Trade Cases

Mexico GOES Tariff Free

Written by Sandy Williams


Mexico has agreed to strictly monitor exports of grain-oriented electrical steel in lieu of trade restrictions under Section 232 of the Trade Expansion Act of 1962.

A Nov. 5 statement from the U.S. Trade Representative said, “In light of these measures, imports from Mexico will not be subject to any action to adjust imports of electrical transformers and related parts that may be adopted by the United States under Section 232.”

The U.S. and Mexico will consult regularly on the implementation of the measures and on bilateral and trade conditions relating to GOES products.

U.S. Trade Representative Robert Lighthizer said that the influx of low-priced steel from third countries imperils North America’s electrical steel production capability. He praised his Mexican counterpart, Secretary of Economy Graciela Márquez Colín, for working to find “cooperative solutions to a common regional challenge.”

The Department of Commerce self-initiated a Section 232 investigation on imports of laminations for stacked transformer cores, stacked and wound transformer cores, electrical transformers and transformer regulators. The laminates are made of grain-oriented electrical steel.

Latest in Trade Cases

Leibowitz on trade: Why is protectionism so popular?

The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.