You'd think that with the construction boom in the U.S., the accompanying demand for cement and our free trade agreement with Mexico that we'd have no problem importing the stuff. Well, you might think that, but you'd be wrong. Apparently we've had duties on Mexican cement of as much as 60% since 1990. Fortunately discussions are now taking place to repeal the duties. From the looks of things, the sooner the better:
The duties are blocking as much as 11 million tons of cement a year -- or nearly 10% of domestic consumption -- from entering the U.S. market, according to some industry estimates.Meanwhile, the U.S. is struggling for a second straight year with cement shortages brought on, in large part, by the country's increased dependence on imports. Domestic consumption of the most commonly used Portland and masonry cement has grown to about 130 million tons a year, or almost 10% over the past five years, while domestic production has grown 8.1% to about 105 million tons a year over the same time, according to the U.S. Geological Survey.
...The cement shortages this year appear to be worsening as the building season progresses. As of this month, shortages had hit 32 states, up from 23 states in June, according to surveys by the Associated General Contractors of America, an industry trade group in Alexandria, Va.
But wait, in a totally surprising development, American manufacturers are skeptical over the need for imported cement:
Some are skeptical Mexican cement can help much, though. Rail-transport constraints in the U.S., for instance, could impede Mexican cement from being shipped very far into the American interior, said Ed Sullivan, chief economist for the Portland Cement Association, an industry trade group in Skokie, Ill. Some competitors also said increased cement from Mexico would reduce the incentive for U.S. plants to add production capacity to help prevent future shortages.This kind of stuff cracks me up. Well, Ed, if Mexican cement can't be shipped very far, I guess there's nothing for you to worry about is there? And who cares if there is added capacity at U.S. plants if we can just import the stuff from elsewhere?
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