G20 trade chiefs to denounce food trade coercion but not excess factory capacity
SPY•G20 trade ministers agreed to denounce the weaponization of food through coercive trade actions but did not reach consensus on statements about forced labor or excess industrial capacity. They also discussed U.S. proposals to reform Most Favored Nation tariffs.
1. No consensus on capacity
U.S. Trade Representative Jamieson Greer said G20 trade ministers agreed to denounce food trade coercion but failed to agree on statements denouncing forced labor in supply chains or addressing structural excess industrial capacity. He said many ministers raised concerns about excess capacity, particularly in China, and described current trade remedies as inadequate.
2. Tariff reform discussed
Ministers also discussed a U.S. proposal to reform Most Favored Nation tariff rules. Greer said the United States did not propose a joint statement because the issue was a longer-term conversation, and argued that unconditional MFN tariffs could fail to promote reciprocity and create free riders. The G20 was expected to release a joint statement on food coercion later Thursday.
3. European concerns
European Trade Commissioner Maros Sefcovic said Chinese exports were threatening key European industries, including autos and steel. Greer also said he had positive discussions with European counterparts about cooperation to release strategic diesel reserves.
