The Aluminum Association responds to submission of Section 232 report to the president

The Aluminum Association responds to submission of Section 232 report to the president

Association supports addressing Chinese overcapacity and protecting trading relationships between the U.S. and “critical” partner countries.

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January 22, 2018
Edited by Megan Workman
Ferrous Legislation & Regulations Nonferrous

The Aluminum Association, Arlington, Virginia, has responded to news that the Department of Commerce delivered to the White House Jan. 19, 2018, its Section 232 report prepared in connection with the agency’s investigation of the national security implications of imported aluminum.

Aluminum Association President and CEO Heidi Brock says in a released statement:

“On behalf of the domestic aluminum industry, the Aluminum Association appreciates the president’s continued commitment to strong trade enforcement and a level playing field for U.S. producers. We expect that the report will recognize the significant role the aluminum industry plays in ensuring our nation’s security and welcome the opportunity to engage the administration on an appropriate remedy that will benefit the entire aluminum value chain. The association supports actions that specifically address Chinese overcapacity, and protect trading relationships between the U.S. and critical partner countries which are crucial to a thriving domestic aluminum industry.

The Aluminum Association continues to urge that any remedial actions taken by the president in connection with the Commerce Department’s report embrace the following principles:

  • The remedy should specifically address Chinese overcapacity and its effects while avoiding unintended consequences for U.S. production and jobs.
  • Any remedy should not interfere with the current trading relationship between the United States and critical trading partner countries (including Canada, the European Union and others) that operate as market economies, support U.S. aluminum production and jobs, and are highly integrated with North American supply chains.
  • The remedy should address the needs of the domestic aluminum value chain, including both primary and downstream U.S. production. Specifically, any action should ensure that producers and fabricators of intermediate aluminum products used in manufacturing finished products experience beneficial effects.
  • The administration should adopt a monitoring system (similar to Steel Import Monitoring and Analysis System) for aluminum imports and particularly for imports from countries that pose a circumvention threat (Vietnam, Indonesia, Malaysia, Thailand, etc.).
  • The U.S. aluminum industry supports 161,000 direct jobs and more than 700,000 jobs when indirect and induced impacts are considered. Further, the industry creates $75 billion in direct economic impact and $186 billion in total impact, around 1 percent of U.S. gross domestic product (GDP). The industry has been operating in a very challenging environment for a number of years largely because of Chinese overcapacity distorting the marketplace.”

The Aluminum Association represents aluminum production and jobs in the United States, ranging from primary production to value-added products to recycling, as well as suppliers to the industry.

The president has 90 days to review the submission and decide on any potential action based on the findings of the investigation. After the president’s decision is announced, the Commerce Department will publish a summary of the report in the Federal Register and make the report available to the public after removing any confidential business or classified material.