President Andrés Manuel López Obrador revealed that Mexico and the United States agreed to a “special treatment” for steel from Brazil, within the framework of the new stricter rules imposed by the US government on the import of steel and aluminum.
This agreement seeks to prevent tariff evasion by countries such as China, which send their products through Mexico.
During his morning press conference, López Obrador explained that this agreement benefits Mexico, as it allows the importation of steel and other goods to the United States and Canada, which encourages investment, job creation and the growth of Mexican exports.
“We care deeply about maintaining our partnership with Canada and the United States, as established in the trade agreement,” the President stressed.
The President stressed that Mexico has the possibility of importing steel and other goods to the United States and Canada, benefiting from the establishment of plants and factories in the country, the arrival of investments and the creation of jobs.
He also stressed that Mexico has become one of the United States’ main trading partners, with significant growth in exports to that country.
However, López Obrador said that the United States is seeking to establish conditions so that only steel and aluminum produced in Mexico can be imported, and not from other parts of the world.
In response to this proposal, Mexico put forward two conditions: that no specific countries be mentioned in the resolution and that Brazil be given special treatment in the import of steel to Mexico, including components originating in that country.
“Secondly, in the case of Mexico, steel and aluminum from Brazil are required, and we have a very good relationship with Brazil and it was agreed that Brazil will have special treatment in the case of imports of steel from Mexico, steel from Brazil to Mexico and steel that may have components and aluminum that may have components that originate in Brazil,” explained the President.
López Obrador stressed the importance of thinking in the medium and long term to attract investments to Mexico, taking advantage of the guarantee of free export of steel and aluminum to the United States and Canada.
“This should be considered in the medium and long term, so that investment is made in Mexico because here we have guaranteed free export of steel and aluminum to the US and Canada, because we have consolidated our market and we have to continue strengthening the entire economy and trade of North America,” he said.
The President also proposed the integration of all of America to consolidate the continent as the world’s leading trading region.
“What we propose, because it is no longer our responsibility, is that all of America be integrated so that the American continent is consolidated as the main commercial region in the world,” he said.
According to foreign trade experts, although most of the Mexican steel industry will comply with the measure, some companies such as Ternium could face difficulties in complying with the regional certificate of origin, due to the need to import steel slab from Brazil or Russia to produce sheet metal, since this material is not produced in Mexico.
The joint U.S.-Mexico statement on new measures to combat the circumvention of steel and aluminum tariffs by China and other countries that ship their products to Americans through Mexico states that imports of steel products from Mexico will be subject to 25% tariffs under “Section 232” unless the steel is documented to have been melted and poured in Mexico, the United States, or Canada.
For its part, imports of aluminum products from Mexico will escape tariffs of 10% of the same section if they do not contain primary aluminum melted or cast in China, Russia, Belarus or Iran.
Importers of these products into the United States will be required to submit a certificate of analysis to the U.S. Customs and Border Protection Service stating the country of origin of the metals.
This agreement between Presidents Joe Biden and Andrés Manuel López Obrador seeks to strengthen the economy and trade of North America, promoting investment and job creation in the region, while combating tariff evasion by countries seeking to take advantage of the trade relationship between Mexico and the United States.
With information from Reuters and Alfredo González.
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