Chinese Steel Imports Cause Industry Rift in Mexico

7/9/15 Wall Street Journal

via Flickr - Dave Parker
via Flickr – Dave Parker

The Mexican government’s recent decision to impose anti-dumping duties on some key steel imports from China has sparked a rift between the country’s steel and automotive industries, reigniting a debate over whether Mexico should adopt a more protectionist stance over trade policy.

On Thursday, the government announced several additional measures to support domestic steelmakers, including strengthening customs controls to block the entrance of illegal steel. But authorities stopped short of meeting local industry demands for a 15% blanket tariff on all steel imports from China. Mexico doesn’t apply import tariffs on steel.

As a result of the global steel glut caused by falling demand and excess output by China, Mexican steel producers have announced thousands of layoffs and have been lobbying in recent weeks for the imposition of tariffs.

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