Finance
EU urges US to view it as ally in tackling overcapacity, not source of problem
Published by Global Banking & Finance Review®
Posted on March 12, 2026
1 min readLast updated: March 12, 2026
Quick Summary
The EU urges the US to regard it as a partner—not a source—on tackling structural manufacturing overcapacity. Brussels emphasizes that its market‑driven, transparent economy shares concerns about global excess capacity but is not to blame, and instead seeks joint action to address distortions.
EU Calls on US to See It as Ally, Not Cause, in Manufacturing Overcapacity Fight
EU Responds to US Investigations on Manufacturing Overcapacity
Background of US Investigations
BRUSSELS, March 12 (Reuters) - The United States should view the European Union as a partner in the fight against manufacturing overcapacity rather than a cause of the problem, the European Commission said on Thursday after the U.S. administration launched investigations into unfair trade practices of the bloc and 15 other trading partners.
EU’s Position on Global Overcapacity
Shared Concerns with the United States
A Commission spokesperson said the EU shares the United States' concern regarding structural overcapacity in the global economy, but that the sources of such overcapacity do not lie in Europe.
EU’s Market-Driven Approach
Commitment to Open Markets and Transparency
"The EU is a market-driven economy with open markets and transparent policies. As such, the EU does not consider itself a contributor to structural excess capacity, but rather a partner in addressing global distortions," the spokesperson said.
(Reporting by Inti Landauro and Philip Blenkinsop;Editing by Sudip Kar-Gupta)
Key Takeaways
- •The European Commission insists the EU is not a root cause of structural overcapacity, but an ally seeking joint solutions.
- •The USTR has launched Section 301 investigations into manufacturing overcapacity for 15 trading partners, including the EU, prompting calls for cooperation, not confrontation. (thestar.com.my)
- •Overcapacity is a global structural issue, with OECD data showing declining capacity utilization: EU (~78%), US (<80%), China (~76%)—all below the tight‑market threshold of ~85% ()
References
Frequently Asked Questions about EU urges US to view it as ally in tackling overcapacity, not source of problem
1Why did the EU respond to the US investigation into unfair trade practices?
The EU responded to emphasize it is not a source of manufacturing overcapacity and should be seen as a partner in solving the issue.
2What is the EU's stance on global manufacturing overcapacity?
The EU shares US concerns about overcapacity but asserts it is not responsible and has open, transparent markets.