Mexican Steel Grates on Senate

A bipartisan group of senators are calling on the Administration to put a halt to a surge in steel imports from Mexico.

In a letter to National Security Advisor Jake Sullivan, the senators demanded the Administration set a clear deadline for Mexico to enforce the steel agreement reached with the United States in 2019. That agreement set quotas for Mexican steel and aluminum in place of the global Section 232 tariffs imposed by the Trump Administration.

If Mexico refuses to comply with the agreement, the Administration should take aggressive action to counter ballooning Mexican steel imports, the senators said.

The senators noted that in 2022, annual iron and steel imports from Mexico increased by approximately 73 percent over the pre-Section 232 2015-2017 baseline. During the same period, semi-finished steel and long product imports increased 120 percent and steel conduit imports rose 577 percent.

Plant Closure

“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 hundreds of millions of dollars in new investment,” the senators wrote.

The senators added “The administration must do more to protect America’s steel industry and prevent the further loss of good-paying American jobs. Failure to conclude an export monitoring agreement due to the unwillingness or inability of the Mexican government is unacceptable. We urge the administration to set a clear deadline for the implementation of an export monitoring agreement. If Mexico fails to meet this deadline or proves unable or unwilling to effectively enforce the 2019 Joint Agreement, we respectfully urge the administration to take aggressive action to counter the increase of Mexican steel imports.”

USTR "Intensified Engagement" in July

In Juy, US Trade Representative Katherine Tai and Mexican Secretary of Economy Raquel Buenrostro discussed the  "recent surge" in imports of steel and aluminum products and agreed to "intensify their engagement," according to a readout.  in September the two parties agreed to reinstate export monitoring to guarantee future compliance with the 2019 Joint agreement.  The Senators contend that "the Mexican government is willfully delaying finalization of this agreement and is negotiating in bad faith."

Last  May, Chairman of the House Congressional Steel Caucus Rick Crawford (R-Ark), and Vice Chairman Frank Mrvan, (D-Ind), sent a letter to President Joe Biden's administration requesting immediate consultations