G7 trade ministers convene in Paris to address industrial overcapacity and critical mineral supply chains
French presidency sets agenda on industrial policy and WTO reform as ministers navigate global trade tensions
G7 trade ministers have gathered in Paris for a four-day summit hosted by France, focusing on securing critical mineral supplies and managing industrial overcapacity. The meeting, which opened on Tuesday and is scheduled to conclude on Wednesday, takes place against a backdrop of heightened global economic instability driven by turmoil in the Middle East.
The closure of the Strait of Hormuz, through which a fifth of the world's oil supply flows, has intensified pressure on major economies to coordinate a unified response. Despite this volatile environment, ministers are not expected to directly address the latest unilateral threat by the United States to increase tariffs on European vehicles within the formal G7 framework.
France's junior trade minister, Nicolas Forissier, confirmed that discussions regarding the US tariff hike would occur outside the official summit proceedings. Instead, the agenda has been defined around four specific priorities set by the French presidency: responding to industrial overcapacity, securing critical mineral supply chains, reforming the World Trade Organization, and regulating cross-border e-commerce sales.
Regarding industrial policy, ministers aim to find a collective response to overcapacity that undermines free trade, a sector where the United States views trade policy primarily as domestic policy. On the matter of economic security, the group is focusing on diversifying supplies of critical minerals indispensable for strategic products such as computer chips and electric vehicle batteries. France favours a new system of groups comprising producing, processing, and consuming nations to implement good practices in the sector.
The summit will also address the failure of recent World Trade Organization negotiations in March, with officials noting that the body's role as a trade referee has been paralysed by the United States for years. Furthermore, ministers will discuss the regulation of small-parcel e-commerce sales, a contentious issue where the United States suspended tariff exemptions on parcels under $800 and the European Union plans to introduce a flat-rate customs duty on packages under 150 euros this summer.
Separate from the main ministerial session, US Trade Representative Jamieson Greer is scheduled to hold bilateral meetings with EU Trade Commissioner Maros Sefcovic and French Economy Minister Roland Lescure in Paris. These talks are intended to manage the specific tensions surrounding the US-EU trade relations stemming from accusations that the European Union failed to comply with a previous agreement capping tariffs on autos and parts.
The trade ministers' summit is set to conclude on Wednesday, preceding the larger G7 heads of state and government summit scheduled to take place in Evian from 15 to 17 June.
