Mexico is preparing to push for a North American steel committee in cooperation with the United States, aiming to strengthen regional trade ties and reduce dependence on Asian steel imports, according to local media reports. The proposal comes amid ongoing negotiations over steel tariffs between the two countries and could eventually include Canada under the USMCA framework.
Strengthening regional steel trade
Luis Rosendo Gutiérrez Romano, Undersecretary of Foreign Trade at Mexico’s Ministry of Economy, announced that Mexico will suggest reinstating a bilateral steel committee. The body would include both private-sector companies and government trade officials.
This initiative mirrors the former North American Steel Trade Committee (NASTC), established in 2002 under NAFTA to promote cooperation in the North American steel market and which was focused on intra-NAFTA trade. NAFTA, and indirectly the NASTC, were replaced by the USMCA in 2020 by the Trump administration in order to implement more effective rules and adjustments in North American steel trade.
Reducing dependence on Asian steel
The proposed committee would focus on replacing Asian steel imports with US steel purchases. This could pave the way for Mexico to raise tariffs on certain imports from Asia, strengthening local demand for regional steel. “We are analyzing a series of trade practices to strengthen ourselves as a region, protect ourselves as a region, and work together on a common policy that strengthens our industries,” said Gutierrez.
Action against ‘ghost’ steel mills
Mexico has already taken steps to address US concerns about unfair imports. The Mexican authorities have shut down 1,062 ‘ghost steel mills’ - fraudulent facilities registered as plants but serving as cover for Asian imports. Approximately 40 percent were linked to China, 10 percent to India, and six percent to Iran. This crackdown demonstrates Mexico’s effort to safeguard the region’s steel market from distorted trade practices.
