British manufacturers have warned that proposed UK anti-dumping duties on Chinese aluminium extrusions are too low and threaten to cause a flood of imports, factory closures and job losses. In its first new post-Brexit investigation, the Trade Remedies Authority, an independent government advisory body, has recommended setting duties on aluminium extrusions from a group of three prominent Chinese exporters that collectively account for 70 per cent of the country’s exports to the UK at 10.1 per cent. Aluminium extruding is a process through which alloyed material is heated and moulded into shapes for use in the automotive, infrastructure and construction sectors. Hydro Aluminium UK, the UK’s largest producer of aluminium extrusions, accounting for a quarter of the market, has warned that if the TRA’s recommendation is adopted, it would be forced to close its factories, which employ close to 1,000 people and supply London’s electric black cabs and Jaguar Land Rover.
Chinese aluminium producers receive substantial government support, with a 2019 OECD report showing that 85 per cent of subsidies in the global aluminium industry went to five Chinese companies. Small UK-based producers that supply another 25 per cent of the country’s roughly 190,000 tonnes of demand for aluminium extrusions say they could also be at risk under the proposed duty. Roger Hartshorn, managing director of Garner Aluminium Extrusions, which employs 155 people, said his firm would struggle to compete with Chinese producers unless the anti-dumping tariffs were raised to match other nations. The TRA recommended tariffs for aluminium extrusions range from 7.3 per cent to 29.1 per cent, depending on the producer.
Well, on one side these UK companies don't seem to employ as many people as you'd have thought. Ok, these are people that will eventually lose their jobs if the Government does nothing, but still there are 1000 + 155 + ?. I was expecting much larger numbers to be honest. It's a question of what happens to those people if they get laid off and is this to the best interest of the country overall?
ReplyDeleteThe UK needs to do something about this. If they want local companies to stand a chance against Chinese ones then they need to do what other countries have done and tax accordingly. And I don't see why they wouldn't. Unless they have some other motives to protect the Chinese companies and that wouldn't be ok at all.
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