The Presidents of Mexico and the United States agreed on a set of measures to prevent unfair imports into their countries of steel and aluminum originating in China, Belarus, Iran or Russia.<\/p>\n
\u201cMexico and the United States today take key measures to protect North American steel and aluminum markets against unfair trade,\u201d said Presidents Andr\u00e9s Manuel L\u00f3pez Obrador and Joe Biden in a joint statement released Wednesday.<\/p>\n
Both nations will implement policies to jointly prevent tariff evasion on steel and aluminum, and strengthen the supply chains of these products in North America (including Canada).<\/p>\n
To enter the United States free of Section 232 tariffs, steel imports from Mexico must be melted and dumped in Mexico, the United States or Canada.<\/p>\n
In addition, aluminum imports from Mexico must not contain primary aluminum for which the reported primary smelting country (largest smelting country), secondary smelting country (largest smelting country), or most recent smelting country is Belarus, China, Iran, or Russia.<\/p>\n
These measures are in addition to the increase in tariffs to rates between 25 and 50% that Mexico decreed last April on the import of dozens of steel and aluminum products from nations with which it does not have free trade agreements.<\/p>\n
\u201cToday\u2019s announcement is good news for the steel and aluminum industries of the United States and Mexico, for the communities they support, and most importantly, for our steel and aluminum workers,\u201d said Katharine Tai, White House trade representative, in a press release.<\/p>\n
From the perspective of the U.S. government, these joint actions with Mexico will help ensure the long-term viability of the steel and aluminum industries and the integration of the North American market for both products.<\/p>\n
\u201cThis action addresses a gap that the previous administration and its isolated trade policies left unaddressed, and demonstrates that when we act together, we strengthen our position to defend American workers and businesses from the non-commercial global overcapacity that emanates from the People\u2019s Republic of China\u2019s state-directed approach to economics and trade,\u201d Tai added.<\/p>\n
Tai then commented: \u201cWe recognize this important step taken by Mexico to work together on a resilient trade policy that puts workers front and center.\u201d<\/p>\n
Of Mexico\u2019s total imports of foundry, iron and steel products and iron or steel foundry manufactures in 2023, for 34.648 billion dollars, 38% originated in the United States and 11% in China.<\/p>\n
That same year, imports to Mexico of aluminum and its manufactures totaled 9.496 billion dollars, of which 38% came from the United States and 24% from China.<\/p>\n
In the coming weeks and months, Mexico and the United States will continue to work together to protect North America’s steel and aluminum markets from unfair trade practices,” Obrador and Biden said in their statement.<\/p>\n
Regarding the US market, of the total imports of foundry, iron and steel products and iron or steel foundry manufactures in 2023, for 86,421 million dollars, 14% originated in China and 13% in Mexico.<\/p>\n
Finally, of the total US imports of aluminum and its manufactures in 2023, for 28,296 million dollars, the Chinese share was 10% and the Mexican share was 7%, according to data from the US Department of Commerce.<\/p>\n
roberto.morales@eleconomista.mx<\/p>\n