On the concluding day of the G20 Trade Ministers’ meeting held in Milwaukee, USA, on October 2, Union Minister of Commerce and Industry Piyush Goyal called for the adoption of a rule-based and evidence-based approach—consistent with World Trade Organisation (WTO) norms—to address distortions in global trade. He articulated India’s position on various issues, including structural excess capacity and production, the Most-Favoured-Nation (MFN) principle, the elimination of forced labour from global supply chains, and the strengthening of the multilateral trading system.
Advocacy for WTO-consistent measures on excess capacity
Piyush Goyal stated that India is among the world’s fastest-growing major economies, driven by the domestic demand of 1.4 billion people. India is acting as a reliable link in global supply chains, building manufacturing value chains that span from design to finished goods. He noted that India’s manufacturing capacity caters to both domestic and global needs and that the country does not possess structural excess capacity in the sectors identified by the G20 presidency.
Agreement on concerns regarding dumping and unfair pricing
Goyal acknowledged the concerns raised by several member nations that trade-distorting support in certain economies could fuel dumping and unfair pricing practices. He pointed out that WTO-consistent measures—such as anti-dumping and countervailing duties, which are evidence-based and subject to judicial review—are available to address such concerns.
Clear stance on production concentration and subsidies
The Union Minister stated that industrial capacity is not a problem in itself; however, trade distortions can arise when the geographical concentration of production is driven by hidden subsidies and support measures. He emphasised that while the diversification of production and supply chains is a legitimate objective, it cannot be used to justify measures that fall outside the scope of WTO rules. Furthermore, the burden of adjustment should not be placed on developing countries, as they need to retain policy space for industrialisation.
Emphasis on Upholding the MFN Principle
Addressing the issue of updating the Most-Favoured-Nation (MFN) principle, Goyal stated that India’s trade with G20 members relies on a transparent, non-discriminatory, and rule-based trading system. Describing the MFN principle as a key guarantee of this system, he noted that it ensures a level playing field for all traders, from small to large.
Importance of Consensus at the WTO
Terming consensus within the WTO as paramount, Goyal emphasised the need to maintain ‘Special and Differential Treatment’ for developing countries. He stated that this helps developing economies reach a level playing field with developed nations. He also called for the restoration of the WTO’s two-tier dispute settlement system.
India’s Commitment to Eliminating Forced Labour
Regarding the elimination of forced labour in global supply chains, the Union Minister stated that India’s commitment is absolute and unconditional. Citing Article 23 of the Constitution, he noted that it prohibits forced labour and is enforceable through the Supreme Court. He highlighted that India has ratified the International Labour Organisation (ILO) Conventions 29 and 105 and amended its Foreign Trade Policy to ban the import of goods produced using forced labour.
Verifiable Evidence Required for Trade Actions
Goyal stated that measures taken at the border should be based on specific and verifiable evidence rather than assumptions regarding entire countries, regions, or sectors. He also emphasised the need for due process and respect for WTO rules.
Highlighted the Role of the ILO
The Union Minister stated that the International Labour Organisation (ILO) is the competent, universal, and tripartite body for labour standards. He supported the objective of eliminating forced labour and the voluntary exchange of best practices among G20 members. However, he emphasised that such cooperation should not entail the monitoring of members, the creation of new obligations, or the use of information as a basis for unilateral trade actions.
Reiterated Commitment to the Multilateral Trading System
Goyal reaffirmed India’s commitment to a rule-based, fair, equitable, non-discriminatory, transparent, open, inclusive, and multilateral trading system with the WTO at its core. He emphasised the importance of consensus-based decision-making and the freedom for developing nations to implement policies aimed at the development and welfare of their people.
Support for the UK’s G20 Presidency in 2027
The Union Minister thanked the US G20 Presidency and Ambassador Greer for the hospitality and the events organized in Milwaukee. He recalled Prime Minister Narendra Modi’s view that issues which cannot be resolved jointly should not become obstacles to addressing those that can be resolved together. Goyal stated that India participated in the meeting with this very spirit, sharing its concerns and constructive suggestions regarding all four themes. He also announced India’s full support for the United Kingdom’s G20 presidency in 2027.
Bilateral meetings with trade ministers from several countries
During the meeting, Piyush Goyal also held bilateral meetings with the Trade and Tourism Minister of Australia, the Commerce Minister of Saudi Arabia, the Minister Delegate for Foreign Trade and Economic Attractiveness of France, the Trade Minister of South Korea, and the International Trade Minister of Canada.
