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Aluminum Association Issues Comments Regarding NAFTA

Aluminum AssociationThe Aluminum Association issued official comments to the United States Trade Representative (USTR) office regarding negotiations to modernize the North American Free Trade Agreement (NAFTA). “The duty-free trade in aluminum and aluminum products that was achieved through NAFTA has played an important role in the strength and development of the North American aluminum industry and is of great interest to our members, which play a significant role in the health of the United States’ economy,” writes Heidi Brock, president and CEO of the Aluminum Association.

In the statement, Brock added:

The U.S. aluminum industry is comprised of some of the most competitive and innovative companies in the world, and is committed to free and fair trade principles. The robust, fair, and rules-based trade of aluminum and aluminum products within the NAFTA trading region has played a vital role in the strength and competitiveness of our industry. Since 2011, U.S. aluminum exports to the rest of the world have declined by almost 19 percent, while exports to Canada and Mexico have increased by 9 percent. Over the same period, U.S. aluminum imports from our NAFTA trading partners have increased by 13 percent, and represented more than 50 percent of all aluminum imports in 2016. More than 50 percent of all aluminum flowing into or out of the United States in 2016 either originated from, or was destined for, one of our NAFTA trading NG-2TSFKRLD\HerrJo\4823-4903-8922.1 partners. Based on this crucial intra-NAFTA trading relationship, maintaining NAFTA’s duty-free treatment of aluminum products and the free flow of metal among the NAFTA countries is critical to the continued success of our industry.

Key points of the comments issued, include:

  • First, given the deep trading relationships that exist among companies producing aluminum and aluminum products throughout North America, we urge the Administration to identify ways to improve and strengthen customs procedures and cooperation to facilitate the movement of aluminum and aluminum products among the United States, Canada, and Mexico.
  • Second, while the prompt movement of aluminum and aluminum products across borders within the NAFTA region has the capacity to generate significant benefits, it is also vital that only merchandise that actually satisfies the applicable country of origin requirements is accorded preferential treatment under NAFTA.
  • Third, we urge that the United States negotiate common disciplines on the operations of State-Owned Enterprises (“SOEs”), which often benefit from favorable government policies and subsidies that create significant market distortions and – particularly relevant to the North American aluminum industry – have led to massive overcapacity in China that encourages unfair trading practices.

The full text of the statement can be downloaded as a PDF at the Aluminum Association website.

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