In a letter sent to trade officials from Canada, Mexico and the United States, the Aluminum Association, the Mexican Aluminum Institute and the Aluminum Association of Canada expressed their desire to maintain free trade without tariffs, as well as stronger import controls and more rigorous enforcement of trade rules.
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The meeting was held in Mexico City to discuss the past and future of the North American aluminum trade relationship. A recent letter mentioned that industries have long counted on trade between North American countries to produce some of the best low-carbon aluminum products in the world.
Canada and Mexico are the United States’ main aluminum trading partners, ranking first and second, respectively. During the year 2022, trade of more than US$47 billion was recorded throughout the region in relation to this material and its products.
Ahead of a mandatory review of the U.S.-Mexico-Canada Agreement (T-MEC) in 2026, the U.S. aluminum industry is requesting several measures.
These associations point out that it is crucial to continue tariff-free aluminum trade in North America, as this allows each country to focus on its strengths and take advantage of the unique advantages of aluminum companies in the other countries. Maintaining tariff exemptions for Canada and Mexico is beneficial for the entire sector in the region. However, the filing of a trade case by U.S. aluminum extrusion producers against 15 countries, including Mexico, threatens to negatively affect the cooperation and partnership between the aluminum industries in the three countries.
After an agreement was reached to eliminate Section 232 tariffs and the T-MEC was signed, each country agreed to establish a joint process to monitor aluminum and steel trade between them. However, while the United States and Canada have implemented improved import monitoring programs, Mexico has yet to do so. The Mexican government is called upon to promptly implement this program and comply with its mutual commitment as set forth in the joint Section 232 waiver letter.
In the region, it is crucial to work together to combat the illegal and unfair aluminum trade that has affected the global industry in recent years. Both the United States and Mexico have been victims of a large Chinese aluminum transshipment scheme during the 2010s, where large quantities of Chinese aluminum were disguised as other aluminum to avoid paying tariffs in the hundreds of millions. In recent times, both countries have been successful in bringing anti-dumping and countervailing duty cases against Chinese aluminum involved in dishonest trade practices. It is essential to maintain close monitoring and compliance with international trade laws in this industry.
“It is important that our governments continue to provide support to the aluminum industry in its quest to reduce carbon emissions and promote sustainability. This includes researching new production techniques and encouraging recycling. Aluminum production in North America is one of the greenest in the world, having decreased its carbon emissions by more than 50% since 1991. In addition, aluminum plays a key role in the transition to cleaner energy in areas such as transportation, construction and packaging”they indicated.
During 2019, aluminum organizations in North America united to support the elimination of tariffs imposed under Section 232, which affected aluminum imports into that region.
Tariffs that applied prior to T-MEC, the trade agreement between the United States, Mexico and Canada that went into effect in 2020, were eliminated. However, this agreement will have a mandatory review in 2026 to decide whether or not to renew it. This review will begin to be analyzed next year.