“The forestry sector was just mentioning to us (at the USMCA Sectoral Diagnostic Forums) that the infamous imports from China are significantly impacting industry in our country,” stated Ricardo López Solís, Undersecretary of Industrial Business Development at the State Secretariat of Economic Development (Sedeco).
Read: Tire Industry to Focus on Producers in Veracruz, Tabasco, and Chiapas
The official cited as an example the problems faced by fiber optic manufacturers in Mexico due to imports of the raw material manufactured in China.
“When imported and placed on the sales floor, fiber optics are between 50 and 70 percent cheaper than those produced here in Mexico, (but when the product is purchased in China) it hurts the industry,” he explained.
“The same thing is happening in the forestry sector” with the import of boards from China, he told Forbes Mexico.
“There are many imported MDF boards and other materials that are significantly impacting manufacturing and the forestry industry in Durango,” he commented.
“China is not only impacting the industry with its forestry imports, but also with its imports of finished products from China to our country,” he explained.
According to the Ministry of Economy, the countries that sold the most to Mexico in 2024 were China, with $63.5 million, the United States with $38.2 million, Brazil with $25.8 million, Chile with $16.4 million, and Spain with $3.11 million.
The Mexican states with the highest international purchases of medium-density fiberboard were Jalisco with $62 million, Baja California with $28 million, Nuevo León with $23.5 million, Mexico City with $19.1 million, and Guanajuato with $9.49 million.
More than a month ago, Economy Ministry officials visited the state to conduct consultations on the USMCA, as business leaders with a presence in Durango had been invited.
The agricultural, livestock, mining, and forestry sectors generate more than 70 percent of Durango’s gross domestic product. The state has the largest forest reserve in the country, and there is significant business participation in the production of wood products.
Mexico is importing a lot of wood from China, which has affected states with large forest reserves, the state official reiterated.
He said that there have been no company closures in Durango, but there has been a reduction in economic activity: “You know that when a company downsizes, some jobs are lost.”
He stated that the Durango Ministry of Economic Development is working on creating forestry suppliers and businesses so that, after the closure of large companies, their skilled workforce can easily find employment with other companies.
He said that around 150 forestry jobs have been relocated to other companies due to the drop in production.
In Durango, there are facilities belonging to Arauco, a Chilean company that manufactures MDF boards: “They have a supply program with certified forestry businesses and sawmills to move this wood.”
He said that there isn’t as much controversy surrounding the USMCA in the mining sector, since the production is exported and there isn’t a major issue.
“The forestry industry in Durango has been around for decades; we are the first forest reserve, so this activity has always existed. We, as the state government, support these companies in finding markets for them,” López Solís emphasized.
“Through the Ministry of Economic Development, there is a special program to position mineral, agricultural, and forestry products made in Durango,” he added.
He said that the destination for exports of mineral, agricultural, and forestry products is the United States, but “we are opening up to other countries.”
“South America has been one of the regions of the world that has accepted wood, just as in Europe and Canada we are looking to open markets for them,” he said.
Source: forbes
