Released on = March 19, 2007, 3:06 am

Press Release Author = Shushmul Maheshwari

Industry = Industrial

Press Release Summary = Continuing negotiation between GCC and EU over the
free-trade agreement are likely to end this year resulting in the elimination of
tariff on aluminum imports to EU.

Press Release Body = A trade agreement between Gulf Cooperation Council (GCC) and
European Union (EU) would lead to the abolition of tariffs on basic petrochemicals
and aluminum imports to Europe, according to the Deputy Director for trade in EC,
Karl Friedrich Falkenberg.

The 6% duty on the aluminum import to EU will be removed when a proposed free-trade
agreement with the 6-nation GCC bring in this year.

A reduction in the tariffs would contract the protection for aluminum manufacturers
within EU, including Alcan Inc., Alcoa Inc., Glencore International AG, Rio Tinto
Plc., and Norsk Hydro ASA.

The world's largest aluminum makers are shutting down their units in US and Europe
to shift to the Middle East, a region with cheap energy and labor. Around one-third
of the aluminum making cost is accounted by power only.

Falkenberg says European companies "are interested in producing aluminum here",
reported Bloomberg. Emirates Aluminum is making plans to construct the largest
aluminum smelter of the world in UAE that would produce 1.4 million tons of aluminum
annually.

A free-trade deal between the GCC and 27-nation EU has been in negotiations for over
15 years. Last year's heated energy prices and increased trade between the two
blocks has given the much-needed momentum to the negotiations.

The Gulf Times, on February 20, 2007, reported Falkenberg in Dubai on the sidelines
of an aluminum conference saying, "I hope we will be able to conclude the
negotiations in the first half of the year. (But) it is fairly clear to everyone
that we need to see a little bit of movement by the GCC in the areas of services and
investments."

According to RNCOS report, "European Aluminum Market (2007)", Europe saw a slump in
the production capacity of primary aluminum due to strengthening power prices. This
resulted in certain smelters having to shut down their operation facilities when
contracts terminate, as the operations stop churning out profits. Considering such
heightened prices, coupled with stringent legislation in Europe, Aluminum makers opt
to shift their production facilities to other regions of the world.

The research report also discusses the current and past performance of the industry,
country-wise industry analysis of the European aluminum market, and demand and
supply analysis with statistical data.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM090.htm
Current Industry News: http://www.rncos.com/blog


Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com