New Congress Debates Ways to Simulate Economy; Association Considers Industry’s Concerns for Policy Support

The Bush Administration’s legislative priorities for 2003 include making tax cuts permanent; investor tax relief; elimination of 401(k) mandatory withdrawal; gas drilling exploration; prescription-drug benefits; a human cloning ban; and Federal court judicial appointments.

As the108^th Congress reconvened this year the domestic economy and national security issues loom over the agenda as the pro-business, pro-manufacturing issues from the fall elections will take their form in specific legislation including energy costs and access, emissions control requirements, corporate taxation, and trade alliances. 

The Aluminum Association board, through its Government and International Affairs Sub-committee will consider its support on key issues directly affecting industrial growth, aluminum trade, energy and environmental policies.  Some of those questions are:

• Will or can congressional legislation boost consumer and customer activity in aluminum markets?
• Will foreign trade relations with countries like China and Russia help aluminum imports and exports for our industry?
• Will U.S. and global responses to air emissions control and other environmental concerns be as affordable and responsible as public consumers demand?
• Will electricity and gas energy access and costs for our domestic aluminum production be adequate for the next decade?

The Association supports its positions often by cooperating in broad industry coalitions, and on occasion by voicing legislative recommendations specifically for aluminum concerns.  Aluminum positions made public since 2001 include electricity access for primary aluminum production, trade and open markets, and voluntary emissions control mechanisms. (Find these policy statements on aluminum.org/the industry/government policy.)

Canada Supports Kyoto Protocol on Climate Change

In December the Parliament of Canada voted to ratify the Kyoto Protocol to the United Nations Framework Convention on Climate Change, bringing the treaty to limit greenhouse gases one step closer.  Environmentalists cheered the vote, but industry remains opposed to the binding emissions limits.  Prime Minister Jean Chretien signed the document moving Canada one step closer towards becoming a binding Kyoto Protocol agreement.  To enter into force, countries representing 55 percent of the developed world’s carbon emissions must ratify the Kyoto Protocol.  Canada’s 3.3 percent of emissions brings the total covered by countries having ratified to date to 40.9 percent.  Because the U.S., the world’s largest emitter of greenhouse gases, did not ratify the Kyoto Protocol, the key country remains Russia, with 17.4 percent of carbon emissions.  The Russian government has said that it plans to ratify the Protocol in 2003, but recent statements by Russian officials show they are concerned over the cost of meeting the Kyoto Protocol commitments.  Canada’s ratification means that Russian ratification next year would bring into force the binding emissions reduction targets set out in the Protocol.

Some believe Canada's support for the Kyoto Protocol will apply pressure to the United States to ratify the agreement, although President George W. Bush has rejected it as too economically risky for the U.S. economy.  U.S. Senate legislation (S. 1008) calls for a national strategy to study the risks posed by climate change and authorizes $4.8 billion for research.  The bill, known as the Climate Change Strategy and Technology Innovation Act, does not call for mandatory reductions in emissions of greenhouse gases.  Rather, the legislation is a “voluntary” bill.  Meanwhile, the Canadian government is working with governments of several U.S. states, including New York and California, to implement climate change in a more localized, voluntarily coordinated way across the continent.

European Union Set to Miss Greenhouse Gas 2010 Targets

More than half of European Union member states are not on track to meet agreed greenhouse gas limitation targets.  In reports released by the EU Commission and the European Environment Agency, with present policies the 15 countries of the European Union will emit 4.7 percent less greenhouse gases in 2010 than 1990 compared with its targeted reduction of eight percent.

According to the Kyoto Protocol of the United Nations Framework Convention on Climate Change, the EU and its Member States are committed to reducing emissions of a basket of six greenhouse gases by eight percent below the 1990 level over the period 2008 to 2012.