Aluminium industry looking ahead towards clarity on USTR’s import volume benchmark, following tariff removal on Canadian aluminium

The United States decision to withdraw the 10% tariff on Canadian aluminium import has been commended by many industry groups and associations, but the confusion which remains on is the import volume benchmark by the United States Trade Representative’s office in place of the tariff.

On 18^th September’20, The Aluminum Association said it supported tariff- and quota-free trade within North America and was reaching out to the USTR to clarify details regarding the import target levels.

It remains unclear exactly how this system might be implemented or enforced, and Canada has indicated that it did not agree to any import controls or quotas.

The USTR said: “It expects shipments of non-alloyed, unwrought aluminium from Canada to be no greater than 83,000 tonnes for September, 70,000 tonnes for October, 83,000 tonnes for November and 70,000 tonnes for December, according to a statement Sept. 15.”

“If actual shipments exceed 105% of the expected volume for any month during the four months, and then the United States will impose the 10% tariff retroactively on all shipments made in that month,” USTR said.

The USTR’s monthly levels are well below the corresponding 2019 volumes of non-alloyed, unwrought aluminium imports from Canada under HTS code 7601.10. Shipments in 2019 totalled 139,220 tonnes in September, 134,041 tonnes in October, 107,115 tonnes in November and 159,959 tonnes in December, according to data from the US International Trade Commission.

However, the expected 2020 levels are comparable with 2018 import numbers for the respective months.

On 15^th September’20, Chrystia Freeland, Canada’s Deputy Prime Minister, said: “A quota system was not discussed between the US and Canada as part of the decision to lift the aluminium tariffs.”

“We have not agreed to anything and we have not negotiated an agreement with the US on quotas,” Freeland said. “What has happened is that the US has chosen to unilaterally lift its tariffs on Canadian aluminium exports to the United States.”

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