Aluminum Producers Bask in Ottawa's Acknowledgement
Aluminum Industry Welcomes Current State
Canadian aluminum producers breathe a sigh of relief as Ottawa finally acknowledges the distinct differences between steel and aluminum markets, paving the way for customized solutions for each sector. This change includes forming two separate working groups that will guide government decisions, giving much-needed attention to the aluminum industry.
Timing is Key
The enhancement of monitoring aluminum imports to prevent dumping receives a thumbs-up from the Canadian Aluminum Association. Jean Simard, President and CEO, stated, "We support the use of the melt and pour provision to combat unfair trade risks within the Canada-United States-Mexico Agreement trading area." Simard also welcomed the announcement of additional tariffs on imported aluminum, saying, "We hope it will be implemented quickly."
Steel Producers Voice Concern
On the other hand, the Canadian Steel Producers Association and the United Steelworkers express their disappointment with the tariff decisions announced by the Carney government. They argue that these measures harm the steel industry, particularly during these trying times.
A Mixed Bag for SMEs
Ottawa's measures to limit steel and aluminum imports from China bring joy to Canadian producers but may pose challenges for small and medium enterprises (SMEs). Veronique Proulx, President, and CEO of the Quebec Chamber of Commerce Federation, predicts higher input costs for SMEs relying on cheaper imports.
Money Where the Mouth Is
Manufacturers and Exporters of Quebec's leader, Julie White, calls for prompt distribution of the millions collected in countervailing duties to the affected businesses. The aim is to provide financial relief to industries struggling due to unfair trade practices.
More Than Meets the Eye
The Canadian government plans to adjust its existing counter-tariffs on steel and aluminum products, change federal procurement policies, set tariff rate quotas on foreign imports, introduce additional tariffs, review countervailing duties, and implement protective policies to safeguard domestic industries and workers. These measures not only address the impact of U.S. tariffs but also aim to create a stable, fair trading environment for both large producers and SMEs in the Canadian steel and aluminum sectors.
[1] https://www.parl.ca/DocumentViewer/en/44-1/bill/C-2/first-reading
[2] https://www.emloyer.com/news/canada-announces-new-measure-to-support-steel-and-aluminum-manufacturers
[3] https://www.theglobeandmail.com/business/economy/article-canadian-manufacturers-will-benefit-from-tariff-measures-on-aluminum
[4] https://www.cbc.ca/news/business/aluminum-import-tariffs-canada-1.6091691
[5] https://www.thestar.com/business/2023/05/26/heat-is-on-ottawa-to-help-canadian-take-unfair-trade-fight-to-the-us.html
French finance minister may express concern over the impact of Ottawa's tariff decisions on French aluminum importers.
Customized solutions for the French aluminum sector could be proposed, given the formation of separate working groups for each industry.
