Senior leaders from the aluminium associations of Canada, Europe and the United States gathered at the Organization for Economic Cooperation and Development’s (OECD) Global Trade Forum in Paris, France and urged the governments for taking concrete steps toward rules-based trade. They requested for reforms in government policies to do away with practices that distort the global aluminium market.
In a joint statement, Jean Simard, President & CEO of the Aluminium Association of Canada; Gerd Götz, Director General of European Aluminium; and Ryan Olsen, Vice President, Business Information and Statistics for the Aluminum Association said:
“Given the extent and duration of the harm suffered by the aluminium industry, we are calling for swift, focused and decisive action on market-distorting behavior and excess capacity in both the upstream and downstream sectors. On behalf of our respective member companies, we stand ready to support Governments and international organizations with our knowledge, data and commitment to articulate improved trade rules and to restore normal market functions so that all producers throughout the aluminum value chain can compete under conditions of fairness and transparency.”
A panel discussion on the aluminium sector, which was the part of a full day conference devoted to the issue of trade distortions and creation of a level playing field, saw these three representatives putting up their views. Discussion in the session focused on OECD’s January 2019 report, “Measuring Distortions in International Markets: The Aluminium Value Chain.”
The report was a part of OECD’s broader study to measure government support in different sectors including aluminium. The study shows state subsidies along with other non-market factors are responsible for global aluminium capacity increase, with impacts the entire industry value chain. The report examined state support for 17 of the world’s largest aluminium companies. It also highlighted the alarming scale of government subsidies allowed in some countries.
“The fact that fully 85 percent of the identified subsidies went to five aluminium producing firms in China, representing US$70 billion in direct support from the Chinese government over a five-year period is of great concern” said the three associations in their joint statement.
They urged for urgent action to level the playing field for the aluminium sector globally while citing the OECD report.
Responses
