G7 makes explicit urgency to avoid aluminium overcapacity
Date
10 Jun 2018
Sections
Global Europe
Trade & Society
Brussels, 10 June 2018 – European Aluminium welcomes the G7’s communiqué stressing the “urgent need to avoid excess capacity” in the aluminium sector and the push to develop a stronger international rules on market-distorting industrial subsidies and trade-distorting actions by state-owned enterprises. European Aluminium believes that both the modernisation of international organisations and the creation of a global multilateral and governmental Forum on Aluminium Overcapacity are necessary to prevent damages to its well-integrated value chains.
“The recognition by G7 countries of aluminium overcapacity driven by China is the right step to address this global problem which is putting immense pressure on workers and producers across the world. The year-on-year increase of Chinese primary and semi-fabricated aluminium overcapacities fueled by massive domestic subsidies has to be stopped as soon as possible to preserve the well-integrated value chains in Europe” commented Gerd Götz, European Aluminium’s Director General.
This recognition follows the recommendations stemming from the Montreal Aluminium Summit, which brought together representatives of G7 governments, representatives of aluminium associations and industry leaders from Canada, the U.S., Europe and Japan. During the summit, a policy-driven ”Roadmap to a sustainable global aluminium market” was presented including guidelines for the creation of a Global Multilateral and Governmental Forum on Aluminium Overcapacity.
“In this new era of trade where uncertainty and bilateral measures are becoming the new normal, creative approaches are needed to reinforce multilateralism and fair trade effectively. Beyond the Global Forum on Aluminium Overcapacity, we should make sure WTO remains the core international organisaiton to cope with these new realities,” concluded Götz.
European Aluminium will continue to cooperate with its Canadian, American and Japanese counterparts to reach this goal and support G20 leaders with the required knowledge, data and commitment to set up the Forum.
About European Aluminium
European Aluminium, founded in 1981 and based in Brussels, is the voice of the aluminium industry in Europe. We actively engage with decision makers and the wider stakeholder community to promote the outstanding properties of aluminium, secure growth and optimise the contribution our metal can make to meeting Europe’s sustainability challenges. Through environmental and technical expertise, economic and statistical analysis, scientific research, education and sharing of best practices, public affairs and communication activities, European Aluminium promotes the use of aluminium as a material with permanent properties that is part of the solution to achieving sustainable goals, while maintaining and improving the image of the industry, of the material and of its applications among their stakeholders. Our 80+ members include primary aluminium producers; downstream manufacturers of extruded, rolled and cast aluminium; producers of recycled aluminium and national aluminium associations are representing more than 600 plants in 30 European countries. Aluminium products are used in a wide range of markets, including automotive, transport, high-tech engineering, building, construction and packaging.
For further information, please contact: communications@european-aluminium.eu, +32 2 775 63 63