IT'S TRADE O'CLOCK ⏰

Hi there! Welcome to European Aluminium’s newsletter, your window into the world of aluminium as we prepare for the 2024 EU institutional renewal. By shedding light on key industry developments and an in-depth exploration of our top 5 policy priorities for the upcoming policy cycle, our goal is to provide a more comprehensive perspective on how we can ensure a green transition made in Europe.

In today's global economy, the concept of free trade is often championed as a driver of prosperity and progress. Yet, the reality is far more nuanced. While we embrace the principles of free trade, it is crucial to emphasise the qualifier - fair. Why? Because unfair trade practices pose a tangible threat to the aluminium industry. Over recent decades, China's non-market behaviour has increasingly distorted our playing field. Through subsidies and under pricing, Chinese products flood our markets, resulting in significant losses for European producers. This isn't just a localised issue; it reverberates globally, impacting trade dynamics far beyond our borders.

But it's not just about economics; it's also about sustainability. The influx of Chinese imports undermines our environmental commitments. Considering that China's primary aluminium production generates a carbon footprint nearly three times higher on average than that of European production, Chinese aluminium products present a stark challenge to our sustainability objectives.

EUROPE NEEDS ACTION

To address this issue, the EU needs to implement robust trade defence measures, establish effective screening mechanisms, and craft trade agreements with strategic partners.

One key aspect involves adopting a stronger stance against imports from countries with non-market economies. This entails effectively utilising trade defence instruments to counter unfair trade practices and safeguard the Single Market by supporting domestic producers within the EU.

Additionally, to combat global emissions and address issues of excess capacity in non-market economies, it is imperative to pursue negotiations on the EU-US Global Arrangement on Sustainable Aluminium, to avoid losing progress made over the last two years of negotiations. For more details read our latest position paper urging policymakers to continue negotiations on the Global Arrangement on Sustainable Aluminium ➡️ https://tinyurl.com/yc2sak9w

What exactly should the EU do to protect strategic industries such as aluminium against unfair trade? Watch the video below with our Trade Manager, Helin Öcal to find out 👇

IT’S THE SINGLE MARKET, OF COURSE IT INVOLVES TRADE ⬇️

On 17 April, the former Italian Prime Minister Enrico Letta issued the long-awaited report “Much More than a Market”, which focuses on how to strengthen and enhance the Single Market, including some key trade aspects.

Why is this report important for the European aluminium industry?

Focusing on economic security, while the EU has always strived for openness and free trade, the report highlights the importance of new tools such as the Foreign Subsidy Regulation and International Procurement Instrument created to protect the EU market from the aggressive stance of certain countries and offers some suggestions on what can come next.

Additionally, fostering a “made in Europe” industry is considered crucial to preserve the Single Market. This entails not only protecting existing strategic industries in Europe (such as aluminium producers) but also fostering their growth. The report also strikes an interesting consideration on the EU trade policy when negotiating trade agreements. With the emergence of new power dynamics and the relatively decreasing EU global influence, third countries now have more leverage in trade agreement discussions, which could impact the EU aluminium industry's access to key markets and affect its competitiveness. This results in some of the countries criticising the EU regulatory approach, especially regarding environmental and social standards.

While emphasising the importance of the regulatory objectives, Letta stresses the need to balance them with the competitive and commercial goals of the EU, cautiously assessing the cost of action/inaction for the sake of the EU market and its companies. In this regard, as a strategic European industry, we call for an increased involvement in trade agreement negotiations and their alignment with the EU's established political priorities. Among these, which resonate with the European aluminium industry’s policy priorities, is the urgent need to secure strategic autonomy and resilience for Europe amid a complex global trade landscape.

Last but not least,  the report highlights the significance of the EU trade relations with strategic partners such as EFTA countries. They share a strong connection with the European aluminium industry as they are integrated into the EU aluminium value chain due to their natural geographical proximity and low carbon primary aluminium production. Accordingly, the report warns to be cautious to avoid that new tools intended to protect the Single Market’s security result in erecting barriers among partner countries.

To conclude, the report urges the EU and the US to enhance their trade relations, with the ultimate goal of working towards the establishment of a Transatlantic Single Market, which would benefit industries like aluminium through increased market access, regulatory alignment as well as the definitive removal of Section 232 Tariffs.

GET INVOLVED: JOIN THE CONVERSATION

Jump into the conversation and drop your thoughts on our manifesto and policy goals. Your insights and feedback are needed as we work towards a stronger, more resilient aluminium industry in Europe. Connect with us on LinkedIn, X and our website and stay updated on the latest developments! 💡

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