Wednesday, October 20 2021 16:58

ArmInfo.The United States International Trade  Commission (USITC) today determined that a U.S. industry is  materially injured by reason of imports of aluminum foil from  Armenia, Brazil, Oman, Russia, and Turkey that the U.S. Department of  Commerce (Commerce) has determined are sold in the United States at  less than fair value and subsidized by the governments of Oman and  Turkey, the official website of the Commission reports.  "As a result  of the Commission's affirmative determinations, Commerce will issue  countervailing duty orders on imports of this product from Oman and  Turkey and antidumping duty orders on imports of this product from  Armenia, Brazil, Oman, Russia, and Turkey."

The size of the duty for Armenia is determined at the level of  29.11%, for Brazil - 13.93-63.05% (depending on the type), Oman -  3.89%, Russia - 62.18%, Turkey - 2.28%.

Initially, during the first investigation, it was a question of a  possible imposition of a duty of 188.84% for Armenia; during the  second investigation, it was already a question of a dumping margin  of 45.65%. The final decision was 29.11%. To recall, in October 2020,  the US Department of Commerce decided to launch a new anti-dumping  investigation into the supply of aluminum foil from a number of  countries, in connection with issues related to the competitive  nature of the supply. The investigation was initiated after the  representatives of the American aluminum foil producers applied to  the court.  To note, in 2020, Armenia exported about 35.2 thousand  tons of foil, providing 7.9% growth (against 15.1% growth in 2019).  At the same time, the customs value decreased by 0.4% - to $ 94.7  million.  According to the RA Customs Service, the foil was mainly  exported to the USA (34.8%), Germany (30.4%), Poland (9.7%),  Netherlands (7.7%), Italy (4.1%), Spain (3.7%), as well as France,  Czech Republic, Hungary, RF.

According to the Statistical Committee of the Republic of Armenia,  the production of aluminum foil in Armenia in 2020 increased by 16.2%  - up to 35.482 thousand tons (against 7.7% growth in 2019).  In the  first half of 2021 Armenia exported 17.1 thousand tons of aluminum  foil, which is 0.7% less than a year ago (against 3% growth a year  earlier). However, in monetary terms, the export of foil showed an  increase of 19.7% per annum - up to $ 54.8 million. As the data of  the Customs Service of Armenia indicate, the foil was mainly exported  to Germany (33.9), USA (20.7%) and Poland (13,5%), as well as the  Netherlands (9.1%), France (6.8%), Italy (5.2%), Spain (3.9%), United  Kingdom (2.3%), the rest the same volume fell on Austria, Israel,  Canada, Czech Republic, Hungary and the Russian Federation.   According to the Statistical Committee, in Armenia, the production of  aluminum foil in the first half of 2021 compared to the same period  in 2020 decreased by 2.9% (against 13.7% growth a year earlier),  amounting to 16.937 thousand tons.

The only producer of aluminum foil in Armenia, as well as in the  Caucasus and Central Asia itself, is the Yerevan plant "Armenal" -  one of the most modern and ecologically perfect foil-rolling plants  in the world.  The plant produces hard and soft smooth aluminum foil  0.007-0.200 mm thick, 20-1500 mm wide, container foil for food  containers and aluminum tape. The plant was established by RUSAL in  May 2000 on the basis of the Kanaker aluminum plant. Since 2003, all  100% of the plant's shares have been transferred to RUSAL. In 2004 -  2006 the enterprise underwent a comprehensive modernization. The  production capacity of the enterprise is 40 thousand tons of foil per  year.  According to the American Aluminum Association, in 2019, the  value of imports of aluminum foil to the United States from the  aforementioned exporting countries was approximately $ 272 million.

It is not yet clear how the duties introduced in the United States  will affect the diversification of supplies of Armenian aluminum foil  abroad, but judging by the customs data, in 2021, exports to the  United States have already begun to decline, and Germany has become  the main buyer instead of the United States.