Brazilian steel association IABr and Mexican automotive industry association, AMIA, have both called for measures to protect their industries, SteelOrbis has learned. Both trade groups have issued statements about how each segment is vital for the economy amid the Covid-19 pandemic.
IABr said steel is an “essential” product for the infrastructure, civil construction and essential goods sectors, and as such, maintaining operations at Brazilian mills is “vital” to keep jobs.
IABr called for both the governments and the private sector to prioritize jobs, otherwise, the health crisis will became a “serious social crisis.” IABr also demanded that ports, railways and highways remain open, so the local steel industry can send its products.
AMIA said the Covid-19 pandemic will bring “uncertainty” to the automotive industry productive chain, and requested that governments consider the Mexican automotive sector as “an essential industry.”
AMIA also demanded governments to grant affected companies fiscal benefits or credit that would help automakers pay up to 50 percent of an employee’s wage. It also requested governments to accelerate value-added (IVA) reimbursement payments.
AMIA also requested a postponement of the USMCA deal to a later date, to allow Mexican suppliers to “implement the needed measures” due to the new agreement.