Mexico Cancels 1,100 Mill Registrations to Stop Steel Triangulation
Mexico implemented stricter traceability measures and canceled fraudulent mill registrations to prevent Asian steel from entering the United States via North American trade pacts.
The Federal government of Mexico has implemented stricter traceability measures to block the rerouting of steel from China and other Asian nations into the United States. Deputy Economy Minister for Foreign Trade Luis Rosendo Gutierrez announced the cancellation of approximately 1,100 fraudulent mill registrations, most of which were based in Asia.
These enforcement actions led to a 30% decrease in steel and aluminum imports from China, South Korea, and India, and an 80% reduction in steel imports from Vietnam during certain months. The total value of these imports amounted to roughly 13 billion pesos. Gutierrez stated the government intends to ensure there is no triangulation of products taking advantage of the regional trade agreement.
Mexico is using these crackdown efforts as leverage to negotiate relief from U.S. Section 232 tariffs on steel, aluminum, and automobiles. Economy Minister Marcelo Ebrard has submitted proposals to U.S. officials, who have been receptive to the terms. Mexico expects a resolution on the tariff issue before the end of the year.
