The U.S. administration just announced the lift of Section 232 tariffs for aluminium against Canada and Mexico. It is time to also exempt Europe from the 10% tariff on aluminium products, says European Aluminium.
“The EU is an important ally of the U.S. and a trusted and stable supply source for aluminium. European imports in no way represent a threat to the national security of the U.S. In this respect, we support the European Commission’s negotiation position to lift the Section 232 tariffs as a pre-requisite of any trade deal with the U.S.”, said European Aluminium Director General Gerd Götz.
Transatlantic trade flows are vital to the global aluminium industry and are growing in importance with the emergence of global value chains.
“The root cause of the main challenges faced by the aluminium industry is global overcapacity, in particular in China due to state intervention. Addressing this overcapacity requires a global negotiated solution and revision of WTO subsidy rules. European Aluminium and its members support a multilateral solution to tackle overcapacity”, continued Gerd Götz. In a report published earlier this year, the OECD has comprehensively described the distortions in the global aluminium value chain caused by Chinese state support. In particular, the report asserts that of the state support provided to the global companies examined, 85% has gone to five Chinese companies.
European Aluminium has long been a leading voice advocating for a global negotiated solution to tackle overcapacity, together with its U.S., Canadian, Japanese, Mexican and Brazilian counterparts.