Mexico Opens Antidumping Probes on Chinese Cardboard, Plastics

On Feb. 13 and 14, the Ministry of Economy published two resolutions in the Official Gazette of the Federation (DOF), announcing the launch of antidumping investigations into imports of cardboard and polycarbonate sheets originating from China. These investigations, conducted under Mexico’s Foreign Trade Law (LCE), Regulations on Foreign Trade Law (RLCE), and the World Trade Organization (WTO) Antidumping Agreement, aim to determine whether these imports have been entering the Mexican market at unfairly low prices, causing harm to domestic producers.

Cardboard Investigation

The investigation into cardboard imports follows a request filed in September 2024 by Productora de Papel and Cartones Ponderosa, alleging price discrimination and unfair trade practices. The petitioners observed that between August 2019 and July 2024, large volumes of Chinese cardboard entered the Mexican market at lower prices than both domestic production and imports from other countries. This situation, they argue, has negatively impacted their performance indicators and, without corrective measures, could worsen further.

The investigation period spans from Aug. 1, 2023, to July 31, 2024, with a broader market impact analysis covering Aug. 1, 2019, to July 31, 2024. The product under scrutiny includes coated paper and paperboard covered with kaolin or other inorganic substances, in various sizes and formats, made from virgin or recycled fiber.

Productora de Papel and Cartones Ponderosa presented technical specifications of Chinese manufacturers Shandong Chenming Paper Holdings and Ningbo Asia Pulp & Paper to support their claims. The Ministry has requested additional information, particularly regarding product characteristics, production processes, and import data accuracy. Authorities also demanded a clearer differentiation between sheet and roll formats, as well as further verification of key Chinese manufacturers such as Gold Hongye Paper Group Co. Ltd. and Shanghai Custom Packaging Co. Ltd.

The investigation covers imports under tariff codes 4810.13.07, 4810.29.99, 4810.32.01, 4810.39.99, 4810.92.01, and 4810.99.99. The petitioners relied on data from the National Chamber of Pulp and Paper Industries to estimate export prices but faced challenges in distinguishing between sheet and roll formats, leading them to propose an average weighted export price per kilogram.

In the investigated period, China’s cardboard production grew by 9%, while consumption increased by 5%. However, installed capacity surged by 27%. As a result, China’s freely available capacity more than doubled by 111%, reaching 14.2Mt, a volume 24 times larger than Mexico’s domestic production. Similarly, China’s export potential increased by 102%, reaching 16.9Mt, which is 29 times Mexico’s domestic production and 18 times the national market size.

The availability of such large surplus volumes suggests that even a fraction of China’s excess supply entering Mexico could significantly impact local producers and the domestic market. The Ministry is evaluating whether the evidence supports claims of dumping and if corrective antidumping duties are necessary to restore fair competition in the market.

Polycarbonate Sheets Investigation

A second resolution concerns an antidumping investigation into polycarbonate sheet imports, initiated following a request filed in August 2024 by IMSA Plastics. The company alleges that cellular, corrugated, and solid polycarbonate sheets from China have been imported in large volumes at unfairly low prices, harming domestic manufacturers.

The Ministry of Economy formally launched the investigation into these imports, which includes both definitive and temporary shipments classified under tariff codes 3916.90.91, 3920.61.01, 3921.19.91, and 3925.90.99. The investigation period runs from June 1, 2023, to May 31, 2024, while the broader market analysis covers June 1, 2019, to May 31, 2024.

The updated market and national production figures indicate that the production capacity of 39 Chinese companies was 211 times greater than the installed capacity of the entire Mexican production sector during the investigated period. 

The Ministry of Economy found sufficient evidence to preliminarily determine that China has considerable export potential and significant available capacity for polycarbonate sheets. This, combined with the increase in imports in absolute and relative terms, along with low and increasingly undervalued prices, suggests a high probability of continued growth in Chinese imports that could harm the national production sector.

If the investigation confirms unfair trade practices, Mexico may impose countervailing duties retroactively on affected products declared for consumption up to 90 days before provisional measures take effect. Interested parties, including domestic producers, importers, exporters, and foreign companies, have 23 business days to submit evidence, arguments, and responses. This period begins five days after official notification for specific parties mentioned in the resolution and five days after publication in the DOF for others.

The Ministry of Economy has made official forms available on its website, and the Chinese government, affected businesses, and relevant authorities, including Mexico’s National Customs Agency (ANAM) and the Tax Administration Service (SAT), will be notified to ensure compliance with any forthcoming trade measures.

The resolutions officially take effect the day after publication in the DOF, marking the beginning of a detailed review process that could significantly impact trade relations between Mexico and China in these key industrial sectors.