How were countervailing duties on Chinese footwear companies in Mexico established?
On Wednesday, the Mexican government announced the conclusion of the administrative investigation procedure into an anti-dumping case.
Mexican footwear imports grew 125% in the last decade, from $399 million in 2014 to $897 million in 2024.
Countervailing duties on Chinese companies
The Ministry of Economy published the resolution in the Official Gazette of the Federation (DOF), with the following countervailing duties.
Footwear imports from China face new rules in Mexico. When the customs value per pair is less than the reference price of $22.58, a countervailing duty will be applied.
The amount will be calculated as the difference between the import price and the reference price. However, it may not exceed the price discrimination margin set for each exporting company.
The adjustments were defined as follows:
- Bidibi Shoes will pay $0.54 per pair.
- Xinlong Footwear will pay $1.93 per pair.
- Exporting producers that participated in the process and were not selected for an individual margin will pay $3.00 per pair.
- Apache Footwear will pay $4.69 per pair.
- Yaxin Shoes Factory and other exporting companies, $22.50 per pair.
- On the contrary, footwear imports arriving in Mexico with a price equal to or higher than the threshold of $22.58 per pair will be exempt from paying countervailing duties.
Employment in the footwear industry
The Ministry of Economy announced measures to ensure fair competition and protect the domestic industry. Undersecretary Vidal Llerenas explained that the reform of the Customs Law will be supported. The aim is to strengthen supervision and apply more severe sanctions to agents who fail to comply.
The official recalled that 22,000 jobs have been lost in the sector since 2018. However, he assured that they can be recovered with comprehensive actions and by taking advantage of human capital, design, and technology.
He also highlighted tax incentives in new industrial parks, including Guanajuato. In 2024, Mexico imported 185 million pairs of shoes. According to the CICEG, the countervailing duties represent a relief for the industry.