USTR aligns 14 economies, including India, to tackle excess capacity in EVs, batteries, semiconductors, solar panels

The Office of the United States Trade Representative (USTR) has announced that 14 economies, including India, have jointly resolved to address the issue of global excess capacity and production in key manufacturing sectors.

An official USTR statement said that, “building on the productive discussions at the G20 Trade Ministerial in Milwaukee, Wisconsin, these fourteen economies joined the United States in signing a Joint Ministerial Statement that expresses the collective resolve to work together in new, dedicated sectoral platforms to examine and take effective actions that address structural excess capacity and production in several key sectors of concern”.

On the sidelines of the Organisation for Economic Co-operation and Development (OECD) Trade Committee meeting, the USTR convened a meeting of senior officials from the participating economies to begin work on addressing structural excess capacity and production in key manufacturing sectors, according to a statement issued on October 7.

EVs, batteries, semiconductors among key sectors identified

The Joint Ministerial Statement calls on all countries to take steps to end the use of non-market policies and practices that distort markets and perpetuate structural excess capacity and production.

The statement identified electric vehicles (EVs), batteries, chemicals, foundational semiconductors and solar panels as key sectors where structural excess capacity and production are a concern.

“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.

The joint statement called 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. 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,” it said.

The signatories committed to meeting at the technical level before December 2026 to develop terms of reference, share non-confidential information and data on structural excess capacity and production and their impact on the identified sectors, and discuss efforts to mitigate the damage. They will also identify information gaps, drawing on work by the OECD and other sources, as appropriate.

The signatories include the trade ministers of 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.