Mexico imposed a preliminary antidumping duty on imports of thermoplastic rubber from China, a product used in the production of footwear, asphalt for road pavements and waterproofing membranes.
Mexico imposed a preliminary antidumping duty on imports of thermoplastic rubber from China, a product used in the production of footwear, asphalt for road pavements and waterproofing membranes.
The Mexican Ministry of Economy reported that it is continuing with the administrative investigation procedure into unfair international trade practices, in the form of price discrimination, and has imposed a provisional compensatory fee of US$ 0.8324 per kilogram on imports of this product, known as SBS rubber.
The precise product is styrene butadiene styrene thermoplastic rubber and is used in the footwear industry such as insoles, soles, frames, boots in many transparent forms, technical compositions, as well as in adhesive and sealant application, asphalt modification for road pavements and waterproofing membranes.
It is also used in bottle cap coatings, conveyor belts and plastic modification, among others.
On April 26, 2024, Dynasol Elastómeros requested the initiation of the administrative investigation procedure for unfair international trade practices, in the form of price discrimination.
The preliminary resolution was published this Monday in the Official Gazette of the Federation (DOF) and will come into force on March 4.
According to the information in the administrative file, Dynasol has its production plant in Altamira, Tamaulipas and serves different industrial sectors dedicated to manufacturing footwear, adhesives and sealants, asphalt modification for road pavements and waterproofing membranes.
Dynasol, the only national producer of SBS rubber in Mexico, said that in 2021 its main consumer was the asphalt modification sector, while in 2022 and 2023 it was the adhesives sector.
China is the country with the largest installed capacity and the greatest need for export, having more than 55% of the installed capacity worldwide.
Excess installed capacity in China has encouraged the increase of its exports to the Mexican market.
Dynasol argued that a slowdown in domestic demand for SBS in China has caused an imbalance in the supply-demand balance, accelerating the growth of exports to Mexico.
In 2018, the United States imposed a 25% tariff on certain products originating in China, including SBS rubber entering through tariff fraction 4002.19.00.14, which limits exports of this product to one of the main SBS markets worldwide and makes Mexico attractive due to its proximity.
