November/December 2006 | The Aluminum Association | Washington

Energy Concerns and Russian WTO Accession Face New Congress 

Energy Is Primary Concern for Aluminum Producers

Following the mid-term elections, with U.S. manufacturing companies focused on domestic energy supplies and costs, President Bush and Senate Minority Leader Harry Reid (D-NV) have made passage of an Outer Continental Shelf (OCS) bill a priority in the lame-duck session. But it remains unclear if action can be finalized. The aluminum industry seeks and supports action on an OCS bill in this Congress.

The Energy Committee of the Association has identified specific areas of focus, with potential for members to participate in advancing the interests of the industry in regulatory and legislative efforts. They include electricity reliability standards and requirements; supply and market issues; long-term supply contracts and capacity installment; and power source issues. Also under review are natural gas supply issues; offshore production and leasing regulations; liquefied natural gas terminal siting; offshore Lease 181 and Arctic National Wildlife Refuge; and conservation and efficiency initiatives. 

Export Increases Help Ease Trade Deficit

The Department of Commerce reported the September trade deficit at $512 billion, down from August’s $535 billion figure, reflecting continued growth in exports.

Russia Agrees to Market Access Concessions; Trade Pacts

On November 10, U.S. and Russian negotiators agreed in principle on market access concessions Russia must make to join the World Trade Organization. This is a key in bringing Russia into the rules-based trading system. Russia agreed to an action blueprint to improve protection and enforcement of intellectual property rights, with specified actions and dates.

The Office of the United States Trade Representative is still confident the free-trade agreement with South Korea will be a success. This may be the biggest win for the Bush Administration as the country is our seventh-largest trading partner, and the imbalance in autos, an aluminum interest, may rebalance somewhat as a result.

The absence to date of a multilateral agreement in the Doha trade round, where the goal is to reduce trade barriers for the developing world, threatens Congress’ ability to pass any trade agreements. The White House must submit trade agreements to Congress by July 1, 2007, which is when the president’s trade-promotion authority expires. It is an open question whether Congress will act on certain trade issues in the November lame-duck session, when U.S. companies will push for normal trade status for Vietnam, a bilateral trade pact with Peru, expanding the inadequate quotas on H-1B visas and green cards for skilled foreign-born professionals, and other business priorities.