Aluminium industry faces American protectionism – Joint statement of the associations

On 22 June the US Department of Commerce will hold a hearing on the Section 232 investigation on the impact of aluminium imports on US national security. The European, American and Canadian aluminium associations published a joint statement in which they point out that there is no unfair competition between the three regions Europe, America and Canada. Moreover, global market imbalances are caused by the enormous excess capacity in China. Read the whole statement here.

The Aluminum Association (AA), the Aluminium Association of Canada (AAC) and European Aluminium represent all major aluminium producers, fabricators and recyclers in the US, Canada and Europe. The industry employs over 500,000 direct jobs and more than 1.5 million indirect jobs. As organizations representing aluminium producers along the whole value chain in the US, Canada, and Europe, we are writing to draw attention to the global market imbalances in the aluminium industry, caused in particular by the enormous excess capacity in China.

We acknowledge the issue of Chinese aluminium excess capacity as the root cause of the challenges faced by the aluminium industries in North America and in Europe. Overcapacity encourages unfair trading practices and displacement of domestic production, which cause global imbalances in the aluminium industry and distort international trade flows.

This is why European Aluminium, the Aluminium Association of Canada and the American Aluminum Association have jointly urged governments of the G20 to address global aluminium overcapacity. G7 leaders have already committed to working together to push for the removal of all trade-distorting practices so as to foster a global trade system that is rule-based, fair and creates a level playing field for aluminium producers, manufacturers and recyclers around the world.

Moreover, the aluminium associations of US, Canada and Europe, can testify that there is no unfair competition between our three regions to the disadvantage of one of the industries we represent. On the contrary, the aluminium industries are interlinked, adding value to our societies as a whole and strengthening national security in the US.

A stable trading environment is to the advantage of aluminium producers from the entire value chain, especially to companies promoting innovation in their research and development centres located in the US, Canada and Europe. Therefore, we urge our governments not to hamper the positive effects that trade and cooperation can bring among companies in our regions. We fully advocate for a fair, equitable and rules based global trading system.

Our three regions also want to cooperate and trade more on a global scale. However, we acknowledge that excess capacity in the Chinese aluminium industry brings our industry in a large imbalanced situation. The Chinese excess capacities in aluminium as major cause of unfair trade and displacement of domestic production should be the focus for our countries, including all effective remedies that target the underlying issue that is affecting global aluminium trade. In that way, we will also minimize unintended effects on global trade flows.

We want a system that is fair and creates a level playing field for our regional aluminium value chains. We encourage our governments to take enforceable actions that address aluminium overcapacity. We believe that with the right monitoring tools, a negotiated solution to this global challenge will benefit all aluminium producers and consumers worldwide.

Finally, as requested in our joint G20 letter, we urge all our governments to take enforceable actions that address excess capacity in China. The creation of a Global Forum on Aluminium at the upcoming G20 in Hamburg (7–8 July) would be a clear step in that direction.

(Source: European Aluminium)

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