The American side sees growth in steel and aluminum exports from this country
After a year of negotiations, the US government warned the Mexican government to take urgent action to curb the growth of steel and aluminum exports from Mexico to the United States. This is reported by SteelOrbis.
The American side also recalled that the joint declaration on Section 232 tariffs signed by the two countries in 2019 allows the United States to reimpose them, if necessary.
Last week, US Trade Representative Katherine Tai held a virtual meeting with Mexican Economy Minister Raquel Buenrostro to discuss common problems in steel and aluminum trade.
During the meeting, Katherine Tai emphasized that Mexico should take immediate and significant steps to address the growth in Mexican steel and aluminum exports to the United States and the lack of transparency regarding its steel imports from third countries.
Raquel Buenostro, in turn, stated that there is full availability to share information to combat the triangulation of steel and aluminum in North America. Triangulation refers to a situation where goods are delivered from the sender to the recipient through an intermediary, who invoices the end consumer. There are suggestions that the triangulation of steel products in North America is possible with the participation of China, which uses Mexico as an intermediary to supply its products to the North American market.
“This is a problem that equally affects industry in Mexico, the United States and Canada,” stated the Ministry of Economy in a press release.
Mexican authorities explained the growth in steel exports to the United States by claiming that it was due to increased demand in the North American market and increased production in Mexico, and not to commercial triangulation, as Washington emphasizes.
The threat comes despite the fact that, last August, Mexico imposed an additional 25 percent tariff on steel imports to countries with which it does not have a trade agreement. These are in addition to possible anti-dumping duties on countries such as China, India, Russia, South Korea, Turkey, Brazil, Iran, Ukraine, Taiwan, Vietnam, Indonesia and Kazakhstan. This decision will be in force until July 31, 2025.
Against the backdrop of the lack of transparency alleged by the United States, the Mexican government agency responsible for national statistics (Inegi) is a year behind in publishing export data. Inegi also recently removed information about steel and aluminum production in the country from public access.
At the same time, the National Chamber of the Iron and Steel Industry (Canacero) also rejects information about Mexico's lack of cooperation and transparency and that the country is a bridge for the triangulation of Chinese steel products with the United States. According to the organization, Mexico exports 2.3 million tons of finished steel products to the United States, while the United States supplies 4.1 million tons to the Mexican market. For many years, US steel represented 13.9% of domestic consumption in Mexico.
The US Trade Representative noted that negotiations between the two countries will continue. Mexico said the agenda should include cooperation between anti-dumping agencies, as well as strengthening regional tracking mechanisms.
As Compraço previously reported, in December 2023, the United States extended the suspension of Section 232 tariffs on European steel and aluminum for another two years, until December 31, 2025.
