The Government of Mexico has announced a temporary ban on 270 tariff classifications covering finished footwear products as well as certain types of sugars, alcohols, and syrups. The measure, published in the Official Gazette of the Federation (DOF), took effect on Friday and aims to protect domestic production from a surge in imports that have negatively affected local industries.
According to the Ministry of Economy, 255 of the classifications correspond to finished footwear and 15 to related inputs. The announcement had been anticipated by Economy Secretary Marcelo Ebrard on August 12.
International context
In 2024, Mexico ranked as the world’s 18th largest importer of footwear and related parts, with purchases totaling $2.163 billion, representing a 15% year-on-year increase, according to World Trade Organization (WTO) data. China was the leading supplier with $897 million, followed by Vietnam and Indonesia with $618 million each, Italy with $244 million, and Cambodia with $59 million.
Rationale for the measure
The Ministry of Economy reported that between 2019 and 2024, the footwear industry’s GDP contracted at an average annual rate of 3.1%. Over the same period, production decreased by 0.1% and employment fell by 2.8%, alongside a 16.6 percentage point drop in capacity utilization.
In 2024, based on INEGI data, the sector faced further challenges: GDP fell 12.8% compared to 2023, production declined by 12.5%, and 10,958 formal jobs were lost, reaching unprecedented low levels.
Imports of finished footwear under the IMMEX program also increased sharply, rising 159% in volume and 60.3% in value between 2023 and 2024. Compared to 2021, these imports expanded more than 24 times in volume and over 12 times in value.
The Ministry concluded that this trend has undermined the competitiveness of domestic industry, and in many cases, the mandatory return of goods under the IMMEX framework has not been fulfilled.
Additional scope
While the decree also includes certain sugars, alcohols, and syrups, the Ministry did not provide specific reasons for their inclusion.
The IMMEX program allows export-oriented companies to temporarily import inputs free of tariffs and taxes, such as VAT, on the condition that they are used to manufacture goods for export. However, according to the Ministry, the use of this mechanism for finished footwear has generated distortions that negatively impact domestic production.
Source: El Economista
