MEXICO CITY Mexicos
transformation industries want the countrys new
government under President Enrique Peña Nieto to create
"a new legal department" that is "powerful" and "has the
resources to face (up to) unfair trade practices," according to
an executive with the countrys Chamber of Transformation
The "unfair practices" of some
Asian and European countries have become a bigger problem over
the past years, mainly because Mexicos former government
unilaterally reduced tariffs, Rodrigo Alpizar Vallejo,
Canacintras vice president for the metal-mechanical
sector, told AMM sister publication Steel
The new government must create
"a new legal department as part of the International Trade
Practices Unit (UPCI) of the Mexican Secretariat of Economy,"
he said., noting that dumping investigations "require at least
one or two years, and (even) when there is a resolution ... the
damage is already done and is irreversible."
Alpizar Vallejo urged the
government to introduce a non-tariff method for stopping the
import of low-quality steel products.
Steel product imports rose 45.7
percent to 6.9 million tonnes in the first eight months of 2012
compared with the same period last year, according to Mexican
national steel association Canacero.
Almost one-third of the imports
came from five countries outside the North American Free Trade
Agreement (Nafta): Russia, South Korea, China, Ukraine and
"We must protect our Nafta
market, increase our domestic market and do all (we can) to
prevent the entry of products with dumping prices," Alpizar
Under former president Felipe
Calderón, the government implemented policies that
"caused damage" to the industry, he said. Those policies, such
as unilateral tariff reductions, had a negative effect on the
Mexican manufacturing sector.
"This was one of the issues that
caused more discomfort and damage to the industry and was an
action taken without assessing the consequences," he said.
Alpizar Vallejo said the new
government should enact a new legislation "under the premise
that public works carried out in our country should have a
minimum local content of 60 percent, similar to (legislation
in) the United States."
A version of this article
was first published by AMM sister publication Steel