The United States’ aluminum market heads are asking those of the European Union and Britain to help stop China’s problematic taxes in the industry, which have begun to affect jobs in North America.
China is suspected of breaking the World Trade Organization’s rules by illegally financing prominent market sectors, particularly the aluminum market. Despite the country’s claim that it respects the policies of the World Trade Organization, the US has begun to investigate whether its imported products are negatively affecting its safety.
Theresa May, Britain’s Prime Minister, has received a letter from the aluminum industry encouraging her to take action, insisting that the country’s future will be more secure if it does its part to reinforce the World Trade Organization. Office representatives have not yet responded.
Industry leaders in Belgium and Russia are also participating in the discussion, realizing the urgency of the issue as China produces more aluminum than any other country worldwide, contributing to half of the globe’s total production. It contributed to a mere tenth of the world’s aluminum manufacturing in 2001. Meanwhile, the number of European aluminum plants has decreased by more than one-third from 2002 to 2015, and a Kentucky plant suffered financial losses in the first quarter of 2016.
China has begun to incur bigger charges for energy usage than Europe and the US, while Europe seeks to continue its smelting for the purpose of providing jobs to factory workers and maintaining high market value. The former simply isn’t beneficial for international business.
An upcoming meeting in Brussels among EU trade leaders will decide how the World Trade Organization will handle China’s aluminum debacle and could put new policies into place.