India-Mexico Trade Dispute: Mexico’s unilateral tariff decision, India expressed strong objection…1463 products will be affected

New Delhi : An important trade decision recently taken by the Mexican government has increased the concern of India and other Asian countries. Mexico has decided to increase tariffs on products imported from countries with which it does not have a Free Trade Agreement (FTA). India is also included in this list. Under the new rules, import duty on some products may increase by up to 50 percent, while an average tariff of 35 percent is expected to be imposed on most items. India has called this step against the spirit of global trade.

Decision taken without consultation became cause of controversy
The biggest reason for the Indian government’s objection is that Mexico did not consult any trading partner before taking this decision. Government sources say that making changes in the Most Favored Nation (MFN) tariff without discussion in this manner is not in accordance with international trade rules and the spirit of cooperation. India has clarified that it believes that this decision was not taken directly targeting India, but it will definitely have an impact on Indian exports.

1463 product categories will be affected
A total of 1463 product categories will be affected by this tariff change in Mexico. This includes India as well as many Asian countries like China, South Korea, Thailand and Indonesia. Industrial goods, consumer goods and some agriculture-based products are also believed to be included in these products. This may increase costs for Indian exporters and make Indian products less competitive in the Mexican market.

Mexico’s argument: domestic industry and trade deficit
The Mexican government says that the main objective of increasing tariffs is to protect domestic industries and reduce the growing trade deficit. According to Mexico, local businesses were being affected due to cheap imports, so the tariff policy has been tightened. However, India believes that dialogue with international partners and adopting a balanced policy would have been a better way to promote domestic industries.

American pressure and impact of USMCA
Experts also believe that American pressure and negotiations related to USMCA (US-Mexico-Canada Agreement) could also be a reason behind this decision. It is believed that Mexico is tightening its tariff policy to stop cheap goods coming from China and balance trade relations with America. In such a situation, its indirect impact is also falling on countries like India.

India’s diplomatic initiatives and further strategy
Taking this issue seriously, India has started talks at the diplomatic level. Commerce Secretary Rajesh Aggarwal has held high-level discussions on this subject with Mexico’s Deputy Economic Minister Luis Rosendo. Apart from this, there have also been indications of technical level meetings, in which efforts will be made to find solutions. Earlier, the Indian Embassy in Mexico had also formally expressed concern over this decision.

Dialogue is primary, protection of interests is necessary
India has made it clear that it wants to maintain strong trade and economic relations with Mexico. It has also been made clear that there will be no compromise with the interests of Indian exporters. If necessary, India will not shy away from taking appropriate action, however, the priority will be to find a solution through dialogue and mutual consent. India believes that only a balanced and transparent trade policy can prove beneficial for both the countries in the long term.