Business Trends

Posts Tagged ‘import’

China Losing Manufacturing Appeal as US Companies Turn to Mexico

In business opportunity, economy, Importing from China on July 7, 2009 at 5:32 pm

A new international bridge to Mexico is set to open October 2009 in the South Texas city of Mission, Texas. The Anzalduas International Bridge, a $168-million joint project between the United States and Mexico, will be one of the newest and largest border crossings in the country, and will directly connect Mission with Reynosa, Tamaulipas – a Mexican city known for advanced manufacturing and import/export operations.

Since the passing of NAFTA, Mexico has stepped up as a major competitor to China for cost-effective manufacturing. The main reason: lower transportation costs.

Compared to China and other manufacturing hubs, Mexico offers better access to the domestic and North American markets. A shorter, faster and cheaper transportation route to move products and supplies by truck, rather than over thousands of miles by ship, rail, and truck combined.

In South Texas, specifically the Mission metro area, eight international bridges connect the area with the industrial border communities of Reynosa, Matamoros and Monterrey, Mexico — some of the largest Mexican cities dealing with maquiladoras, importing/exporting goods, and vehicle traffic.

This relationship has made Mission and its sister cities an important industrial manufacturing corridor. Sharyland Business Park in Mission is in a Foreign Trade Zone (FTZ) – a “free port” allowing materials and finished goods to be imported or re-exported without payment of customs duties.

Area leaders have also been keen to other infrastructure planning on this side of the border. A new six-lane expressway now connects Mission with its sister cities. Interstate Highway I-69, another major artery of transportation, will soon connect trade routes from Mexico and Latin America to the United States and Canada. The Anzalduas Bridge will directly connect to I-69 – facilitating trade operations between the two countries.

“In the past, when the market softens in the U.S., we have always seen an increase in companies looking at our area as a way to reduce their costs and be more competitive,” said Pat Townsend, President of Mission Economic Development Authority.
This is evident in the number of companies that have visited the region. Companies like Black and Decker, Panasonic, and ALPS Automotive are attracted to the area for its low cost of living, career opportunities and location. Every day, more companies are finding and relocating here.

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Stainless steel imports from China showing substantial growth

In Uncategorized on May 26, 2009 at 4:25 pm

U.S. producers comprising the Stainless Steel Tube Trade Advancement Committee (SSTTAC) noted that, despite the significant recession in the United States, imports of stainless steel pipe and tube showed substantial growth in early 2009 over 2008.
According to David A. Hartquist, the SSTTAC’s legal counsel, “Despite the substantial economic downturn globally and in the United States, imports from China increased almost 20 percent in the first two months of 2009 compared to the same period in 2008. China remains by far the largest foreign supplier of the material produced by our member companies, accounting for nearly half of total imports. Chinese producers are also moving into high-nickel seamless tubing.”
Hartquist added, “Chinese pricing remains substantially below that of other significant foreign and domestic producers. With an average unit value of $8,000 a ton for small diameter seamless stainless tubing, Chinese producers may well be dumping their product in our market. The Chinese government provides a wide range of subsidies to Chinese steel producers, including undervaluation of their currency, the yuan, at roughly 35 percent.

This is unfair competition,” he said.
David A. Hartquist is senior partner and chairman of the International Trade and Customs practice group in the Washington, D.C. office of Kelley Drye & Warren LLP. Mr. Hartquist has over 30 years of experience on international trade issues and has filed many successful trade cases against Chinese producers. The Stainless Steel Tube Trade Advancement Committee, formerly known as the Seamless Stainless Tube Trade Action Committee, comprises U.S. producers of seamless stainless steel pipe and tubing.