Vietnam-Mexico Steel Dispute Sparks Amid Diplomatic Anniversary

As Vietnam and Mexico mark 55 years of diplomatic relations, a recent decision by Mexico’s Ministry of Economy to remove all Vietnamese steel mills from the official registry, effectively halting steel imports from Vietnam, is raising concerns over potential trade agreement violations.

Adrián Vázquez Benítez, Managing Partner, VTZ Abogados, and legal representative of Vietnam’s steel industry in Mexico, dismissed the government’s allegations of Chinese steel triangulation and the use of shell companies as “false” and “misleading.”

The dispute stems from a meeting between Economy Minister Marcelo Ebrard and representatives of Mexico’s domestic steel industry, during which they agreed to delist many foreign mills. The measure, implemented in two phases last May, first excluded around 1,000 unapproved mills, then removed all remaining Vietnamese mills.

“With all Vietnamese mills now removed, steel imports from Vietnam are no longer possible since none are listed in the official registry,” said Vázquez. This decision impacts 100% of Vietnam’s steel exports to Mexico, including galvanized, cold-rolled, and hot-rolled sheet products widely used in housing construction, roofing for low-income communities, and infrastructure projects.

He emphasized that the companies he represents have cooperated in complex anti-dumping investigations by the Ministry of Economy, providing detailed evidence of their operations, financial records, sales, and production costs.

“If we were assigned dumping margins, if we were investigated, if we took part in such thorough processes, how is it now that we supposedly do not exist?” he questioned. Vázquez cited at least six rulings by Mexico’s Tax Administration Service (SAT) confirming, after thorough audits, that Vietnamese steel exports to Mexico originated in Vietnam, not China.

“SAT is the competent authority to determine origin. The Ministry of Economy is not,” he said. Addressing the triangulation claims, he explained that steel carries a digital trace, mill certificates and unique heat numbers that make every batch traceable throughout the production chain.