Economy 02-08-2018

Mexico Congress asks for support for industry that suffers from US steel and aluminum tariffs

The Mexican Congress urged to continue supporting the productive plant, particularly the branches of the automotive industry and construction, in the branches and economic activities affected by the tariffs imposed on steel and aluminum by the US. .

An opinion approved on August 1 by the assembly of the Permanent Commission of the Legislative Power recommends that in response to "the decision taken by the US administration to impose tariffs on imports of steel and aluminum from Mexico, the Ministry of Economy will initiate an dispute settlement process under the umbrella of the World Trade Organization (WTO). "

The legislators stressed the importance of these raw materials for the operation of various industries such as construction, automotive, aviation, and the food sector.

This circumstance "makes these metals strategic within the domestic production of the country", indicates the opinion of the commission that leads the Congress in the legislative recess.

The Economy Ministry of the Government presided by Enrique Peña Nieto explained that the decision of the US government "violates the Agreement on Safeguards of the WTO, because it was not adopted according to the established procedures."

The legislators warned that the first effects of tariffs will be reflected in the cost of inputs of automobiles.

These consequences "can be dispersed significantly in the short term and affect the competitiveness of the national automotive industry."

At the same time, they warned that tariffs could cause an increase in the prices of the basic inputs of the construction industry, and therefore, of the works.

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The automotive issue is a key piece to reach an agreement on the modernization of the North American Free Trade Agreement that is underway in Washington, in a bilateral round of Mexico and the US.


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