Rise the shoulders of the weight of A 25% price of the United StatesMexico steel industry has doubled its commitment to President Sheinbaum Mexico plan Last week, confirming that it will invest $ 8.7 billion over the next five years to increase domestic production.
“The funds to enlarge the facilities will continue with or without (American) the prices,” said the president of the National Steel and Iron Industry Chamber (Canacero), Víctor Martínez Cairo, while stressing that all the members of his support plan for the Mexico Chamber.
Mexico plan – Officially the national industrialization and shared prosperity strategy – is the project of economic development of President Sheinbaum focused on the strengthening of the country’s role in global value chains.
The expressed objective of Canacero is to meet all the steel needs of Mexico via local production. To do this, however, Canaquero suggested that the Mexican government will have to take action.
One of these actions could be to abandon the Free-Pacific Partnership Free Trade Agreement (TPP). Canacero asked the administration to do exactly this, or at least consider applying steel prices imported from Vietnam and Malaysia.
A significant amount of dubious steel is imported into Mexico from Vietnam and Malaysia, the American market as a ultimate destination, says Canacero. The involvement is that China uses TPP to triangulate its steel via Mexico and in the United States, a practice that the US government is determined to eliminate.
Canacero members say they are ready to absorb prices on steel imports to the United States in exchange for repression of Asian imports by the Mexican government.
While expressing his confidence in negotiations American steel pricesMartínez Cairo said he thought there were “opportunities to create synergies with the United States”.
“It’s time to join forces to eliminate unfair practices that affect our nations and industries,” he said. “We want to work together as a regional block to strengthen national and regional content.”
Martínez Cairo said North American neighbors import approximately 9.7 million tonnes of steel each year. The replacement of this with national and regional production would be a boon for the two countries, he said.
Mexico consumes around 30 million tonnes of steel each year. Canacero says his investment plan over five years, Advertising for the first time in February, seeks to meet all the interior needs of the country, completing its own production with imports from the United States and ending dependence on highly subsidized Chinese steel.
Bilateral steel trade between Mexico and the United States is around 7.6 million tonnes per year-4.4 million tonnes in the United States in Mexico and 3.2 million tonnes from Mexico in the United States
As such, underlines Martínez Cairo, the United States has a trade surplus of 1.2 million tonnes in steel vis-à-vis Mexico, which makes an illogical trade war.
With reports from Forbes Mexico,, The Economist And Axis company
