Mexican regulator declines to issue safety monitoring order for iron and steel products

The Federal Competition Commission (Cofece) recommended this week to not issue a Norma Oficial Mexicana (NOM) to monitor safety standards for products made of iron and steel.

The bill seeks compliance with safety specifications and test methods for steel products that affect the competition, and the Cofece determined that the draft did not present sufficient evidence on the risks involved for consumers.

"The NOM may cause an impairment on the production and marketing of products, distorting the productive chains of commodity goods used as inputs of iron and steel," said the regulator’s report.

It also indicated the NOM could affect the conditions that govern imports of steel products, eliminating the competitive advantage for production chains that require inputs such as rods, slabs, wire, among others.

As part of its review, Cofece warned that additional costs for the companies involved would result in low supplies and higher prices, which would be passed on to the final consumer.