Trade advocacy group European Aluminium is urging the G20 to establish a worldwide forum regarding excess aluminium capacity when it holds its annual summit in Hamburg next week.
EA made the appeal on Thursday, asking the group to put into place a forum where transparent data and monitoring tools would be available to counter supply imbalances that negatively effect international trade.
“The G7 took a step in the right direction by pushing for the removal of all trade-distorting practices and calling for a truly level playing field,” said the Director General of European Aluminium Gerd Götz.
“But the G20 must go further. It must take action. If it does not, it will give a signal that distortive state intervention is not only possible but accepted, despite WTO rules,” he went on.
The EA continued by referring to its repeated identification of excess capacity cascading from suppliers in the People’s Republic of China as being at the heart of the difficulties encountered by aluminium firms on the continent and around the globe.
European Aluminium also reminded readers of Götz’s testimony to the United States Commerce Department last week. During the department’s hearing regarding its Section 232 investigation of Chinese imports into the United States, Götz said that EA “shares the concerns of the US government regarding the significant Chinese aluminium overcapacity and its impact on the US and European industries, despite the healthy demand for aluminium worldwide.”
He also told the committee that joint efforts between the United States and Europe “are necessary to tackle the root causes of the global excess capacity and to secure balance in the US and European aluminium markets.”
The 2017 G20 Hamburg summit will be held next Friday and Saturday in Hamburg, Germany. It will be the twelfth meeting of the group, whose member countries account for 85% of the gross world product, 80% of the world’s total trade, and two-thirds of the world’s total population.