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GENERAL AGREEMENT ONTBT/Notif.87.12024 August 1987 TARIFFS and TRADE Special Distribution

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GENERAL AGREEMENT ONTBT/Notif.87.12024 August 1987 TARIFFS and TRADE Special Distribution RESTRICTED GENERAL AGREEMENT ONTBT/Notif.87.12024 August 1987 TARIFFS AND TRADE Special Distribution Committee on Technical Barriers to Trade NOTIFICATION The following notification is being circulated in accordance with Article 10.4. 1. Party to Agreement notifying: CANADA 2. Agency responsible: Department of Transport 3. Notified under Article 2.5.2 X, 2.6.1 ,7.3.2 ,7.4.1 , Other: 4. Products covered (CCCN where applicable, otherwise national tariff heading): Dangerous goods 5. Title: Proposed Amendment to the Trarsportation of Dangerous Goods Regulations 6. Description of content: The current Part VT of the Transportation of Dangerous Goods Regulations is being amended to include safety standards for the manufacturing, testing, requalification and application of safety marks (specification marks and certification marks) for packaging, cylinders and tubes, 7. Objective and rationale: Public safety 8. Relevant documents: Canada Gazette, Part I, 8 August 1987, pages 2682-2692 9. Proposed dates of adoption and entry into force: Not stated 10. Final date for comments: 6 December 1987 11. Texts available from: National enquiry point X or address of other body: 87-1271 - i - PROBLEMS OF TRADE IN CERTAIN NATURAL RESOURCE PRODUCTS Background Study on Aluminium and Aluminium Products Any enquiries should be addressed to Mrs. Alena Sindelar, Development Division, GATT secretariat, who was responsible for this study. Published by the General Agreement on Tariffs and Trade June 1987 87-1277 - iii - Table of Contents Page INTRODUCTION 1 SUMMARY 2 SECTION I: MAIN FEATURES OF THE ALUMINIUM INDUSTRY 5 Properties of aluminium 5 World bauxite reserves 5 Processing 7 Bauxite processing 7 Alumina refining 7 Aluminium smelting 8 Re-cycling 9 Industrial applications of aluminium and alumina 11 Substitution 13 Structure of the industry 14 SECTION II: PRODUCTION, CONSUMPTION AND PRICES 21 Bauxite production 21 Alumina production 27 Primary aluminium production 29 Secondary aluminium production 31 World production of semi-manufactures and castings 32 Consumption of primary aluminium 32 Prices and stocks 43 Bauxite 45 Alumina 46 Aluminium 49 Stocks 50 Demand and supply elasticities 54 SECTION III: INTERNATIONAL TRADE 60 Trade in bauxite 60 Trade in alumina 64 Trade in aluminium metal 65 Direction of trade 70 - iv - Page SECTION IV: COMMERCIAL POLICY SITUATION 75 Tokyo Round negotiations: tariff assessment 75 Trade in aluminium and aluminium products under different tariff treatment and according to stages of processing 78 Developed countries 78 Individual developed-country profiles 80 Developing countries 110 Individual developing-country profiles 111 Tariff escalation and effective tariff protection 136 Non-tariff measures 137 SECTION V: ACTIVITIES IN OTHER INTERNATIONAL ORGANIZATIONS 150 The International Bauxite Association (IBA) 150 The Integrated Programme for Commodites in UNCTAD 151 The European Aluminium Association 151 The International Primary Aluminium Institute 151 Other Associations 152 OBSERVATIONS 153 Annex I: Summary of pre-Tokyo and post-Tokyo 155-169 Round tariff situation affecting aluminium and aluminium products Annex II: The Harmonized System of Commodity 170-176 description and classification of aluminium and aluminium products - v - List of Tables Page 1. WORLD ALUMINIUM RESERVES, 1985 ESTIMATES 6 2. WORLD PRODUCTION OF ALUMINIUM, 1960-1984 (IN THOUSANDS OF METRIC TONS) 23 3. WORLD PRODUCTION OF ALUMINIUM, 1960-1984 (AS A PERCENTAGE OF WORLD PRODUCTION) 24 4. ALUMINIUM SCRAP RECOVERY, 1960-1984 33 5. RELATIONSHIP OF ALUMINIUM RECOVERY AND TOTAL ALUMINIUM CONSUMPTION FOR SELECTED COUNTRIES, 1960-1984 34 6. WORLD PRODUCTION OF SEMI-MANUFACTURES AND CASTINGS, 1970-1984 35 7. WORLD CONSUMPTION OF PRIMARY ALUMINIUM, 1960-1984 38 8. WORLD CONSUMPTION OF PRIMARY ALUMINIUM BY USE, 1984 41 9. BAUXITE PRICES, 1950-1985 47 10. ALUMINIUM PRICES, 1950-1985 51 11. WORLD STOCKS OF PRIMARY ALUMINIUM, 1960-1985 53 12. BAUXITE/ALUMINIUM ELASTICITIES 55 13. TRENDS IN INCOME ELASTICITY 55 14. WORLD EXPORTS OF BAUXITE AND ALUMINA, 1960-1984 61 15. WORLD IMPORTS OF BAUXITE AND ALUMINA, 1960-1984 63 16. WORLD EXPORTS OF PRIMARY ALUMINIUM, 1960-1984 67 17. WORLD IMPORTS OF PRIMARY ALUMINIUM, 1960-1984 68-69 18. DIRECTION OF TRADE BY MAIN EXPORTERS OF BAUXITE, ALUMINA AND ALUMINIUM, 1984 71 19. DIRECTION OF TRADE BY MAIN IMPORTERS OF BAUXITE, ALUMINA AND ALUMINIUM, 1984 73 - vi - Page 20. PRE-TOKYO ROUND AND POST-TOKYO ROUND TARIFFS IN NINE DEVELOPED-COUNTRY MARKETS 76 21. SUMMARY OF TRADE IN ALUMINIUM AND ALUMINIUM PRODUCTS UNDER DIFFERENT TARIFF TREATMENTS 79 22. AUSTRALIA 81 23. AUSTRIA 84 24. CANADA 86 25. EEC 88 26. FINLAND 91 27. HUNGARY 92 28. ICELAND 94 29. JAPAN 96 30. NEW ZEALAND 97 31. NORWAY 99 32. PORTUGAL 101 33. SOUTH AFRICA 103 34. SPAIN 104 35. SWEDEN 107 36. SWITZERLAND 108 37. UNITED STATES 109 38. ARGENTINA 112 39. BRAZIL 114 40. COLOMBIA 116 41. HONG KONG 117 42. INDIA 119 - vii - Page 43. INDONESIA 120 44. ISRAEL 122 45. KOREA, REP. OF 124 46. MALAYSIA 125 47. MOROCCO 127 48. PHILIPPINES 128 49. SINGAPORE 130 50. THAILAND 131 51. TURKEY 133 52. YUGOSLAVIA 134 53. ALUMINIUM AND ALUMINIUM PRODUCTS M.F.N. TARIFF TREATMENT ACCORDING TO DIFFERENT STAGES OF PROCESSING IN THE FOLLOWING COUNTRIES: CAMEROON, CHILE, CZECHOSLOVAKIA, EGYPT, GHANA, JAMAICA, NIGERIA, PERU, POLAND, ROMANIA, TANZANIA, TUNISIA, URUGUAY, ZAIRE 135 54. NON-TARIFF MEASURES AFFECTING ALUMINIUM AND ALUMINIUM PRODUCTS 138-144 - viii - List of Charts Page CHART I: PRIMARY AND SECONDARY ALUMINIUM PRODUCTION FLOWS 10 CHART II: RAW MATERIALS AND PROCESSES REQUIRED TO PRODUCE ONE TON OF ALUMINIUM 12 CHART III: WORLD PRODUCTION OF BAUXITE, 1960 AND 1984 25 CHART IV: WORLD PRODUCTION OF ALUMINA, 1960 AND 1984 25 CHART V: WORLD PRODUCTION OF PRIMARY ALUMINIUM, 1960 AND 1984 25 CHART VI: WORLD CONSUMPTION OF PRIMARY ALUMINIUM BY COUNTRY, 1960 AND 1984 37 CHART VII: CONSUMPTION OF PRIMARY ALUMINIUM BY USE, 1984 37 CHART VIII: WORLD PRODUCTION AND CONSUMPTION OF ALUMINIUM, 1960-1984 44 CHART IX: BAUXITE PRICES, 1.950-1984 48 CHART X: ALUMINIUM PRICES, 1950-1984 52 - 1 - INTRODUCTION The present study on aluminium forms a part of the series of factual background papers prepared by the GATT secretariat on non-ferrous metals. These studies were undertaken in accordance with the Decision taken by Ministers at the Thirty-Eighth Session of the CONTRACTING PARTIES in November 1982 in relation to Problems of Trade in Certain Natural Resource Products. The Decision called for the examination of problems relating to trade in certain natural resource products including in their semi- processed and processed forms, falling under the competence of the General Agreement relating to tariffs, non-tariff measures and other factors affecting trade with a view to recommending possible solutions. This study provides information on aluminium and aluminium products, covering the following CCCN positions: ex 26.01, ex 26.03, 28.20, ex 28.29, ex 28.30, ex 28.38, ex 28.47, ex 73.02, ex 85.23 and positions included in Chapter 76. Section I gives some background information on the salient features of the aluminium industry. Section II briefly reviews developments with regard to world aluminium production, consumption and prices since 1960. Section ITI presents information on trade flows in bauxite, alumina and aluminium. Section IV provides detailed information on trade flows on a tariff line basis, together with tariff treatment in developed-country markets as well as some developing countries. It also provides information on non-tariff measures affecting aluminium and aluminium products. Section V describes the activities in other international organizations related to aluminium. - 2 - SUMMARY 1. The special properties of aluminium and its alloys, the relatively stable prices, together with a vigorous research and marketing effort by the major aluminium companies, enabled aluminium to replace many competing materials and encouraged its use across diverse industries. This resulted in the strong growth of aluminium production and consumption over the past several decades and aluminium has become the most widely used metal after iron and steel. 2. Most of the world's reserves of bauxite, the principal raw material for aluminium, are located in developing countries and Australia. First, bauxite is processed into alumina at refineries, and the latter product is converted into aluminium in electrolytic smelters. In addition, there are also smelters that process new and used aluminium scrap into secondary aluminium. Minor amounts of bauxite and alumina are consumed by the refractory, abrasive and chemical industries. 3. Though the structure of the aluminium industry has changed since the last decade, six transnational corporations - Alcoa, Alcan, Kaiser, Reynolds, Pechiney and Alusuisse - still have the leading position in the industry. They have been associated with many new projects because of their trade links, the proprietory technology, and their ability to provide for the large investment requirements and reap the economies of scale. However, the formation of independent companies integrating backwards and forwards, the desire on the part of developing countries to control their resources, and the increase in State ownership in the industry, have had important consequences for its structure. The energy crisis in 1973-74 and the subsequent increase in costs has been another factor contributing to this change. 4. Until 1950, the entire production cycle of aluminium remained concentrated principally
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