Mexico. According to the National Association of Paint and Ink Manufacturers (Anafapyt), the Mexican government's battle against the black market for fuels and other petroleum products puts pressure on the country's paint and coatings producers.
The government's effort to control the black market took the form of a statement from Mexico's Ministry of Energy (SENER) on Oct. 23 that includes a requirement for approval of the import of petroleum products and usage tracking reports for domestic manufacturers.
Reports suggest that 68 individual petrochemicals will be included in these rules.
SENER seeks to document import volumes, destinations, and end use in such a way that the paints and coatings industry is harmed, Anafapyt said in a statement on Oct. 27.
"This would cause a disruption in the supply of inputs to companies that use chemicals and lubricants for their operations, such as those engaged in the manufacture of paints, inks and coatings, that use petrochemicals that are not sufficiently supplied, or that are not supplied. produced in the country, such as synthetic fibers and resins, which have always been imported in a traditional way," said the Association.
According to Anafapyt, the government's measures will not only affect the end users of oil imports, but also the country's logistics and storage network.
"Likewise, investments made in terminals to import certain products would be put at risk, which would destabilize the market and leave private companies without the ability to operate properly in the country," the Association said.
"In addition, the activities established in the decree require planning in the ordering of goods and, in some cases, they are already in transit, so a reasonable time is required to obtain such permits from the agency," she said.
The Association added that control measures can be excessive and still produce little improvement on the black market.
"It also establishes non-tariff measures that could be disproportionate to the international trade of such materials, as they could damage the integration of value chains, in addition to excessive times for the review and authorization of applications and notices," he said.
"On the other hand, the restrictions on the international market that have been imposed in the past have had limited results in terms of controlling and reducing the illicit entry of substances," she said.