Aluminum Association objects to exclusion request for Chinese-origin aluminium body stock and end stock from Section 301 tariffs

The Aluminum Association has objected to the request for exclusion to Section 301 tariffs applied to imports of Chinese-origin aluminium body stock and end stock. The trade association submitted a letter of objection to the office of United States Trade Representative (USTR).

Lauren Wilk, Vice President, Policy & International Trade in the Aluminum Association said in the letter that the imposition of Section 301 duties on certain aluminium products will send an important signal to the Chinese government on the need to address overcapacity through a government-to-government negotiated agreement. The letter added that the broad exclusions from tariffs will discourage Chinese government to take the aluminium overcapacity seriously.

Aluminum Association specifically objected to the exclusion from Section 301 tariffs with respect to aluminium can sheet and end/lid sheet as this would undermine the impact of Section 301 trade remedy. This will give an opportunity to Chinese producers to use their subsidized capacity to produce these excluded products and export to the U.S. If, for example, can sheet products are excluded, they will shift from the production of other flat-rolled products to can sheets.

The letter added that exports of some foil and sheet from China are already covered by antidumping and countervailing duty (AD/CVD) orders, but can sheet and end/lid sheet are outside the scope of AD/CVD orders on common alloy aluminium sheet from China that were published by the Department of Commerce in February 2019.

Wilk argued that Chinese producers get incentives for exporting value-added aluminium products – including sheet, plate, foil and other semi-fabricated products to the US and other large, open markets. This led to an increase in exports of semi-fabricated and downstream products from China to other markets, situation worsened by a slowing domestic economy.

The letter said that U.S. aluminium producers satisfied nearly 95 per cent of can sheet demand in the domestic market in 2018 – and there are a number of import sources other than China to meet growing demand for aluminium cans. The Commerce Department has already granted exclusions from Section 232 tariffs for imports of can sheet from a number of countries.

The Aluminum Association insisted that they are opposed to broad tariff exclusion requests for aluminium products imported from China and remains committed to their fight against unfairly subsidized overcapacity. They applauded United States’ efforts at bilateral and multilateral talks to address China’s market-distorting industrial subsidies and urged the administration to stay committed to the goal.