Mexican chemical industry calls for a 'balanced' trade amid Trump's tariff threats

The National Association of the Chemical Industry in Mexico, or ANIQ, called for maintaining a balanced and mutually beneficial relationship between Mexico, the US, and Canada in the face of President-elect Donald Trump's tariff threat.

"The chemical industry in both countries is deeply integrated along its entire value chain; raw materials cross borders to be transformed into industrial chemical products, which return in both directions to become higher value-added products," ANIQ said in a statement on Dec. 19.

The chemical industry includes segments such as agrochemicals, which is related to fertilizer production. In 2023, agrochemicals and fertilizer production in Mexico dropped around 2.6% from the previous year, according to ANIQ's statistical 2024 yearbook.

During the third quarter, inflows of sulfuric acid from Canada to the US dropped 9% to 431,612 mt from 471,836 mt in the same period in the prior year. Mexican sulfuric acid imports to the US increased by 50% at 251,432 mt from 167,223 mt in the same year-ago quarter, according to the most recent data published by S&P Global Market Intelligence's Global Trade Atlas, representing 28% of the total in Q3.

Canadian sulfuric acid yearly imports in 2023 accounted for nearly 55% of total trade of sulfuric acid into the US, totaling over 1.8 million mt. Mexican inflows totaled 587,158 mt, which represented 18% of the total, S&P Global data showed.

"Ultimately, these goods are traded back and forth between the two countries [US and Mexico] and are critical to strategic sectors such as automotive, transportation, mining, construction and food packaging," ANIQ added.

Platts, part of S&P Global Commodity Insights, assessed the CFR US Gulf spot sulfuric acid price at $140/mt on Dec 18.

Call for more regulatory cooperation

The Mexican chemical industry also urged the trade authorities to consider expanding the US-Mexico-Canada Agreement's scope in terms of regional collaboration, as the USMCA is set to be reviewed and potentially renegotiated throughout 2026.

"Together with the American Chemistry Council (ACC) and the Chemistry Industry Association of Canada (CIAC), [we] have urged negotiators to consider expanding the provisions of Annex 12, which promotes regulatory cooperation and convergence of chemicals in the region," ANIQ said.

Annex 12, related to the sectoral annexes of the USMCA, contains provisions with respect to chemical substances, cosmetic products, information and communication technology, energy performance standards, medical devices, and pharmaceuticals. It also establishes their rights and obligations under the agreement.