Mexico eliminates aluminum import tariffs to combat shortage

Aluminium ingots. (Image by Saltaluminyum, Wikimedia Commons.)

Mexico removed a tariff on aluminum imports from countries with which it does not have a trade agreement, amid shortages of the material for the auto and electronics industries.

The nation eliminated tariffs of as much as 35% on the metal that have been in place since late April, according to a decree published Wednesday. The fees had been part of a set of broader tariffs imposed amid concerns about cheap imports from China and elsewhere.

The government explained the decision by saying that there was no national production of either raw unalloyed or alloyed aluminum. The “availability of said merchandise in countries with which Mexico has signed an international treaty on trade matters is insufficient to satisfy the supply of the automotive industries, auto parts, and electronics, among others,” it said in the decree.

The majority of Mexico’s raw aluminum imports come from Asian countries, with 42% of the total coming from China in February, according to data collected by the central bank. Mexico has seen growth in its automotive and electronics industries as international providers moved production to the country to be closer to North America consumers and avoid supply chain problems that in recent years led to delays.

The fees on imports, of which the aluminum tariff had formed part, had followed concerns from the US Trade Representative Katherine Tai that China was affecting global prices by manufacturing goods at below the cost of production, and that steel imported to Mexico was being improperly exported to the US.

(By Winnie Zhu and Maya Averbuch)

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