Aluminum Association calls for urgent quota-free tariff exemptions for Canada and Mexico

Aluminum Association President & CEO Heidi Brock, on Friday November 16, gave a testimony at the U.S. International Trade Commission (USITC), highlighting the urgent need for full, quota-free tariff exemptions for Canada and Mexico as part of the final U.S.-Mexico-Canada Agreement (USMCA).

The comments were made as part of the USITC’s hearing titled “United States-Mexico-Canada Agreement: Likely Impact on the U.S. Economy and Specific Industry Sectors”.

Brock said: “The [USMCA] simply cannot work as intended for the aluminium industry and our customers with tariffs – or quotas to limit access to supply – in place. Full, quota-free exemptions for Canada and Mexico from aluminium tariffs as part of this agreement will benefit the U.S. aluminium industry and the hundreds of thousands of American workers who depend on its success.”

Aluminum Association said more than $220 billion worth of aluminium has crossed the U.S. border going into or out of Canada and Mexico since the North American Free Trade Agreement (NAFTA) took effect. In 2017, nearly 50 percent of all aluminium flowing into or out of the United States either originated from, or was destined for, a NAFTA trading partner.

Canada is a major source of primary aluminium for the United States, which has helped drive investments in mid-and-downstream sectors that make up 97 percent of all U.S. aluminium industry jobs, according to the Aluminum Association.

“The U.S. aluminium industry faces an acute and persistent issue of illegally subsidized Chinese aluminium overcapacity in the market, but tariff or quota actions against countries like Canada and Mexico that operate as market economies do not address the China challenge and instead harm the overall competitiveness of the region,” added Brock.

The Aluminum Association also expressed its concerns about the Commerce Department’s Section 232 tariff exclusion process and indicated that the industry is continuing to assess the possible impact of changes to automotive rules of origin. Brock lauded efforts in the USMCA to address transshipment and illegal duty evasion as well as new provisions addressing state-owned enterprises.

“We very much support the effort to establish a shared framework for new disciplines on market-distorting policies and practices – and to set a template for future trade agreements,” Brock noted. “From the beginning, we have supported a modernized North American trade agreement, and USMCA achieves that in important ways. However, we urge the president to resolve the Section 232 tariffs on aluminium imports for our neighbours to ensure free movement of aluminium and aluminium products within North America.”

The Aluminum Association recently launched an online advocacy campaign to encourage the Trump administration to “Get Tough on China, Not Canada.” To learn more and to participate in the effort please visit https://p2a.co/EDcQn6H.