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.
Source: European Aluminium