Mexico Reduces Chinese Made Shoes and Durable Wealth into General Tariffs
In December 2012, China's footwear, along with other consumer and durable goods, will be subject to general tariffs. This change comes after years of pressure from Mexican footwear associations, which have continuously urged the government to implement measures to prevent Chinese products from being dumped into the market at low prices.
Since April 1993, China’s footwear has been under anti-dumping duties. However, by October 15, 2008, these duties were replaced with higher transitional tariffs, which remained in effect until December 12, 2011. For nearly two decades, Mexico’s footwear industry was shielded by these protective measures. Despite this long period of protection, the industry failed to show significant development or innovation, raising concerns about its competitiveness.
The reason behind this situation is linked to Mexico’s decision to remove anti-dumping duties on 935 Chinese products starting from October 15, 2008. These products include a wide range of items such as bicycles, tires, shoes, locks, baby strollers, door hardware, disposable products, lighters, chemicals, textiles, toys, and more. Out of these, 324 items saw their tariffs immediately reduced to general levels, while the remaining 204 were placed under four-year transitional tariffs that remained higher than standard rates.
For the footwear and garment industries, this shift has raised alarms. The sector has repeatedly asked for an extension of the high tariffs, arguing that they are necessary to protect local businesses. However, Cesar Hernandez, director of foreign trade at Mexico’s Ministry of Economy, stated clearly in early December 2011 that extending the tariff period was not possible.
The only remaining option for the industry is to monitor for any signs of low-cost dumping by Chinese products. If such activity is detected, the Ministry of Economy can be approached for an investigation. As the industry faces this uncertain future, it remains hopeful that effective measures can still be taken to safeguard its position in the market.
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