The final decision of duties for Mexico and China will be determined in 5 months (Image via: Newslocker.com)

U.S. Calls For Anti-Subsidy Duties on Mexico and China

Kirana Chandra Mumpuni Budiana
Politics & Economic
Economic
Jul 10, 2019
1920
On Monday, July 8 2019, U.S. imposed anti-subsidy duties on Mexico and China. The country revealed that Mexico and China helped their manufacturers with unfair subsidies. The Commerce Department just found that imported steel used in construction benefitted from subsidies in China, Mexico and Canada. However, on the case of Canada, the subsidies were negligible. Therefore, no retaliatory duties were imposed.

As for Mexico and China, the duties will be imposed. The Commerce department stated that Mexican and Chinese exporters of fabricated structural steel benefitted from subsidies, ranging from 30.3 percent to 177.43 percent. The decision to apply duties comes two months after U.S. President Donald Trump agreed to increase tariffs on steel and aluminium from Mexico and Canada. It happened after the three nations agreed on a revised North American free trade pact.

The combination of structural steel imports from China and Mexico amounted to US$1.5 billion (S$2.04 billion) in 2018. The U.S. Customs and Border Protection will start collecting import duties based on the subsidy rates. However, the funds could be returned if officials later reverse the finding. Sometimes the independent U.S. International Trade Commission stop the Commerce Department actions, if they find American firms were not harmed by the subsidies. The decision is preliminary and final determinations will be announced on November 19.

Source: https://www.straitstimes.com/world/us-slaps-new-duties-on-steel-from-mexico-and-china

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