Turkey and 28 economies adopt Milwaukee Framework against overproduction in steel
Members of the Global Forum on Steel Excess Capacity agreed in a meeting in the US on the Milwaukee Framework, which includes coordinated action against overproduction.
Members of the Global Forum on Steel Excess Capacity, including Turkey, adopted the Milwaukee Framework at a meeting in Milwaukee, USA, envisioning a joint fight against overproduction in the global steel sector. The regulation aims to increase anti-dumping investigations and closely monitor imports.
Scope of the Milwaukee Framework
While the framework adopted at the Global Forum on Steel Excess Capacity meeting in Milwaukee, USA, does not directly introduce an automatic tariff, it offers members significant control mechanisms.
Under the regulation, members will be able to increase anti-dumping and subsidy investigations, implement safeguard measures, and more strictly track the true origin of imports.
Global Excess Capacity is Growing
According to OECD data, global excess capacity in steel, which was 601 million tons in 2024, is expected to reach 745 million tons by 2028.
This expected figure indicates that unused capacity or capacity exceeding demand will rise to one of the highest levels of the last decade.
China's Exports Break Records
Facing a weakening domestic demand that led it to direct its steel toward foreign markets, China recorded a massive increase in its exports.
China's steel exports reached a record level of 131 million tons in 2025, which means a 153 percent increase compared to 2020.
Subsidy Discrepancy and Support
OECD data show that state support plays a major role in capacity expansion, with subsidy rates for Chinese companies multiplying compared to other countries.
The forum argues that keeping economically unsustainable facilities alive through state support enlarges the global oversupply.
Potential Impacts for Turkey
The new era presents a dual structure harboring both opportunities and risks for Turkey.
While curbing cheap Chinese-origin steel could ease competition for Turkish producers, the proliferation of protectionist measures could increase origin and supply chain audits.