Milwaukee, Oct 1 (SocialNews.XYZ) A US-led group of major steel-producing economies has agreed on a new framework to tackle rapidly rising global steel overcapacity, including stronger trade measures, scrutiny of subsidies, and coordinated action against circumvention of tariffs and other restrictions.
The Global Forum on Steel Excess Capacity (GFSEC), meeting in Milwaukee on Wednesday under the chairmanship of US Trade Representative Jamieson Greer, reached consensus on what it called the 'Milwaukee Framework' for joint action.
The agreement comes as global steel excess capacity is projected to rise from 601 million tonnes in 2024 to 745 million tonnes by 2028, its highest level in a decade. The forum said the projected surplus would exceed the current combined production of GFSEC members by 319 million tonnes.
The framework commits participating economies to work through their national legal systems to reduce and eliminate market-distorting subsidies and other government support that contributes to persistent steel overcapacity. Members also recommitted to World Trade Organisation agreements and a fair and rules-based trading system.
It calls for governments to improve supply-chain transparency, including by collecting "country of melt and pour" information that can help determine the origin of steel and identify possible circumvention and suspicious trade patterns.
The framework also envisages anti-dumping and countervailing duty investigations, global safeguard investigations and, where appropriate, other trade measures on steel and steel-containing products from sources of global excess capacity.
Members agreed to coordinate efforts to detect circumvention and monitor trade diversion so their markets do not become a "backdoor" for steel displaced from other countries.
"Under President Trump, the U.S. steel industry is undergoing a renaissance on the strength of tariffs, trade deals, favorable tax treatment, improved energy policy, and the American entrepreneurial spirit," Greer said.
"If like-minded partners adopt similar policies, they can hold accountable those countries that are contributing to the problem of global overcapacity in steel," he said.
Greer said the United States would work with other members to implement the framework and "restore a global level playing field for our workers and producers".
The ministerial statement identified non-market policies and practices in some non-GFSEC economies as a major concern. Members agreed to collect information on such practices, identify possible responses and consider incorporating further measures into the framework.
China figures prominently in the forum's assessment. OECD data cited by GFSEC said a typical Chinese steel firm receives subsidies through grants, tax concessions and below-market borrowing at a level about 15 times higher relative to its assets than a typical firm elsewhere. It said China's steel subsidy rate has nearly doubled since 2019.
Chinese steel exports reached a record 131 million tonnes in 2025, according to the document, an increase of 153 per cent since 2020. Chinese steelmakers are also adding 70 million tonnes of new capacity abroad, particularly in Southeast Asia and Africa.
Kevin Dempsey, president and CEO of the American Iron and Steel Institute, welcomed the agreement, saying it would strengthen efforts against excess capacity and the circumvention and evasion of steel trade measures.
"It is critical to the long-term health of the global steel sector that GFSEC Members follow through on the commitments made today in Milwaukee," Dempsey said.
The Milwaukee meeting included representatives from more than 30 economies, among them the United States, European Union, Canada, Japan, South Korea, Mexico, Brazil, Australia, the United Kingdom, Indonesia, Malaysia, Thailand and Vietnam.
Source: IANS
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