Since the beginning of this Administration, the Secretariat of Economy (SE, by its initials in Spanish) and the National Chamber of the Industry of Iron and Steel (CANACERO, in Spanish) agreed to attend, together, the concerns of the steel industry in a global scenario that has deteriorated itself considerably in recent months.
The measures taken include the 400% increase in the number of investigations initiated, compared to the same period of the previous administration, so there are currently 31 anti-dumping quotas in force, and in the sector, of which 15 are for Chinese products.
During the working meeting of 9 June, 2015, the Secretary of Economy, Ildefonso Guajardo, and members of the Chamber, analyzed the effects of the decline in the global demand for steel; its overcapacity registered in China; and the devaluation of the ruble in Russia, as well as the effect that these events have had on the Mexican steel market, concluding that in the first half of 2015, an unfair competition from some Asian countries is evident; especially in the steel products located at the base of the production chain.
Thus, in compliance with the commitments of this meeting, during the month of June, two resolutions that establish compensatory quotas for products such as rolled coil and cold rolled steel in China and two other countries were issued; while ratifying the quotas for Russia and Kazakhstan in cold rolled steel and steel connections.
Today, it was held another meeting, where the Secretariat of Economy, in coordination with the CANACERO, announced an additional package of administrative measures:
- Treatment of temporary imports (for companies not certified)
Establish bonds to secure the compliance of the temporary import programs IMMEX (Maquiladora and Manufacturing Industry and Export Services).
Adding 86 tariff fractions of steel products to the treatment of "sensitive goods", which means that for its import, the companies must demonstrate ex-ante different requirements.
Regulate imports based on its installed capacity and verifiable sales.
Permits of the Eighth Rule will be accepted; They will be consulted with the CANACERO.
- Final Imports
Expand the coverage of the Automatic Notice of Import, adding 21 new tariff fractions.
Harden the review the Automatic Notice of Import, with special emphasis on those with significantly lower prices.
Constitute a committee for the review of operations of foreign trade, formed by the Tax Administration Service (SAT, in Spanish), the CANACERO and the Secretariat of Economy.
A greater control in customs to combat circumvention and triangulation of products.
- Combating the unfair trade practices
The Secretariat of Economy is committed to:
- Minimize the time of investigations within the legal framework.
- Impose the provisional measures, as soon as possible, after first justifying the same.
- Retroactive application of final quotas until 90 days before the preliminary ruling, where appropriate.
At the request and possibility to analyze further measures, including the establishment of safeguards, it was agreed to initiate a process of consultation with the Confederation of Industrial Chambers of the United Mexican States (CONCAMIN, in Spanish) to explore other possibilities that could be implemented without having a character disruptive in the supply chains.
Finally, the Secretary Guajardo reiterated his commitment to the Mexican steel sector and stressed that they will continue working on the creation of synergies with our main trading partners to promote good practices and identify possible partnerships.
The meeting was attended by Guillermo Vogel, President of the CANACERO; Alonso Ancira Elizondo, Chairman of Altos Hornos de México (AHMSA, in Spanish); Raúl Gutiérrez Muguerza, Chairman of the Board of Directors and Director General of Deacero Group; Máximo Vedoya, CEO of Ternium Mexico; Víctor Martínez Cairo, CEO of ArcelorMittal Mexico; Salvador Quesada Salinas, Director General of the CANACERO; Joseph Woldenberg, Vice President of Tubacero, and José Antonio Rivero Larrea, Chairman of the Board of Directors of Minera Autlán.