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 the move may prompt India to take “appropriate measures” to protect its exporters. According to a report by Republic, the Centre has expressed its disappointment and concern over the tariffs, which it believes are not in line with the “spirit of cooperative economic engagement” between the two countries.
The tariffs, which will affect approximately 1,400 products, are likely to have a significant impact on Indian exporters, who have been steadily increasing their exports to Mexico in recent years. The Indian government has reportedly stated that it will continue to engage in diplomatic efforts to reverse the decision, while also exploring options to safeguard the interests of its exporters.
The Mexican government’s decision to impose tariffs on Indian exports has come as a surprise to many, given the growing trade relations between the two countries. India and Mexico have been working to strengthen their economic ties, with bilateral trade increasing significantly over the past few years. However, the imposition of tariffs has raised concerns among Indian exporters, who fear that it may lead to a decline in their exports to Mexico.
The Indian government’s objection to the tariffs is not just limited to the economic impact, but also to the principle of the move. The Centre has argued that the tariffs are not in synchronisation with the spirit of cooperative economic engagement between the two countries, which has been built over the years through mutual cooperation and understanding. The government has also pointed out that the tariffs may violate World Trade Organization (WTO) rules, which prohibit discriminatory trade practices.
The impact of the tariffs on Indian exporters is likely to be significant, with many small and medium-sized enterprises (SMEs) being affected. SMEs, which are a crucial part of India’s export sector, may struggle to absorb the increased costs imposed by the tariffs, which could lead to a decline in their exports and ultimately, their profitability. The Indian government has therefore urged the Mexican government to reconsider its decision and engage in discussions to find a mutually beneficial solution.
The Centre’s decision to take “appropriate measures” to protect Indian exporters is a clear indication that it will not take the tariffs lying down. While the government has not specified what these measures might be, it is likely that they could include retaliatory tariffs on Mexican imports or other trade restrictive measures. The Indian government has also stated that it will continue to engage with the Mexican government to resolve the issue through diplomatic channels.
The dispute over tariffs is not just limited to India and Mexico, but has wider implications for global trade. The imposition of tariffs by Mexico is a clear example of the rising protectionism in global trade, which has been a concern for many countries. The Indian government’s objection to the tariffs is therefore not just about protecting its exporters, but also about upholding the principles of free and fair trade.
In recent years, there has been a growing trend of protectionism in global trade, with many countries imposing tariffs and other trade restrictive measures to protect their domestic industries. This has led to a decline in global trade, which has had a negative impact on economic growth and development. The Indian government’s stance on the Mexican tariffs is therefore a welcome move, as it highlights the importance of free and fair trade in promoting economic growth and development.
The Indian government’s decision to engage in diplomatic efforts to resolve the issue is also a positive move. Diplomacy has long been a key component of international trade, and it is often the most effective way to resolve trade disputes. The Indian government’s efforts to engage with the Mexican government to find a mutually beneficial solution are therefore a welcome move, as they highlight the importance of cooperation and dialogue in resolving trade disputes.
In conclusion, the Indian government’s objection to Mexico’s 50% tariffs on Indian exports is a clear indication that it will not take the tariffs lying down. The Centre’s decision to take “appropriate measures” to protect Indian exporters is a welcome move, as it highlights the importance of protecting the interests of domestic industries. The government’s efforts to engage in diplomatic efforts to resolve the issue are also a positive move, as they highlight the importance of cooperation and dialogue in resolving trade disputes. As the dispute over tariffs continues, it remains to be seen how the situation will unfold, but one thing is clear – the Indian government will not back down without a fight.
News Source: https://www.newsbytesapp.com/news/business/india-warns-of-retaliation-as-mexico-imposes-50-tariffs/story
About the Author
