The National Chamber of the Iron and Steel Industry (Canacero) proposed changes to the Treaty between Mexico, the United States and Canada (T-MEC) to achieve self-sufficiency in regional steel production.
In a letter addressed to Daniel Watson, assistant to the Western Hemisphere Office of the White House Trade Representation (USTR), Salvador Quesada, general director of Canacero, outlined the justifications and measures to achieve this goal.
As a preamble, he said that a significant part of China’s rapid development was based on its steel industry, which in 2024 produced 1,000 million tons, of which 800 million were destined for the domestic market. This demonstrates the advantage China has already developed.
“Achieving self-sufficiency in steel production throughout North America is not only an industrial goal, but a national security imperative. However, today, both the United States and Mexico suffer from a structural steel deficit that undermines our competitiveness and exposes the region to external vulnerabilities,” said Quesada.
To overcome this gap, significant investments will be required on both sides of the border. Recognizing this reality, Quesada proposed that the USMCA regulatory frameworks should allow for the temporary and strictly limited importation of semi-finished steel products to ensure a smooth transition towards regional self-sufficiency.
To this end, this flexibility should apply only to national markets and not to regional trade in steel products, thus encouraging and incentivizing new investments in steel capacity in North America. These “transitional” measures are “vital” to preserve the competitiveness of the steel industry and, ultimately, to safeguard the economic and national security of the region.
Fortunately, he added that significant investments are already being made in both countries, although they remain far below what is necessary to close the gap.
According to Canacero data, in 2024 alone, the United States imported 20 million tons of steel and Mexico 13 million, of which approximately 16 million came from Asia.
In 2024, the North American steel industry operated at about 75% of its capacity, producing 106.1 million tons of crude steel. Regional consumption reached approximately 130 million tons.
Additionally, as examples of the magnitude of the steel consumption challenge in North America are manufacturing needs, the development of a new shipbuilding industry, new infrastructure, and the strengthening of military equipment.
“Today, the application of Section 232 to Mexico weakens it, and without a doubt in the event of a national emergency, Mexico and Canada are the only reliable alternative sources of supply,” questioned Quesada.
Among the common principles, Canacero highlighted that the concept of Fortaleza North America represents a collective commitment of the United States, Mexico and Canada to safeguard the integrity of the regional steel market against the distorting effects of unfair trade.
Harmonization of trade policies
By harmonizing trade, investment and industrial policies, Quesada emphasized that the USMCA region can ensure that its steel supply chains remain resilient, competitive and secure, not in isolation, but through integration.
“A strong and coordinated North American steel industry is essential not only to defend against circumvention and transshipment, but also to strengthen the foundations of regional prosperity and national security,” Quesada said.
At the same time, he added, it is necessary to define equitable conditions to defend against unfair imports from third countries. This guarantees that steel imports are carried out under the same conditions in all three countries. In this way, interregional barriers, such as tariffs, will be eliminated and it will be possible to operate under free market conditions.
A third pillar is the alignment of trade policies. This means that all parties act to avoid market distortions. The North American steel industry competes with Asian state companies that generate idle capacity and participate in international markets irregularly.
“Today, the problem is not limited to the global overproduction of steel and the massive increase in Chinese exports, but also includes extraterritorial investments in the so-called satellite countries,” said Quesada.
Therefore, he suggested that the imposition of trade barriers to counter unfair practices in international trade should be carried out jointly, as trading partners.
Finally, he proposed reinforcing regional customs coordination with strict application of the law is also a strategic measure. Its implementation will require the use of robust technology. This involves the complete digitalization of steel trade throughout the region.
Steel trade between Mexico and the United States
- The United States exports 55% of its steel to Mexico, without restrictions, and Mexico is its main export market.
- US steel exports to Mexico are finished products. A large portion are flat products used in the automotive sector and other high-value manufacturing industries.
- The United States has a 15.7% market share in steel consumption in Mexico and has maintained an average annual surplus of $1.7 billion in steel products.
- 93% of Mexican steel exports to the United States consist of products melted and cast in Mexico. A significant volume corresponds to semi-finished products.
- Mexico has 2.3% of the US market in 2024 and less than 1% in July 2025.
- Steel production in Mexico and its export to the United States depend on approximately 30% of raw materials from the United States, such as natural gas, metal scrap, among others.
