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Pin to quick picksAlumasc Group Share News (ALU)

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Argentina to ask U.S. for exemption from steel, aluminum tariffs

Fri, 09th Mar 2018 00:34

BUENOS AIRES, March 8 (Reuters) - Argentina will seek tojoin Mexico and Canada in getting an exemption from U.S. tariffson steel and aluminum imports, which President Donald Trumpfinalized in a proclamation on Thursday, the South Americancountry's Foreign Ministry said.

In pressing ahead with the 25 percent tariffs on steelimports and 10 percent for aluminum, Trump exempted Canada andMexico in a move aimed at pressuring them to give ground inseparate talks on the North American Free Trade Agreement.

"Trump affirmed that others could receive this privilege,through a process that will be announced shortly," the ForeignMinistry said in a statement, noting that Argentina accountedfor just 0.6 percent of U.S. steel imports and 2.3 percent ofits aluminum imports.

"Argentina is not the cause of nor does it contribute to thedistortions that affect U.S. and world markets."

Aluar Aluminio Argentino, Argentina's sole primaryaluminum producer, which is 10 percent state-owned, asked theU.S. Commerce Department last year to exempt it from any adversemeasures implemented after its investigation into the nationalsecurity impacts of imports of the metal.

The company has also been seeking to diversify its exportdestinations.

Shares in Argentine steel producer Siderar,controlled by Ternium SA, fell after Trump announced thetariffs earlier this month, but have since recovered.

In 2017, Argentina exported $763 million of aluminum and$686 million of steel, each representing slightly more than 1percent of total exports, government data show. The NAFTAmarket, which includes the United States, was the primarydestination for both products.

Protectionist measures from the United States have testedbilateral relations, which have generally improved sincePresident Mauricio Macri took office in late 2015 and sought toboost Argentina's foreign trade after more than a decade ofpopulist rule. Macri has said he is willing to challenge U.S.tariffs on biodiesel imports at the World Trade Organization.

(Reporting by Luc Cohen; Editing by Peter Cooney)

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