The Ministry of Economy (SE) determined, preliminarily, not to impose a new tariff on imports of radial tires for cars and trucks from China after an investigation into alleged unfair practices.
The document, published this Friday in the Official Gazette of the Federation (DOF), indicated that the agency did detect sufficient elements to consider that the imports were made under conditions of price discrimination. However, the SE indicated that applying a compensatory fee would have a direct effect on consumers.
“The imposition of compensatory duties on imports originating in China, far from correcting a distortion in the market for pneumatic tires of radial construction (a fact that is not accepted), would cause there to be not a sufficient variety of tires for the demand of the Mexican consumer ; that, consequently, prices would increase to the detriment of consumers,” the resolution indicates.
Radial tires are those with an inner diameter between 13 and 22 inches and with layers of perpendicular steel belts, the SE indicated.
The investigation was requested in November 2022 by companies such as Bridgestone, Compañía Hulera Tornel, Continental and Michelin, as well as by the National Chamber of the Rubber Industry (CNIH).
They accused that the import of Chinese tires is carried out in alleged unfair practices or dumping, which consists of the import of products at a price lower than their average value in the national market.
According to the document, between July 2019 and June 2020, imports of tires of Chinese origin increased 29 percent, while the difference to national prices was smaller between 24 and 33 percent.
The Ministry of Economy emphasized that rather than offering protection conditions to the national tire industry with the imposition of quotas on Chinese imports, the objective is to compensate for the conditions of unfair trade, so it will wait for the final resolution to ratify or change your decision.
The Secretariat determined not to impose provisional compensatory duties, until a final determination is made based on the information available to it, he noted.
In March, the head of the Ministry of Economy, Raquel Buenrostro, reported that the agency is in the process of updating the tariffs imposed on Chinese products, and those from other nations, that enter the country with unfair practices.
According to Buenrostro, the update of said decree is part of the federal administration’s strategy to protect the national industry from unfair trade and rule out that Mexico is serving as a bridge for the trade of this type of products to the United States.
2024-04-05 20:31:35
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