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U.S. Protectionist Policies Help Few, Hurt Many (Magnesium Industry Reveals How Anti-dumping Policies Sabotage Jobs, Competitiveness, And Trade)

DEERFIELD BEACH, Fla., Feb. 21, 2012 /PRNewswire-USNewswire/ -- At a time when U.S. trade relations with global partners are under the microscope, often overlooked are those (anti-dumping) domestic policies that are a further hindrance to U.S. competitiveness globally and job creation.

Obama's historic 2025 CAFE Standards (to lower emissions and raise a fleet's fuel economy to 54.4mpg) has thrust Magnesium into the spotlight. Its lighter, more structurally sound properties make it a necessity for many industries, but especially U.S. auto -- now clamoring to incorporate it more into their vehicles. For example, Ford has set an aggressive lightweight plan this year calling for 250 pounds of magnesium content per vehicle -- reducing load immensely, thereby improving fuel economy.

CD International Enterprises (NASDAQ: CDII), who owns one of the largest magnesium producers in the world, International Magnesium Group (IMG), highlights two crucial challenges:  a limited supply of affordable magnesium in the U.S  and the inability to compete globally against the backdrop of cheaper Magnesium sources available abroad. This directly tarnishes the US job market in auto, technology, and manufacturing.

"Dumping" is when foreign countries flood markets with goods at prices lower than market value. Anti-dumping laws are import taxes that are set to protect domestic companies against unfair foreign competition. Where Mg is concerned, these laws have had the inverse effect -- suffocating access to Mg, "the green metal of the 21st century," and wiping out important US manufacturing jobs in the process. 

MAGNESIUM DEMAND

To reach 2025 CAFE standards, the auto industry will largely rely on magnesium to improve aerodynamics and weight reduction. Other important US industries like die-casting and parts manufacturing look to Magnesium to lighten their products, strengthen materials and evolve their designs to advance market standards.

The technology industry also relies on magnesium to make sleek, easily portable electronics. Nikon's new D4 DLSR is a photographer's dream, and the durable nature of its magnesium body helps block out dirt and particles from entering the casing. Likewise, Acer recently released the world's thinnest ultrabook, the S5, which weighs less than three pounds thanks to its magnesium frame.

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