Growing aluminium trade in North America leads associations to call for actions ahead of USMCA's mandated review in 2026

The Aluminum Association Instituto Mexicano del Aluminio and the Aluminium Association of Canada have reportedly written a letter to trade officials in Canada, Mexico, and the United States asking for continued tariff-free trade, increased import monitoring, and more vigorous trade enforcement. The letter arrived before a summit on November 15 in Mexico City, underpinning the past and future of the North American aluminium trading relationship.

The letter stated, "For decades, our industries have relied on cross-border trade within the North American region to help make some of the world's highest quality and lowest carbon aluminium and aluminium products. Indeed, Canada and Mexico are the United States' first and second-largest aluminium trading partners, respectively. In 2022, our nations traded more than $47 billion worth of aluminium and aluminium products across the region."
Till August 2023, Canada exported 1.75 million tonnes of aluminium crude metals and alloys, 144,000 tonnes of aluminium plates, sheets and bars, and 274,000 tonnes of aluminium scrap to the United States, according to the USGS data. Mexico exported 10,600 tonnes of aluminium crude metals and alloys, 40,100 tonnes of aluminium plates, sheets and bars, and 157,000 tonnes of aluminium scrap to the US.
Overall, the North American region is a busy hub for aluminium trade, with increased demand. A report released by the Aluminum Association with preliminary estimates that demand grew by 4.8 per cent year-on-year in North America (US and Canada) in 2022, outpacing the overall estimated 2.7 per cent GDP growth in the United States during the same year. The demand in the United States and Canada stood at an estimated 27.5 billion pounds in 2022, driven mainly by major semi-fabricated product categories or mill. The demand for sheet and plate products grew by 6.1 per cent, foil by 5.1 per cent, and mill products by 4.1 per cent, year-over-year.
Because of this high cross-border trading between the United States, Mexico, and Canada, a free trade agreement 'USMCA' was created, effective from July 1, 2020. USMCA is mutually beneficial for North American workers, farmers, ranchers, and businesses. Ahead of a mandated agreement review in 2026, the North American aluminium industry is now calling for several actions.
Continued tariff-free trade in North America: This policy was implemented to enable the countries to practice tariff-free trading with each other. It allows each country to focus on its respective competitive advantages while reaping benefits from the unique strengths offered by aluminium firms in other countries. Maintaining Section 232 aluminium tariff exemptions for Canada and Mexico benefits the two countries in North America. However, the filing of a 15-country trade case by the United States aluminium extrusion producers threatens to overshadow the partnership between the aluminium industries in the three countries.
Increased regional aluminium import monitoring: The associations rightly pointed out in the letter that Mexico did not come up with any aluminium import monitoring programmes as the United States and Canada did as part of the agreement under the terms of removing Section 232 tariffs in favour of the USMCA. Each country agreed to establish an agreed-upon process for monitoring aluminium and steel trade between them. 
The associations urged the Mexican government in the letter to promptly implement a monitoring programme to abide by the mutual agreement under the Section 232 exemption policy. 
 Strengthened regional trade enforcement: The associations' letter stated that necessary steps should be taken to combat the unfair and illegal trade of aluminium like the way the United States and Mexico imposed successful antidumping and countervailing duty against unfairly traded Chinese aluminium over the past several years. The associations feel constant vigilance and enforcement of global trade laws in the sector is much needed. 
Full support of the aluminium sustainability agenda: The associations also highlighted in the letter that governments must continue to support the aluminium industry with its decarbonisation efforts and sustainability agenda. This support may include increased recycling initiatives and improved high-tech production techniques. The letter stated that aluminium produced in North America is some of the cleanest in the world, with carbon emissions declining more than 50 per cent since 1991. 

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