Brussels, 22 November 2024
Good morning, ladies and gentlemen.
It is my honour to welcome you today to the High-Level Forum on Global Non-Market Overcapacity, hosted by I.D.E.A. This is not only an important but also a very timely event.
The EU is a global leader in international trade and we intend to remain at the forefront of ensuring a vibrant rules-based global economy. Not all, however, are ready to play according to these rules – to the detriment of others.
This is why we are convening this forum to address a critical issue affecting all our economies: global non-market overcapacity.
Our goal is to foster a common understanding of this issue—its causes, symptoms, impacts, and consequences—because it poses challenges that extend well beyond Europe.
While temporary surpluses are a natural part of business cycles, harmful overcapacity linked to non-market policies, especially on a global scale, distorts markets and undermines economic stability across a range of sectors.
From steel and solar panels to shipbuilding and the automotive industry – this is not an abstract challenge, it is reality. And for many businesses, both in Europe and within our partners, it is an existential challenge.
We are bringing together experts from industry, civil society, international organisations, and partner countries, because it is only through a collective voice and expertise that can we tackle this issue head on, so that the EU is not just a passive observer.
Make no mistake about it. Global non-market overcapacity is a significant threat.
It disrupts fair competition. It destabilises growth markets. And it erodes jobs and growth.
Going further, global non-market overcapacity exerts deflationary pressures, it distorts prices, and it jeopardises industries in the trading partners of surplus economies.
And this is not limited to developed economies.
It is a shared global challenge, affecting a range of sectors worldwide. Think about textiles, or foundational chips.
The discussions today will be an opportunity to check on how we can address these distortions in the European Union and beyond with our partners – in order to advance (as the subtitle of today’s forum says) “sustainable competitiveness, inclusive growth, and shared prosperity”.
These conversations will point to several questions:
How can we ensure that any measures taken are compatible with the objective to upholding an open yet fair, rules-based global trading system?
In an increasingly volatile world, what are the economic security considerations that we must take into account?
And how can we ensure that our actions do not impede the openness of our economies?
Here, I want to be very clear about one thing. Commonly addressing global non-market overcapacity is not about protectionism, a deliberate targeting of any one country, or an opposition of trade.
Far from it. Our economy is open. It will remain open.
In fact, addressing these challenges is about protecting that openness.
It is about safeguarding firms and workers from distortions in other economies.
Why do we protect our openness? The answer is simple: because it works.
Europe is a trading continent and we derive a significant share of our prosperity from trade. Trade in goods and services in relation to our GDP is almost twice as big in the EU (45% in 2023, excluding intra-EU trade) as in the US (25%).
This is why 724,000 EU companies export goods outside the EU, including 690,000 SMEs (95%). And all these exports support over 30 million European jobs.
What are we hoping to achieve in today’s forum? What will be the focus of our discussions?
Well, this High-Level Forum brings together decision-makers, experts, and industry leaders to discuss and assess the issue, with a view to fostering collaboration and action.
We want to achieve several objectives today:
First, have a better understanding of the problem. Today, we are bringing together experts and representatives from industry, civil society, partner countries, and international organisations.
By pooling our expertise, we will work to clarify the causes, symptoms, and global impacts of non-market overcapacity.
We will develop shared analyses. And we will deepen our understanding of the dynamics and structural trends.
Second, the discussions will provide us with valuable sectoral insights. The first-hand experience that we have gathered at this High-Level Forum will ensure that we leave today having heard detailed analyses of global non-market overcapacity in three pivotal sectors: Net-zero industry, Mainstream semiconductors, Steel and aluminium.
And finally, today is an opportunity to identify solutions to these challenges.
We will explore current and potential measures to mitigate the impacts of global non-market overcapacity. And we will explore how best to ensure that these measures address its root causes in line with our global commitments.
Through an analytical and action-oriented approach, we aim to develop practical solutions to a problem that affects us all, ensuring fairer and more sustainable trade practices globally.
All in all, I hope that we can leave today with our eyes wide open about the challenges that lie ahead of us.
I hope that these discussions can give us a better understanding of the problem and its impact on key sectors and help us to continue working together to keep identifying solutions.
That is why we are all here. And I am very grateful for your presence today.
Non-market overcapacity will continue to be important challenge facing economies in both the EU and our partners, and we are working actively to face that challenge.
Source – EU Commission