Mexico Accuses U.S. of ‘Dumping’ Steel : Trade: Officials claim unfair pricing as they slap tariffs on sheet plate and galvanized laminate steel.
America’s steel industry, one of the most aggressive complainers about foreign steel “dumping” in the United States, found itself on the receiving end of the same accusation Tuesday in Mexico.
The Mexican Commerce Department slapped tariffs on two types of U.S. steel imports, arguing that the step was needed to prevent the United States from selling its products at unfairly low prices in Mexico.
U.S. steelmakers accused of the actions did not immediately respond.
The Mexican action comes at a time when the U.S.-Mexico economic relationship is expanding, partly as a result of the North American Free Trade Agreement.
Steel tariffs are to be phased out over the next decade under NAFTA, the pact designed to make North America a single market in which most goods and services can flow freely across borders.
Dumping is selling a product in a foreign market at a price lower than the price charged at home to shed excess stock. It is a prevalent accusation in international trade disputes.
Mexico’s commerce department said Bethlehem Steel, USX, Geneva and Lukens were hit with tariffs for sheet plate steel.
The government also imposed tariffs for galvanized laminate steel that would affect USX, Mitsui, New Process and World Metals.
The accused “have shown that they were exporting to Mexico at dumping prices that have or threaten to damage the national industry,” the Mexican statement said.
Under NAFTA, tariffs on steel will be phased out by 2004, along with any on textiles, cotton, lumber and cosmetics. Duties on goods such as glassware, orange juice, sugar and peanuts are to be phased out within 15 years.
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