ARTICLE 42: FACTORS THAT THREATEN TO CAUSE DAMAGE TO THE NATIONAL INDUSTRY

     

    The determination of the existence of a threat of damage to the national industry will be done by the Ministry (LCE: Art. 3) (RLCE: Art. 1) taking into account, among others, the following factors (RLCE: Art. 65):

  • A significant rate of increase in the importation of merchandise subject to price discrimination (RLCE: Art. 38) or subsidies (RLCE: Art. 38A) in the national market that indicates the probability that a substantial increase will occur;
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  • A sufficient capacity freely available of the exporter or an imminent and substantial increase thereof that indicates the probability of a substantial increase in exports subject to price discrimination or subsidies to the Mexican market, taking into account the existence of other export markets that can absorb the possible increase in these exports;
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  • If imports are made at prices that will have the effect of lowering or containing the rise in national prices significantly, and that will likely increase the demand for new imports;
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  • The existence of the merchandise under investigation;
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  • Where appropriate, the nature of the subsidy (RLCE: Art. 38A) in question and the effects that are likely to have on commerce, and
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  • Other elements that the Ministry deems appropriate (RLCE: Art. 68), or where appropriate, provide national production.
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    None of these factors alone will necessarily suffice for the determination of a threat of damage, but all of them together must lead to the conclusion of the imminence of new exports subject to price discrimination or subsidies and that, if compensatory fees are not applied, there would be damage done in the terms of this Law.

    The determination of the existence of threat of damage (RLCE: Art. 63) (RLCE: Art. 67) it will be based on facts and not simply on allegations, conjectures or remote possibilities.