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EU Council To Discuss Aluminum Import Duty Proposal Feb 9

Tuesday, Jan 30, 2007
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London --The first stage of talks at the European Union for adoption of a proposal to halve the E.U.'s aluminum import duty will take place Feb. 9, an E.U. official told Dow Jones Newswires Monday.

The European Commission earlier this month adopted a proposal for an initial cut in the E.U.'s import duty to 3% from 6% with perhaps a further reduction to zero by Jan. 1, 2009.

The formal discussion by E.U. governments meeting in the Brussels-based Council of Ministers will give an indication of the popularity of the proposal, said Tomas Kucirek, head of unit for the E.U.'s tariff economics and customs duties division.

If there is little opposition from member states, the proposal will push forward quickly to the next level, but in the case of significant opposition, discussions will need to continue, Kucirek said.

"Depending on the outcome of next week's meeting and the German presidency, it will give a good idea of how much difficulty the proposal will have for passage," another E.U. official said.

If successful, the proposal would pass to ambassador-level at the Council of Ministers, which meets weekly, before a final vote at minister-level.

Officials have said that in an optimistic scenario, there could be a decision by the Council of Ministers at minister-level by the end of February or early March.

The proposal has caused controversy as past efforts to cut the aluminum duty have been opposed by France, Germany and Spain, where many smelters are located.

Poland has been the main driver to lower the duty since its entry into the E.U. in 2004, because its manufacturers of aluminum products previously relied on imports from Russia.

E.U. Trade Spokesman Peter Power said recently that the elimination of the tariffs would be good for the competitiveness of E.U. industry.

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