Zekelman Industries Files Trade Lawsuit Against Mexico
10/24/2024 - Pipe and tube manufacturer Zekelman Industries is suing Mexico, contending that the country is violating trade agreements and dumping steel on the U.S. market.
According to the company, steel shipments from Mexico have increased dramatically since 2021, causing declining employment and stunted growth at U.S. steelmakers. Zekelman, in fact, closed its Long Beach, Calif., tube plant in 2022 and is moving to wind down its Chicago, Ill., location, in 2025.
The U.S. had agreed to lift tariffs in 2019 in return for Mexico agreeing to abide by reasonable levels of imports of steel to the U.S.
"Mexico is violating trade agreements, and the Biden Administration is failing to enforce these rules. The American steel industry is being damaged and American workers are paying a price," said Barry Zekelman, executive chairman and chief executive officer.
"Mexico is dumping steel on the American market. They price goods far lower than what domestic manufacturers can because of low labor and production costs. Mexico is being allowed to avoid tariffs, which nearly all other steel importers with similar labor conditions face. This is taking place even though the U.S. Commerce Department's International Trade Administration previously found the Mexican government was subsidizing its steel producers,” Zekelman said.
"America's steel industry, American jobs and the national security of the United States are at risk. The U.S. government has an obligation to act. The closure of our Long Beach and Chicago plants are harbingers of what the industry faces if Mexico is allowed to continue to flagrantly violate trade agreements," Zekelman said.
The U.S. had agreed to lift tariffs in 2019 in return for Mexico agreeing to abide by reasonable levels of imports of steel to the U.S.
"Mexico is violating trade agreements, and the Biden Administration is failing to enforce these rules. The American steel industry is being damaged and American workers are paying a price," said Barry Zekelman, executive chairman and chief executive officer.
"Mexico is dumping steel on the American market. They price goods far lower than what domestic manufacturers can because of low labor and production costs. Mexico is being allowed to avoid tariffs, which nearly all other steel importers with similar labor conditions face. This is taking place even though the U.S. Commerce Department's International Trade Administration previously found the Mexican government was subsidizing its steel producers,” Zekelman said.
"America's steel industry, American jobs and the national security of the United States are at risk. The U.S. government has an obligation to act. The closure of our Long Beach and Chicago plants are harbingers of what the industry faces if Mexico is allowed to continue to flagrantly violate trade agreements," Zekelman said.
