G20 trade ministers discuss curbing govt-backed excess manufacturing capacity
G20 trade ministers have discussed preventing large production capacities created with government support in certain regions from harming manufacturing in countries that follow fair trade practices, including India, the United States, and Europe, Commerce and Industry Minister Piyush Goyal said. The meeting, which concluded on Friday in Milwaukee, addressed concerns about the World Trade Organisation (WTO), which is currently under severe stress. According to Goyal, many countries are using predatory pricing as they have overcapacity and are dumping goods, much to the detriment of honest and fair trade.
Goyal emphasized that members should collectively work towards ensuring that geographies with very large production capacities created with government support should not be allowed to hurt manufacturing in countries where fair trade and honest business practices are carried out. The discussions were held under the United States presidency at the G20. However, differences of opinion prevented the release of an outcome document from the meeting.
On India's competitive advantages, Goyal highlighted that India is the world's best location to house data centres, citing low-cost infrastructure and energy, a large pool of young talent, and tax-free benefits until 2047. India has received nearly USD 200 billion of commitments for investments in data centres, he added.
