Aluminium association leaders from the U.S., Brazil, Canada, the EU, Japan and Mexico urged G20 leadership to address overcapacity

The Aluminum Association joined global aluminium association leaders from Brazil, Canada, the EU, Japan and Mexico and signed a letter to leaders of the G20 calling for renewed commitment “to tackling the issue of market-distorting aluminium overcapacity.”

The association leaders, in the letter urged to tackle the overcapacity issue which is distorting the international market and putting aluminium producers across the entire value chain at risk. They insisted that this has been happening due to state subsidy.

They insisted that free trade can be an engine of prosperity, social mobility and peace only when businesses are able to operate on a level playing field.

The leaders expressed their concern about the persistent growth in overcapacity in both the upstream and mid- and downstream aluminium industry which is disrupting the equilibrium in aluminium trade. They urged global political leaders to identify shared objectives and commit to definitive action to address state sponsored overcapacity.

Such unfair subsidies according to them cannot be ignored. The industry leaders requested the global leadership to start the process of forming new, more effective rules on subsidies for a fair, mutually advantageous global trading system. They also called for support from organizations like World Trade Organisation (WTO) in collaboration with leadership from the G20 countries.

As regional leaders believed the G20 can play a pivotal role in shaping a level playing field in our sector. We believe this can be best achieved by taking positive action to ensure that state-owned enterprises do not have privileged access to non-commercial support that delivers unfair competitive advantage.

They expressed concern over the overall lack on the government’s part in addressing excess capacity. They urged G20 Leaders to monitor transparently the development of overcapacity and end such trends by forming proper policies. The leaders offered their support G20 leaders with their knowledge, data and commitment to the industry in all fairness.