India Holds Talks With Mexico Over Tariff Threat
India has initiated talks with Mexico after proposed tariff increases threatened to impact nearly $2 billion worth of Indian exports, officials said. The discussions are taking place at the technical level, with India seeking ways to prevent higher duties from affecting key export sectors.
Mexico has announced plans to impose higher import tariffs on countries with which it does not have a free trade agreement. India is among the affected nations, prompting concerns that Indian goods could become less competitive in the Mexican market if the tariffs are implemented.
Key Export Sectors Under Pressure
Officials said the potential tariff hike could impact Indian exports such as automobiles and auto components, steel and iron products, textiles, chemicals, plastics, leather goods, and footwear. Indian exports to Mexico have grown steadily in recent years, making the country an important trade partner in Latin America.
Commerce officials indicated that India is exploring the possibility of a preferential trade arrangement or limited bilateral understanding to protect exporters and maintain market access.
Diplomatic Route Preferred
India is pursuing a diplomatic solution as the tariff measures are being applied uniformly under global trade rules, limiting the scope for legal challenges. Officials said dialogue remains the most effective route to address the issue and avoid disruptions to trade flows.
Discussions Ongoing
The government said talks with Mexican authorities are ongoing and aimed at finding a mutually acceptable solution. Exporters have been assured that their concerns are being taken up at the highest levels, with efforts focused on ensuring stability and predictability in bilateral trade relations.
