Mexico’s steel producers have urged the country’s Ministry of Economy (SE) to remove finished steel products [1] from the tax-exempt temporary import program, Immex, in an effort to protect the sector from unfair competition, industry sources report.
The proposal is part of broader negotiations with the U.S. administration, aimed at securing an exemption from the 25% tariffs imposed on steel and aluminum exports to the United States. The Mexican steel industry association, Canacero, emphasized that excluding steel from Immex would help curb the influx of Chinese products entering Mexico under unfair trade conditions before being re-exported to the U.S. via third-party nations.
“This adjustment is crucial to closing loopholes that allow trade distortions, ensuring fair market conditions,” Canacero stated. The recommendation forms a key part of talks led by Secretary of Economy Marcelo Ebrard, which are expected to conclude by May 3.
Under the current Immex framework, companies can temporarily import raw materials and components duty-free, provided that finished products are exported. However, if the exclusion is implemented, Mexican steel exporters will face import duties on steel shipments, irrespective of their origin. Companies would then need to seek tax refunds from the Tax Administration Service (SAT) upon export.
The industry’s appeal reflects ongoing concerns over trade regulations, as Mexico seeks more favorable conditions in its steel negotiations with the U.S. while addressing challenges posed by global competition.
Sources:
[1] Mexico’s Canacero urges steel exclusion from tax-exempt program https://www.kallanish.com/en/news/steel/market-reports/article-details/mexicos-canacero-urges-steel-exclusion-from-tax-exempt-program-0425/