Mexico extends AD duties on wire rod imports from China until 2026

Friday, 20 January 2023 23:09:23 (GMT+3)   |   San Diego
       

The Ministry of Economy of Mexico extended until July 2026 the antidumping tax of $0.49/kilogram ($490/mt) on imports of wire rod manufactured in China or the same product imported into Mexico from any other country.

The antidumping duty has been applied since July 2016 and as established by the rules of the World Trade Organization (WTO), the validity of an antidumping duty is five years. Therefore in October 2020, the Mexican government summoned the interested parties to participate in the analysis to assess the validity of countervailing duties.

As of January 20, 2023, "the validity of the definitive compensatory quota is extended (...) for five more years, counted from July 29, 2021," published the Mexican international trade regulatory body, the Ministry of Economy, in the official government gazette (DOF).

The tariff will be charged to the wire rod that enters Mexico from China through the tariff sections: 7213.10.01, 7213.20.91, 7213.91.03, 7213.99.99, 7227.10.01, 7227.20.01 and 7227.90.99, and also to the imported under the Eighth Rule through tariff fractions 9802.00.01, 9802.00.07, 9802.00.13, 9802.00.19 and 9802.00.23 of the Tariff of the General Import and Export Tax Law (TIGIE). The Eighth Rule is a special import permit granted by the Ministry of Economy.

There were six Mexican companies that asked the government to maintain the dumping tax. According to the National Chamber of the Iron and Steel Industry (Canacero), reported Economy, DeAcero registered 51 percent of the wire rod production capacity in Mexico.

In addition, Ternium has 18 percent, ArcelorMittal 16 percent, steel company TA 2000 6 percent, Grupo Acerero 5 percent and Aceros DM (owned by Industrias CH, through Simec) 4 percent. Figures differ from 100 percent due to rounding.

Despite the fact that China, is the largest exporter of wire rod in the world (15 times the size of Mexico's wire rod production), Economía said, it did not participate in the analysis to maintain or eliminate the antidumping duty. The only defender of the elimination of the tax was the Mexican giant Truper, a producer of tools and products for the hardware industry.


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