Global Aluminium Associations Welcome Renewal of the US-Japan-EU Trilateral Partnership to Address Non-Market Policies and Practices
The aluminium associations of the United States, Europe, Canada and Japan welcome the commitment of Ministers to “…renew their Trilateral partnership to address the global challenges posed by non-market policies and practices of third countries that undermine and negatively affect our workers and businesses.”
In a joint statement on 30 November 2021, Ambassador Katherine Tai, United States Trade Representative, Mr. Hagiuda Koichi, Minister of Economy, Trade and Industry of Japan, and Mr. Valdis Dombrovskis, Executive Vice President of the European Commission, agreed to focus their efforts on identifying problems due to non-market practices, gaps in existing enforcement tools, and areas where further work is needed to develop rules to address non-market practices.
In welcoming the renewal of the Trilateral partnership, Gerd Götz, Director General of European Aluminium, Ryan Olsen, Vice President for Market Growth & Development of The Aluminum Association, Jean Simard, President & CEO of the Aluminium Association of Canada and Yasushi Noto, Executive Director of the Japan Aluminium Association said:
“We fully support this partnership and stand ready to contribute to its success. The aluminium industry across our regions is already working together to ensure that we have the best available information on the sources and the impacts of international market distortions.”
“Non-market policies and practices are eroding industrial ecosystems and driving out resilient supply chains in strategic sectors across the US, Europe, Canada and Japan. The 2 million direct and indirect jobs that our companies support are at risk.”
Besides the disastrous economic effects, the environmental costs of excessive state support are enormous. Subsidies along the aluminium value chain primarily encourage extraction, production, processing, and export in high GHG emitting production systems. By displacing output from low GHG emitting production systems subsidies contribute to a much higher carbon footprint globally. And by reducing returns and growth opportunities for unsubsidized production systems, subsidies discourage needed private investment and innovation, including in initiatives to decarbonize the sector.
“Our member companies are committed to producing aluminium responsibly; we are seeking a global level playing field, open to competition in free and fair markets. This is the only way to provide good jobs, contribute to community well-being, sustain the environment, and decarbonize the sector. And we are poised to contribute to building the modern trade rules that will get us there.”