On February 24, 2023, Mexico made a final ruling for the anti-dumping investigation of galvanised steel from Vietnam, in which many import duties for Vietnamese production companies are reduced compared to the preliminary decision.
According to information of the Department of Trade Remedies of the Ministry of Industry and Trade of Vietnam, Vietnam and Mexico are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Therefore, according to the tariff support provisions, Vietnam’s galvanised steel products exported to Mexico are entitled to a preferential tariff rate of 0%.
By 2020, thanks to this tariff rate, Vietnamese enterprises promote exports to Mexico with a total value of about 220 million USD, up 70% compared to 2019. In which, flat-rolled iron and steel roller products, covered, galvanised or coated accounting for nearly 80%.
However, this suddenly increased export has caused or threatened to cause serious damage to Mexico’s domestic production market. Therefore, in August 2021, the Mexican Ministry of Economy launched an anti-dumping investigation for galvanised steel products originating from Vietnam after receiving a lawsuit from two domestic steel manufacturing enterprises.
Mexico issued a final ruling for the anti-dumping case of galvanised steel originating from Vietnam
On February 24, 2023, the UPCI under the Mexican Economic Ministry issued the final conclusion of the anti-dumping investigation case of galvanised steel originating from Vietnam.
The anti-dumping duty rate under the final conclusion of Mexico plummeted compared to the preliminary conclusion, ranging from 0% to the highest level of 10.84% for Vietnamese galvanised steel manufacturing enterprises. Most businesses have their duties reduced by an average of about 1.5% compared to the previous ruling.
With this ruling, Vietnamese businesses will have the opportunity to return to the Mexican galvanised steel market with a preferential tariff rate from CPTPP. Despite being a new market for Vietnamese businesses, Mexico has proved to be the destination with a lot of potential, the main market of galvanised item in the entire American bloc.
With this new tariff schedule, experts and authorities assess this is completely acceptable duty rates in the context of Vietnam is increasingly integrating into the global economy and considering the correlation of benefits between Vietnam and Mexico.
According to Vietnamese Trade Counselor in Mexico, in addition to the efforts of the Vietnam Department of Trade Remedies and relevant agencies, Vietnamese businesses also contribute a significant part of this final tariff decision of Mexico through coordination, close cooperation, response to the requirements on time, …
Through this incident, Vietnam will need to pay more attention to the stricter control of import and export volume. Not only because of the preferential tariff rate that businesses can conduct activities without a certain limitation because the unlimited export may have a serious impact on the domestic production market of the importing country and thereby, leading to an anti-dumping investigation, trade remedies investigations to protect manufacturers’ rights and stabilize the market.