Canadian finance minister Bill Morneau has exempted NAFTA ally Mexico from controversial safeguard measures on imports of energy tubular products and wire rod, as reported by Canada-based CBC News.
Accordingly, the imports of these products from Mexico will no longer cost an extra 25 percent, effective as of February 2, 2019. The duties already paid by Mexican steel purchasers will be refunded.
Finance minister Morneau's spokesperson Pierre-Olivier Herbert has stated that the changes were made in recognition of Canada and Mexico's mutual rights and obligations under NAFTA. Meanwhile, steel imports from other countries that do not have free trade agreements with Canada will continue to face safeguard measures.
According to CBC News, Canada's emergency safeguard measures on seven categories of steel imports, with two of them being imported from Mexico, began last October to prevent dumping of steel in the Canadian market after the US decision to impose 25 percent tariffs on steel imports. Mexico strongly opposed this decision and the tension between the two countries restrained the NAFTA revision process, with both countries failing to convince the US to lift its steel and aluminium tariffs. |
