06 / 17 / 24
NEWSLETTER INTERNATIONAL TRADE – March – April – 2024
No. 2 / 6
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DOMESTIC SCOPE
1. Final Resolution of the anti-dumping investigation proceeding on imports of steel grinding balls originated in China.
On March 5, 2024, the Unit of International Trade Practices (“UPCI”, for its acronym in Spanish) of the Ministry of Economy published in the Federal Official Gazette (“Official Gazette”) the Final Resolution of the anti-dumping investigation on imports of steel grinding balls originated in the People’s Republic of China (“China”), regardless of the country of export. The investigation initiated in September 2022 covered the period from January 1st to December 31, 2021 and analyzed the potential injury between January 1st, 2019 and December 31, 2021. The Ministry of Economy found that such imports were dumped and represented a threat of injury to the domestic industry.
As a result, definitive anti-dumping duties were imposed on imports of steel grinding balls from China, classified under the Harmonized Tariff System (“HTS”) code number 7326.11.03. The duties are as follows: (i) 3.68% for Iraeta Energy Equipment Co., Ltd.; (ii) 4.45% for Oriental Casting and Forging Co., Ltd.; and (iii) 12.35% for Changshu Longte Grinding Ball Co., Ltd., Shandong Shengye Grinding Ball Co., Ltd. and other exporting companies. Importers will be exempt from paying the anti-dumping duty if they can prove that the product’s country of origin is not China.
2. Notice informing of the ordinary adjustment of December 2023 to the maximum export quota for sugar to the United States for the sugar cycle from October 1st, 2023 to September 30, 2024.
On March 7, 2024, the Ministry of Economy published in the Official Gazette a Notice informing the ordinary adjustment of December 2023 to the maximum export quota for sugar originated in Mexico, derived from sugar cane or beet to the United States. The Notice states that the quota for the sugar cycle from October 1st, 2023, to September 30, 2024, will be 718,117.140 metric tons raw value.
3. Preliminary Resolution of the review proceeding on the anti-dumping duties imposed on imports of seamless carbon steel tubing originated in Korea, Spain, India, and Ukraine, regardless of the country of export, and the price undertaking assumed by the exporter Tubos Reunidos Group, S.L.U. (“Tubos Reunidos Group”)
On March 14, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the ex-officio review of the anti-dumping duties imposed on imports of seamless carbon steel pipe originating from Korea, Spain, India, and Ukraine, regardless of the country of export, and of the price undertaking assumed by the exporter Tubos Reunidos Group.
In the Final Resolution of April 2018, the Ministry of Economy established the following anti-dumping duties for these imports: (i) USD $0.1312 per kilogram (“kg”) for Korea; (ii) USD $0.3785 per kg for Spain; (iii) USD $0.2067 per kg for India; and (iv) USD $0.1701 per kg for Ukraine. Additionally, a price undertaking was accepted from Tubos Reunidos Group, setting minimum export prices to avoid the imposition of anti-dumping duties.
In March 2023, the review proceeding of the anti-dumping duties in force was initiated, covering the period from January 1st to December 31, 2023. The Ministry of Economy determined that the review procedure of the anti-dumping duties will continue without modification. Tubos Reunidos Group will keep on undertaking the price assumed, because it continues avoiding exporting at lower prices than those established.
4. Agreement amending the list of goods whose import and export are subject to regulation by the agencies comprising the Inter-Secretarial Commission for the Control of the Process and Use of Pesticides, Fertilizers, and Toxic Substances.
On March 14, 2024, the Agreement that establishes the goods subject to regulation by the Inter-Secretarial Commission for the Control of the Process and Use of Pesticides, Fertilizers, and Toxic Substances (“CICOPLAFEST”, for its acronym in Spanish) was amended.
Mexico is a member of the Montreal Protocol on Substances that Deplete the Ozone Layer. As part of its commitments, Mexico is compelled to establish regulatory measures to reduce the consumption of hydrofluorocarbons (“HFCs”) by 2024.
The Agreement was amended to include HTS codes related to HFCs subject to regulation by the CICOPLAFEST agencies.
5. Preliminary Resolution of the anti-dumping investigation on imports of steel nails for concrete originated in China, regardless of the country of export.
On March 15, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the anti-dumping investigation on imports of steel nails for concrete originated in China, regardless of the country of export. The investigation was requested in July 2023 by Clavos Nacionales México, S.A. de C.V. and Clavos Nacionales C.N., S.A. de C.V., and was formally initiated in September 2023. The period of investigation was established as May 1st, 2022, to April 30, 2023, and the period of injury analysis as May 1st, 2020, to April 30, 2023.
The Preliminary Resolution that determined the anti-dumping investigation would continue, also imposed a provisional anti-dumping duty of 31% on imports of steel nails for concrete from China, regardless of the country of export, imported under HTS code 7317.00.99, or any other. Importers will be exempt from paying the anti-dumping duty if they prove that the product’s country of origin is not China.
6. Resolution initiating the ex-officio review of the anti-dumping duty imposed on imports of texturized polyester textile filament yarn originated in China and India.
On March 19, 2024, the UPCI published in the Official Gazette the initiation of the review procedure for the anti-dumping duty imposed on imports of texturized polyester textile filament yarn (“PFTT”, for its acronym in Spanish) originated in China and India, regardless of the country of export. This measure covers HTS code 5402.33.01, or any other.
In September 2021, the Final Resolution of the investigation was published in the Official Gazette, through which the Ministry of Economy determined to impose a definitive anti-dumping duty of USD $0.532 per kg. The Ministry of Economy decided not to apply the anti-dumping duty for a period of one year from the date of publication of the Final Resolution in the Official Gazette. Now, the Ministry of Economy has declared the initiation of the ex-officio review procedure for the definitive anti-dumping duty imposed. The review period was set from October 1st, 2022, to September 30, 2023, and the analysis period from October 1st, 2018 to September 30, 2023.
7. Preliminary Resolution of the review proceeding of the anti-dumping duty imposed on imports of ferro-silico-manganese originated in Ukraine.
On March 21, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the ex-officio review of the anti-dumping duty imposed on imports of ferro-silico-manganese originated in Ukraine, regardless of the country of export. This measure covers goods imported under HTS codes 7202.30.01, 9802.00.13, or any other.
In September 2003, the Final Resolution of the investigation was published in the Official Gazette, determining a definitive anti-dumping duty of 51.28%. The Ministry of Economy has conducted three previous reviews on the validity of the definitive anti-dumping duty, specifically in February 2010, October 2014, and August 2019. It has determined to maintain the anti-dumping duty in force for an additional five-year period in each review. On September 22, 2023, the initiation of the last anti-dumping duty sunset review proceeding was published in the Official Gazzette. The examination and ex-officio review period were set from July 1st, 2022, to June 30, 2023, and the analysis period from July 1st, 2018, to June 30, 2023.
By means of the Preliminary Resolution, it was determined that the administrative proceeding of the ex-officio review continues without modifying the anti-dumping duty of 16.59%. The interested parties have a period of 20 business days from the publication of the Preliminary Resolution in the Official Gazette to appeal before the Ministry of Economy and submit the arguments and evidence they deem pertinent.
8. Preliminary Resolution of the ex-officio review of the anti-dumping duty imposed on imports of welded link steel chain originated in China.
On March 21, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the ex-officio review of the anti-dumping duty imposed on imports of welded link steel chain originating in China, regardless of the country of export. This measure covers goods classified under HTS code 7315.82.91, or any other.
In July 2003, the Final Resolution of the investigation was published in the Official Gazette, determining the imposition of a definitive anti-dumping duty of 0.72 per kg on both definitive and temporary imports. The Ministry of Economy has conducted three previous reviews on the validity of the definitive anti-dumping duty, specifically in January 2010, July 2014, and July 2019. It has determined to maintain the anti-dumping duty in force for an additional five-year period in each review. On July 14, 2023, the initiation of the last anti-dumping duty sunset review proceeding was published in the Official Gazette. The examination and ex- officio review period were set from April 1st, 2022, to March 31, 2023, and the analysis period from April 1st, 2018, to March 31, 2023.
The Preliminary Resolution determined the anti-dumping duty continues without being modified. The interested parties have a period of 20 business days from the publication of the Preliminary Resolution in the Official Gazette to appeal before the Ministry of Economy and present the arguments and evidence they deem pertinent.
9. Agreement amending the Commercial Identification Numbers (“NICO”, for its acronym in Spanish) and their correlation tables.
On March 22, 2024, the Ministry of Economy published in the Official Gazette the Agreement amending the one through which the NICOs and their correlation tables were published. Through this Agreement, six new NICOs were established, classifying “metallized plastic globes” and “microscopes,” while three NICOs were eliminated.
Additionally, the following annotations were introduced in the General Import and Export Taxes Law (“LIGIE”, for its acronym in Spanish): (i) in Chapter 09, “capsules” were defined as ground and roasted coffee marketed in individual packages of up to 20 grams, intended for extraction in machines designed for such purpose, excluding capsules containing coffee extracts, essences, concentrates, or their preparations; and (ii) in Chapter 95, “metallized plastic balloons” were defined as hollow articles made of two plastic laminates, coated with metallic powders, cut to a specific shape, and sealed at their edges by heat to form the cavity, leaving a nozzle for inflation, which may be equipped with adhesive or a valve to retain air or gas inside, thereby forming the balloon.
Likewise, the “Agreement modifying the one by which the Ministry of Economy issues general rules and criteria on foreign trade matters” and the “Agreement modifying the one that establishes the goods whose import and export is subject to regulation by the Ministry of Health” were published, aimed at harmonizing various customs provisions and making the necessary adjustments related to “metallized plastic balloons”.
10. Preliminary Resolution of the review process for the anti-dumping duty imposed on imports of welding micro-wire originated in China.
On March 25, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the administrative proceeding for the ex-officio review of the anti-dumping duty imposed on imports of welding micro-wire originating from China, regardless of the country of export. This measure covers goods imported through HTS codes 7229.20.01, 7229.90.99 and 8311.90.01, or any other.
In October 2018, the Final Resolution of the investigation was published in the Official Gazette, establishing a definitive anti-dumping duty of USD $0.57 per kg. In October 2023, the Ministry of Economy published in the Official Gazette the resolution initiating the anti-dumping duty review. The ex-officio review period was from July 1st, 2022, to June 30, 2023, and the analysis period was from July 1st, 2018, to June 30, 2023.
The Preliminary Resolution determined the anti-dumping duty continues without being modified. The interested parties have a period of 20 business days from the publication of the Preliminary Resolution in the Official Gazette to appeal before the Ministry of Economy and submit the arguments and evidence they deem appropriate.
11. Preliminary Resolution of the review proceeding of the anti-dumping duty imposed on imports of high carbon ferromanganese originated in China.
On March 25, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the ex-officio review of the anti-dumping duty imposed on imports of high carbon ferromanganese originated in China, regardless of the country of export. This measure covers products imported under HTS codes 7202.11.01 and 9802.00.13, or any other.
In September 2003, the Final Resolution of the anti-dumping investigation was published in the Official Gazette, imposing a definitive anti-dumping duty of 54.34%. The Ministry of Economy has conducted three previous reviews on the validity of the definitive anti-dumping duty, specifically in February 2010, July 2014, and August 2019. In the first review, it was determined to modify the anti-dumping duty from 54.34% to 21% and to maintain this duty for an additional five-year period. In the subsequent two reviews, it was determined to maintain the anti-dumping duty at 21% for another five-year period, respectively.
In September 2023, the Ministry of Economy published in the Official Gazette the resolution initiating the anti-dumping duty review. The period of the ex-officio review was set from July 1st, 2022, to June 30, 2023.
By means of the Preliminary Resolution, it was determined that the administrative proceeding of the ex-officio review continues without modifying the anti-dumping duty of 21%. The interested parties have a period of 20 business days from the publication of the Preliminary Resolution in the Official Gazette to appeal before the Ministry of Economy and submit the arguments and evidence they deem pertinent.
12. Agreement modifying the goods subject to regulation by the Secretariat of Agriculture and Rural Development (“SEDAR,” for its acronym in Spanish), as well as the issuance of the certificate of origin for the exportation of coffee.
On March 27, 2024, the Ministry of Economy and SEDAR published in the Official Gazette an Agreement amending Annex I, paragraphs e) and g), of the Agreement that establishes the goods subject to regulation by SEDAR, as well as the issuance of the certificate of origin for the export of coffee. This amendment related to HTS code 0901.21.99, which covers products in bulk or sacks and capsules, updates the regulations from the original Agreement published on December 26, 2020, and its subsequent amendments.
13. Agreement outlining the requirements for temporarily importing goods included in Annex II of the Decree for the Promotion of the Manufacturing, Maquiladora, and Export Services Industry (“IMMEX Program”).
On April 5, 2024, the Ministry of Economy published in the Official Gazette the Agreement disclosing the requirements for temporarily importing goods included in Annex II of the IMMEX Program. The Agreement became effective the day after its publication and will remain in force until August 31, 2024.
The Agreement specifies the requirements and procedures that companies with an IMMEX Program must follow to obtain authorization for temporarily importing goods classified under HTS codes 1701.13.01, 1701.14.91, 1701.91.04, and 1701.99.99, corresponding to sugar cane.
To obtain this authorization, interested parties must: (i) have a valid IMMEX Program, and (ii) have made temporary imports within the 18 months prior to the application filing.
14. Preliminary Resolution of the anti-dumping investigation on imports of new pneumatic tires of radial construction for automobiles originated in China.
On April 5, 2024, the Ministry of Economy published in the Official Gazette the Preliminary Resolution of the anti-dumping investigation on imports of new pneumatic tires of radial construction for automobiles and light trucks, with a nominal inner diameter of 13 to 22 inches (330.2 mm to 558.8 mm, respectively), originating from China, regardless of the country of export.
In November 2022, Bridgestone de México, S.A. de C.V., Compañía Hulera Tornel, S.A. de C.V., Continental Tire de México, S.A. de C.V., Industrias Michelin, S.A. de C.V., and their assistant, the National Chamber of the Rubber Industry, requested the initiation of a procedure for unfair international trade practices in the form of dumping. In April 2023, the resolution accepting the request and declaring the initiation of the investigation was published in the Official Gazette. The investigation period was established as July 1st, 2021, to June 30, 2022, and the injury analysis period as July 1st, 2019, to June 30, 2022.
In the Preliminary Resolution, the Ministry of Economy decided not to impose provisional anti-dumping duties until it reaches a definitive determination based on the available information. Consequently, the Ministry of Economy concluded that the anti-dumping investigation proceeding will continue. The interested parties have a period of 20 business days from the publication of the Preliminary Resolution in the Official Gazette to appeal before the Ministry of Economy and submit the arguments and evidence they deem pertinent.
15. Amendment to the “Agreement by which the Ministry of Economy issues general rules and criteria in Foreign Trade matters” (“Rules Agreement”).
On April 15, 2024, the Ministry of Economy published in the Official Gazette the Agreement modifying the Rules Agreement, specifically regarding automatic import notifications for steel products. These modifications encompass:
- Inclusion of mill and quality certificates as requirements for automatic import notifications for steel products, specifying the country where the steel was melted and cast.
- Provision for importers to enroll in the Importers Registry of Steel Products, overseen by the Ministry of Economy. This registry enables the issuance of automatic import notifications for steel products meeting the criteria, valid for one year and renewable.
- Addition of 72 HTS codes to the automatic import notification scheme for steel products, aligning it with Section 232 of the U.S. Trade Expansion Act of 1962.
The Amending Agreement became effective the day after its publication in the Official Gazette.
16. Final Resolution of the ex-officio review proceeding regarding the anti-dumping duty imposed on imports of steel plate in coil originated in the Russian Federation (“Russia”).
On April 15, 2024, the Ministry of Economy published in the Official Gazette the Final Resolution of the ex-officio review regarding the anti-dumping duty imposed on imports of steel plate in coils originated in Russia, regardless of the country of export. This measure applies to products imported through HTS codes 7208.10.03, 7208.25.02, 7208.37.01, and 7225.30.91, or any other. Since June 1996, a definitive anti-dumping duty of 29.30% had been established, subject to five previous sunset reviews, each lasting a five-year period.
In February 2014, this anti-dumping duty was extended to cover imports of boron-alloy steel plate in coils from Russia, meeting specific characteristics such as width, thickness, and boron content. The latest review of the anti-dumping duty began in September 2023, covering the period from July 1st, 2022, to June 30, 2023.
The Preliminary Resolution of this review confirmed the continuation of the anti-dumping duty at 29.30%, effective for a five-year period, starting from June 8, 2021. The interested parties have a period of 20 business days from the publication of the Preliminary Resolution in the Official Gazette to appeal before the Ministry of Economy and submit the arguments and evidence they deem pertinent.
17. Resolution declaring the initiation of the review of the validity of the anti-dumping duty imposed on imports of plastic atomizers originated in China.
On April 19, 2024, the Ministry of Economy published in the Official Gazette the Resolution declaring the initiation of the review of the validity of the anti-dumping duty imposed on imports of plastic atomizers originated in China, regardless of the country of export. This measure covers products imported under HTS code 9616.10.01 or any other.
In April 2009, the Final Resolution of the anti-dumping investigation was published in the Official Gazette, establishing a final anti-dumping duty of 86%. The Ministry of Economy has conducted two previous reviews on the validity of this duty, specifically in February 2015 and June 2020, in both cases, it was determined to maintain the anti-dumping duty in force for an additional five-year period.
In September 2023, a notice regarding the validity of the anti-dumping duties was published in the Official Gazette. Olan de México, S.A. de C.V., expressed its interest in having the Ministry of Economy initiate a sunset review. Consequently, the Resolution declared the initiation of the procedure for the sunset review of the definitive anti-dumping duties. The Ministry of Economy established the examination period as January 1st to December 31, 2023, and the analysis period as January 1st, 2019, to December 31, 2023.
The definitive anti-dumping duties will remain in effect during the proceeding, and interested parties have 28 business days to prove their legal interest and submit responses, arguments, and relevant evidence.
18. Decree amending the Tariff General Import and Export Taxes Law (“TIGIE”, for its acronym in Spanish) regarding the tariff-quota applicable to coffee in capsules.
On April 22, 2024, the Mexican President published in the Official Gazette the Decree amending the TIGIE concerning the HTS codes applicable to coffee in capsules. This Decree became effective the day after its publication.
The Decree aims to support the coffee industry by increasing national productive capacity in the medium and long term and by fostering job creation through investment in the sector. Additionally, it seeks to promote the competitiveness of the industry without causing imbalances in commercial relations.
Consequently, the tariff-quota applicable to coffee capsules classified under HTS codes 0901.21.99, 0901.22.99, and 0901.90.99 was modified. The tariff-quota for such coffee capsules—roasted and ground coffee in individual packages weighing 40 grams or less—has been increased to 20%.
19. Agreement announcing the import quota for roasted and ground coffee in individual packages weighing up to 40 grams under HTS codes 0901.21.99, 0901.22.99, and 0901.90.99.
On April 23, 2024, the Ministry of Economy published in the Official Gazette the Agreement disclosing the applicable tariff-quota for imports of coffee in capsules. The Agreement establishes a quota for the importation of roasted and ground coffee in individual containers weighing up to 40 grams for the period from January 1st to December 31 of this year, with a preferential tariff-quota. This applies to HTS codes 0901.21.99, 0901.22.99, and 0901.90.99, and specifically to roasted and ground coffee as well as substitutes containing roasted and ground coffee. The Agreement entered into force the day following its publication in the Official Gazette.
Interested companies must request the “Direct Quota Allocation” using their advanced electronic signature through the Mexican Foreign Trade Digital Window, attaching the necessary information. They may request the allocation when they meet at least one of the following criteria: (i) having produced soluble, roasted, and ground coffee or coffee in individual packages in the immediately preceding year; (ii) having consumed domestic green coffee in the production of coffee in the immediately preceding year; or (iii) being economic interest groups that include companies meeting the above criteria.
The Ministry of Economy will allocate the quota based on: (i) domestic production of the previous year (3% of production or 2% of consumption of green coffee); (ii) exports of green coffee of the previous year (80% of total exports); and (iii) the sum of individual allocations for economic interest groups.
The Ministry of Economy will issue the quota certificate; also, will be able to verify the information at any time and apply the corresponding sanctions, if necessary.
20. Resolution concluding the ex-officio review of the anti-dumping duty imposed on imports of children’s bicycles originated in China.
On April 24, 2024, the Ministry of Economy published in the Official Gazette the Resolution concluding the administrative procedure for the ex-officio review of the anti-dumping duty imposed on imports of children’s bicycles originated in China, regardless of the country of export. This measure covers products imported under HTS code 8712.00.02, or any other.
In December 2015, the Final Resolution of the investigation was published in the Official Gazette, establishing a definitive anti-dumping duty of USD$13.12 per piece. In April 2022, the Ministry of Economy conducted a preliminary review on the validity of the definitive anti-dumping duty, extending its validity for five more years, starting on December 22, 2020. In October 2022, the Ministry of Economy initiated the last review of the anti-dumping duty.
In this final review, the Ministry of Economy determined that it did not have sufficient elements to analyze the existence of a change in the circumstances by which it determined the existence of a margin of price discrimination, the injury to the domestic industry and the consequent anti-dumping duty. Therefore, it concluded the review procedure without making any changes. Thus, the validity of the definitive anti-dumping duty will expire on December 22, 2025.
21. Resolution declaring the initiation of the proceeding to review the validity of the anti-dumping duty imposed on imports of pencils originated in China.
On April 25, 2024, the Resolution initiating the review of the anti-dumping duty imposed on imports of pencils originated in China, regardless of the country of export, was published in the Official Gazette. This measure covers HTS code 9609.10.01 or any other.
In May 2014, the Final Resolution of the Investigation was published in the Official Gazette, wherein the Ministry of Economy imposed a definitive countervailing anti-dumping duty of USD $0.0299 per piece. In June 2020, the Ministry of Economy conducted a review on the validity of the definitive anti-dumping duty, extending its validity for five more years, starting on May 27, 2019.
In September 2023, the “Notice on the effectiveness of the anti-dumping duties” was published in the Official Gazette. Dixon Comercializadora, S.A. de C.V., expressed its interest in having the Ministry of Economy initiate the sunset review.
The Resolution declared the initiation of an anti-dumping duty sunset review proceeding and also established the review period from January 1st to December 31, 2023, and the analysis period from January 1st, 2019, to December 31, 2023. The definitive anti-dumping duties will remain in force during the proceeding, and interested parties have 28 business days to prove their legal interest and submit responses, arguments, and relevant evidence.
22. Resolution declaring the ex-officio initiation of the anti-dumping investigation proceeding on imports of footwear originated in China.
On April 26, 2024, the Ministry of Economy published in the Official Gazette the Resolution declaring the ex-officio initiation of the administrative anti-dumping investigation on imports of footwear originated in China, regardless of the country of export. The Ministry of Economy must have sufficient evidence to demonstrate dumping, injury, and causal relationship between them to initiate an ex-officio investigation. In this regard, the Ministry of Economy compiled information from various sources and observed a significant increase in imports of footwear from China since 2020, entering at lower prices than those in the Mexican market, thus adversely affecting the Mexican domestic industry.
The Ministry of Economy collected data from Mexico’s Commercial Information System and the National Institute of Statistics and Geography, confirming that Chinese footwear imports are made at significantly lower prices than domestic ones. Furthermore, the Ministry of Economy collected data from information requested to the National Chamber of the Footwear Industry and Guanajuato´s Chamber of the Footwear Industry related with the characteristics and manufacturing of footwear, economic indicators, and the similarity with the Chinese product. The responses received supported the indications of dumping and injury to domestic producers.
The Ministry of Economy identified six categories of footwear under investigation and determined that the Chinese imports during the period from October 1st, 2020, to September 30, 2023, were presumably made under dumping conditions, causing material injury to the Mexican industry.
As a result, the ex-officio initiation of the anti-dumping investigation on the imports of footwear from China, regardless of the country of export, imported through HTS codes 6402.91.06, 6402.99.19, 6402.99.20, 6404.11.17, 6404.19.02, 6404.19.08, and 6404.19.99, or through any other, was declared. Domestic producers, importers, exporters, foreign legal entities, or any person with a legal interest in the investigation’s outcome, have a period of 23 business days to submit their response to the official form, along with arguments and relevant evidence.
23. Notice Announcing Ordinary for March 2024 Maximum Sugar Export Quota to the United States.
On April 29, 2024, the Notice announcing the ordinary adjustment for March 2024 was published in the Official Gazette. This adjustment concerns the maximum quota for exporting sugar from sugar cane or beet to the United States, originated in Mexico, for the sugar cycle spanning from October 1st, 2023, to September 30, 2024. The ordinary adjustment sets the quota at 617,361.929 metric tons of raw value.
24. Final Resolution on the validity review of anti-dumping duties on imported carbon steel tubing originated in China.
On April 30, 2024, the Ministry of Economy published in the Official Gazette the Final Resolution of the sunset review and ex-officio review concerning anti-dumping duties on imported carbon and alloy steel pipes with longitudinal seams of circular, square, and rectangular cross-section, originated in China, regardless of the country of export.
In March 2018, the Final Resolution of the anti-dumping investigation was published in the Official Gazette, imposing the following definitive anti-dumping duties: (i) USD$0.506 per kg for imports from Tianjin Huilitong Steel Tube Co., Ltd.; (ii) USD$0.618 per kg for imports from Tangshan Zhengyuan Pipeline Co., Ltd, Tianjin Youfa Dezhong Steel Pipe Co., Ltd., Tianjin Youfa Steel Pipe Group Co., Ltd. No. 2 Branch Company, and other exporters from China; (iii) USD$0.356 per kg for imports from Huludao City Steel Pipe Industrial Co., Ltd.; and (iv) USD$0.537 per kg for imports from Tianjin United Steel Pipe Co., Ltd.
In November 2022, the notice regarding the effective date of the anti-dumping duties was published in the Official Gazette. Consequently, in January 2023, Forza SPL, S.A. de C.V., Pytco, S. de R.L. de C.V., and Tubería Laguna, S.A. de C.V., expressed their interest to the Ministry of Economy to initiate the sunset review of the definitive anti-dumping duties. On March 7, 2023, the Resolution declaring the initiation of the sunset review and ex-officio review of the countervailing duties was published in the Official Gazette.
Through the Final Resolution, the sunset review and the ex-officio review of the anti-dumping duties were concluded. The Ministry of Economy decided to extend the validity of the definitive anti-dumping duties for five more years, starting on March 9, 2023. Importers subject to the definitive anti-dumping duties will be exempt from paying them if they can prove that the country of origin of the goods is other than China.
25. Elimination of definitive anti-dumping duties on imports of steel plate in sheets originated in Italy and Japan.
On April 30, 2024, the Ministry of Economy published in the Official Gazette the Notice announcing the elimination of the definitive anti-dumping duties imposed on imports of steel plate in sheets originated in Italy and Japan, regardless of the country of export. In April 2019, the Final Resolution of the anti-dumping investigation was published, imposing definitive anti-dumping duties on steel plate imports entering through various HTS codes. For imports from Italy, the duty was set at USD$0.023 per kg, while imports from Japan had a duty of USD$0.236 per kg.
After the notice of the effectiveness of the anti-dumping duties was published in September 2023, the deadline for domestic producers to express their interest in initiating a review of the duties ended on March 21, 2024. Since no domestic producer expressed by written their interest to the Ministry of Economy, the notice was issued to eliminate the definitive anti-dumping duties effective on May 1st, 2024.
REGIONAL SCOPE
26. Agreement announcing Decision No. 12 of the Administrative Commission of the Free Trade Agreement between Mexico and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
On March 22, 2024, the Ministry of Economy published in the Official Gazette the Agreement announcing Decision No. 12 of the Administrative Commission of the Free Trade Agreement between Mexico and Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, adopted on December 9, 2021. The Decision will enter into force 30 days after the last communication of the Parties informing the fulfillment of their respective internal legal procedures.
In this Decision the Operating Guidelines of the Committee for Regional Integration of Inputs (“CIRI”, for its acronym in Spanish) were adopted. The CIRI is integrated by representatives from both the public and private sectors of the countries involved in the Free Trade Agreement. Additionally, the CIRI´s representatives can be accompanied by technical advisors. The functions of the CIRI include considering requests for waivers related to absolute shortages, timely delivery conditions, volume, quality, and/or price. This involves evaluating the documented inability to supply a producer of goods in the territory of the member countries of this trade. The CIRI analyzes such requests and, through the issuance of an opinion, determines the granting of the corresponding waiver.
27. Agreement announcing Decision No. 118 of the Administrative Commission of the Free Trade Agreement between Mexico and Colombia (“Mexico-Colombia FTA”).
On April 18, 2024, the Ministry of Economy published in the Official Gazette the Agreement announcing Decision No. 118 of the Administrative Commission of the Mexico-Colombia FTA adopted on March 21, 2024. The agreement came into force the day after its publication in the Official Gazette.
This decision provides a temporary waiver allowing the use of materials produced or obtained outside the free trade zone for manufacturing specific textile and apparel goods. This waiver will benefit these goods with a preferential tariff treatment outlined in the Mexico-Colombia FTA.
The waiver is granted for the period from April 18, 2024 to April 17, 2025. This measure is based on an opinion issued by the Regional Input Integration Committee on March 15, 2024, which concluded that local producers are unable to acquire the specified materials under appropriate conditions of timeliness, volume, quality, and price. Therefore, the temporary waiver is justified to allow goods manufactured in Colombia, using these external materials, to benefit from preferential tariff treatment.
This measure covers HTS codes under textile goods and is an extension of Decision No. 109 of February 2022. During this period, textile goods manufactured in Colombia using foreign materials may be imported into Mexico at preferential tariffs, as outlined in the treaty’s tariff elimination schedule.
MULTILATERAL SCOPE
28. The World Trade Organization (“WTO”) released the report of the Panel on European Union (“EU”) measures affecting palm oil.
On March 5, 2024, the WTO circulated the report of the Panel on “European Union and Certain Member States – Certain Measures Concerning Palm Oil and Biofuels Based on Oil Palm Crops”.
In January 2021, Malaysia initiated consultations with the EU, France, and Lithuania, asserting that the EU’s renewable energy policies and sustainability criteria were inconsistent with the Agreement on Technical Barriers to Trade (“TBT Agreement”) and the General Agreement on Tariffs and Trade 1994 (“GATT 1994”). Malaysia also challenged the specific measures imposed by France and Lithuania under the Agreement on Subsidies and Countervailing Measures (“SCM Agreement”) and the GATT 1994. Colombia and Argentina joined to these consultations.
The Panel determined that while the EU measures constituted valid technical regulations under the TBT Agreement, their application were inconsistent due to a lack of timely review and deficiencies in the risk criteria, resulting in arbitrary discrimination. Furthermore, the EU breached several articles of the TBT Agreement by failing to notify and organize a comment process on the draft measures. Regarding France, the exclusion of palm biofuel was deemed inconsistent with the GATT 1994 due to higher taxes and unfavorable treatment compared to other biofuels, although it was acknowledged as a valid measure for the conservation of natural resources. Malaysia failed to establish violations concerning Lithuania’s measures.
29. The United States initiated a safeguard investigation on fine denier polyester staple fiber.
On March 11, 2024, the United States informed the WTO´s Committee on Safeguards about its initiation of a safeguard investigation on fine denier polyester staple fiber on February 28, 2024. This investigation aims to assess whether increased imports of a product have caused or are threatening to cause serious injury to the domestic industry.
Throughout the safeguard investigation process, interested parties may submit evidence and their views, and have the opportunity to respond to other parties’ submissions.
A WTO Member may only take a safeguard measure, i.e. temporarily restrict imports of a product, if increased imports of the product have been found to cause or threaten to cause serious injury to domestic production.
30. India and the United States announce a mutually agreed solution in their dispute regarding agricultural import measures.
On March 15, 2024, India and the United States jointly notified the WTO Dispute Settlement Body (“DSB”) of a mutually agreed solution to the dispute concerning “India – Import Measures on Certain Agricultural Products”. This notification was circulated to all WTO Members on March 21.
As part of this solution, the United States withdrew its 2016 request to suspend India’s tariff concessions or other obligations under the GATT 1994. Likewise, India withdrew its 2016 opposition to this suspension, as well as its 2017 request to establish a compliance Panel. With both requests withdrawn, the DSB has been informed that the parties have resolved the dispute in accordance with Article 3.6 of the Dispute Settlement Understanding (“DSU”).
31. The WTO Panel issues report on Australia’s duties on certain Chinese products.
On March 26, 2024, the WTO circulated the Panel report of the case brought by China “Australia – Anti-dumping and Countervailing Duty Measures on Certain Products from China”.
The dispute arose on June 24, 2021, when China initiated consultations with Australia, challenging measures imposed on wind towers, stainless steel sinks, and railway wheels. China alleged that these measures violated the Anti-dumping Agreement, the GATT 1994, and the SCM Agreement. Australia challenged China’s claims, arguing that some measures had expired before the Panel was established. The Panel decided not to address these expired measures and deemed it unnecessary to consider certain additional challenges raised by China.
The Panel concluded that the Australian Anti-Dumping Commission had violated several articles of the Anti-dumping Agreement and the GATT 1994 in its investigations and reviews concerning the disputed products. Key violations included inaccurately reconstructing normal value and failing to provide sufficient explanations regarding production costs. Consequently, the Panel recommended that Australia amend its measures to align with its international obligations under the GATT 1994 and the Anti-dumping Agreement.
32. China requests consultations with the United States regarding tax credits for electric vehicles and renewable energy.
On March 28, 2024, China’s request for WTO consultations with the United States regarding certain tax rebates under the U.S. Inflation Reduction Act to promote the production of electric vehicles and renewable energy projects was circulated to WTO members.
China’s allegations center on the contention that the U.S. tax rebates are tied to the use of domestic products over imported ones unfairly discriminate against goods originated in China. These alleged actions are seen as violations of the provisions outlined in the GATT 1994, the Agreement on Trade-Related Investment Measures, and the SCM Agreement.
This request for consultations represents the beginning of the WTO dispute resolution process. Consultations offer both parties an opportunity to discuss the issue and seek a mutually acceptable resolution without resorting to formal litigation. If no solution is reached within 60 days, the complaining party may escalate the matter by requesting the establishment of a Panel to adjudicate the dispute.
33. Australia and China announce a mutually agreed solution of their dispute concerning duties on wine.
On March 29, 2024, Australia and China submitted to the WTO DSB a notification of a mutually agreed solution in the dispute: “China – Anti-dumping and Countervailing Duty Measures on Wine from Australia”. The notification was circulated to WTO Members on April 3, 2024.
The dispute arose on June 24, 2021, when China initiated consultations with Australia, challenging measures imposed on wind towers, stainless steel sinks, and railway wheels. China alleged that these measures violated the Anti-dumping Agreement, the GATT 1994, and the SCM Agreement. Australia argued that some measures had expired before the Panel was established. The Panel decided not to address these expired measures and deemed it unnecessary to consider certain additional challenges raised by China.
Subsequently, on April 19, 2024, the dispute Panel circulated its report to WTO Members. In accordance with the DSU, the Panel Report was limited to a brief description of the dispute and notification that a settlement had been reached.
34. Turkey initiates safeguard investigation on ethyl acetate.
On April 8, 2024, Turkey notified the WTO´s Committee on Safeguards that on April 6, 2024, it had initiated a safeguard investigation concerning ethyl acetate. The safeguard investigation seeks to determine whether increased imports of a product have caused or are threatening to cause serious injury to the domestic industry.
Throughout the safeguard investigation process, interested parties may submit evidence and their views, and have the opportunity to respond to other parties’ submissions.
A WTO Member may only take a safeguard measure, i.e. temporarily restrict imports of a product, if increased imports of the product have been found to cause or threaten to cause serious injury to domestic production.
35. South Africa requests consultations with the EU regarding measures on citrus imports.
On April 24, 2024, South Africa’s request for WTO consultations with the EU regarding certain aspects of the EU’s import regime for South African citrus fruits was circulated to WTO Members.
In this case, South Africa is challenging the ban imposed by the EU on the importation of South African citrus affected by the “citrus black spot” fungus (Phyllosticta citricarpa). South Africa claims that the EU measure violates several provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.
This request for consultations marks the beginning of the WTO dispute resolution process. Consultations offer both parties an opportunity to discuss the issue and seek a mutually acceptable solution without resorting to formal litigation. If no solution is reached within 60 days, the complaining party may escalate the matter by requesting the establishment of a Panel to adjudicate the dispute.