FOR IMMEDIATE RELEASE
Contact: Caroline Tabler or James Arnold (202) 224-2353
February 14, 2023
Cotton Leads Bipartisan Letter Urging Biden Administration to Stem Mexican
Steel Surge
Washington, D.C. —
Senator Tom Cotton (R-Arkansas) sent a letter to Secretary of Commerce Gina Raimondo and U.S. Trade
Representative Katherine Tai urging
them to take action against the unsustainable surge of Mexican steel imports.
In addition to raising grave concerns in the steel industry and in steel
communities, this surge is also in violation of a 2019 agreement between the
United States and Mexico. The United States deserves, and should demand, fair
treatment from all trading partners, including its friends.
Co-signing the letter are Senators Sherrod Brown (D-Ohio),
John Boozman (R-Arkansas), Bob Casey (D-Pennsylvania), Thom Tillis (R-North
Carolina), Tammy Baldwin (D-Wisconsin), Ted Budd (R-North Carolina), Elizabeth
Warren (D-Massachusetts), Katie Britt (R-Alabama), Tina Smith (D-Minnesota),
Rick Scott (R-Florida), Marco Rubio (R-Florida), and J.D. Vance (R-Ohio).
In part, the senators wrote:
“We urge the
Biden administration to immediately begin consultations under the 2019
agreement to address this surge of Mexican steel and return imports to
“historic volumes of trade,” with quotas, if necessary. However, if the Mexican
government refuses to remedy this breach, we regretfully urge the
administration to consider other mechanisms to ensure compliance and protect
American jobs, including the reapplication of Section 232 tariffs.”
Full text of the letter may be found here and
below.
February
14, 2023
The Honorable
Gina Raimondo
Secretary
Department of
Commerce
1401
Constitution Ave NW
Washington,
DC 20230
The Honorable
Katherine Tai
U.S. Trade
Representative
600 17th
Street, NW
Washington,
D.C. 20508
Dear
Secretary Raimondo and Ambassador Tai,
We write to
urge the Office of the U.S. Trade Representative and Department of Commerce to
take action to stem the unsustainable surge of Mexican steel
imports—particularly of steel conduit—in violation of the U.S. and Mexico’s
2019 Joint Statement on Section 232 Duties on Steel and Aluminum.
As you are
aware, the United States lifted its 25 percent tariffs on Mexican steel imports
in May of 2019. The previous administration reduced these duties as part of an
agreement which stipulates that if steel imports “surge meaningfully beyond
historic volumes of trade… the importing party may impose duties of 25
percent….in respect to the individual product(s) where the surge took place.”
In recent months, it has become clear that Mexican steel imports now “exceed
historic volumes of trade” and are “surg[ing] meaningfully” into our market.
Since the
U.S. lifted Section 232 tariffs, Mexican steel conduit imports have reached
unprecedented levels and Mexico’s penetration of the U.S. steel conduit market
has more than tripled, while demand from U.S. consumers has fallen. The
2019-2022 Mexican iron and steel surge is the largest from any iron and steel
exporter to the United States. In fact, the volume of annual iron and steel
imports from Mexico has increased approximately 73 percent over the pre-Section
232 2015-2017 baseline, semi-finished steel and long product imports are up 120
percent, and steel conduit imports have risen by an even more disturbing 577
percent. A recent Customs and Border Protection (CBP) investigation revealed
that importers misclassified Mexican steel conduit exports, concealing this
extraordinary surge.
The wave of
Mexican steel imports has already contributed to the loss of over 200 steel jobs
in California and led to the closing of one of less than a dozen American
factories that produce steel conduit. Many steel producers are concerned that
additional production cuts, layoffs, and plant closures are imminent. The
administration must act now to avoid further damage.
We urge the
Biden administration to immediately begin consultations under the 2019
agreement to address this surge of Mexican steel and return imports to
“historic volumes of trade,” with quotas, if necessary. However, if the Mexican
government refuses to remedy this breach, we regretfully urge the
administration to consider other mechanisms to ensure compliance and protect
American jobs, including the reapplication of Section 232 tariffs.
Thank you for
your attention to this important matter; we look forward to your response.
Sincerely,
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