2024-04-30 14:05:02
Imposing tariffs on imported goods to support relocation as
It is stated in the import decree of the Government of Mexicowill affect the country’s competitiveness, considered Kenneth Smith, former chief negotiator of the T-MEC.
This decision to issue a decree that rates between 5% and 50% on more than 544 products that arrive from abroad, from countries that do not have a trade agreement with our country, will make inputs more expensive, he estimated.
He said that the plants installed here were buying their raw materials from other countries.
Parts of the world where they had better prices will now face tariffs and this “will definitely impact competitiveness,” he stated.
Smith Ramos, founder of the consulting firm AON, remembered that EU is arguing a possible triangulation of steel and aluminum that arrive from China and are then exported to the neighboring country as if they were Mexican materials.
Furthermore, he said, “there is an important political factor… at the end of the day (this decree)
It goes with a dedication to China without a doubt, but you take between your legs other countries that do not have a candle at the funeral.”
The international trade expert pointed out that this has to do with the dispute
trade between the US and China and the pressure of Washington about the incursion of Asian products into our country. “This may also be a response from the Mexican government to these pressures… and there is also concern about the investments that China is announcing in electric cars.”
Even the challenge for the next US government, be it Donald Trump o Joe Biden and in the new Government of Mexico, it will be to rethink Mexico’s commercial and foreign policy in terms of its relationship in the T-MEC and the impact of China. “Especially if Trump returns, the issue of China and its investments in Mexico will be at the forefront of the agenda.”
In this regard, economist Gabriela Siller said that this is a protectionist measure and will affect the Mexican consumer, since prices will rise.
Siller clarified that this has nothing to do with the nearshoring as offered by the Mexican Government and rather seems like an import substitution model that we already had in the 40s in the country and only affected consumers.
On that occasion, the financial analyst explained, tariffs were imposed on imports so that local products could be consumed instead of foreign products and with that they generated greater economic growth,” but obviously, even more expensive, because there was a lower supply of products”, highlighted the economist.
He explained that there was no economy as globalized as now, so this proposal will generate great inflationary pressure. The decree came into force yesterday
where Mexico announced new tariffs on products such as steel, aluminum, textiles, clothing, footwear, wood, plastic and their manufactureschemical products, paper and cardboard, ceramic products, glass and its manufactures, electrical equipment, transportation equipment, musical instruments, furniture, among others, which in total are 544 products.
Said document distributed in the Official diary He stressed that it is about providing certainty and fair market conditions to the sectors of the national industry that face situations of vulnerability, derived from practices that alter and affect trade.
International.
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2024-04-30 14:05:02