Latin American steelmakers offer the US a strategic alliance

Steelmakers in Latin America are proposing that the administration of US President Donald Trump form a strategic alliance to protect themselves from unfair trade practices and China’s overcapacity. This was reported by the Latin American Post.

The regional steel producers’ association Alacero believes that the international situation offers a historic opportunity for the countries of the Americas to create a regional supply chain.

Alacero, which represents about 60 steel companies with a combined steel production of 60 million tons per year, condemned the indiscriminate nature of the new US duties on steel and aluminum.

The association expressed disappointment with the decision to include Latin American countries among those accused of dumping. As noted in Alacero, the region’s steel industry is also suffering from the influx of cheap Chinese steel, which Trump promised to fight. Latin American producers fear that they could become collateral damage in a trade war.

Alacero proposes a strategic alliance between U.S. steel producers and U.S. governments, as a united supply chain can better resist China’s unfair trade practices. It is believed that by integrating steel trade in the region, governments will be able to respond more effectively to security concerns and potential shortages caused by unforeseen global disruptions.

Latin American companies have strong capabilities and extensive experience in the production of certain types of steel that complement the US domestic supply. The region’s steel industry is also characterized by relatively low carbon emissions.

The development of the strategic alliance proposed by Alacero envisions supply chains that favor steel sourced from the Western Hemisphere, reducing dependence on distant producers such as China. The United States and Latin America, for example, could coordinate such efforts through bilateral agreements or regional pacts.

Many Latin American countries, including Mexico, Brazil, and Argentina, the publication notes, have introduced or strengthened anti-dumping rules against Chinese steel over the years. Despite these efforts, the local industry continues to compete with subsidized imports or imports at below-market prices.

As GMK Center reported earlier, trading partners are concerned about Donald Trump’s decision to impose 25 percent tariffs on all steel and aluminum imports starting March 12.