Trade Cases
US senators call for deadline on Mexican steel export monitoring agreement
Written by Ethan Bernard
December 14, 2023
A bipartisan group of US senators has written a letter requesting a clear deadline for an export monitoring agreement of Mexican steel products into the US market.
“The surge of Mexican steel imports into the US market” violates the 2019 Joint Statement by the United States and Mexico on Section 232 Duties on Steel and Aluminum, the senators say in their Dec. 13 letter to National Security Adviser Jake Sullivan.
The group applauds US Trade Ambassador Katherine Tai “for securing a commitment on Sept. 23, 2023, from Mexican Economic Minister Buenrostro to reinstate export monitoring to guarantee future compliance with the 2019 Joint Agreement.”
“However, we are concerned that the Mexican government is willfully delaying finalization of this agreement and is negotiating in bad faith,” the letter states.
Also, the group points out that Mexican President Andres Manuel Lopez Obrador has “drastically reduced the staff of Mexico’s Economy Ministry by at least a third, putting into question whether Mexico can even enforce an export monitoring agreement.”
Further, the group urges the Biden administration “to set a clear deadline for the implementation of an export monitoring agreement.”
“We ask for an update from your office by Dec. 31, 2023 on the administration’s next steps in driving these post-breach negotiations to conclusion,” the letter concludes.
The imports threaten the US manufacturing base and national security, according to the letter. The senators note data from 2022 that shows annual iron and steel imports from Mexico have increased by ~73% over the pre-Section 232 2015-17 baseline, as well as citing several Mexican steelmakers.
“This steel surge has already resulted in at least one plant closure, the loss of over a thousand new and existing jobs, and the deferment of millions of dollars in new investment,” the letter states.
“We request additional information on the administration’s plans to address this continued surge and urge you to take immediate action to safeguard US jobs and domestic steel manufacturing,” the letter says.
In September, SMU reported on Deputy USTR Jayme White’s meeting with a Mexican official regarding enhancing monitoring of Mexican steel and aluminum exports to the US.
A request for comment from Mexican steel association Canacero was not returned by time of publication.
Ethan Bernard
Read more from Ethan BernardLatest in Trade Cases
Leibowitz on trade: Trump’s reciprocal tariffs face mounting legal challenges
The tariffs amount to a wholesale transformation of US trade policy from one promoting increasing international interaction to one of restricting trade to serve national strategic goals.
Steel groups voice different takes on US-EU trade deal
US and European steel trade groups were at odds over their reaction to the recent trade deal President Trump brokered with the EU.
Here’s what’s up next in the big coated steel trade case
Attorneys representing domestic petitioners and foreign respondent companies have been busy filing case briefings and making rebuttals as the corrosion-resistant steel unfair trade investigations begin to wind down.
Price: Which countries get a ‘zonk’ in Trump’s primetime ‘Let’s Make a (Trade) Deal’ show?
As the president’s August 1 tariff deadline approaches, the “Let’s Make a Deal” game show returns to primetime (the Monty Hall version, of course). As the administration begins rolling out trade deals, we are starting to see what’s behind door number one and who is getting a “zonk.”
Trump says Canada deal might not happen: Report
President Trump said a negotiated deal with Canada might not occur, and all existing tariffs, along with those set to take effect soon, will stay in place, according to media reports.