Mexico cancels 1,000 steel import permits to combat illegal transshipment

Mexico's Secretary of Economy, Marcelo Ebrard, announced that the federal government canceled one thousand steel import permits last year. The cancellations targeted companies involved in the illegal transshipment of goods from Asia.

Ebrard stated that the government improved its traceability systems to detect the exact origin of imports following accusations from the United States that Mexico was serving as a platform for illegal Chinese steel imports. The Ministry of Economy conducted unprecedented verifications, sending teams to Asia to inspect mills and plants listed on certificates. Many of these locations were found to be non-existent or fraudulent, leading to the removal of the permits.

Ebrard emphasized that Mexico has implemented more rigorous traceability actions than any other country and currently identifies no transshipment in its steel exports. He argued that the basis for certain tariffs lacks foundation and noted that Mexico has presented technical arguments to the United States regarding steel and train tariffs within the framework of the USMCA review.