Mexico To Reduce Tariffs On Steel Products From Countries With Which It Does Not Have FTAs
According to FastmarketsAMM, starting in September 2021 the Mexican government will gradually eliminate a safeguard duty of 15 percent on 198 steel products classified under 186 tariff codes. (This duty applies only to imports from countries with which Mexico does not have free-trade agreements.)
In announcing the news, the Mexican government said, “In order to establish a favorable environment that allows the steel industry to adjust to the international economic context, and to encourage the domestic market, it is necessary to revise the import tariffs.”
The Mexican government will reduce the penalty to 10 percent in September 2021, to five percent in September 2023 and to zero by August 22, 2024. Products covered by the tariff include steel sheet, coil, cold-rolled sheet, hot-rolled sheet, wire rod, seamless tube, welded tube, coated sheet, rebar and section.
The penalty was first put in place in October 2015, and has been extended several times, including earlier this year.
As noted above, these penalties do not affect countries with which Mexico has a free trade agreement. Click here to read MSCI’s 2017 comments on NAFTA, which outline the organization’s principles for trade with Mexico.