India opposes Mexico’s 50% tariffs on exports: Report
In a move that could potentially escalate into a trade war, India has strongly objected to Mexico’s decision to impose tariffs of up to 50% on Indian exports. 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 has sparked concerns among Indian businesses and exporters, who fear that the tariffs could significantly impact their exports to Mexico.
The Mexican government’s decision to impose tariffs on Indian exports is seen as a protectionist measure, aimed at shielding domestic industries from foreign competition. However, the move has not gone down well with India, which has been actively engaging with Mexico to strengthen bilateral trade ties. The Centre has reportedly conveyed its disappointment to the Mexican authorities, emphasizing that the tariffs are not in synchronisation with the “spirit of cooperative economic engagement” between the two countries.
The tariffs, which will come into effect soon, are expected to affect over 1,400 Indian products, including textiles, pharmaceuticals, and automotive parts. Indian exporters who have been doing business with Mexico are likely to be hit hard by the tariffs, which could lead to a significant decline in their exports to the country. The move is also expected to impact India’s overall trade deficit with Mexico, which has been growing in recent years.
The Centre’s response to the Mexican tariffs has been swift and decisive. In a statement, the government said that it would continue to engage with Mexico through diplomatic channels to reverse the decision. The government has also hinted that it may take retaliatory measures to protect Indian exporters, although the details of such measures have not been disclosed.
The imposition of tariffs by Mexico is not an isolated incident, but rather part of a broader trend of protectionism that has been sweeping the globe. In recent years, several countries, including the United States, China, and the European Union, have imposed tariffs on imports from other countries, citing concerns over trade deficits and national security. The trend has sparked concerns among trade experts, who fear that it could lead to a full-blown trade war, with devastating consequences for the global economy.
India, which has been a vocal advocate of free trade and multilateralism, has been watching the developments with concern. The country has been actively engaging with other countries to promote free trade and investment, and has been a key player in regional trade agreements such as the Regional Comprehensive Economic Partnership (RCEP). However, the imposition of tariffs by Mexico has thrown a spanner in the works, and has raised questions about the future of India-Mexico trade ties.
The impact of the tariffs on Indian exporters will depend on various factors, including the nature of the products being exported and the level of competition in the Mexican market. However, it is clear that the tariffs will make it more difficult for Indian companies to compete with their Mexican counterparts, and could lead to a decline in exports.
In the short term, the tariffs are likely to benefit Mexican industries, which will face reduced competition from Indian exporters. However, in the long term, the move could backfire, as it could lead to higher prices for consumers and reduced economic growth. The tariffs could also hurt Mexico’s reputation as a trade-friendly country, and could deter foreign investors from setting up operations in the country.
The Centre’s decision to oppose the Mexican tariffs is a welcome move, as it reflects the government’s commitment to protecting the interests of Indian exporters. However, the government needs to do more to support exporters, including providing them with financial assistance and helping them to diversify their exports to other countries.
In conclusion, the imposition of tariffs by Mexico on Indian exports is a significant development that could have far-reaching consequences for India-Mexico trade ties. The Centre’s response to the tariffs has been swift and decisive, and reflects the government’s commitment to protecting the interests of Indian exporters. However, the government needs to do more to support exporters, and to promote free trade and multilateralism. As the trade tensions between India and Mexico continue to escalate, it remains to be seen how the situation will unfold in the coming days.
News Source: https://www.newsbytesapp.com/news/business/india-warns-of-retaliation-as-mexico-imposes-50-tariffs/story
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