India signs pact to address global excess capacity: What is it? Who are the 15 signatories? Check joint statement
India has joined the United States and 13 other economies in endorsing a joint ministerial statement focused on tackling structural excess capacity and production in major manufacturing sectors. The participating countries have urged action against non-market policies and practices that "distort markets and contribute to the problem".
The Office of the US Trade Representative (USTR) released the statement on Wednesday after G20 Trade Ministers held discussions in Milwaukee, Wisconsin, on September 30 and October 1, 2026. A total of 15 economies signed the statement.
Structural excess capacity occurs when an economy's ability to produce goods consistently remains higher than global demand. The joint statement said this situation can be driven by government policies or interventions, resulting in excessive production and a concentration of manufacturing activity in particular markets.
The 15 signatories are Argentina, Australia, Canada, the European Union, France, Germany, India, Italy, Japan, the Republic of Korea, Mexico, Poland, Türkiye, the United Kingdom and the United States.
According to the statement, such conditions can discourage investment and production based on market forces, weaken competition and affect international exports. It also warned that when countries become heavily dependent on another economy for certain products, they may become more exposed to economic coercion, including arbitrary restrictions on exports.
The participating economies highlighted concerns over existing or expected excess capacity in industries such as automobiles and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels.
"We are concerned that, absent timely and effective actions, structural excess capacity and production in these sectors will cripple our domestic industries, displace local production, destroy jobs, undermine our economies, hinder efforts to develop and industrialize, and ultimately lower the standard of living for our people," the statement said, as per ANI.
The countries urged governments to tackle structural excess capacity and production, including through measures to end non-market policies and practices that contribute to market distortions.
“We call on all countries to take steps to eliminate structural excess capacity and production in their economies, including by ending the use of non-market policies and practices that distort markets and contribute to the problem. We note that in the absence of such steps, an increasing number of countries are taking action to defend their industries, workers, and economies from distortions resulting from such policies and practices,” the statement said.
It added, “At the same time, we recognize that such individual efforts will be more effective if concerned countries cooperate, share information, and take complementary action, wherever possible.”
The signatories said cooperation, information sharing and coordinated measures could strengthen individual countries' efforts to address the issue.
The statement noted that G20 Trade Ministers had examined structural excess capacity in several manufacturing industries and welcomed the US G20 Presidency's decision to make the issue a key priority.
The economies agreed to establish dedicated sectoral platforms to examine the issue, with automobiles and electric vehicles, batteries, chemicals, foundational semiconductors and solar panels identified as the initial areas of focus.
"To that end, we are resolved to work together in new, dedicated sectoral platforms to further examine and take effective actions that address structural excess capacity and production in key sectors of concern," the statement said.
Senior officials from the participating economies have met on the sidelines of the OECD Trade Committee to begin work on the issue. The statement also called on other countries, including those outside the OECD, to join the initiative.
The participating economies have agreed to hold technical-level discussions before December 2026 to formulate terms of reference and exchange non-confidential information and data on structural excess capacity, its effects on the identified sectors and measures being taken to limit the impact, according to ANI.
They will also reportedly work to identify gaps in available information and consider effective measures, including complementary steps where possible, to protect their economies from the effects of excess production capacity.
"Working together, we aim to create the conditions necessary so that market-oriented competition in affected sectors can thrive once again," the statement said.
The USTR said the 14 economies had joined the US in signing the statement following discussions during the G20 Trade Ministerial in Milwaukee.
US Trade Representative Jamieson Greer said, "Over the course of the U.S. G20 presidency, numerous economies raised instances of structural excess capacity and production in economies that persistently exceeded global demand and were sustained by foreign government's non-market policies and practices."
Greer said that failing to address these issues could continue to hurt domestic industries, replace local production and make it harder to improve living standards for workers and their families.
"The Trump Administration will continue to engage with our trading partners to defend our domestic industries, workers, and economy from distortions resulting from these pervasive policies and practices," he added.
(With inputs from agency)
Garvit Bhirani is a journalist based in Gurugram. He is a Deputy Chief Content Producer at LiveMint, where he covers national and international news stories, focusing on accuracy and compelling storytelling for readers. <br><br> With a total of six years of experience in journalism, he has previously worked with Vaco Binary Semantics for Google, taking on the role of news curation lead, and reported from the field on health, education, and agriculture stories for 101reporters and News9. He has also served as a content editor for entertainment and news media organisations. <br><br> Garvit holds bachelor’s and master’s degrees in journalism and mass communication from Guru Gobind Singh Indraprastha University and Gurugram University, respectively. During college days, he joined India’s only non-profit student journalism network, where he anchored daily news updates and produced his own weekly show called ‘Data Fix’. <br><br> He was selected for the YES Foundation Media for Social Change Fellowship in Delhi, the Talking Data to the Fourth Pillar residential workshop, and the VOICE Fellowship in Pune. <br><br> He holds certificates in COVID-19-verification reporting, data journalism, food & agriculture, tech policy, media literacy and countering misinformation, and tackling election disinformation courses from Thomson Foundation, IndiaSpend, The Dialogue, US Mission in India, and AFP. <br><br> He can be reached on <a href="https://www.linkedin.com/in/garvit-bhirani">LinkedIn</a> or on <a href="https://x.com/GarvitBhirani">@garvitbhirani</a> on X
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