Trade relations between India and Mexico have always been strong, but the recent decision by Mexico to impose high tariffs on Indian products has become a challenge for global trade. Experts believe that this step could be costly for Mexico, because India has so far maintained balance in its trade policy and is capable of taking retaliatory steps.
What is the matter?
According to sources, Mexico has increased tariffs on Indian textile, pharmaceutical and automotive products. Its objective is said to be to protect domestic industries. However, experts believe that with this move Mexico may face shortage of products in the Indian market and expensive imports.
India’s strategy
India has become active regarding this matter at both commercial and diplomatic levels. The Indian government has said that it can exercise its rights under the rules of the World Trade Organization (WTO). Along with this, Indian companies will also get the opportunity to expand trade with alternative markets and new partner countries.
Opinion of international trade experts
Experts say that this policy of Mexico is going to give only immediate benefits, but in the long run it will have more negative effects. Due to competitive price and quality of Indian products, Mexico may face trade deficit with other countries.
Impact on India-Mexico trade
The annual trade between India and Mexico is estimated at more than $50 billion. Increasing tariffs will increase prices of Indian products and affect imports. As a result, Mexican consumers and businesses will also be forced to bear the burden of expensive goods.
possibility of trade war
Many experts believe that if Mexico sticks to its decision, India will also not lag behind in taking balanced and strict steps. This could increase trade tensions between the two countries, and could also become a matter of concern for global traders.
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