Posted on 21 Aug 2020
The Mexican Ministry of Economy (SE) has extended its compensatory quota on imported carbon steel connections, known as fittings, originating from China, Kallanish learns from the country’s official gazette. The product is classified under HS code 7307.93.01.
SE announced on 19 August that the trade measures are valid for up to five years commencing from 5 August 2019.
“China has available capacity and export potential, which during the examination period was equivalent to more than 270 times the level of the Mexican market and more than 249 times the national production,” SE says.
If the measures are not applied, the potential imports originating from China would undervalue the local price of such product by 30%, also having a negative impact on the Mexican economy, SE concludes.
According to SE, China represented 38% of global carbon steel connections exports during the period of analysis between 1 July 2018 and 30 June 2019.
The compensatory quota was first imposed on 4 August 2004 at 81.04% for imports of carbon steel connections for all Chinese companies. This was extended two times, and in 2011 the compensatory quota was fixed at $1.05/kg.
Source:Kallanish
