10 Dec, 2019, 18:05 ET
MONTREAL, Dec. 10, 2019 /CNW Telbec/ - Even with the global positive impact for Canada, the Canadian aluminium industry is disappointed today's agreement between the three signatory countries excludes definition for aluminium rules of origin for autos. Such an exclusion allows Mexico to continue to import metal from China and other parts of the world, significantly affecting the balance of the North American automotive value chain.
"The advantage thus conferred to Mexico makes it more or less China's North American backyard to dispose of the products of its overcapacity, thereby generating the gradual relocation of North American transformers to Mexico," said Jean Simard, President and CEO of the Aluminium Association of Canada. "There will be consequences on our value chain and more directly on our US customers, which will affect our competitiveness in the future".
Despite the fact that the eventual ratification of the agreement puts an end to some of the uncertainty of recent years, this breach in what was a robust and dynamic automotive market adds to the growing constraints facing our industry, in a market environment that is also increasingly demanding.
The aluminum industry will analyze the impact of the new rules over the next few weeks and will make representations to government authorities to ensure the continued competitiveness of a world-class industry here in Canada.
About the Aluminium Association of Canada (www.aluminium.ca/en)
The Aluminium Association of Canada (AAC) is a non-profit organization representing three Canadian world-class aluminium producers: Alcoa, Alouette, and Rio Tinto operating nine smelters in Canada, eight of which are in Quebec, and employing over 8,700 workers. For more information, visit www.aluminium.ca or Twitter @AAC_aluminium.
SOURCE Aluminum Association of Canada
For further information: Antoine Kack, 581 984-0159, [email protected]
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