Cofece opposes countervailing duties on steel at Cocex

Mexico‘s Federal Economic Competition Commission (Cofece) opposed the imposition of countervailing duties on imports of steel products in the second quarter of 2021.

Although Cofece did not specify on which products it gave its opinion within the Foreign Trade Commission (Cocex), it stated in general terms that these measures affect the competition framework in the country.

During its participation, Cofece spoke out against «various countervailing duties in the steel sector», considering that «they restrict foreign trade and limit consumers’ access to better quality and lower priced products.»

The Commission has repeatedly ruled at Cocex in favor of promoting a foreign trade policy that incorporates the perspective of economic competition, thus reaffirming its commitment to ensure the efficiency of markets and consumer welfare.

For Cofece, openness to international trade increases family income, generates economic growth, triggers productivity, attracts foreign direct investment and causes price reductions in favor of consumers.

Countervailing duties

In Mexico, Cocex continues to function as the mandatory consultation body for the Federal Public Administration agencies and entities in all matters related to export and import, including safeguard measures.

The Commission periodically examines the existing foreign trade measures, ex officio or at the request of the business organizations concerned, and recommends amendments, if necessary.

This Commission is made up of representatives of the Ministries of Foreign Relations, Finance, Environment, Economy, Agriculture and Health, as well as the Bank of Mexico and the Federal Commission for Economic Competition.

As part of its efforts to promote pro-competitive public policies, Cofece actively participates in the sessions of the Cocex, which is a mandatory consultation body of the agencies and entities of the Federal Public Administration, and is in charge of issuing an opinion in the foreign trade matters in accordance with the provisions of the Foreign Trade Law.

During the second quarter of 2021, Cofece participated in the fourth, fifth and sixth ordinary sessions, as well as, in the third and fourth extraordinary sessions of the Cocex.

In the meetings, various tariff and non-tariff measures were discussed, among which are: the modifications to the Tariff of the Law of General Import and Export Taxes that aim to identify products with a designation of origin, approve export quotas and importation of various products from the agri-food sector, and merchandise originating from Mexico, Great Britain and Northern Ireland.