Global aluminum associations welcome new analysis from International…
Aluminum associations from the United States, Europe, Canada and Japan welcome the new report from the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), the World Bank (WBG) and World Trade Organization (WTO). ), Subsidies, Trade and international cooperation.
This joint report highlights that “with the increasing frequency and complexity of distorting subsidies, even as the need for active policies to address climate, health, food and other emergencies grows, subsidies and the subsidy debate have caused significant discord in the trading system. The issue demands global attention and cooperation.
In welcoming the report, Charles Johnson, President and CEO of the Aluminum Association, Paul Voss, Managing Director of European Aluminium, Jean Simard, President and CEO of the Aluminum Association of Canada, and Yasushi Noto , Executive Director of the Japan Aluminum Association said:
“This latest analysis from the world’s leading international organizations draws attention, once again, to the prevalence of trade-distorting and environmentally-harming subsidies provided by and to state-owned enterprises across the world. of the aluminum value chain.”
“High levels of support displace production from unsubsidized companies unable to compete with deep pockets of the state and eliminate resilient supply chains in strategic sectors in the United States, Europe, Canada and Japan. Nearly 2 million direct and indirect jobs are threatened.
These same subsidies increase production in production systems with high GHG emissions, resulting in a much higher carbon footprint globally. By reducing opportunities for growth in unsubsidized production systems, subsidies also discourage private investment and innovation in sector decarbonization initiatives.
“Our member companies are committed to producing aluminum responsibly, but this is hampered by state capitalism on the scale we see today in the aluminum value chain. Urgent action is needed to put in place a level global playing field, open to fair competition and free from subsidies that favor a few companies at the expense of many. We actively support updated WTO rules and plurilateral initiatives to discipline harmful industrial subsidies and stand ready to work with international organizations and governments to achieve this.