Mexico, Us Reach Agreement on Cement Tariffs, Potentially Ending 16-Year Conflict

SourceMex Economic News & Analysis on Mexico, January 18, 2006 | Go to article overview

Mexico, Us Reach Agreement on Cement Tariffs, Potentially Ending 16-Year Conflict


The protracted battle between the US and Mexico regarding trade in cement appears finally to be coming to a conclusion. In mid-January, officials from the two countries reached an agreement by which the US would gradually eliminate its anti-dumping tariffs on Mexican cement. In exchange, Mexico agreed to drop its complaint against the US for unfair trade practices on imports of Mexican cement.

The two sides have been at odds on this issue since 1990, when the US government imposed a countervailing duty of 55% against several Mexican cement companies on the premise that they were selling surplus cement in the US at below-market prices.

The US had made the countervailing duty subject to review on an annual basis, but there has been no move to remove the tariff in the past 16 years (see SourceMex, 1994-08-10, 2000-10-11, and 2002-02-26).

Mexico brought the issue before the World Trade Organization (WTO), which agreed in 2003 to form a dispute-resolutions panel (see SourceMex, 2003-02-12 and 2003-09-03). The WTO panel had not issued a ruling as of late 2005.

The US and Mexican governments revisited the issue in December 2005 at the meeting of the Doha Round of WTO talks in Hong Kong. At that meeting, led by US Trade Representative Robert Portman and Mexican Economy Secretary Sergio Garcia de Alba, the two sides committed to find a negotiated solution to the problem.

A month later, the US and Mexico announced the agreement, by which the US would initially reduce the tariff on Mexican cement imports to 42.26%. At the same time, Mexico agreed to drop the dispute that had been under consideration by the WTO dispute-resolution panel.

Garcia de Alba said the two sides are expected to continue negotiations in the coming months as part of an effort to eliminate the duties entirely.

The US cement industry, which had pushed the US government to impose the tariffs in the first place, said it had no problem with the tariff reductions. "We understand that progress is being made and wish the negotiators good luck on both sides," said attorney Joe Dorn, whose company King and Spalding represents a coalition of 23 US cement companies known as the Southern Tier Cement Committee.

The Camara Nacional del Cemento (CANACEM) said a reduction in tariffs would allow companies like CEMEX and Grupo Cementos Chihuahua to expand their production and boost exports to the US. Some companies, like Holcim Apasco, which previously had little presence in the US, will now be able to gain a share of the US market, said CANACEM.

CEMEX currently exports about 5 million metric tons of cement to the US annually, but much of it is shipped from plants in Asia to avoid the duties that had been in place for Mexican cement. Even with the duties, CEMEX was shipping about 1 million MT of cement to the US directly from Mexico. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Mexico, Us Reach Agreement on Cement Tariffs, Potentially Ending 16-Year Conflict
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.