U.S. Lowers Tariffs on Mexican Cement

The U.S. Commerce Department has announced an agreement that will lower the tariff on Mexican cement.

“This is welcome news for contractors and consumers alike,” says Stephen E. Sandherr, CEO of the Associated Contractors of America (AGC), a national construction trade organization.

According to a press release from the AGC, the agreement was spurred by reports of cement shortages across the country. “Last year, 32 states reported cement shortages,” says Sandherr. “The strong outlook for highway and building construction in 2006 means this year’s shortages could be even more severe and widespread. It is essential to allow cement in from ‘next door’ on the same terms that we now import it from China, Thailand and other more distant locations.”

Imports from Mexico will be capped at 3 million metric tons per year and subject to a duty of $3 per ton, according to the release.

The agreement also provides a disaster provision of an additional 200,000 metric tons to be instituted if a natural disaster warrants an increase in the import of Mexican cement.

“The agreement will help ensure that Gulf Coast communities have the resources to rebuild and it will also help U.S. cement producers access the Mexican market,” said U.S. Commerce Secretary Carlos M. Gutierrez in a statement.