Mexico Has Lowered Anti-Dumping Duties On Chinese Products.

The trade ministers of Mexico and the mainland of China signed the pitional agreement on anti-dumping duties at the beginning of June, aiming to cancel textiles and textiles from the mainland of China.

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The anti-dumping duties imposed on chemicals and toys.

This agreement marks a new milestone in the trade relations between China and Mexico, and thus brings more business opportunities to suppliers in Hongkong and the mainland.

Over the past 15 years, Mexico has been levying anti-dumping duties on products from the mainland of China.

According to the above agreement, the anti-dumping duty rate applicable to mainland garments will be reduced from 379% to 533% to 140% from the end of this year and further reduced to 80% by 2011.

In the next 3 years, the anti-dumping duty rate on the footwear industry in the mainland will be lowered to 70%, far below the current range of 232% to 1105%.

In the same period, the anti-dumping duty rate of chemicals will also drop from 208% to 75%, and the toy tax rate will be reduced from 351% to 50%.

At present, Mexico implements anti-dumping duties on mainland products of 953 tax numbers.

The agreement between the two countries will completely abolish the anti-dumping duties of 749 tax number products, but continue to levy taxes on the remaining 204 products that are classified as "sensitive" categories. However, the tax rate will be reduced until 2011, so as to safeguard the local industry of Mexico.

The agreement has a pitional period, and the tax rate will gradually decrease during the period.

The government of Mexico has said that domestic producers have accepted the agreement, but observers believe that some industries may lodge a complaint.

After the end of the pition period, any complaint will be referred to the WTO.

WTO members impose anti-dumping duties to combat unfaithful trade practices, and more than 5 of the existing anti-dumping measures are targeted at products in the US and Mainland China.

The trade minister of moo, who attended the signing ceremony of the agreement, said the agreement could stop the smuggling activities that had been going on for many years.

The China ink agreement must be examined and approved by the Senate of Mexico before it can be published in the official gazette.

The abolition and reduction of anti-dumping duties in Mexico will help the country to attract investors from mainland China and Hongkong, increase re exports and make local products more affordable, thereby enhancing the competitiveness of Mexico's industry and benefiting consumers.

Other major products, such as ballasts, valves, bicycles, locks, brass padlocks, candles, pencils and lighters, are also subject to high anti-dumping duties. However, the two sides will agree on new rates for the products concerned, and details need to be announced.

Mexico's export of toys and clothing to Mexico is expected to rise as Hongkong phased out anti-dumping duties on products from the mainland of China.