Trade Body Seeks Full Quota-Free Tariff Exemptions for NAFTA Partners

SEATTLE (Scrap Monster): The Aluminum Association has commented that full, quota-free tariff exemptions for Canada and Mexico as part of the proposed U.S.-Mexico-Canada Agreement (USMCA) will determine the future growth of the U.S. aluminum industry. The above comments were made by the Aluminum Association President and CEO Heidi Brock during the U.S. International Trade Commission (USITC) hearing.

According to Brock, NAFTA partners accounted for more than 50% of the aluminum flowing into the U.S. or out of the country in 2017. Canada continued to be the primary source of aluminum for the U.S. during the year. The reliable supply of Canadian aluminum has driven major investments in mid and downstream industry sectors in the U.S. Most importantly, the country will have to depend on imports as domestic mills will not be adequate to satisfy growing demand, Brock added.

The U.S is faced with illegal dumping of highly subsidized aluminum from China. The tariff and quota actions against major NAFTA trade partners like Canada and Mexico will not address the challenges posed by China. Instead, it may harm overall competitiveness of the region. It noted that earliest resolution of Section 232 tariffs on aluminum imports from Canada and Mexico is essential to ensure free trade of aluminum and aluminum products within the entire North American region.