To defend just three days after the date of entry into force of the Treaty between Mexico, the United States and Canada (T-MEC), the government of Mexico a letter to the U.S. Department of Commerce against the threat posed by the unilateral imposition of duties against imports of Mexican origin for more than 1,300 million dollars in the year.
The case is that the United States initiated an investigation under section 232 on the foreign purchases of electric transformers, the products, Mexico is its main supplier, in the case of deliveries 1,314 million euros in the year 2019.
The research includes u. s. imports from all over the world in this basket of products, in which Mexico had a stake of 38% in the last year. Other suppliers are Canada, China, Germany, South Korea and Austria.
The section 232 is one of several tools for the unilateral United States to address trade barriers and other practices of foreign trade.
“The Mexican exports of goods to the investigation by the Department of Commerce subject to not as a threat to national security for the United States,” says the letter, Aristeo López, representative of the Commercial office of the Secretariat for the economy in Washington.
In addition, he argues, Mexico considered that the investigation of § 232 of the Department of Commerce is contrary to the interests of the United States and Mexico to increase bilateral trade and improve the economic competitiveness of the region.
“In contrast, Mexico believes that our two countries should be on the search for ways of strengthening trade and economic relations bilateral, especially now that the T-MEC is in force, “ demanded Lopez.
11. In may, requests from members of the Congress of the United States, a producer of electrical steel, grain-oriented (GOES, for its acronym in English) and manufacturers of power transformers, the trade Minister initiated the investigation.
The group of products covered includes laminations for cores stacked for installation in transformers, cores stacked for installation in transformers, cores, coils for installation in transformers, electrical transformers and regulators transformers.
However, the investigated products are founded in the rule of origin in the free trade agreement of North America (NAFTA), which is now more strictly on the T-MEC.
“So, the new agreement should, fix the underlying concern. The introduction of the rights 232 would allow, to act in the only producer in the United States, in practice, like a monopoly. However, you do not have enough installed capacity to supply the market of the United States, and much less for the entire region of North America. This situation will have a negative impact on the consumers of the United States,” he concludes.
Under section 232, such as the United States and Mexico were involved, to impose in a trade dispute over U.S. measures were imposed on imports of steel and aluminum from Mexico. In this case, the tariffs of the European Union, Canada, and Brazil, among others.