Overview
- Mexico’s Parliament has cleared MFN tariff increases of up to 50% on non-FTA partners and the measure now awaits Presidential gazette notification for the January 1 start.
- Commerce Secretary Rajesh Agrawal held a December 2 call with Mexico’s vice minister and technical-level discussions began December 12 to craft a preferential trade arrangement.
- India’s most exposed shipments include automobiles, two-wheelers, auto components, textiles, iron and steel, plastics, leather and footwear.
- Mexico has told India the move is not directed at Indian goods and is intended to curb Chinese imports, with the MFN hikes set within WTO-bound rates that limit legal challenge.
- Separately, India says it is very close to an initial framework with the United States on reciprocal tariffs after six rounds of talks and a visit by the new Deputy USTR.