Mexico Reduces Chinese Made Shoes and Durable Wealth into General Tariffs

Starting December 12, 2012, Chinese footwear, along with ready-made garments and other consumer and durable goods from China, will be subject to general tariffs. This change marks the end of a long period of special duties that were previously imposed on these products. Over the past two years, Mexican footwear associations have repeatedly urged the government to implement measures to prevent Chinese goods from being dumped in the market at unfairly low prices. Since April 1993, China's footwear has been under anti-dumping duties. However, as of October 15, 2008, these duties were replaced with higher transitional tariffs, which remained in place until December 12, 2011. For nearly two decades, Mexico’s footwear industry was shielded by these protective measures, yet many argue that the sector did not experience significant growth or modernization during this time. The reason behind this situation is linked to Mexico’s decision to eliminate anti-dumping duties on 935 Chinese products starting October 15, 2008. These products include bicycles, tires, shoes and parts, padlocks, baby carriages, door handles, iron fittings, lighters, textiles, toys, and many more. Out of these, 324 items were immediately subjected to general tariffs, while the remaining 204 were placed under four-year transitional tariffs—still higher than the standard rates. The transitional period was meant to provide some level of protection, but it also raised concerns among local manufacturers. In particular, the footwear and garment industries have repeatedly requested an extension of these high tariffs, fearing that without them, Chinese imports could flood the market and undermine domestic production. However, Cesar Hernandez, director of foreign trade at Mexico’s Ministry of Economic Affairs, clearly stated in early December 2011 that extending the tariff period was not possible. The only remaining option for the industry is to report any instances of low-cost dumping by Chinese products and request an investigation from the Ministry. This development highlights the ongoing challenges faced by Mexican manufacturers in balancing trade liberalization with the need to protect domestic industries. As the transition period ends, the focus will shift to how effectively the industry can adapt and compete in an increasingly globalized market. (Asian Textile Union)