Aluminium Association of Canada concerned about the U.S. trade policies; eyes new markets

Trump’s new protective trade policies are creating concerns among the neighbouring countries like Canada which has been in a balanced trade relation with the U.S. Canada has been exporting large amount of aluminium into the U.S.

President and CEO of the Aluminium Association of Canada Jean Simard said that the aluminium industry in Canada is trying to ensure that their aluminium export is not affected by the changing trade policies in the U.S.

“With Trump in power, the aluminium industry is also up in the air,” said Simard, addressing Kitimat Chamber of Commerce members and business leaders on an occasion.

Canada exports 75 per cent of its aluminium production to the U.S. out of which 400,000 tons are produced annually at the Rio Tinto plant in Kitimat. The country represents about two thirds of the total primary metal entering the U.S. being the largest source of primary metal imports.

“We are in close contact with the U.S. government to protect the corridor,” said Simard. “We are also strategically positioned for the future to carve out new markets for Canadian aluminium,” he added.

He mentioned about the negotiations around the Canada/European Union Comprehensive Economic and Trade Agreement (CETA) which is aimed at strengthening economic relations between Canada and E.U., the world’s second-largest market.

Simard said, “Europe is the new China – It’s time we build a new agreement with Europe.”

He opined that it’s a myth that the U.S. is dumped with Chinese-produced aluminium.

“The Asian market is now taken over progressively by Chinese exports and new Asia ex-China capacity,” said Simard.

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He talked about the importance of focusing on niche products and Value Added Applications in North America and increasing research into aluminium production. According to him, Canada was at the forefront of producing cost-effective and environment-friendly aluminium.

“We have modernized our plants and improved operational efficiency. We cannot get our technological efficiency any lower,” said Simard. He also added Canada would take 15 years to monetize their operational efficiency.