Trade Resources Industry Views DeAcero Request US DOC Avoid Trade Disputes with Mexico&Focus on Defense of NAFTA Regions

DeAcero Request US DOC Avoid Trade Disputes with Mexico&Focus on Defense of NAFTA Regions

Mexican steel producer DeAcero released a request Thursday that the US Department of Commerce avoid trade disputes with Mexico and focus on the defense of NAFTA regions, which receive unfair imports from China and the European Union.

In the document, the company criticized the Mexican steel sector the negative trade balance with the US. "In the last three years, the trade balance between Mexico and the United States in the steel sector reflects a deficit of US$2 billion a year," the company said.

The company said that Nucor Corporation, the largest steel producer in the United States, recently rescinded a $22/mt ($20/nt) rebar price increase, blaming imports from Turkey, Mexico and other countries. But according to DeAcero, the icy weather conditions that have slowed down construction activity in the US are more to blame.

"Trade disputes between members of NAFTA should be resolved through negotiation and agreement rather than trade litigation."

Previously, meetings between the trade ministers of Mexico and the US showed a commitment from both countries to boost the regional supply chain and strengthen commercial ties .

The company stressed that the main objective is to solve this conflict to focus on imports from outside the NAFTA region. "These represent the real problem, especially considering China and excess steel capacity in Europe," said the report.

DeAcero noted that 20 years after signing NAFTA, it is necessary to evaluate how to resolve disputes between members of the agreement to reach solutions that have little or no impact on supply chains in the region.

"A suspension agreement in the antidumping case for rebar would ensure a reasonable source of supply in a market where US producers account for 90 percent of consumption, and ensuring adequate competition is important to avoid non-competitive markets."

DeAcero noted that Mexico has been consistent with its exports to the United States with 250,000 tons per year in the last five years to maintain a constant market share.

"When this figure is compared with 90 percent of the market share that the US rebar industry has, it seems irrational to claim that Mexico exports are threatening or causing any damage to the domestic industry."

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DeAcero Implores US Rebar Mills to Negotiate, Not Litigate Nafta-Region Trade Conflicts
Topics: Metallurgy