Transparency of aluminum prices would bring stability to US job creators
WASHINGTON – Trade associations representing some of America’s major industries and employers today congratulated Representatives Al Lawson (FL-05) and Ken Buck (CO-04) for reintroducing the Aluminum Price Review Act (APEX ) (HR 2698), bipartisan legislation that would bring transparency to aluminum pricing and ensure the stability of American workers and job creators.
“We commend Representatives Lawson and Buck for their continued bipartisan work to level the playing field and ensure that unfair trading practices do not disproportionately harm the US beer industry or the 2.1 million jobs it supports ”. said Jim McGreevy, President and CEO of the Beer Institute. “The APEX law will bring much needed transparency to benchmark aluminum pricing, which will help all players in the beer industry and the multitude of American job creators who depend on aluminum.”
The US economy has faced significant job losses and economic uncertainty due to the COVID-19 pandemic, and in 2020 alone, more than 568,000 jobs were lost in the beer industry . APEX would bring stability and transparency to the price of a major product used by American companies, stimulating long-term investments and creating new, well-paying opportunities for American workers. This common-sense, bipartisan proposal to increase regulatory oversight would restore confidence in the metals market, ultimately benefiting U.S. workers and the U.S. economy at large, including the millions of U.S. consumers who buy aluminum products every day.
“American beverage companies appreciate this effort to bring transparency, increased oversight and more certainty to a complex metal pricing system.”said Katherine Lugar, President and CEO of American Beverage. “We thank Mr. Lawson and Mr. Buck for continuing to lead the way on this bipartisan bill that will ultimately benefit American workers and consumers.”
Almost a third of all soft drinks are in aluminum cans, and more than 74% of all beer produced and sold in the United States is packaged in aluminum cans and bottles. Aluminum used in cans is the most important cost in the manufacture of beverages and beer in the United States.
According to a recent report from Harbor Aluminum, from March 2018 to December 2020, Section 232 tariffs cost the U.S. beverage industries an additional $ 848.6 million. Tariffs have created significant costs for aluminum end users, and these costs are only magnified by the problem inherent in the current aluminum pricing structure. When tariffs are coupled with the effects of the pandemic, American businesses face huge costs and American jobs and future investments are threatened.
Aluminum boats, for example, account for over 40% of new boat sales each year and account for around $ 3 billion in retail sales. An estimated 22,000 US jobs depend on the aluminum sector of the marine industry, which has seen its aluminum prices soar, even for domestically produced aluminum. Additionally, shipbuilders are not only suffering from inflated prices due to 232 tariffs, but also from European Union retaliatory tariffs on American-made boats and engines that have slashed U.S. exports to the US by 42% ‘EU.
“Section 232 tariffs have weighed on the boating industry since 2018, in particular, driving up the cost of essential raw materials and reducing annual exports to Europe by more than 40% – a market that previously accounted for a quarter of the industry’s international sales. , “said Frank Hugelmeyer, president of the National Marine Manufacturers Association. “These aluminum and steel tariffs have caused far more damage than any perceived benefit and will result in significant job losses in many sectors of the economy if not removed soon.”
Aluminum is also an essential component of flexible packaging not only to maintain product freshness and safety, but also to provide rigidity, integrity and sterility to the packaging. Aluminum foil is used in flexible packaging for many products that consumers buy every day, whether in grocery stores, pet stores, retail stores or drugstores, as it is used for a variety of purposes, including including food, drink, and medical and medical care. pharmaceutical applications. Products in flexible packaging are also found in doctors’ offices, hospitals and restaurants. When it comes to packaging for medical devices, food and pharmaceuticals, quality is key – literally a matter of life and death.
“Thin gauge aluminum foil is required for barrier protection and sterility in a multitude of flexible food, pharmaceutical and medical packaging, and is not available in the United States in terms of quantity. or quality. Midwest Premium, in addition to current out-of-country sheet tariffs and duties, leaves US processors vulnerable to competition from overseas suppliers of finished products. In fact, these additional costs only hurt the customers of aluminum manufacturers and can destroy the very market they seek to protect ”.said Alison Keane, President and CEO of the Flexible Packaging Association.
HR 2698 is similar to HR 1406 and S. 1953, bipartisan and bicameral legislation introduced at the 116th Congress.
About the Beer Institute
The Beer Institute is a national trade association for the US brewing industry, representing brewers of all sizes, as well as beer importers and suppliers to the industry. First founded in 1862 as the US Brewers Association, the Beer Institute is today committed to developing strong public policy and upholding the values of civic duty and personal responsibility. For additional updates from the Beer Institute, visit our website, follow @BeerInstitute on Twitter, like the Beer Institute on Facebook, and follow the Beer Institute on Instagram.
About American Beverage
American Beverage is the national trade organization representing the broad spectrum of companies that manufacture and distribute non-alcoholic beverages in the United States. Our member companies directly employ nearly a quarter of a million people and have a direct economic impact of $ 169.7 billion. For more information, please visit www.balanceus.org and http://www.ameribev.org/.
About the National Marine Manufacturers Association
The National Marine Manufacturers Association (NMMA) is dedicated to nurturing and promoting the strength of marine manufacturing, its members’ sales and service networks, and the boating lifestyle. NMMA is the country’s leading trade association representing manufacturers of boats, marine engines and accessories. Collectively, NMMA members manufacture approximately 80 percent of the marine products used in North America. The NMMA is a unifying force and a powerful voice for the boating industry, working to strengthen and develop boating and protect the interests of its member companies. For more information, please visit www.nmma.org
About the Flexible Packaging Association
The Flexible Packaging Association is the voice of America’s flexible packaging manufacturers and their suppliers. The association’s mission is to connect, advance and lead the flexible packaging industry. Flexible packaging accounts for over $ 33 billion in annual sales in the United States and is the second largest and one of the fastest growing segments of the packaging industry. Flexible packaging is made from paper, plastic, film, foil, or any combination of these materials and includes bags, pouches, labels, liners, wrappers, rolls and other flexible products. Learn more at www.flexpack.org and www.perfectpackaging.org.