China has accused Mexico of imposing trade and investment barriers through tariff hikes on its goods, a sign the friction between the two trading partners – fuelled by escalating pressure from Washington under US President Donald Trump – is continuing to build.
The Ministry of Commerce announced on Wednesday that the Mexican government’s measures to
raise tariffs on imports from countries not party to its free trade agreements constitute a breach of trade rules. The move primarily affects Chinese products.
Following the announcement, which serves as a conclusion to an investigation first launched in September, Beijing is now positioned to pursue further bilateral talks or escalate the case to a multilateral dispute resolution body, such as the World Trade Organization.
Mexico’s revised tariff rates on over 1,400 products entered into force on January 1. The additional duties ranged from 5 to 50 per cent, with product categories such as steel and vehicles bearing the heaviest burden, according to China’s commerce ministry.
The ministry added that the hikes affected more than US$30 billion of Chinese exports to Mexico, based on last year’s trade data.
In addition to tariffs, the ministry noted that supplementary measures – including protracted customs clearances and stricter application of rules of origin – could also constitute “direct or indirect discrimination or restrictions” on Chinese imports.
Tensions between China and Mexico have mounted since Trump’s administration intensified its efforts to distance Latin America from what it perceives as Beijing’s influence.
Mexico’s tariff hike has widely been interpreted by analysts as a response to inducements from the White House to curb Chinese imports, over concerns that Mexico might serve as a back door to the American market.
Beijing has also expressed “serious concerns” over Mexican media reports that the country is considering conducting “economic security reviews” on Chinese investments.