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The United States proposed additional tariffs of 10% on goods from Mexico and 13 other economies, and 12.5% on 46 more countries, for imports linked to forced labor.
In response, Mexico will work with the United States and present arguments to avoid this imposition of proposed tariffs by the Office of the United States Trade Representative (USTR), Mexico’s Ministry of Economy (SE) said in a statement on Tuesday.
The United States proposes new tariffs on countries with forced labor
The agency indicated that on June 2, the USTR made public, as part of the Section 301 investigation into countries that import goods produced under “forced labor”, a proposal to impose additional tariff measures on various countries.
The proposed measure, the SE added, “stems from an investigation that points to the alleged lack of prohibition and effective enforcement by 60 countries —including the European Union, the United Kingdom, Canada and Mexico— to prevent the importation of goods produced with forced labor in third countries”.
As a result of this investigation, the USTR proposes a 10% increase on imports from Mexico, as well as from 13 additional economies, including the European Union, Canada, Argentina and the United Kingdom.
For the remaining 46 economies subject to the investigation, the United States proposes additional tariffs of 12.5%.
News about this proposal is expected in the next 45 days
Regarding the proposal, the SE clarified that the USTR Section 301 investigation “is related to a strategy to replace the tariffs imposed under previous measures such as IEEPA (which were eliminated by the Supreme Court) and Section 122 (which will expire next July 24)”.
It added that “this is a proposal, not a final measure” and that the preliminary process requires the receipt of comments, consultations, and discussions that will take place over the next 45 days.
“Mexico trusts that the tariff proposal will be modified based on the results of the bilateral discussion tables that Mexico and the United States will continue to hold in the coming weeks, as part of the T-MEC review,” Mexico’s Economy Ministry said.
Source: EFE