Mexico imposed a preliminary countervailing duty on imports of thermoplastic rubber from China, a product used in the production of footwear, asphalt for road pavements and waterproofing membranes.
The Ministry of Economy reported that it continues with the administrative investigation procedure in the matter of unfair international trade practices, in its form of price discrimination, and imposed a provisional countervailing duty of 0.8324 dollars per kilogram on imports of that product, known as SBS rubber.
The precise product is thermoplastic rubber styrene butadiene styrene and is used in the footwear industry such as in insoles, soles, frames, boots in many transparent forms, technical compositions, as well as in adhesive and sealant application, asphalt modification for road pavements and waterproofing membranes.
It is also used in bottle cap liners, conveyor belts, and plastic modification, among others.
On April 26, 2024, Dynasol Elastomers requested the initiation of the administrative investigation procedure for unfair international trade practices, in its price discrimination modality.
The preliminary resolution was published this Monday in the Official Gazette of the Federation (DOF) and will enter into force on March 4.
According to the information in the administrative file, Dynasol has its production plant in Altamira, Tamaulipas and serves different industrial sectors dedicated to the manufacture of footwear, adhesives and sealants, asphalt modification for road pavements and waterproofing membranes.
The only national producer of SBS rubber in Mexico, Dynasol pointed out that in 2021 its main consumer was the asphalt modification sector, while in 2022 and 2023 it was the adhesives sector.
China is the country with the largest installed capacity and with the greatest need for exports, having more than 55% of the world’s installed capacity.
The excess installed capacity in China has encouraged the increase of its exports to the Mexican market.
Dynasol argued that a slowdown in domestic demand for SBS in China has caused an imbalance in the supply-demand balance, accelerating the growth of exports to Mexico.
In 2018, the United States imposed a 25% tariff on certain products originating in China, including SBS rubber that enters through tariff code 4002.19.00.14, which limits exports of this product to one of SBS’s main markets worldwide and makes Mexico attractive due to its proximity.
Mexico imposes countervailing duty on thermoplastic rubber from China