‘India engaged with Mexico over tariff hike’, Pg13

Key Highlights:

• India is in talks with Mexico regarding its decision to increase tariffs on products from countries without Free Trade Agreements (FTAs).
• The Indian Embassy in Mexico engaged with the Ministry of Economy on September 30 to seek exemptions for Indian exports.
• India and Mexico are planning to begin negotiations for a Free Trade Agreement (FTA).

Detailed Insights:

• Mexico's tariff hike impacts countries like India, China, South Korea, Thailand, and Indonesia, which do not have FTAs with Mexico.
• The proposed FTA between India and Mexico aims to protect Indian companies from these tariffs.
• The tariff increase by Mexico is reportedly influenced by pressure to align with the US on tariffs against China and prevent trans-shipment to America.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are transported across international borders.
• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.