Mexican authorities announced last week that they will defend steelmaker exports from restrictions in the Colombian market.
In a document prepared for the World Trade Organization (WTO), the Mexican Ministry of Economy (SE) argue that provisional measures brought against Mexico by Colombia are unsustainable.
"In particular we note that the elements contained in the administrative record, far from being an adequate basis for imposing a provisional measure, constitute evidence that the situation within the industry cannot, under any circumstances, justify such a measure."
On October 9, 2013, Colombia imposed provisional safeguard measures against Mexican exports of steel wire rod, by applying a levy of 21.29 percent; 25.6 percent for corrugated steel bars; and 21.96 percent for corrugated wire rod.
These interim measures have a period of 200 days, which expire on April 26, 2014, although final action may establish an earlier date.
Safeguards prevent Mexican steel producers such as DeAcero,Ternium Mexico and ArcelorMittal from participating in the Colombian steel market.
According to a document prepared by the National Chamber of Industry Iron and Steel (Canacero), the application of these investigations into Mexican steel were conducted by Colombian companies of Brazilian origin such as Acerías Paz del Río (Group Votoramtim) and Diaco (Grupo Gerdau).
