ARLINGTON, Va. --Aluminum Association leaders appeared at a public hearing before U.S. Trade Representative GSP 2009 Annual Review for Products to state their opposition to a petition filed on behalf of Apar Industries, Ltd. to allow duty-free importation from India on aluminum stranded wires and cables.
Aluminum Association was represented at the hearing by Mike Fancher, Marketing Manager, Alcan Cable, Atlanta, Georgia and Keith Gregston, President and General Manager, Noranda, Aluminum Inc., New Madrid, Missouri.
According to comments made by Fancher there is a sufficient North American capacity to meet foreseeable demand for ACSR cable. In addition, a favorable ruling for Apar Inc. under Generalized System of Preferences (GSP) would further invite other countries to participate in the U.S. ACSR market, while these countries apply duties on their ACSR imports of greater than the U.S. 4.9% rate. Fancher also stated that offshore suppliers entering the market will produce unfavorable environmental effects in relation to Green House Gas (GHG) emissions in that the freight by sea produces such effluents due to the burning of bunker fuel.
Noranda is one of the largest aluminum rod producers in the United States and according to comments made by Gregston, any reduction in production and sale by Noranda’s downstream customers, who are making this product, would have a direct economic impact on the company’s business. Gregston said it would be unmerited to both those trading partners in reciprocal agreements with the United States and to the U.S. aluminum rod and aluminum cable and wire industries to allow this duty-free importation.
North America consumed an estimated 265 million pounds of ACSR and bare cable during 2008, valued at approximate one billion dollars. The average growth has been about 3.7 percent per year since 2001 and over that time frame, the share represented by imports has essentially doubled, moving from less than five percent to about 10 percent of the market. There are a total of six companies in North America that produce this product, employing about 3,900 workers in the U.S. and 260 workers in Canada. Aluminum redraw rod is a major feedstock for aluminum wire and cable. During 2008, the aluminum industry produced approximately 1.0 billion pounds of this product. About one-third of this is consumed in the manufacture of ACSR and bare cable products. There are five manufacturers of electrical grade redraw rod in North America operating five plants in the United States and two plants in Canada.
The Aluminum Association, based in Arlington, Virginia, works globally to aggressively promote aluminum as the most sustainable and recyclable automotive, packaging and construction material in today’s market. The Association represents U.S. and foreign-based primary producers of aluminum, aluminum recyclers and producers of fabricated products, as well as industry suppliers. Member companies operate more than 200 plants in the United States, with many conducting business worldwide.
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