Mexico extends AD duties on US-origin steel pipe imports for another five years

Mexico's Ministry of Economy (Secretaría de Economía) has announced that the countervailing anti-dumping duties imposed on imports of welded carbon steel pipe originating in the United States will remain in force for another five years.

Historical and current tariff codes included

In line with technical updates to Mexico's customs tariff schedule and changes in the relevant regulations, all specific tariff codes—both those used previously and those currently listed in the customs tariff schedule—for straight longitudinal welded carbon steel pipe have been brought within the scope of the measure.

Accordingly, the customs tariff codes subject to the countervailing duty are 7305.11.01, 7305.11.02, 7305.12.01, 7305.12.02, and 7305.12.91. Codes 7305.11.01 and 7305.11.02 cover longitudinal submerged arc welded (SAW) pipes, while codes 7305.12.01, 7305.12.02, and 7305.12.91 apply to other longitudinal welded pipes.

The measures cover pipes with an outside diameter ranging from 16 inches to 48 inches (406.4 mm–1,219.2 mm) and a wall thickness between 0.188 inches and 1.000 inch (4.77 mm–25.4 mm). These products are primarily used in oil and natural gas pipelines, petrochemical facilities, hydraulic infrastructure, and water transmission projects.

Company-specific duties to remain in force

Under the ministry's final ruling, the company-specific countervailing duties (cuotas compensatorias), which will be applied outside the scope of the USMCA (T-MEC) free trade agreement between the United States and Mexico, have also been confirmed.

According to the decision, a duty rate of 4.04% will continue to apply to Berg Steel Pipe Corporation (now Berg Europipe Holding Corporation). Meanwhile, Oregon Steel Mills, Inc. and all other US exporters will remain subject to either a 25.43% duty or, depending on the case, a countervailing duty of $575.01 per metric ton.

With this decision, the Mexican government aims to prevent unfairly traded US products from entering the domestic market and to safeguard the production capacity of the country's steel industry.