A new report by the Latin American Steel Association (Alacero) has warned that Latin America urgently needs to modernize and accelerate its trade defense mechanisms as China’s steel exports continue to surge across the region. The association has compared Latin America’s responses with global practices and has concluded that its existing tools are too slow, too narrow, and insufficient to prevent market disruption amid persistent global overcapacity and increasingly assertive trade actions by major economies.
According to the report, Latin America must adopt faster, broader, and more forceful trade defense strategies to deal with rising Chinese steel exports. While the US, Canada and the EU deploy a mix of antidumping (AD), countervailing duties (CVD), safeguards, anticircumvention actions and immediate tariff measures, Latin America has relied primarily on long, slow AD processes.
The consequences are significant: from 2010 to 2023, half of Latin America’s growth in steel demand, about 6.5 million mt, was filled by Chinese steel, indicating that the region’s trade defense mechanisms have not been effective in curbing diversion flows created by stronger actions in North America and Europe.
China’s global dominance in trade cases and exports
The report highlighted the scale of China’s presence in global trade enforcement actions. Between 2010 and 2023, China accounted for 29.1 percent of all global AD cases in steel, 45.9 percent of all CVD cases and 76.5 percent of safeguard actions
These shares reflect exceptionally high subsidization levels in China’s steel industry. In total, 6,181 global AD cases were mapped for steel in this period, with nearly one-third directed at Chinese products.
China’s export expansion is described as structural. From 2010 to 2024, crude steel production rose by 57 percent to 1.005 billion mt, or 53 percent of global output, while its external sales increased by 181 percent to 117 million mt. Additionally, China’s shipments to Latin America grew by 233 percent to 14.1 million mt from 4.2 million mt.
Organization for Economic Co-operation and Development (OECD) estimates showed Chinese state subsidies are up to ten times higher than those available in OECD economies. In 2024 alone, China’s steel exports grew by 24.5 percent, while the rest of the world saw a 0.4 percent decline.
Global excess steel capacity is projected to reach 721 million mt by 2027, escalating competitive pressures worldwide.
Latin America's use of trade defense measures remains limited
The report found that 93 percent of Latin America’s trade defense actions between 2010 and 2023 were antidumping cases, 77 cases in total, mostly in Mexico and Brazil, which together account for 80.5 percent of all regional AD activity.
By contrast, CVD and safeguard measures remain rarely used. Only two CVDs were applied in Brazil, while only four safeguard actions were taken in Chile and Colombia.
These measures often had narrow product coverage and short duration, limiting their effectiveness. Global data also show that CVD margins against China tend to be substantially higher than for other countries, revealing the scale of subsidization that Latin America is not yet fully targeting.
Global benchmark: aggressive trade actions by major economies
The report outlined how other major steel producing economies intensified their use of trade measures between 2018 and 2025:
- United States imposed Section 232 tariffs, 25 percent in 2018, then 50 percent in 2025, and added 407 new categories subject to additional 50 percent tariffs, alongside numerous AD/CVD actions.
- European Union introduced comprehensive steel safeguards covering 23 product categories, repeatedly renewed.
- United Kingdom adopted a safeguard regime after Brexit, mirroring the EU approach.
- Mexico increased tariffs to 25 percent on 205 tariff lines in 2023, expanded further in 2024.
- Brazil introduced temporary tariff hikes and quotas on several steel products from 2024 onward, later expanding to 25 tariff lines.
- Colombia imposed a 30 percent safeguard on wire rod in 2024.
- Canada reduced quotas, added duties, and implemented melt-and-pour origin rules to prevent circumvention.
Recommendations for a stronger Latin American trade defense system
The report concluded that Latin America must modernize and accelerate its trade defense framework, emphasizing several priorities:
- act whenever injury is demonstrated, not only in extreme cases.
- use tariffs as faster, more comprehensive tools when needed.
- increase deployment of CVD, safeguards and anticircumvention measures.
- shorten pre-investigation and add timelines.
- apply higher ad valorem margins when competing countries do not operate under fair conditions.
- continuously monitor direct and indirect steel imports.
- track global trade defense mechanism developments to anticipate trade diversion flows.