The United States banned Mexico from imposing tariffs on steel imports after both countries set up a monitoring mechanism to avoid triangulated acquisitions from third countries, the White House Trade Representative (USTR) reported.
However, the USTR reported that the quota for imports of semi-finished steel products from Brazil was reduced from 350,000 to 60,000 tonnes by 2020.
Earlier, on August 1
On Friday, the Ministry of Economic Affairs also published an agreement requiring the processing of automatic permits before exporting 63 different types of steel products.
In 2019, exports of steel products from Mexico amounted to $ 9,896 million, corresponding to 2% of the value of the country’s total exports.
Mexico and the United States have successfully concluded consultations conducted in accordance with the mechanism set out in their Joint Declaration of 17 May 2019 to address the recent increases in Mexico’s imports of three steel products: standard tubes, mechanical tubes and products. half-finished.
The USTR stated that Mexico will establish a “strict” export monitoring regime for these products until June 1, 2021 and will closely monitor shipments during this period.
The United States will maintain Section 232 tariff exemption for imports of these products and will consult with Mexico in December 2020 to discuss the status of trade in relevant products in the light of market conditions at the time.
Lighthizer praised the Mexican government and its counterpart, Economic Secretary Graciela Márquez Colín, for their cooperation and constructive commitment.
“Our successful steel consultations show that we can work together to find creative solutions that serve the interests of workers and companies in both countries. I thank my friend Secretary Márquez and her staff for their commitment and hard work over the past few weeks as we work on this issue, says Lighthizer.
Canacero agradecí work.
The National Chamber of Steel (Canacero) acknowledged the ministry’s work during the negotiations with the United States to prevent Mexico from being included in measure 232, which restricts the entry of steel products into the US market.
José Luis de la Cruz, director of the Institute for Industrial Development and Economic Growth (IDIC), stated that the agreement between the United States and Mexico involves regulated trade.
“This is the product of Donald Trump’s intention to protect his industry and steel is a strategic element and seeks to ensure that it has as little competition as possible. reached an agreement with the Mexican government to regulate steel sales beyond market conditions.
Steel production in the USA has decreased in recent years, and just this last week in August, production of the American steel industry fell by 24.9% compared with the same period last year.
“This means that the United States is trying to ensure that Mexican exports, which are very competitive, do not grow by what they consider too much, that market share does not increase significantly, which means that they conduct regulated trade and try to limit and limit the presence of steel,” says José Luis de la Cruz.
Although Canacero said via Twitter: “The Mexican steel industry acknowledges and thanks the Mexican government, in particular the Ministry of Economy, for the extraordinary result obtained in the negotiations with the United States for not being included again in section 232”.