The Anti-Dumping Machinery in Action

The Secretary of Commerce and Industrial Promotion (SECOFI, in Spanish) in Mexico, is responsible for solving cases of disloyal commerce. For this, it has created a specialized division named International Commercial Practices Unit (UPCI, in Spanish). According the UPCI, disloyal commercial practices occur when imported merchandise employs price discrimination (dumping), is subsidized in the country of origin, or damages national production.

The Mexican system against disloyal practices was created in 1986, when the country entered GATT. The system has become one of the most important and active of the world. Since its creation, the UPCI has assisted approximately 200 Mexican companies supposedly involved in disloyal practices.

The machinery that has been set up by the Mexican government to "help" its companies to combat supposedly disloyal practices, suggests that our neighbors do not want to let go of their prized position in the local captive market. What remains to be seen is if Guatemala will be successful, fighting against such an experienced and astute rival.