Aluminium Association of Canada welcomes signing of Trans-Pacific Partnership
Montreal, October 5, 2015 – The Aluminium Association of Canada (AAC) welcomes the signing of the Trans-Pacific Partnership (TPP), as it did previous free trade agreements. The primary aluminum industry has always supported the free circulation of goods and services both in its commodities market and for products processed in its value chain.
Says AAC president and CEO Jean Simard, “This agreement provides special access to a zone of growing markets like Malaysia and Vietnam, offering tremendous potential for Canadian aluminum. But the agreement’s main contribution is its structured, non-discriminatory, and transparent market framework representing the minimum conditions that may be imposed on other big regional stakeholders like China.”
- Tariffs in Japan, which can be up to 7.5%, will be eliminated when the agreement comes into force.
- In Vietnam, tariffs at a rate of up to 27% will be eliminated within three years.
- In Malaysia, tariffs at a rate of up to 30% will be eliminated within ten years.
- In Australia, tariffs at a rate of up to 5% will be eliminated with the coming into force of the agreement.
Despite the fact that tariffs for certain countries will be abolished only in the short to medium term, the market framework under the TPP will allow unprecedented access to Canadian businesses in the aluminum value chain, and more strategically adds to the critical mass arising from free trade agreements with the United States and Mexico (NAFTA) and possibly Europe (TECA), among others. Adds Jean Simard, “This makes the Canadian aluminum industry a unique strategic platform with special access to two-thirds of the global economy.”
About the Aluminium Association of Canada (AAC)
The Aluminium Association of Canada brings together the three leading primary aluminum producers in Canada. These businesses operate nine aluminum smelters, including eight in Quebec, and employ over 10,000 people. More information: www.aluminium.ca.