It was said that the People's Republic of China (PRC) was avoiding customs duties by illegally exporting steel to the US through Mexico, threatening steelworkers in the US.
As a result of these moves, the Biden administration took action to halt the increase in Mexican steel imports. The re-imposition of tariffs at 2019 levels is aimed at preventing the PRC from taking advantage of duty-free access to the United States through Mexico. Senators underlined the importance of the effective implementation of the US-Mexico-Canada Agreement (USMCA), noting that such agreements are meaningless without the correct implementation.
Senators argued that trade relations with Mexico should be based not only on geographical closeness, but also on a common defence mechanism against threats from the Chinese Communist Party.
It was underlined that the PRC's efforts to avoid tariffs imposed by the US by using production facilities in Mexico while exporting steel to the US threatens the US steel industry. This abuse of the USMCA agreement signed in 2019 also causes unfair trade practices against the US market to continue.
Senators wanted the Biden administration to fully implement the agreement with Mexico and determine a clear deadline. It was stated that if Mexico does not respect this agreement, the US should take aggressive measures. A bill was also introduced to reimpose 25% Section 232 tariffs on Mexican steel imports for at least one year.
In this perspective, some senators in the US have taken action by making a comprehensive legislative proposal in order to continue the fight against trade fraud, protect the American industry and increase the competitiveness of the US. This legislation aims to take important steps against China's efforts to manipulate markets by entering the US economy through the back door.
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