December 18, 2017

United States Joins European Union, Japan In Pledge To Address Overcapacity

In a joint statement released last week, the United States, the European Union, and Japan agreed to work together to address global steel and aluminum overcapacity. The statement did not single out China, but instead said:

“We shared the view that severe excess capacity in key sectors exacerbated by government-financed and supported capacity expansion, unfair competitive conditions caused by large market-distorting subsidies and state-owned enterprises, forced technology transfer, and local content requirements and preferences are serious concerns for the proper functioning of international trade, the creation of innovative technologies and the sustainable growth of the global economy. We, to address this critical concern, agreed to enhance trilateral cooperation in the WTO and in other forums, as appropriate, to eliminate these and other unfair market distorting and protectionist practices by third countries.”