Altos Hornos de México (AHMSA) announced this week that it expects positive results from the Ministry of Economy regarding research into illegally imported plate from Russia and Ukraine, which should shortly extend to other steel products and other countries, said Francisco Orduña Mangiola, Director Social Communication of AHMSA.
"The decision issued by the International Trade Practices Unit (UPCI) of the Ministry shows that the Federal Government, after a decade of inaction, has begun to act against unfair trade problems that have seriously affected the country's economy," he added.
Based on its own research, the sanction requested by AHMSA involves importers of sheet steel plate from Russia and Ukraine, who allegedly avoided paying duties of 36.8 and 60.1 percent, respectively. Mangiola argued that once the official investigation proves evasion, it must act with tax authorities to recover taxes and impose appropriate fines and accumulations.
The National Chamber of Iron and Steel Industry has indicated that there is currently a global steel overproduction by almost 320 million tons and producers from countries such as China, India, Russia, Korea and others seek to place their surplus in more stable economies, such as Mexico. By doing so, imports displace domestic producer subsidies as a result of artificial prices in their countries of origin, and imports are dumped or counterfeit content to avoid fees. According to official figures, steel imports in Mexico increased by 170 percent in 2012 from countries without Mexican trade agreements.
"This situation undermines a sector that has planned investments of over US$10 billion to strengthen the quality, variety and competitiveness of domestic steel," said Mangiola, adding that AHMSA is finalizing the Phoenix Project, a program of investments totaling US$2.3 billion for the production of steel products that Mexico currently imports.