G20 ministers split on U.S. industrial capacity proposal

G20 trade ministers failed to agree on a U.S.-proposed framework for coordinated action against excess industrial capacity, while reaching agreement that food and agricultural trade should not be used for economic or political coercion. The U.S. Trade Representative’s office said a draft statement on industrial capacity had support from all but a handful of members, some of whom firmly rejected a cooperative approach. The United States, which holds the G20 presidency this year, did not name the countries that objected. The disagreement followed two days of trade talks in Milwaukee on September 30 and October 1. The U.S. proposal called on countries to address structural excess capacity and production, including by ending policies and practices that distort markets. It also sought dedicated sectoral platforms where G20 economies could examine capacity and consider complementary action. The proposal did not win consensus. The U.S. account described most members as supporting the draft, but did not provide a list of supporters or opponents. The disagreement comes as the U.S.