The 14,000 workers represented by the Mexican National Mining Alliance (AMN) of the National Union of Mine, Metal, Steel and Allied requested this week that the Ministry of Economy complete its research currently being undertaken to curb steel imports from Russia and Ukraine, which generate a calculated avoidance and tax evasion of at least US$1 billion.
The alliance said it is at risk of losing 120,000 of the 720,000 existing jobs in the national steel industry, due to the continual illegal entry of steel from other countries with which Mexico has no trade agreements; a situation allowed in the last 10 years with the complacency of PAN governments.
In this regard, Hector Jimenez Coronado, general coordinator of the NMA, said that in the next four years 100,000 additional jobs could be added, thanks to US$10 billion from companies considering investing in the steel sector. However, those potential jobs are at risk from the possibility that companies do not want to risk their capital.
He said that countries such as China, South Korea, India, Brazil, Russia and Ukraine exported steel products to Mexico under dumping and/or subsidized prices, or altering the antidumping duties to be paid.
He explained that in the case of steel from Russia and Ukraine, many Mexican importers violate the FTA to pay compensatory fees lower than those provided. Coronado Jimenez said the steel trespassing affects not only the steel industry, but also to the mining sector, especially coal, as this raw material is key ingredient in steel production. He mentioned that among the states hardest hit is Coahuila, which contains 80 percent of the country's coal deposits.
As previously reported, by Altos Hornos de México (AHMSA) also requested an investigation by the Mexican Ministry of Economy into products such as 140,000 tons of leaf plate from Russia and Ukraine.
Executive Director of the National Chamber of the Iron and Steel Industry (Canacero), Salvador Quesada Salinas, said in a statement that steel companies are confident that the actions of the Mexican trade authorities will lead to an ordering of the steel market, which is severely affected by excessive growth of unfair imports.