HONG KONG — The United Steelworkers union has suspended indefinitely an unusual effort to push the United States government to restrict all aluminum imports after the campaign ran into opposition from aluminum companies, the Canadian government and even Canadian members of the union.þþThe union on Friday withdrew its petition to an American trade panel, which was filed the preceding Monday, after an aluminum industry group agreed to work with the union to address its main concern: Chinese aluminum production overcapacity and exports. “The Aluminum Association shares many of the concerns expressed by the United Steelworkers regarding Chinese aluminum overproduction,” the group said in a statement. “Overcapacity must be addressed to maintain a vibrant and healthy North American aluminum industry.”þþThe statement provided no specifics, saying only that, “The industry supports ongoing efforts by the U.S. and Chinese governments to address this critical issue.”þþChina’s aluminum exports have surged as the country’s economy slows. Those exports have displaced Canadian exports in some international markets, triggering an increase in Canadian shipments to the United States, where they now account for two-thirds of all American imports of raw aluminum.þþAt the same time, American companies including Alcoa have also been expanding in countries including Canada, Iceland and Saudi Arabia while closing less efficient operations in the United States.þþThe union tried to address the issue by invoking Section 201 of the 1974 Trade Act — an obscure trade law not employed since 2001, when President George W. Bush used it to restrict steel imports. That nearly set off a trade war with the European Union. In a Section 201 case, American industries or unions facing serious injury from imports may seek broad tariffs on imports from around the world rather than from a particular country.þþThe union’s petition triggered a strong reaction from government officials and workers in Canada, especially in the province of Quebec. That was awkward for the United Steelworkers, which represents workers across North America.þþAlthough it withdrew the petition, the union said on Friday: “We believe the Section 201 case would have resulted in immediate price increases that would have helped to maintain domestic production and employment as well as ensuring that producers in the United States and Canada would be able to obtain a fairer price for their products.”þþSection 201 cases are handled initially by the United States International Trade Commission, a bipartisan panel of trade experts in Washington. But the final decision is made by the president, who decides whether to follow recommendations from the commission. Cases that involve substantial imports from Canada or Mexico are sometimes slightly harder for American industries and unions to win because they are covered by the North American Free Trade Agreement.
Source: NY Times
