HOW NAFTA KEEPS ALUMINUM MOVING

Transcription

1 January 15, 2017 HOW NAFTA KEEPS ALUMINUM MOVING Platts Aluminum Symposium 2018 Heidi Brock President & CEO The Aluminum Association 1

2 WHO WE ARE The Aluminum Association 85-year old trade association Represent $75B + U.S. aluminum industry Promote aluminum as most sustainable material in today s market 115 member companies Represent full aluminum value chain (primary, recyclers, semi-fabricators, suppliers) Grow markets & achieve policy outcomes 2

3 OUR TRADE PRINCIPLES Rules-based Global Trading System Goal Level the playing field for the full U.S. aluminum value chain to ensure robust, fair and rules-based trade of aluminum and aluminum products. Activities Encourage U.S. government to pursue tangible and enforceable commitments from China on overcapacity. Actively support rules-based trading system and free trade agreements that benefit U.S. manufacturers and producers. Ensure strong enforcement of U.S. and global trade rules. 3

4 NAFTA 2.0 MILESTONES Quick Pace for Renegotiating Foundational Trade Agreement President Announces Renegotiation USTR Hearing Round 1 United States Round 3 Round 5 Intersessional United States Round 6 Presidential Elections U.S. Midterm Elections 2017 May June July August September October November December January February March April May June July August September October November 2018 NAFTA 2.0 Objectives Released Round 2 Round 4 United States Updated Objectives Released Target to End January 4

5 POSSIBLE OUTCOMES Possible Path Forward on Quick Conclusion Breakthrough on roadblocks, with agreement on modernized provisions. Clear path for implementing bill to pass Congress, and businesses can make investments. Keep Negotiating The parties stay at the negotiating table through Mexican and U.S. elections, and they find a compromise on controversial issues. Long period of uncertainty, but the status quo is largely maintained. Withdraw President Trump gives six months notice for U.S. withdrawal, and uncertainty undermines North American competitiveness. and walk away from the negotiations, and tariff rates snap back to pre-nafta. 5

6 U.S. Exports U.S. Imports NAFTA: KEY ALUMINUM GROWTH DRIVER U.S. Imports from NAFTA Trading Partners (Billions of Pounds) NAFTA Ingot 73% +93% 7.4B lbs +190% $6.4B Semis 14% 26% 6% 13% 68% Scrap 3.8B lbs $2.2B Volume Value 4.0 U.S. Exports to NAFTA Trading Partners 3.5 NAFTA 3.0 (Billions of Pounds) Ingot +135% +246% $4.3B U.S. Census Bureau and the Aluminum Association Semis 68% 63% 24% 12% 14% 19% Scrap 1.4B lbs $1.2B 3.2B lbs Volume Value 6

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8 OUR NAFTA PRINCIPLES Aluminum Industry Benefits from Modernized NAFTA Maintain NAFTA. The Association s member companies have benefited from robust, fair and rulesbased trade of aluminum and aluminum products within the NAFTA trading region. Promote North American manufacturing. Ensure that NAFTA incentivizes manufacturing production in the United States that sources from North American suppliers, and that the agreement s benefits accrue to companies that invest in the region and their employees, while boosting the competitiveness of American manufacturing. Enforce the Rules. A modernized, strong NAFTA should facilitate the efficient movement of aluminum and aluminum products within the NAFTA region while ensuring that NAFTA preferences are available only to aluminum articles that meet the agreement s Rules of Origin. Strong enforcement of customs rules and cooperation among the NAFTA parties will allow U.S. businesses and workers to benefit from the agreement. 8

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