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04 MARCH 2018 AL CIRCLE

European Aluminium calls for decisive actions to tackle US import measures on aluminium

EDITED BY : BEETHIKA BISWAS 2MINS READ

After the US President Trump announced that a tariff of 10 % will be imposed on aluminium exports from all countries, European Aluminium calls on the European Commission and EU Member States to safeguard the European aluminium industry. The announcement came after the department of Commerce had published its recommendations of the Section 232 report.

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“We regret President Trump’s decision to impose a tariff on all aluminium imports independent of their country of origin. European aluminium exports to the US, in view of both their quantity and characteristics, do not pose any threat to US national security. Most importantly, this blanket tariff does not address the root cause of the main challenges faced by the aluminium industry today: the unsustainable and steady increase of aluminium overcapacities in China,” said Gerd Götz, Director General of European Aluminium.

He emphasised that this is a global challenge and it is not an issue particular only to the US. This, according to him, can only be managed effectively through a global and long-term solution. He recommended multilateral rules and common enforcement of such rules like the creation of a Global Aluminium Forum within G20.

These kinds of protective measures according to him can harm global trade equations. European Aluminium fears import tariff will disrupt the current trading relationship between the United States and Europe. The business relationship has interlinked value chains and a significant number of multinationals operating in both territories that will be affected by the measures. The association feels that the U.S. tariffs may result in the flow of aluminium products from third countries to Europe. Hence, he calls for decisive actions to neutralise effects on European companies.

“The European value chain is already under enormous pressure due to global overcapacities, the announced measures put thousands of jobs in over 600 plants, many of which are SME’s, in countries such as Germany, Italy, France, Spain, Sweden and Central and East European countries at risk. We urge the European Commission and EU Member States to implement without further delay actions to protect our industrial interests, in line with international trade rules” concludes Götz.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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