The Mexican government has extended for five more years countervailing duties on imports of welded carbon steel connections from China.
The decision was released Thursday by the nation’s ministry of economy just one day after announcing the extension of existing AD measures on imports of CRC from Russia and Kazakhstan.
According to the Mexican government, the duties will be applied for a period of five years, backdated from August 5, 2014. According to the resolution, which was published in the nation’s official gazette Diario Oficial Federal (DOF), imports of welded carbon steel connections from China will pay a $2.07 tariff for every kg of the product, or $2,070/mt.
According to the Mexican government, previous AD duties on imports of welded carbon steel connections from China significantly reduced the purchase of the product from the Asian country, but didn’t cause foreign exporters to lose the margins they had with the product.
According to the government, if the duties ended this year, Tenaris Tamsa would need to increase the product’s price domestically by 6 percent in 2015. Other adverse effects could include a 14 percent decrease in production volumes nationally, and a 39 percent reduction in the domestic sales of the product.