TWN Info Service on WTO and Trade Issues (Oct26/05)
6 October 2026
Third World Network

Trade: G20 Ministers at impasse as US pushes controversial agenda
Published in SUNS #10527 dated 6 October 2026

Geneva, 5 Oct (D. Ravi Kanth) -- The G20 Trade Ministers' Meeting, held in Milwaukee, Wisconsin, on 1 October under the United States' presidency, failed to agree on an outcome document due to sharp differences among members over three controversial issues - addressing the issue of "overcapacity", eliminating "forced labor", and adjusting the most-favored-nation (MFN) treatment principle, according to China.

According to remarks made by a spokesperson for China's Ministry of Commerce (MOFCOM) on 4 October, China said the "overcapacity" and "forced labor" agenda items had been highly contentious from the outset as G20 members are currently subjected to additional tariffs under Section 301 of the Trade Act of 1974 related to forced labor, and many are also targets of Section 301 investigations into the issue of "overcapacity".

However, US Trade Representative (USTR), Ambassador Jamieson Greer, who seemingly framed the G20 trade ministerial agenda with the inclusion of the three items, claimed that "this week's G20 Trade Ministerial in Milwaukee was a success."

"It is especially significant that the entire G20 was able to reach consensus on the statement on the weaponization of food through coercive trade actions," Ambassador Greer said.

"G20 Trade Ministers also had candid and productive discussions regarding eliminating forced labor in global supply chains, addressing structural excess capacity and production, and reforming the Most-Favored Nation principle (MFN)."

"While I am disappointed that the G20 Trade Ministers did not reach consensus on this issue," Ambassador Greer said that he hopes that "discussions on this topic will continue and that other economies will join us in taking increased action to combat forced labor in global supply chains."

However, the issue of forced labour has failed to garner much support at the World Trade Organization.

A trade envoy, who asked not to be quoted, said many members remain opposed to the manner in which the US is attempting to "weaponize" issues like forced labour, which fall outside the remit of global trade rules.

Ambassador Greer claimed that "many G20 members expressed resolve to address structural excess capacity and production in key sectors of concern," without indicating the number of countries that supported such a discussion.

"I am disappointed that a handful of members rejected creating a pathway toward cooperative action," Ambassador Greer lamented.

Despite substantial opposition to any adjustments to the MFN principle, Ambassador Greer noted that the "development spectrum indicated that they see merit in considering how the MFN principle might be improved to address today's global trade environment."

CHINA'S OPPOSITION

China said that G20 members reached a joint statement on opposing the weaponization of food.

However, a spokesperson for MOFCOM noted that many members expressed differing views on the US presidency's inclusion of these issues on the agenda and its efforts to promote joint statements and establish cooperation mechanisms, according to a report in the Global Times, a leading Chinese publication.

Due to sharply differing views, the G20 trade ministers were unable to reach agreement on outcome documents regarding the relevant issues, the spokesperson said.

While drawing attention to the G20 chair's statement issued by Ambassador Greer, China noted that the US, together with two other G20 members (Argentina and Mexico), had issued a statement on forced labor outside the G20 framework.

Reflecting on the US inclusion of adjustments to the MFN principle, China revealed that the overwhelming majority of G20 members, including China, emphasized during discussions that the principle is the cornerstone of the multilateral trading system and provides stability and predictability for global trade.

The MOFCOM statement also highlighted that any weakening of the principle would seriously undermine the foundations of the multilateral trading system, suggesting that the US presidency did not put forward a proposal for an outcome document on this issue.

According to the MOFCOM spokesperson, at the Milwaukee meeting, members exchanged views on the agenda items set by the US presidency - opposing the "weaponization" of food, addressing "overcapacity", eliminating forced labour, and adjusting the MFN treatment principle - reaching a joint statement on the food issue, while no outcome documents were produced on the other issues.

It appears that during consultations on the "weaponization" of food, many emerging-market and developing members, including China, proposed that food-importing and food-exporting countries should jointly maintain the stability of food supply chains.

However, several G20 members emphasized that all parties have the right to take measures in pursuit of domestic public policy objectives and to safeguard food security, the MOFCOM spokesperson said.

Furthermore, China maintained an open and cooperative attitude throughout the meeting, participated constructively in discussions on all agenda items, and communicated closely with other members, fully playing its role in facilitating dialogue and cooperation, the spokesperson added.

China said that it remained firm in its principles, resolutely safeguarded its own interests and the common interests of developing countries, and worked to promote G20 unity and cooperation.

Commenting on the upcoming G20 Miami Summit in November, China indicated that while Beijing is ready to work with the presidency and all members, it will uphold the principle of consensus, strengthen unity and cooperation, and jointly contribute positive and pragmatic economic and trade outcomes to the summit, the spokesperson said.

COERCIVE MEASURES

In a separate development, without naming the US for its allegedly unilateral measures and sanctions, China - along with 27 other countries - sharply condemned what they called "unilateral coercive measures" (UCMs) at the United Nations on 3 October.

In a joint statement issued at the Third Committee of the UN General Assembly, China along with Antigua and Barbuda, Belarus, Bolivia, Burkina Faso, Cambodia, Cameroon, Central African Republic, Cuba, Democratic People's Republic of Korea, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Iran, Lao, Mali, Nicaragua, Niger, Pakistan, Russian Federation, South Sudan, Sri Lanka, State of Palestine, Sudan, Uganda, Venezuela, and Zimbabwe, noted that "today's world is plagued with rampant unilateralism and raging unilateral coercive measures."

The 28 countries said "history has proven that UCMs are one of the culprits for international turbulence and disarray in world order."

"As the United Nations marks its 80th anniversary, the international community must remain clear-headed, strengthen unity and cooperation, and firmly curb and stop such unlawful practices," China said on behalf of the 28 countries.

China noted that "developing countries and their populations continue to fall victim to unilateral coercive measures, which violate the principle of sovereign equality and cooperation, intervene in other countries' internal affairs, disregard the purposes and principles of the Charter of the United Nations and undermine the foundation of multilateralism and international rule of law."

Referring to "the 2030 Agenda for Sustainable Development (that) underscores the equal enjoyment by all states of the development dividends", China urged "states to refrain from promulgating and applying any unilateral economic, financial or trade measures not in accordance with international law and the Charter of the United Nations."

"Regrettably, despite the global call to urgently lift UCMs," China and the other signatories said "the imposition of these illegal measures continues to cause devastating, sometimes even life-threatening consequences, to targeted countries and their peoples."

More disturbingly, "UCMs, coupled with secondary sanctions and over-compliance, exacerbate existing humanitarian and economic challenges, gravely affect the stability of the global production and supply chains, as well as food, energy, and financial security, and seriously undermine the world economic order and the efforts of the countries concerned to achieve SDGs," the joint statement stressed.

"Moreover, UCMs severely violate the basic human rights, including the right to life, health, development, and education and impede the ability of targeted countries to realize those rights," China said.

Recently, the UN Special Rapporteur on the negative impact of UCMs on the enjoyment of human rights pointed out that unilateral sanctions have led to shortages of healthcare services, medication, and energy in sanctioned countries, with those in vulnerable situations such as women, children, and the elderly facing particularly dire circumstances.

China said that the signatories to the joint statement are "also concerned that unilateral coercive measures and over-compliance have limited the ability of affected countries to access and acquire foreign investment and technologies, and hindered international cooperation in culture, arts, sports, travel, people-to-people exchanges, and transport, including civil aviation." +