US trade chief Greer says 'Milwaukee Framework' to combat global excess steel capacity
XLB•U.S. Trade Representative Jamieson Greer said a framework for coordinated action against excess steel capacity will be released at a G20 trade ministers meeting this week. It will likely encourage countries to raise barriers to steel imports from countries with heavy excess capacity, he said.
1. Framework targets excess capacity
Greer said the “Milwaukee Framework” will likely encourage countries to raise trade barriers on steel imports from countries with heavy excess capacity, such as China. Details of the recommended actions were not immediately available.
2. G20 discussions and industry calls
All G20 member economies except China agreed in early September to act against non-market policies and trade distortions that cause over-reliance on exports. Poland’s finance and economy minister Andrzej Domanski said China heavily subsidizes steel production and exports, while American Iron and Steel Institute president Kevin Dempsey urged stronger action against tariff circumvention through third countries.
