India opposes Mexico’s 50% tariffs on exports: Report
The Indian government has strongly objected to Mexico’s recent announcement of imposing up to 50% tariffs on Indian exports, citing that this move may prompt India to take “appropriate measures” to protect its exporters. According to a report by Republic, the Centre has expressed its discontent with Mexico’s decision, stating that it is not in line with the “spirit of cooperative economic engagement” between the two nations. The tariffs, which are expected to affect over 1,400 products, have sparked concerns among Indian exporters who may face significant losses due to the increased duties.
The Mexican government’s decision to impose tariffs on Indian exports has been seen as a protectionist measure, aimed at shielding its domestic industries from competition. However, the Indian government has argued that this move is not justified and may harm the bilateral trade relations between the two countries. India has been actively engaging with Mexico to resolve the issue through diplomatic channels, and the Centre has reportedly stated that it will continue to make efforts to reverse the decision.
The imposition of 50% tariffs on Indian exports is expected to have a significant impact on various sectors, including textiles, pharmaceuticals, and automotive components. Indian exporters who have been supplying goods to Mexico may face a substantial decline in demand, leading to potential losses and job cuts. The Indian government has, therefore, warned that it may take retaliatory measures to protect its exporters, which could include imposing similar tariffs on Mexican imports.
The tensions between India and Mexico over trade tariffs have been escalating in recent months. In 2020, Mexico had imposed tariffs on Indian steel exports, citing concerns over dumping. India had responded by imposing retaliatory tariffs on Mexican imports, including oil and gas. The current dispute over tariffs has raised concerns among trade experts, who fear that it may lead to a full-blown trade war between the two nations.
The Indian government has been actively promoting exports as a key driver of economic growth, and the imposition of tariffs by Mexico has come as a setback to these efforts. The Centre has been working to diversify India’s export basket and increase its share in global trade. However, the tariffs imposed by Mexico may hinder these efforts, at least in the short term.
In recent years, India and Mexico have been working to strengthen their economic ties, with a focus on increasing trade and investment. The two nations have signed several agreements, including a bilateral investment treaty and a pact on cooperation in the field of science and technology. However, the current dispute over tariffs has raised questions about the future of bilateral trade relations.
The Mexican government has cited concerns over the trade deficit as a reason for imposing tariffs on Indian exports. Mexico has been facing a significant trade deficit with India, which has been growing steadily over the years. The Mexican government has argued that the tariffs are necessary to protect its domestic industries and reduce the trade deficit.
However, the Indian government has argued that the tariffs are not a solution to the trade deficit and may, in fact, exacerbate the problem. India has pointed out that the tariffs will increase the cost of imports for Mexican consumers, which may lead to a decline in demand and, subsequently, a decrease in exports. The Indian government has also argued that the tariffs will hurt the competitiveness of Mexican industries, making them less competitive in the global market.
The dispute over tariffs between India and Mexico has significant implications for bilateral trade relations and the global trading system. The imposition of tariffs by Mexico has raised concerns about the increasing trend of protectionism in international trade. The Indian government has warned that it may take retaliatory measures to protect its exporters, which could lead to a trade war between the two nations.
In conclusion, the Indian government has strongly opposed Mexico’s decision to impose up to 50% tariffs on Indian exports, citing that it may take “appropriate measures” to protect its exporters. The Centre has expressed its discontent with Mexico’s decision, stating that it is not in line with the “spirit of cooperative economic engagement” between the two nations. The tariffs, which are expected to affect over 1,400 products, have sparked concerns among Indian exporters who may face significant losses due to the increased duties. The dispute over tariffs has raised concerns about the future of bilateral trade relations and the global trading system.
The Indian government has been actively engaging with Mexico to resolve the issue through diplomatic channels, and the Centre has reportedly stated that it will continue to make efforts to reverse the decision. However, the imposition of tariffs by Mexico has raised questions about the commitment of both nations to free trade and the rules-based international trading system. As the dispute continues to escalate, it remains to be seen how the two nations will resolve the issue and what implications it will have for bilateral trade relations and the global economy.
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