|
Cement Accord Paves Way for Mexican Free Trade With U.S.
 An accord signed on March 6 by the U.S. and Mexico will help to increase sorely needed supplies of Mexican cement to domestic markets by drastically lowering duties on the material, according to the nation’s home builders.
“More than 30 states reported shortages of cement in 2005. This agreement is vital to meet consumer demand, which will only grow in the coming year as the Gulf Coast rebuilding effort moves into high gear following last year’s devastating hurricane season,” said NAHB President David Pressly.
Under the terms of the agreement, which settles a 16-year trade dispute, the U.S. will reduce duties from $26 to $3 per ton, and Mexican imports will be permitted to grow to 3 million metric tons annually, up from last year's level of approximately 2 million tons. After three years, the quotas and duties will be eliminated entirely.
The accord is structured so that Florida and the Gulf region, areas facing cement shortages, will be able to significantly increase their imports of Mexican cement. The negotiated framework also provides the flexibility to allow the President to direct an additional 200,000 metric tons of cement to areas hit by natural disasters.
With domestic cement production running at full throttle last year, the U.S. still had to import 25% of its cement supply in order to meet demand. High anti-dumping tariffs in place since 1990 have limited supply from Mexico, which has excess capacity. Because of its close proximity to the U.S., it takes only four days to import cement from Mexico, compared with 40 days from Asia.
Over the past year, NAHB has held several discussions with Commerce Department officials — including Secretary Carlos Gutierrez — urging the Administration to overturn the costly tariffs and outlining how cement shortages have led to construction delays and harmed housing affordability by increasing the cost of building projects. Data was also provided on states and geographic areas that have been most affected by the shortages.
"Commerce Secretary Gutierrez heeded our concerns, and showed a willingness to work with our industry and consider the needs of American consumers," said Pressly. “Throughout the process, builders have been pushing to resolve this dispute in a manner that leads to free trade, and we are pleased that this trade agreement will ultimately lead to this favorable outcome.”
For more information, e-mail Jason Lynn at NAHB, or call him at 800-368-5242 x8307; or contact Michael Carliner, x8376.
 Attend the Spring Construction Forecast Conference in April
Plan to attend NAHB's Spring Construction Forecast Conference on April 27 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth look at the economic outlook for the housing industry.
For information or to register, visit www.nahb.org/cfc.
Give Your Perspective on the New NAHB Economics Blog
Give your economic perspective on NAHB's new economics blog, “Seiders on Housing,” an informal Internet-based forum dealing with economic issues, housing trends, survey research and other topics affecting the housing sector of the economy.
Log onto the blog at http://nahbblog.blogs.com and get direct access to NAHB Chief Economist David Seiders' expert opinions, projections and responses.
|
