Ohio senators call for crackdown on China aluminum producers

Ohio senators call for crackdown on China aluminum producers
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U.S. Sens. Rob Portman (R-OH) and Sherrod Brown (D-OH) have written a letter to Michael Froman, the U.S. Trade Representative (USTR), urging him to bring a World Trade Organization (WTO) case against China in an effort to address aluminum overcapacity, which hurts American aluminum manufacturers and employees.

In a joint statement, the two senators noted that 15,000 workers in U.S. aluminum production have lost their jobs in the last decade, including 1,500 in 2016.

“I firmly believe that when Ohio workers have a level playing field, they can compete and win against competition anywhere in the world,” says Senator Portman. “Unfortunately, China’s persistent cheating has led to a situation where the playing field is not level in the aluminum industry, and Ohioans have suffered as a result. We must protect Ohio jobs, and it is imperative that the Administration takes action before China’s cheating further harms Ohio workers.”

“China has unfairly subsidized its aluminum industry – it’s not competing, it’s cheating,” says Senator Brown. “Enforcing our trade laws will ensure that U.S. aluminum manufacturers, the best in the world, have the opportunity to compete on a level playing field. The Administration needs to stand up for American businesses and put an end to the massive layoffs that have devastated workers and their communities.”

In the letter, the two senators write, “China’s extensive subsidization of its aluminum sector has contributed significantly to global excess capacity and export surges in its aluminum sector. With significant government support, Chinese companies are allowed to operate at losses or otherwise independent from market considerations.”

The letter continues, “The Commerce Department identified more than 20 government programs that subsidize Chinese aluminum extruders. News reports have identified government reductions of energy bills and tens of millions of dollars in cash infusions to help Chinese primary aluminum producers. And despite continued price drops in the global market, Chinese capacity is expected to increase in the next several years.”

“The AEC (Aluminum Extruders Council) greatly appreciates Senator Brown and Portman’s leadership on this issue,” says Jeff Henderson, president of the AEC. “Massive expansion in Chinese excess aluminum capacity is adversely affecting producers up and down the value chain and must be addressed immediately. The U.S. industry cannot wait any longer.”

In violation of its WTO obligations, China’s government has subsidized its aluminum sector – allowing for a sharp increase in capacity and production and giving it an unfair advantage in the market. This has dropped global aluminum prices by 35 percent, causing massive layoffs in the U.S. aluminum sector. A reduction in U.S. production has also harmed U.S. aluminum extruders, forcing them to pay more to import primary aluminum.

In June 2015, S.B. 891, Leveling the Playing Field Act, sponsored by Senator Brown, was signed into law, ushering in what the two senators say are the most significant changes to trade remedy law since 2002.

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Source: Recycling Today
Ohio senators call for crackdown on China aluminum producers
<![CDATA[U.S. Sens. Rob Portman (R-OH) and Sherrod Brown (D-OH) have written a letter to Michael Froman, the U.S. Trade Representative (USTR), urging him to bring a World Trade Organization (WTO) case against China in an effort to address aluminum overcapacity, which hurts American aluminum manufacturers and employees. In a joint statement, the two senators noted that 15,000 workers in U.S. aluminum production have lost their jobs in the last decade, including 1,500 in 2016. “I firmly believe that when Ohio workers have a level playing field, they can compete and win against competition anywhere in the world,” says Senator Portman. “Unfortunately, China’s persistent cheating has led to a situation where the playing field is not level in the aluminum industry, and Ohioans have suffered as a result. We must protect Ohio jobs, and it is imperative that the Administration takes action before China’s cheating further harms Ohio workers.” “China has unfairly subsidized its aluminum industry – it’s not competing, it’s cheating,” says Senator Brown. “Enforcing our trade laws will ensure that U.S. aluminum manufacturers, the best in the world, have the opportunity to compete on a level playing field. The Administration needs to stand up for American businesses and put…