Aluminum producers seek exemption from import probe

Canada’s aluminum industry wants an exemption from a U.S. investigation into whether aluminum imports threaten national security, the latest in a series of American trade offensives hitting Canadian industries.

U.S. President Donald Trump opened an investigation Wednesday into the impact of aluminum import on national security, which could lead to duties or restrictions on the metal crossing its borders. The White House is concerned unfairly traded imports are hurting the American aluminum industry.

A majority of aluminum used in U.S. manufacturing and construction is imported and about 60 per cent of those imports originate in Canada. China, the second biggest supplier to the U.S., has been accused of “dumping,” or flooding the market by exporting the product at a lower price than is charged domestically or below its cost of production.

The United Steelworkers in both Canada and the U.S. issued a statement Thursday calling on the U.S. to exclude the Canadian-produced lightweight metal used in construction and manufactured goods — saying China is the problem, not Canada or other rule-abiding countries. It said it will make submissions to the U.S. Chamber of Commerce arguing for the exclusion of Canada.

“The action will help identify the importance of aluminum but it may not identify the right response: China’s overcapacity is swamping world markets, driving down prices and making some operations unprofitable,” said Leo Gerard, president of USW International.

“Canadian aluminum, like Canadian steel, is not a threat to American national security,” said USW’s Canadian director Ken Neumann. “Quite on the contrary, the Canadian industry is a stable and reliable source of aluminum, in close proximity to the American market.”

The Aluminium Association of Canada said it’s confident investigators will recognize that Canadian aluminum supplies are part of the solution, not the problem. Rio Tinto, the largest aluminum producer in Canada, also said Canadian aluminum complements U.S. industry. “We are confident that the national security review of aluminum imports will recognize the exceptional role that cost-competitive, high quality and readily available aluminum from Canada plays as a key input for U.S. manufacturers — including in the defence sector,” the company said in a statement Thursday.

The London-based mining giant bases its aluminum operations out of Montreal. Rio Tinto has previously said its 10,000 employees in Canada support some 150,000 industry jobs in the U.S., and any increased cost to import aluminum from Canada could affect American jobs.

The issue of U.S. national security was invoked because aluminum is a key component in the defence and aerospace sectors.