Blocking the entry of Mexican steel into the US market will harm the steel industry of both countries, according to the National Chamber of the Iron and Steel Industry (Canacero), which urged Mexico’s Congress and the US government to work together to strengthen the regional market.
"The application of protectionist measures against Mexico will not solve the problem of these companies, but on the contrary, it can generate a closure of our borders and a true distortion, shortage and loss of competitiveness of the steel market in the region," Canacero reported in a press release in response to the push by congressmen who ask Joe Biden's government to block free trade in Mexican steel.
"Canacero considers it essential that both countries continue working together to strengthen the region within the framework of the USMCA. This would allow us to strengthen nearshoring trends, the investments made by both countries in recent years, in addition to combating global excess capacity," the association said.
The communication from Canacero is because last week it emerged that a group of United States congressmen requested that the Biden administration and the United States Trade Representative (USTR) supervise the import of Mexican steel.
The 17 Mexican congressmen who signed the petition point out that the import of Mexican steel increased 73 percent compared to the average imported between 2015 and 2017. This situation led to the fact that in March 2018 the United States decreed a 25 percent tariff on Mexican steel for reasons of national security under the so-called Section 232.
Canacero reported that the information from the congressmen is imprecise, pointing out that Mexico is concerned about the constant increase in finished steel exports from the United States to Mexico.
"Mexico is the main export destination and accounts for 14.6 percent of our consumption. On the other hand, exports from Mexico to the United States represent only 2.6 percent of its consumption," the association said.
"What is really worrying is that, according to official figures, at the end of 2023 the United States will register the largest surplus of finished steel products with Mexico, reaching $3.3 billion and 1.8 million metric tons."