Image credits: Matt Seymour
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News Article

Mexico is Undergoing 13 Dumping Investigations: WTO

By Sofía Hanna | Wed, 06/30/2021 - 10:36

Mexico was subject to 13 dumping investigations, indicates the “G20 Trade Measures” report made by the World Trade Organization (WTO). The report states that between 2019 and 2020, a total of 453 investigations were initiated by G20 members.

 

“While anti-dumping investigations do not necessarily lead to the imposition of measures, an increase or decrease in the number of investigations initiated is an early indicator suggesting a likely increase or decrease in the number of measures imposed. Over the 24 months of the review period, 200 anti-dumping measures were imposed by G20 economies. However, as it can take up to 18 months for an anti-dumping investigation to be concluded once initiated, these measures may not necessarily be the result of initiations in the same period,” reads the report. The countries that initiated most investigations in 2020 were the US with 52, Australia with 16 and Canada with 15.

According to the report, the three countries that were subject to most of these investigations were China with 21, Malaysia with eight and Vietnam with seven during 2020. During the second half of 2019, the investigations concerned the dumping of metals in 42 percent of cases, plastics in 18 percent, chemicals in 12 percent and other products in 28 percent. But in the second half of 2020, the percentages changed to 33 percent metals, 28 percent chemicals, 9 percent plastics and the remaining 30 percent for other materials.

By 2020, anti-dumping investigations initiated by G20 members increased by 60 percent, with dumping of metal products being the most common concern. In 2019, Mexico was the subject of a total of six anti-dumping investigations but by 2020, the country was investigated seven more times.

 

Communication, E-commerce and Digitally Enabled Services

The report also studied several other trade measures and policies being implemented by G20 members and highlighted the new measures for internet, e-commerce and other network services. Mexico implemented a new decree that “addresses income tax and the VAT treatment of digital services and transactions performed on online platforms. The withholding tax should be levied on the total amount of income without VAT that individuals receive or cash-in: 2.1 percent for ground/land passenger transport services and the delivery of goods; 4 percent for lodging/accommodation services; and 1 percent for the transfer of goods and the provision of services. In case of noncompliance, non-resident legal entities without a permanent establishment in Mexico can have their digital service in Mexico temporarily blocked,” reads the report.

The data used in this article was sourced from:  
WTO
Photo by:   Matt Seymour, Unsplash
Sofía Hanna Sofía Hanna Junior Journalist and Industry Analyst