Canadian Steel and Aluminium sectors call for urgent tariffs to take aim at Chinese overcapacity.

OTTAWA, ON, Aug. 8, 2024 /CNW/ - Today, the leaders of two major Canadian industries, Catherine Cobden, President and CEO of the Canadian Steel Producers Association and Jean Simard, President and CEO of the Aluminium Association of Canada, released the following joint statement concerning the real impact and ongoing threat of excess capacity from China flooding into the Canadian market and the recent consultation on potential policy responses to tackle Chinese overcapacity in electric vehicle supply chains:

"As the representatives of two major industries in Canada directly employing more than 31,000 Canadians and contributing more than $27 billion to the Canadian economy, we are taking the significant step of joining our voices to alert the Government of Canada about the clear and present danger state sponsored excess capacity from China has brought onto our industries, our workers and the communities we support across the country.

"Canada's allies, including our CUSMA partners the United States and Mexico, have recognized the devastating impacts of Chinese overcapacity and are moving to impose strict and timely tariffs to stem the flow of Chinese steel and aluminium into their markets. Through this consultation process, Canada has an opportunity to align itself to our North American partners to ensure we live up to the trade partnerships we have forged over the past decades.

"Failure to act exposes Canada to becoming the North American entry point for steel, aluminium as well as EVs from China's high carbon excess capacity. Preventing such a situation is part of a shared commitment with our trading partners, Mexico and the United States.

 "Our industries therefore call on the Government of Canada to act swiftly and take a holistic approach by including steel, aluminium and EVs in a single tariff package fully aligned with our largest trading partner. Relying solely on the use of traditional trade remedy actions or lengthy investigations would leave Canada far behind its trading partners, and highly vulnerable.

"A CUSMA full tariff alignment for aluminium and steel should be seen as part of a comprehensive package of measures including EVs to be put in place against China. For steel, at least 25% tariffs should be imposed on all melted and poured Chinese steel entering Canada. For aluminium, full alignment in scope and quantum with final US Section 301 tariffs on imports of Chinese aluminium products.

"Our hope is that Canada recognizes the strategic importance of the steel and aluminium sectors and the workers and families our industries support. Taking this action would protect Canada from the real threat of unfair trade to our economic prosperity and to our trading relationships in North America."

About the Canadian Steel Producers Association
The Canadian Steel Producers Association is the national voice of Canada's primary steel and the pipe and tube industry, dedicated to ensuring a competitive and sustainable business environment for its members and supply chain stakeholders. Canadian steel producers are integral to Canada's economy and a vital supplier to many segments of North American industry, including the automotive, energy, construction, and transportation sectors.

About the Aluminum Association of Canada
Founded in 1990, the Aluminium Association of Canada (AAC) represents the three Canadian world-class aluminium producers: Alcoa, Alouette, and Rio Tinto. Operating nine smelters in Canada, eight of which in Quebec, they employ over 8,500 workers, producing more than 80% of North America's primary metal, with $10.2 billion in exports, mainly to the United States. The AAC and its members are active in the development of best practices in health and safety and responsible low CO2 production. For more information, visit http://www.aluminium.ca or Twitter @AAC_aluminium.

SOURCE Canadian Steel Producers Association