Ohio's U.S. Senators want to stop surge of Mexican steel imports

WASHINGTON, D. C. - Both Ohio’s U.S. Senators want the Biden administration to stop a surge in steel imports from Mexico that violates a 2019 agreement between the United States and Mexico, and that they say threatens the U.S manufacturing base and national security.

A bipartisan group of U.S. Senators including Cleveland Democrat Sherrod Brown and Cincinnati Republican JD Vance are sending a Wednesday letter to National Security Advisor Jake Sullivan that blames the steel influx from Mexico for at least one plant closure, the loss of over a thousand new and existing jobs, and the deferment of hundreds of millions of dollars in new investment.

Brown’s office notes that Mexico’s Grupo Simek announced plans in August to close Republic Steel plants in Canton, Ohio, and Lackawanna, New York, while relocating production to Mexico. It said the closures will result in the loss of more than 500 good-paying, union jobs and its decision to produce steel in Mexico instead of investing in U.S.-based assets shows the Mexican government isn’t serious about adhering to the 2019 agreement.

The letter says 2022 data shows that yearly iron and steel imports from Mexico have risen approximately 73% from a baseline established before the 2019 trade agreement. It said that during the same period, semi-finished steel and long product imports increased 120% and steel conduit imports rose 577%.

In addition to citing Grupo Simek’s actions, the letter says Mexican wire and rebar producer Deacero just opened a new Laredo, Texas, distribution center to get a bigger share of the US market, and a Mexican electric conduit producer, Quality Tube S.A., is expanding its Laredo distribution to further penetrate the U.S. market.

U.S Trade Representative Representative Katherine Tai discussed the steel import surge with Mexico’s Secretary of Economy, Raquel Buenrostro, over the summer. A statement from Tai’s office said she stressed the importance of Mexico enhancing its monitoring of its steel and aluminum exports to the United States in accordance with the 2019 agreement, and ensuring greater transparency with regards to Mexico’s steel and aluminum imports from third countries.