With the recent Trade Remedies Authority changes to the anti-dumping duty for cast aluminium road wheels imported to the UK from China, we sat down with CEO Tom Jones to discuss its impacts on the UK aluminium industry.
In December, the Department for Business and Trade and the Department for International Trade announced that anti-dumping duties for cast aluminium road wheels imported into the UK from China would be scrapped, while duties for forged aluminium wheels would remain at 22.3%.
Dumping is the process of introducing a product into another country’s commerce at less than its normal value. It occurs when a company exports goods to another country at prices lower than their normal value or lower than the cost of production, often with the intention of gaining a competitive advantage or driving domestic producers out of business. Anti-dumping measures can be imposed if dumping is found to be occurring, especially if it causes material injury to a domestic industry.
At ALFED, we recognise the requirement for increased regulation to protect the aluminium supply chain from international dumping and the unfair manipulation of the commercial value of a product. It’s disappointing, then, that the Trade Remedies Authority has decided to limit anti-dumping duties to forged aluminium wheels only. The UK has a healthy cast aluminium market, and the scrapping of duties from Chinese exports will likely invite manufacturers in China to undercut domestic prices and dampen UK competitiveness.
Without clear measures to strengthen UK manufacture, the aluminium supply chain in this country could face further unfair competition and trade tensions. In a landscape of evolving UK and EU carbon regulations, supply chain disruptions originating from conflict in the Red Sea, and a generally weak economic climate, the industry needs clear and consistent measures from the government, partnered with open lines of communication with the Departments for Business and Trade, and International Trade.
Failing to properly open a dialogue with the UK aluminium industry could result in job losses, economic instability, frustration, and most importantly a lack of international competitiveness.
If implemented correctly, however, increased anti-dumping measures can help maintain a level playing field for domestic aluminium producers, preserving jobs and economic stability within the industry. By preventing the manipulation of prices, anti-dumping regulations will also promote fair trade practices in the international market and discourage the import of underpriced aluminium, which encourages adherence to environmental and responsible production standards.
ALFED supports the supply chain’s requirement for wider anti-dumping measures to protect the domestic aluminium industry from unfair practices and maintain a sustainable supply chain. Open dialogue and cooperation with other nations is vital to achieve a mutually beneficial global trading environment for the aluminium industry and beyond.
