Positive effects in Mexico after the elimination of tariffs

May 21, 2019

The United States eliminated the 25 and 10 percent tariff rates on Mexican and Canadian aluminum and steel as of May 20, favoring a positive environment for the ratification of the Mexico, United States and Canada Treaty (T-MEC).

Photo: Bloomberg

Andrés Manuel López Obrador said that with this change trade will improve, being a triumph for the Mexican negotiators.

"It is not to be presumed, but it went very well, this will help a lot in the industrialization of Mexico, especially in commerce."

Similarly, I have reiterated that the withdrawal of taxes will allow acceleration of the signing of the trade agreement between the three countries involved.

Let us recall that it was on June 1 2018, President Donald Trump imposed tariffs on steel and aluminum from Mexico and Canada for reasons of national security under section 232.

Later, on June 5, 2018, Mexico responded by imposing rates between 15 and 25 percent on steel products and some US agricultural goods.

Then the Canadian Government presented the list of American products that would pay between 10% and 25% when crossing the border.

Definitely, this change will bring positive results to the country, since Mexico condoned about US $ 20 thousand 925 million taxes to large taxpayers between 2007 and 2018.

Prepared by CAINTRA, with information from Milenio, El Financiero, El Economista, NYTimes and The Washington Post.