13 JULY 2018 AL CIRCLE

Switzerland earned US$ 15 million revenue from semi-finished aluminium export to US in 2017

EDITED BY : BEETHIKA BISWAS 2MINS READ

On July 10, Switzerland launched a complaint at the World Trade Organisation against the US tariffs on imported aluminium and steel being the eighth WTO member to file such trade dispute complaint against the U.S.

Under WTO rules, if the US is unable to settle the issue in next 60 days, Switzerland can escalate the dispute by asking the WTO to set up a panel of judges to adjudicate. As reported by the US Geological Survey, in April 2018, Switzerland exported 310 tonnes of semi-finished aluminium products like plates, sheets, and bars to the US, and from January to April 2018, the country recorded the total exports of 1190 tonnes of aluminium products.

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We analyse the total export of two major aluminium product ranges from Switzerland to the US: Bar Rods and Profiles and Plates, Sheets and Strips to understand the revenue loss that can affect the Switch economy if 10% tariffs are imposed on imported aluminium.

According to our data, in 2017, Swiss exports of Bar Rods and Profiles to the U.S. amounted to about 732 tonnes and the revenue stood at around US$7 million. In 2018, the volume is expected to reach about 730 tonnes and the revenue is expected to reach about US$6.8 million.

The country exports more rolled products than extrusions. In 2017, Swiss exports of Plates, Sheets and Strips to the U.S. amounted to about 1600 tonnes and the revenue stood at around US$7.5 million. In 2018, the volume is expected to drop to about 1503 tonnes and the revenue is expected to reach about US$8.5 million driven by higher aluminium prices.

So the total export volume of these two major aluminium products stood at about 2,332 tonnes and the total revenue stood at about US$15 million in 2017.

The Swiss government thinks the implementation of the import tariffs on steel and aluminium will cut down Swiss exports, affect Swiss Franc and ultimately, squeeze economic growth in the medium term. This has led the Government to start protective action in the WTO by putting up a complain against the unfair tariffs.