Download EU Cuts Aluminum Traffic Review Sheet - Intermediate Microeconomics | ECON 100 and more Study notes Microeconomics in PDF only on Docsity! May 8, 2007 EU Cuts Aluminum Tariffs Lowering Barrier Is Step in Move For Cheaper Imports By JOHN W. MILLER May 8, 2007; Page A8 BRUSSELS -- A European Union decision to cut import tariffs on raw aluminum shows the bloc's increasing focus on securing cheap imports rather than protecting commodity industries, according to EU officials and trade lawyers. In a vote yesterday, EU ministers cut the import tariffs on aluminum to 3% from 6%, providing a lift to Russian suppliers such as United Company Rusal. Russia is by far the EU's biggest supplier of raw aluminum. After two years, the EU is to review whether to eliminate the tariffs altogether. The move has been in the works since eight former communist-bloc countries joined the EU in 2004. The new members previously had no tariffs on aluminum imports from Russia, which supplied their producers of car wheels, window frames, airplane parts and other value-added goods. They have lobbied hard to get the 6% barrier removed. The tariff cut "is part of a wider trend of helping companies that add value and retailers," said Laurent Ruessmann, a lawyer based in Brussels with U.S. law firm Sidley Austin LLP. An EU trade official confirmed that the bloc is increasingly focused on supporting value-added industries. Like Japan and the U.S., the EU has eliminated almost all tariffs on raw-material imports as its own production has fallen. Aluminum has been an exception. The EU still makes two million tons of raw aluminum a year, and imports 2.5 million tons. For years, EU officials say, France successfully fought to keep the tariffs at 6%, on behalf of Pechiney SA, which was bought in 2003 by Alcan Inc. of Canada. Alcoa Inc., based in Pittsburgh, and Norsk Hydro ASA of Norway also have plants in Europe. Besides France, aluminum-producing countries in the EU include Spain, Greece, Slovakia and Germany. The EU also has been making it harder for companies to secure antidumping tariffs against DOW JONES REPRINTS This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit: www.djreprints.com. • See a sample reprint in PDF format. • Order a reprint of this article now. Page 1 of 2EU Cuts Aluminum Tariffs - WSJ.com 5/23/2007http://online.wsj.com/article_print/SB117858281913695159.html
