US and 14 Economies Sign Pact Against Manufacturing Overcapacity
The United States and 14 other economies signed a joint statement to establish platforms targeting structural excess capacity in sectors like electric vehicles and semiconductors.
The Office of the United States Trade Representative and 14 other economies, including India, Japan, Canada, the United Kingdom, and the European Union, signed a joint ministerial statement to combat structural excess capacity and production in key manufacturing sectors. The agreement follows G20 Trade Ministerial discussions held in Milwaukee, Wisconsin, on September 30 and October 1, 2026.
The initiative targets non-market policies and government interventions that distort global prices, hinder innovation, and expose nations to economic coercion. The signatories identified automobiles, electric vehicles, batteries, chemicals, foundational semiconductors, and solar panels as the initial focus areas. To coordinate their response, the group will establish dedicated sectoral platforms and share non-confidential data.
While the statement does not explicitly name China, the effort is effectively directed at the country. China, Russia, Brazil, Saudi Arabia, Indonesia, and the African Union declined to sign. China's Ministry of Commerce stated that G20 members held divergent positions on the issue. The broader Milwaukee meeting also produced a separate joint statement opposing the weaponization of food, which was supported by all members.
Participating nations committed to holding technical meetings before December 2026 to define the scope of their work, identify information gaps, and develop terms of reference to defend domestic industries and workers.
