Mexico moves to protect steel sector

OREANDA-NEWS. July 10, 2015. Mexican authorities undertook a series of measures to protect that country's steel industry from allegedly unfairly traded imports from China, Russia and other countries following last week's announcement of mass layoffs.

The economy ministry late yesterday vowed to step up anti-dumping investigations and added 86 steel products to the "sensitive merchandise" list, which targets them for stricter regulation.

The ministry also will undertake stricter customs control and said that some imports required by plants would be allowed duty-free status to boost productivity.

The ministry said 31 anti-dumping quotas are in place, 15 of them for Chinese-origin products.

It also added that since a prior working meeting on 9 June between the ministry and Mexico's steel industry chamber, Canacero, the government imposed import duties on cold rolled sheet from China and two other countries, while ratifying duties on cold rolled sheet from Kazakhstan and Russia.

The latest measures follow last week's move by Mexico's four largest steelmakers to cut up to 9,800 direct jobs. They may cut 10,000 more staff unless the government moves to stem allegedly unfairly traded imports.

Ahmsa said it will cut 4,500 jobs, ArcelorMittal will cut about 2,800 employees at its Mexico operations, and DeAcero will shed about 2,500.

The ministry and Canacero said that in the June meeting it was agreed that Mexico's steel industry was suffering from unfair competition from certain Asian countries.