the excess-capacity language, although China had rejected similar wording at a finance leaders’ meeting a month earlier in Asheville, North Carolina. China has disputed accusations that its industrial policies create excess capacity and says Western governments use the issue to support protectionist measures. G20 trade ministers did reach agreement that food and agricultural trade should not be used for economic or political coercion.

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