India opposes Mexico’s 50% tariffs on exports: Report
In a move that is likely to escalate trade tensions between the two nations, Mexico has announced the imposition of up to 50% tariffs on Indian exports, prompting a strong objection from the Indian government. According to a report by Republic, the Centre has expressed its disapproval of the move, stating that it may take “appropriate measures” to protect the interests of Indian exporters. The development is expected to have significant implications for bilateral trade between India and Mexico, with over 1,400 products likely to be affected by the tariffs.
The Indian government has reportedly conveyed its concerns to the Mexican authorities, emphasizing that the imposition of such high tariffs is not in line with the “spirit of cooperative economic engagement” between the two countries. The Centre has also made it clear that it will continue to pursue diplomatic efforts to reverse the decision, which it believes is unfair and discriminatory. The move by Mexico is seen as a significant setback to India’s efforts to expand its exports to the Latin American region, where Mexico is a key market.
The tariffs imposed by Mexico cover a wide range of products, including textiles, chemicals, and pharmaceuticals, among others. Indian exporters who have been doing business with Mexico are likely to be severely impacted by the move, as the high tariffs will make their products less competitive in the Mexican market. The Indian government is concerned that the tariffs will lead to a significant decline in exports to Mexico, which could have a negative impact on the country’s trade balance and overall economic growth.
The Centre’s decision to oppose the tariffs is seen as a proactive move to protect the interests of Indian exporters, who have been working hard to expand their business in Mexico and other Latin American countries. The government has been actively promoting exports through various schemes and initiatives, including the Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS). The imposition of tariffs by Mexico is seen as a major obstacle to these efforts, and the Indian government is determined to take all necessary steps to address the issue.
The dispute over tariffs is not the first trade-related issue between India and Mexico. In recent years, the two countries have had differences over issues such as market access, trade facilitation, and intellectual property rights. However, the imposition of 50% tariffs on Indian exports is seen as a significant escalation of the trade tensions between the two nations. The Indian government is hopeful that diplomatic efforts will help to resolve the issue amicably, but it is also prepared to take retaliatory measures if necessary to protect the interests of Indian exporters.
The impact of the tariffs on Indian exports to Mexico is likely to be significant. According to data from the Ministry of Commerce and Industry, India’s exports to Mexico were valued at over $4 billion in 2020-21. The imposition of 50% tariffs will make it difficult for Indian exporters to compete in the Mexican market, and could lead to a decline in exports of up to 30-40% in the short term. The affected products include textiles, chemicals, pharmaceuticals, and engineering goods, among others.
The Indian government is also concerned about the impact of the tariffs on the country’s trade balance. India has been running a trade deficit with Mexico, and the imposition of tariffs is likely to widen the deficit further. The government is worried that the tariffs could lead to a decline in exports, which could have a negative impact on the country’s overall economic growth. The Centre is therefore keen to resolve the issue as soon as possible, and is exploring all options to protect the interests of Indian exporters.
In conclusion, the imposition of 50% tariffs on Indian exports by Mexico is a significant development that is likely to have major implications for bilateral trade between the two countries. The Indian government has strongly objected to the move, and is determined to take all necessary steps to protect the interests of Indian exporters. The Centre is hopeful that diplomatic efforts will help to resolve the issue amicably, but it is also prepared to take retaliatory measures if necessary. The dispute over tariffs is a major setback to India’s efforts to expand its exports to the Latin American region, and the government is keen to resolve the issue as soon as possible.
The Indian government’s decision to oppose the tariffs is seen as a proactive move to protect the interests of Indian exporters, who have been working hard to expand their business in Mexico and other Latin American countries. The government is committed to promoting exports and improving the country’s trade balance, and is willing to take all necessary steps to achieve these goals. The dispute over tariffs with Mexico is a major challenge, but the Indian government is confident that it can be resolved through diplomatic efforts and other measures.
As the trade tensions between India and Mexico continue to escalate, the Indian government is exploring all options to protect the interests of Indian exporters. The Centre is hopeful that a resolution can be found through diplomatic efforts, but it is also prepared to take retaliatory measures if necessary. The imposition of 50% tariffs on Indian exports by Mexico is a significant development that is likely to have major implications for bilateral trade between the two countries, and the Indian government is determined to address the issue as soon as possible.
News Source: https://www.newsbytesapp.com/news/business/india-warns-of-retaliation-as-mexico-imposes-50-tariffs/story
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