The Ministry of Economy extended for five years more the compensatory quota imposed on imports of seamless steel pipe originating in China.
With the extension, counted from January 8, the Federal Government seeks to expand the defense of the National Productive Plant against unfair imports.
Through a statement, the agency stated that from the analysis of arguments and evidence presented by the national producer TAMSA, and of information he obtained, determined that the elimination of the compensatory quota would give way to the repetition of the dumping and the damage to the damage to national production.
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“In that context, it is important to point out that China has a freely available capacity and an export potential considerably greater to the national market, which could lead to Mexico in case the compensatory quota is eliminated,” he said.
“With this resolution, an appropriate defense is provided to the productive plant against unfair imports,” he added.
Compensatory quotas, a kind of tariff, balance competition between national and importing producers when imported products are sold at discriminatory prices, with subsidies in their country of origin, or when they cause damage to national production.
The government’s announcement occurs in the middle of the 25% tariffs imposed by President Trump to steel and aluminum, regardless of its origin.
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Although the United States obtains most of its steel in Canada, Brazil and Mexico, rates are largely directed to China, according to CNN.
A report from the EFE agency indicates that China is not among the main steel and aluminum exporters to the United States, but it is the largest producer in the world and experts anticipate that Trump’s tariffs about these materials will affect the products that the Asian country sells to the American through third parties.
Although the United States is not among its main buyers -imports from the Asian country about 1.8% of its total purchases of steel -China does export these materials to other countries such as Canada or Mexico that, in turn, sell them to the country American.
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