A group of aluminum associations from different countries Tuesday urged the G20 to introduce a global forum to study excess aluminum capacity.
Aluminum associations in the US, EU, Canada, Mexico, Japan and Brazil called on the G20 to organize the summit in a joint letter to G20 foreign ministers and officials.
"We are concerned about the unsustainable and steady increase of overcapacity particularly in China in both primary and semi-fabricated aluminum sectors," the associations said. "This trend is exacerbating the difficulties in creating a global level playing field for aluminum trade."
The organizations envision an event similar to the Global Forum on Steel Excess Capacity, which released its final report to G20 leaders July 2017. The aluminum forum should focus on identifying trade practices that contribute to overcapacity, the group said.
"While unilateral trade measures can help target narrow problems of unfair trade, collective action is needed to induce systemic change. The G20 represents the appropriate forum to facilitate dialogue and trust among parties, aiming to remove non-market policies affecting our industry," the group wrote.
The US implemented a 10% tariff on aluminum and 25% tariff on steel imports last month, with select countries temporarily exempted until May 1. Canada in March announced new measures designed to prevent circumvention and unfair trade practices.
