Argentina lifts anti-dumping duty against Mexican glass wool

Milei’s government closes an investigation that had been requested by the Argentine subsidiary of France’s Saint Gobain.

(May 2024 – via EFE)

Argentina resolved Friday to lift an anti-dumping duty against imports of glass wool from Mexico, after closing an investigation that had been requested by the Argentine subsidiary of the French multinational Saint Gobain. By means of a resolution published this Friday in the Official Gazette, the Argentine Ministry of Economy proceeded to close the examination of the case and not to renew the measure that applied to imports from Mexico of bonded glass wool products.

Argentina had imposed extraordinary tariffs (67%) on those imports for the first time in 2012 to prevent entries of the Mexican goods at below market prices.

In 2018 it renewed the measure, at the request of Saint Gobain Argentina, for a term of five years, under the argument that, if the tariff was removed, there could be damage to Argentine manufacturing of that product, despite the fact that there have been no imports from Mexico since 2013. Once the five-year term of the resolution had expired, in September 2023, also at Saint Gobain’s request, the case was reopened for review.

What does the resolution say?

According to the resolution published this Friday, since the application of the ‘anti-dumping’ measure, the Argentine industry increased its market share “becoming practically the only bidder”, and, “in effect, as of 2022 it reached a dominant position with a 99% share in the supply of glass wool, strongly concentrated in two companies”.

According to the examination of the Argentine Foreign Trade Commission, Saint Gobain “has a high degree of utilization of installed capacity, which reached a maximum use of 93% in the last full year” and the company “concentrates more than 66% of the market” and has high profitability, despite which “it has not made investments that significantly modify its installed capacity”.

It also states that “the company’s higher yields were not accompanied by decreases in real sales prices, but on the contrary, these advanced above wholesale inflation throughout the investigated period”.

The official review concludes that “the domestic industry does not evidence a situation of vulnerability such as to allow a determination of likelihood of recurrence of injury” by imports from Mexico, so the case is closed, without the maintenance of the measures.

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