China Trade Extra (April, 01, 2016 ).- Mexican Economy Secretary Ildefonso Guajardo said on April 1 that the United States, Canada, Mexico and European Union should develop a coordinated strategy for pressuring China to reduce its steel overcapacity at an April 18 high-level meeting in Brussels, and argued they should react “violently” by imposing tariffs or other trade measures if Beijing fails to cut back production.
“It makes full sense that we get together, and we are going to get together in Brussels, to try to give a common response to the Chinese,” Guajardo said at an event at the Woodrow Wilson Center in Washington. “Either you reduce your production and stop dumping on us … or we are going to really react violently” in trade terms, he added.
Guajardo clarified that he was referring to imposing tariffs and antidumping measures on Chinese steel, saying Mexico has already done so but needs to align its strategies with other major steel producers outside China. The Brussels meeting is of the Organization for Economic Cooperation and Development’s steel committee, of which China is a member.
The U.S. industry is considering a multilateral agreement to curb overcapacity as one possible remedy, though some companies are favoring a section 201 global safeguard as a possible response to the current steel crisis. Read the whole article […]