Steel exports from Mexico do not represent a threat to the United States, said the National Chamber of the Iron and Steel Industry (Canacero) , and supported the position of President Claudia Sheinbaum in applying some measures to steel products exported from the northern neighbor sent to our country, in the face of possible trade reprisals.
“In light of the growth in U.S. steel exports to Mexico and the persistent threat of imposing tariffs that violate the United States-Mexico-Canada Agreement (USMCA) on Mexican steel, the industry supports what our president, Claudia Sheinbaum, has said, in the sense that the Mexican government, if necessary, should apply a proportional and immediate retaliation to the exported products, in this case for steel products from the United States sent to Mexico,” the organization indicated in a statement.
He also argued that it is unfounded that Mexico’s exports are causing plant closures or layoffs in the United States, as the steel industry in that country has mentioned on several occasions.
According to its own sources, the northern neighbor has a surplus with Mexico in bilateral trade of finished products, since the United States’ surplus has been 1.2 million tons per year on average from 2015 to 2023.
“With information up to October 2024, the US surplus will increase to 2.4 million tons, which will represent 4.1 billion dollars (mdd). This implies a 10% growth in the tons exported by the United States to Mexico compared to 2023 and 23% more than the 2015-2017 average. In contrast, Mexico’s exports to the United States have fallen 13% compared to 2023, with which we return to 2015 levels,” Canacero detailed.
In this regard, he explained that while in 2024 the United States accounted for 16.1% of the market in Mexico, our country represented only 2.2% of the market in the United States.
He clarified that data from the Center for Economic Research and Teaching (CIDE) indicate that Mexico’s exports have 11.8% U.S. content and the exports that our northern neighbor makes to our country generate nearly 40 thousand direct jobs in that nation.
He also dismissed accusations of triangulation since, according to information from the United States Steel Import Monitoring and Analysis System (SIMA) , from January to October 2024, exports of that product of Chinese origin are only 578 tons , which represented 0.02% of total steel product exports in that period.
Among other provisions, he explained that Mexico has taken actions such as tariff measures against countries with which it does not have a trade agreement of up to 50% , along with automatic import notices that require a certification from the producing mill and various antidumping cases (a measure that seeks to protect the national industry from unfair competition).
In addition, the industry has joined the efforts of the US government by working on a traceability program implemented by the US Customs and Border Protection (CBP) .
Canacero considered that the best way to confront China is the T-MEC and regional integration ; “the real solution to combat unfair imports is to act as a block in the face of common challenges,” which is why it urged unity, since “it not only amplifies regional power, it also mitigates the national security vulnerabilities of our countries.”
In the next review of the USMCA, scheduled for 2026, the steel industry will be one of the topics that the negotiators of the trilateral trade agreement will put on the table. In light of this, and in agreement with Canacero, the Mexican Government is preparing similar measures that, if they affect this sector, would apply to some steel products from the United States.
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