
The Canadian government announced new measures to prevent transshipment and diversion of metal in Canada on March 26 2018. President Trump announced his final decision to impose a 10% duty on all aluminium imports and exempted Canada for a temporary period for further negotiation for a permanent exemption. The country however fears a 10% duty on all aluminium and steel import may divert surplus metal from other countries towards Canada as they have not imposed any tax. So, the government has initiated measures so that no metal can enter the U.S. via Canada.
"This announcement demonstrates Canada's leadership and commitment to the integrated North American aluminium supply chain, which benefits both Canada and the United States. It takes all available means and resources to protect the integrity of this supply chain, while respecting the rules of international trade," said Jean Simard, President and CEO of the Aluminium Association of Canada.
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These new measures will support Canada's willingness to work with the U.S. authorities in maintaining a healthy trade relation and ensure that no aluminium and steel coming from other countries can enter the United States via Canada.
"We salute the Government of Canada's collaborative approach that involves the United States and Mexico in these measures, as well as the industry and workers," adds Jean Simard.
"Canada has stood alongside the U.S. and Europe over the past years to address the Chinese overcapacity problem with the creation of a Global forum on aluminium overcapacity. China is not the lead exporter of primary, bars, rods, profiles and wire aluminium to the United States, Canada is. "And so we would be the most impacted by a tariff, even though we have always followed international trade rules and have been a vital partner for the United States in times of war and peace", said Jean Simard, while highlighting the loopholes of the umbrella tariff.
The Aluminium Association of Canada said that they would work with the federal government to speedily implement these new measures.
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