Mexican government has approved anti-dumping tariffs on Chinese seamless steel tubes following complaints of local manufacturers.
The duties, becoming effective on Friday, 21 June, require Chinese importers to pay $1,252 per tonne of steel tubes imported but should not exceed 56 per cent of the customs duty price after tax. The information has been announced by China’s commerce ministry.
The dispute about the price of Chinese steel tubes has been going on in Mexico since 2010, when the tariffs were introduced for the first time. At that time, Mexico's government explained that Chinese manufacturers were flooding Mexican market with their products, selling them at lower than usual market price, thus harming local industry.
China is currently the world’s biggest producer of steal. In the past years it has been repeatedly accused by its trade partners, including the USA and the European Union, of dumping its goods in foreign markets.
The issue of seamless steel tubes is particularly important for Mexico who competes directly with China in the US market.
The current move of the Mexican government is a reaction to a complaint voiced by TAMSA, the Mexican arm of steel company Tenaris, in September last year.
Mexico's government has expressed worries about its massive trade deficit with China, largely caused by an influx of manufactured goods. More than 15 per cent of Mexico's imports came from China last year, worth roughly $57 billion, while just 1.5 per cent, or $5.7 billion, of Mexican exports went to the Asian giant.