According to foreign media, the Mexican government has adjusted steel tariffs to support local producers struggling under domestic and global adverse conditions. According to the Ministry of Economics’ reform plan, this tariff covering more than 200 steel products will remain unchanged for at least five years. Previously, Mexico’s steel tariffs were extended every six months.
Tariffs were imposed in 2015 to cope with global steel oversupply and dumping, and tariffs cover key steel products imported from countries where Mexico does not have a free trade agreement. Documents on the federal gazette website show that the reform aims to establish a longer-term trade policy for the steel trade, although it does not meet the industry’s requirements to perpetuate tariffs.
The document shows that the government’s goal is to establish a good environment for the steel industry to boost the domestic market in the context of the global economy. It is necessary to end the half-yearly updated tariffs and define a medium- and long-term tariff policy.
Under the revised terms, tariffs on all but 228 of the 228 products will remain at the current 15% level until September 2021. The interest rate will fall to 5% from September 2023 and expire in August 2024. In the next few years, the tax rate for the remaining 30 products will decline, and the tax rate for some products will remain unchanged after August 2024.
Post time: Oct-08-2019