G20 Trade Talks Make Little Progress as Global Tensions Simmer

MILWAUKEE – G20 trade ministers ended their meeting Thursday without an agreement on how to address the glut of heavily subsidized and underpriced goods that the Trump administration says is hurting American manufacturers.

U.S. Trade Representative Jamieson Greer said the discussions made progress, even though participating countries failed to reach a common position on “excess capacity,” the term used to describe production that outpaces global demand.

“Nearly all countries agreed that this is an issue that required action. And nearly all countries agreed that our current system of trade remedies and responses is inadequate to solve this problem,” Greer said.

The White House argues that some trading partners are manufacturing far more goods than consumers need, pushing prices lower and giving foreign producers an unfair advantage. China is viewed by the Trump administration as the main source of the problem, although U.S. investigations now extend from Norway to Bangladesh.

In addition to Chinese steel, the administration has pointed to overcapacity in industries such as automobiles, batteries, paper and semiconductors, saying the resulting pressure has weakened the position of U.S. companies in global competition.

The Milwaukee talks brought together representatives of the G20’s major industrial economies and emerging markets, but offered little indication of progress on the most prominent trade conflict currently involving the United States: its escalating dispute with Canada.

Relations have deteriorated since the summer, when President Donald Trump imposed 50% tariffs on roughly $20 billion in Canadian imports. Ottawa responded with tariffs of its own, and tensions intensified this week after Trump blocked nearly $1 billion in Canadian goods, including alcoholic beverages, dairy products and motorcycles.

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“The reality is there are a handful of outstanding issues that are quite difficult to resolve,” Greer said Thursday.

Canada might appear to be an unexpected target in Trump’s trade campaign. The United States buys more from its northern neighbor than from any other country, and the two longtime allies share a border that is largely open and unfortified.

Canadian Trade Minister Maninder Sidhu urged both sides to seek common ground. “You’re facing some of the same challenges that we’re facing. Let’s help each other and let’s work through something,” he said.

Ministers also failed to finalize an agreement addressing forced labor, another issue the Trump administration has cited in imposing tariffs of more than 10% on over 60 countries. Because those duties affect 99% of U.S. imports, critics say they may also be intended to replace the broad tariffs Trump introduced last year before the Supreme Court struck them down in February.

“Believe it or not, we have countries in the G20 that do not want to commit to having a prohibition on the import of goods made with forced labor,” Greer said. “At the end of the day, we all know forced labor is wrong, and it will distort our markets, and we won’t have it.” ___

Sedensky reported from New York.