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Global Aluminium Associations Welcome New Analysis from International Organisations on Trade Distorting and Environmentally Damaging Subsidies

The aluminium associations of the United States, Europe, Canada, and Japan welcome the new report by the International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), World Bank Group (WBG) and World Trade Organisation (WTO).

The aluminium associations of the United States, Europe, Canada, and Japan welcome the new report by the International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), World Bank Group (WBG), and World Trade Organisation (WTO), Subsidies, Trade, and International Cooperation.

This joint report highlights, “With the frequency and complexity of distortive subsidies increasing, even as the need grows for active policies to address climate, health, food, and other emergencies, subsidies and the subsidies debate have brought significant discord to the trading system. The issue demands global attention and cooperation.”

In welcoming the report, Charles Johnson, President & CEO of The Aluminum Association; Paul Voss, Director General of European Aluminium; Jean Simard, President & CEO of the Aluminium Association of Canada; and Yasushi Noto, Executive Director of the Japan Aluminium Association said:

“This latest analysis by the world’s preeminent international organisations draws attention, yet again, to the prevalence of trade distorting and environmentally damaging subsidies provided both by and to state enterprises across the entire aluminium value chain.”

“High levels of support are displacing production from unsubsidized firms unable to compete with the deep pockets of the state and driving out resilient supply chains in strategic sectors across the US, Europe, Canada, and Japan. Nearly 2 million direct and indirect jobs are at risk.

These same subsidies increase output in high GHG emitting production systems, resulting in a much higher carbon footprint globally. By reducing growth opportunities in unsubsidized production systems, subsidies also discourage private investment and innovation in initiatives to decarbonize the sector.”

“Our member companies are committed to producing aluminium responsibly but doing so is being hindered by state capitalism on the scale we are witnessing across the aluminium value chain today. Action is urgently needed to build a global level playing field, open to fair competition and free of subsidies that favor just a few firms at the expense of many. We actively support updated WTO rules and plurilateral initiatives to discipline harmful industrial subsidies and are ready to work together with international organisations and with governments to achieve this.”

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About The Aluminum Association
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 association is the industry’s leading voice, representing companies that make 70% of the aluminum and aluminum products shipped in North America. The association develops global standards, business intelligence, sustainability research and industry expertise for member companies, policymakers and the general public. The aluminum industry helps manufacturers produce sustainable and innovative products, including more fuel-efficient vehicles, recyclable packaging, greener buildings and modern electronics.  In the U.S., the aluminum industry supports $176 billion in economic activity and more than 634,000 jobs. For more information visit https://www.aluminum.org or find us on Twitter, LinkedIn, Facebook or Instagram. 

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