Mexico launches operation to stop flow of illegal Chinese goods

Mexico launches operation to stop flow of illegal Chinese goods

2024-11-30 01:23:45 :

(Bloomberg) — Mexico is planning a nationwide “cleanup” operation to combat the flow of illegal goods, mainly from China, into the country, according to the Economy Ministry.

Economy Minister Marcelo Ebrard said on Friday that the ministry would lead searches in all 32 Mexican states, including at ports and airports. On Thursday, about 200 officials raided a shopping mall in Mexico City known for selling Chinese goods. The government seized more than 260,000 items with an estimated value of 7.5 million pesos ($370,000).

“The searches will help determine the scale of the flow of illegal goods entering the country,” Luis Enrique Vázquez, technical secretary of the ministry’s foreign trade office, said in a telephone interview. “They will allow us to track and quantify the volumes we are dealing with, which appears to be enormous.”

Vazquez declined to say when or where the next search would be, citing security reasons.

The United States and Canada have expressed concern that Mexico’s trade practices with China are inconsistent with those of its North American allies. Investor jitters also grew after Donald Trump announced earlier this week his intention to impose tariffs on its neighbors to force them to curb the flow of migrants and the entry of illegal drugs such as fentanyl.

Asked by reporters if the move was a signal to Trump, Ebrard joked that he had not yet received a call from the U.S. president-elect about the specific Mexico City mall that was raided.

Mexican authorities uncovered a range of products during Thursday’s raids, from screws to coffee machines to toys and textiles. Items for sale include items from Bangladesh, China, Malaysia, Vietnam and Indonesia.

Local chambers of commerce have also accused Chinese e-commerce platforms of breaking rules to avoid taxes on their packages. Vázquez said the Economy Ministry is currently working with the Ministry of Finance and the national tax agency to develop mechanisms to ensure that these platforms pay taxes.

Mexico’s tax agency announced measures in a statement last month to tighten controls and monitoring of goods entering the country. The next step, he said, is to ensure the platform pays taxes.

Vazquez said the measures had been months in the making and denied they were in response to U.S. pressure.

“You can’t plan such an action in a few days because of a word. We have been planning this for months.” He added that the move was aimed at guaranteeing better conditions for local Mexican industries.

–With help from Alex Vasquez.

More stories like this can be found at Bloomberg.com

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