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AEC Joins Coalition of U.S. Manufacturers Opposed to Automatically Granting China Market Economy Status

July 7, 2016; Wauconda, Illinois -- The Aluminum Extruders Council (AEC), has joined Manufacturers for Trade Enforcement, a coalition of leading U.S. industry trade groups opposed to the automatic granting of market economy status for China at the end of 2016. AEC joins The Aluminum Association, American Iron & Steel Institute, Metals Service Center Institute, Forging Industry Association, and more than a 15 other groups, together directly employing more than 1 million American workers in their collective industries.

China has claimed that it should be automatically accorded treatment as if it were a market economy after the 15th anniversary of its accession to the World Trade Organization (WTO) in December 2016. U.S. law requires that the Department of Commerce make a market economy status (MES) determination based on established criteria, which many experts agree that China has not met.

While China has made a number of economic reforms in recent years, the Chinese economy remains fundamentally a non-market economic system dominated by the Communist Party and the state. The party and the government today still play a major and direct role in many critical aspects of the economy, including the financial system, upstream resource and energy sectors, and through ownership and control of many strategic industries, including the aluminum extrusion industry.

Chinese government ownership and financial support encourage and enable excess production despite weaker demand. As supported production makes its way into the global marketplace – at unfair low prices – it displaces American production and jobs.

The U.S. aluminum extrusion industry provides a perfect example of Chinese nonmarket economy practices at work, adversely affecting domestic trade. By the end of 2009, a recession year, Chinese imports of aluminum extrusions were rising at an alarming pace. In 2009:Q4, China imports accounted for nearly one-fifth of the entire U.S. market. Years of vigilant advocacy by the Aluminum Extruders Council has turned the tide in the North American aluminum extrusion industry’s struggle to level the playing field in the international fair trade arena. The International Trade Commission imposed game-changing duties and penalties on Chinese extrusion imports beginning in May 2011, which saved the domestic industry.

“Since the tariff orders went into effect, China continues to export their over production of aluminum extrusions throughout the world,” said AEC President Jeff Henderson. “Although the tariffs have helped the domestic extrusion industry recover, we will continue to fight for a fair and level playing field as long as China continues their nonmarket economy practices.”

Through the tariff actions, AEC conservatively estimates that an estimated 600 million pounds per year of extrusions are being produced in the U. S. that would have otherwise been lost to China. To learn more about AEC’s fight for fair trade, visit www.AECfairtrade.org.

China is not the target of anti-dumping investigations worldwide because of its nonmarket economy status. It is precisely due to the exportation of massive overproduction and continuing international price discrimination that Chinese industries are the main subject of anti-dumping actions.

“The Aluminum Extruders Council is pleased to lend support to and join voices with Manufacturers for Trade Enforcement,” said Henderson. “Granting China Market Economy Status at the World Trade Organization will make it more difficult, if not impossible, to fight dumping by Chinese extruders, eroding or even erasing the gains we have made.”

 

 

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The Aluminum Extruders Council (AEC), established in 1950, is an international association dedicated to advancing the effective use of aluminum extrusion in North America. AEC is committed to bringing comprehensive information about extrusion's characteristics, applications, environmental benefits, design and technology to users, product designers, engineers and the academic community. Further, AEC is focused on enhancing the ability of its members to meet the emerging demands of the market through sharing knowledge and best practices. Advocacy programs ensure that aluminum extruders, suppliers and their products remain relevant and viable in an ever-changing legislative and regulatory climate. More than 120 member companies represent primary aluminum producers and other industry suppliers in addition to aluminum extruders operating hundreds of extrusion presses in hundreds of plants worldwide. For more information, visit the website at www.aec.org; contact AEC at mail@aec.org.

Manufacturers for Trade Enforcement is a coalition of leading U.S. industry groups united in opposing China’s request for automatic designation as a market economy at the end of 2016. U.S. law requires that the Department of Commerce make a market economy status (MES) determination based on established criteria, which China has not met. State support of domestic manufacturing in China has distorted global markets, hurting domestic manufacturers. To learn more, please visit www.tradeenforcement.org.

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