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India Pushes PTA With Mexico to Shield $2 Billion in Exports From New Tariffs

WTO limits on MFN tariffs constrain legal options, prompting a bilateral fix before the Jan. 1 start date.

Overview

  • Mexico’s Parliament cleared MFN duty hikes of 5%–50% on about 1,455 tariff lines, with implementation slated for January 1, 2026, pending Presidential gazette notification.
  • India estimates roughly $2 billion of exports face higher duties, with likely hits to autos, two-wheelers, auto parts, textiles, iron and steel, plastics, and leather and footwear.
  • New Delhi proposed a Preferential Trade Agreement as the fastest route to targeted tariff relief after a December 2 secretary–vice minister meeting, with technical talks underway since December 12.
  • Indian officials say Mexico has clarified the move is not aimed at India and is part of a WTO‑compatible MFN action intended to bolster domestic industry and curb Chinese imports.
  • Separately, India says it is very close to an initial framework with the United States on reciprocal tariffs after six rounds of talks, though no timeline has been set.