The Secretary of EconomyRaquel Buenrostro, confirmed that the recent imposition of tariffs by USA to steel and aluminum from China through Mexico was the result of a bilateral agreement and should not trigger “mirror measures” on the part of the Mexican government.
“It is part of the efforts we are making to make North America more competitive, so that competition is a fair trade“, explained the official after the presentation of the 4th Voluntary National Report of Mexico: Collective Progress towards Compliance with the SDGs.
According to Buenrostro, these measures seek prevent the displacement of local industry through aggressive strategies that could be considered unfair. The secretary emphasized that the decision was not unilateralbut rather the product of extensive dialogue with the Mexican private sector.
“We have talked with the industry and it is an agreement, everything was discussed with the industrial sector. We had many meetings with the private sector at the Ministry of Economy,” he said.
These statements come in the context of the announcement by the Joe Biden government to impose Tariffs of 25 percent on steel and 10 percent on aluminum that arrive through the country, but that have not been melted and dumped in Mexico, the United States or Canada. The measure seeks to stop the practice known as “transshipment,” through which China could be evading existing taxes.
Steel and aluminum tariffs: What measures does the agreement between Mexico and the US include?
On Wednesday, the United States and Mexico agreed on a series of measures to protect the steel and aluminum supply chain in North America with a tariff increase of up to 25 percent on the entry of these materials into the United States from China.
The new provision indicates that steel arriving from Mexico to the United States will only obtain tax-free benefits if it is melted and poured in Mexico, the United States and Canada, member countries of the T-MEC.
However, the Mexican government stated that this agreement reached a Exception for Brazilian steel transformed in Mexico, so no tariffs will be applied to steel products from that country.
“This would fulfill the commitments of both countries under the USMCA, which indicates that starting in 2027, all steel exported to the United States will be dumped and strained in North America,” emphasized a statement from the Ministry of Foreign Affairs.
The Controversy over steel and aluminum Since the trade war began in February of this year, the US government has warned that it could reimpose tariffs on these metals from Mexico, arguing that companies from Asia, particularly from China, use the country to triangulate their exports to the United States.
With information from EFE.