OECD members adopt Milwaukee Framework to curb global steel oversupply

More than 27 OECD member countries have agreed to measures to combat global steel oversupply through the ‘Milwaukee Framework’. Announced during a ministerial meeting of the Global Forum on Steel Excess Capacity (GFSEC) in Milwaukee, Wisconsin, the plan encourages nations across six continents to reduce or eliminate subsidies that contribute to excess production and to share supply chain data.

The framework also allows for ‘documented actions’ to address the impacts of excess capacity, including the potential use of tariffs. This comes as global steel excess capacity is projected to rise rapidly from 601 million metric tons in 2024 to 745 million metric tons by 2028, according to reports from Eurometal and the GFSEC.

While China produces over half of the world's steel and is widely viewed as the primary source of excess capacity, it is not a member of the forum. India, the second-largest producer and a significant exporter, is also not a member. U.S. trade official Jamieson Greer noted that the agreement will likely encourage countries to implement trade barriers to hold nations responsible for the influx of cheap steel.