Aluminum Trade Groups Urge Concrete Steps to Ensure Free, Fair and Open Trade

SEATTLE (Scrap Monster): The aluminum associations in the US, Europe, Canada and Japan have urged the G7 governments to take concrete steps to ensure more free, fair and open trade. They highlighted the inadequacy of existing multilateral subsidy rules to remedy state intervention in aluminum markets.

Over the past ten years, governments provided considerable support in the form of below market borrowings, with a major portion going to Chinese firms. The value of China’s support to these firms was estimated at 4-7% of their annual revenues. On the other hand, the other firms in the sample received support of only around 0.2% of their annual revenue. China accounted for much of the increase in global aluminum production capacity during this period, they noted.

ALSO READ:

Trade Body Proposed Changes to Section 232 Tariff Exclusion Process

New Snapshot Report Focuses on Positive Environmental Gains by Aluminum Sector

In a joint statement Tom Dobbins, President & CEO of The Aluminum Association, Gerd Götz, Director General of European Aluminium, Jean Simard, President & CEO of the Aluminium Association of Canada and Yoshihisa Tabata, Executive Director of the Japan Aluminium Association said that the state support leads to growth in output exceeding market demand, which in turn impacts the prices.

The aluminum associations expressed their commitment to work with governments and international organizations to modernize trade rules so as to provide level-playing field for producers across the globe.