
Aluminum Association President and CEO Heidi Brock gave a testimony at the U.S. International Trade Commission, highlighting the need for quota-free tariff exemptions for Canada and Mexico as part of the renegotiated U.S.-Mexico-Canada Agreement (USMCA). The comments were made as part of the USITC’s hearing titled, “United States-Mexico-Canada Agreement: Likely Impact on the U.S. Economy and Specific Industry Sectors.”
According to the Aluminum Association, more than $220 billion worth of aluminum has crossed the U.S. border going into or out of Canada and Mexico since the North American Free Trade Agreement (NAFTA) took effect. In 2017, nearly 50 percent of all aluminum flowing into or out of the United States either originated from or was headed to a NAFTA trading partner. The association reports that Canada is a major source of primary aluminum for the United States, which has helped to drive investments in mid- and downstream sectors that make up 97 percent of all U.S. aluminum industry jobs.
“The [USMCA] simply cannot work as intended for the aluminum industry and our customers with tariffs – or quotas to limit access to supply – in place,” Brock said in her statement to USITC. “Full, quota-free exemptions for Canada and Mexico from aluminum tariffs as part of this agreement will benefit the U.S. aluminum industry and the hundreds of thousands of American workers who depend on its success. The U.S. aluminum industry faces an acute and persistent issue of illegally subsidized Chinese aluminum overcapacity in the market, but tariff or quota actions against countries like Canada and Mexico that operate as market economies do not address the China challenge and instead harm the overall competitiveness of the region.”
Additionally, the Aluminum Association expressed its concerns about the U.S. Commerce Department’s Section 232 tariff exclusion process and indicated that the industry will continue to assess the possible impact of changes to automotive rules of origin. Brock told USITC that the industry approved of its efforts in the USMCA to address transshipment and illegal duty evasion, as well as new provisions addressing state-owned enterprises.
“From the beginning, we have supported a modernized North American trade agreement, and USMCA achieves that in important ways,” Brock said in the hearing. “However, we urge the president to resolve the Section 232 tariffs on aluminum imports for our neighbors to ensure free movement of aluminum and aluminum products within North America.”
The Aluminum Association recently launched an online advocacy campaign to encourage the Trump administration to “Get Tough on China, Not Canada.” Click here to learn more about the campaign and to participate.
Latest from Recycling Today
- Buy Scrap Software to showcase its software at Scrap Expo in September
- LG details recycling activities
- Algoma EAF is up and running
- Toyota-Tsusho completes acquisition of Radius Recycling
- CATL, Ellen MacArthur Foundation aim to accelerate circular battery economy
- Commentary: Expanded polystyrene is 98 percent air, 2 percent plastic and 100 percent misunderstood
- AMCS appoints general manager for North America
- How tariffs, regulations affect LIBs recycling in US, EU