The Aluminium Association in the US expressed confidence in the US-Mexico-Canada free trade agreement (USMCA) to strengthen North America’s automotive value chain.

 

On Tuesday, Davis Index reported that the Aluminium Association of Canada (AAC) expressed disappointment over an ambiguous definition of aluminium rules of origin for autos.

 

The US Aluminium Association has now stressed the need to monitor imports and enforce trade regulations for effective implementation of the agreement. 

 

The association supported the USMCA while asking for creation of formal aluminium import monitoring programmes in the United States and Mexico, systems which could help protect the North American market from unfairly subsidized Chinese aluminium, the leading cause of concern for regional producers.

 

The US association expressed concerns regarding imports of aluminum sheet and plate from China into Mexico citing increase in imports by nearly 150pc in the past year and more than 1,700pc since 2014.  The AAC had expressed concerns over continued imports of aluminium into Mexico from China immediately after the trade agreement was signed on Dec 10.

 

As reported by Davis Index, US, China and Canada were the top three countries exporting primary and secondary aluminium and aluminium products from January to September this year to Mexico. 

 

Mexico imported 619,482mt of aluminium from the US in this period, 316,165mt from China and 119,375mt from Canada, accounting for 38pc, 19pc and 7pc, respectively, of total aluminium imports. 

 

The US association acknowledged that the USMCA amendment did not include aluminium in its required list of metal purchased by vehicle producers to be melted and poured in North America. However, effective implementation of existing provisions would help safeguard North American interests, according to the US association.

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