Who is Víctor Cairo and Why is He Relevant?
Víctor Cairo, the president of Canacero, is a prominent figure in Mexico’s steel industry. His recent statements highlight the urgent need to protect domestic steel producers from unfair competition, particularly from subsidized steel imports from Southeast Asia.
Canacero’s Demands and Actions
- Higher Tariffs: Canacero has requested federal authorities to impose higher tariffs on steel imports from these regions.
- Prevent Triangular Trade: The organization is advocating for measures to prevent triangular trade, a practice where goods are shipped via multiple countries to evade tariffs.
- Security Measures: They are urging action under Article 29 of the Transpacific Partnership (TPP) concerning national security to prohibit the entry of steel from this region.
Additional Measures Sought by Canacero
Canacero has also proposed changes to temporary importation systems like IMMEX and PROSEC, which certain groups have exploited to circumvent regular import procedures. These measures aim to address unfair competition and the influx of cheap steel into the country.
Support and Necessary Decisions
Cairo expressed appreciation for the support from Claudia Sheinbaum, Mexico’s head of the Secretariat of Environmental and Urban Development. However, he emphasized that more decisive actions are needed to tackle the issue effectively. The request mirrors that of the United States, urging Mexico to shut its doors to unfair competition from Southeast Asia and avoid triangular trade.
Alacero’s Call for Regional Cooperation
Ezequiel Tavernelli, the executive director of Alacero, echoed the need for regional cooperation in Latin America. He highlighted the abundant talent, technology, and raw materials available in the region, particularly in Mexico, Colombia, Brazil, Argentina, and Chile.
Urgency for Trade Protection Measures
Tavernelli pointed out that while steel production in Latin America is declining, imports—especially from China—are rising significantly. He underscored the urgency of implementing trade protection measures, given that over half of the imports come at dumping prices and through unfair trade practices.
Importance of Swift Action
Latin America, according to Tavernelli, should utilize trade defense measures more extensively and swiftly. The region has experienced a 233% increase in steel imports between 2010 and 2024, making it the most affected by this issue.
Key Questions and Answers
- What is the issue? The steel industry in Mexico is facing unfair competition from subsidized steel imports, primarily from Southeast Asia.
- Who is making the call? Víctor Cairo, president of Canacero, and Ezequiel Tavernelli, executive director of Alacero, are advocating for protective measures.
- What actions are being demanded? Higher tariffs, prevention of triangular trade, and application of national security measures under the TPP.
- Why is regional cooperation important? Latin America has abundant resources and talent, but the region needs to work together to implement trade protection measures swiftly.
