India proposes preferential trade agreement with Mexico to deal with high tariffs
New Delhi (PTI): India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday.
Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia.
Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue.
"Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here.
While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, duties are cut or removed on a limited number of products.
Trading partners of Mexico cannot file a compliant against the decision on imposing high tariffs as they are WTO (World Trade Organisation) compatible.
The duties are within their bound rates, he said, adding that their primary target was not India.
"We have proposed a PTA because its a WTO-compatible way forward... we can do a PTA and try to get concessions that are required for Indian supply chains and similarly offer them concessions where they have export interests in India," Agrawal said.
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Citing support for local production and correction of trade imbalances, Mexico has approved an increase in MFN (most favoured nation) import tariffs (5-50 per cent) with effect from January 1, 2026 on 1,455 tariff lines (or product categories) within the WTO framework, targeting non-FTA partners.
Preliminary estimates suggest that this affects India's around USD 2 billion exports to Mexico particularly -- automobile, two-wheelers, auto parts, textiles, iron and steel, plastics, leather and footwear.
The measure is also aimed at curbing Chinese imports.
India-Mexico merchandise trade totalled USD 8.74 billion in 2024, with exports USD 5.73 billion, imports USD 3.01 billion, and a trade surplus of USD 2.72 billion.
The government has been continuously and comprehensively assessing Mexico's tariff revisions since the issue emerged, engaging stakeholders, safeguarding the interests of Indian exporters, and pursuing constructive dialogue to ensure a stable trade environment benefiting businesses and consumers in both countries.
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Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai has said that Mexico's decision is a matter of concern, particularly for sectors like automobiles and auto components, machinery, electrical and electronics, organic chemicals, pharmaceuticals, textiles, and plastics.
"Such steep duties will erode our competitiveness and risk, disrupting supply chains that have taken years to develop," Sahai said, adding that this development also underlines the little urgency for India and Mexico to fast-track a comprehensive trade agreement.
Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA.
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Veteran Congress leader Shamanuru Shivashankarappa laid to rest with full state honours
Bengaluru (PTI): Veteran Congress leader Shamanuru Shivashankarappa was laid to rest with full state honours on Monday.
The 94-year-old former minister, who passed away at a private hospital in Bengaluru on Sunday, was cremated at the Kalleshwara Mill premises, following Veerashaiva-Lingayat traditions.
Earlier in the day, Shivashankarappa's mortal remains were brought to his native Davanagere, where they were kept at the high school grounds for the public, his followers, and well-wishers to pay their last respects.
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Expressing deep sorrow over his demise, the Karnataka government ordered that his last rites be performed with full state honours.
Both the Karnataka Legislative Assembly and Council also mourned his passing, adjourning their sessions for the day after paying tributes.
Chief Minister Siddaramaiah, Deputy CM D K Shivakumar, AICC President Mallikarjun Kharge, veteran BJP leader B S Yediyurappa, several ministers, opposition leaders, legislators, and political figures paid their respects.
A number of seers from the Veerashaiva-Lingayat community also attended the last rites.
Shivashankarappa represented the Davanagere South Assembly constituency. He had been undergoing treatment at the hospital for some time before succumbing to age-related ailments.
The senior-most legislator in Karnataka, Shivashankarappa, was also one of the longest-serving lawmakers in the country, sources said.
He is survived by three sons, including S S Mallikarjun, the Karnataka Minister for Mines, Geology, and Horticulture, and four daughters. His daughter-in-law, Prabha Mallikarjun, is the Member of Parliament from Davanagere.
A six-time MLA, Shivashankarappa also served as a minister and an MP.
He was a prominent educationist, establishing several educational institutions, and was an industrialist.
Additionally, he served as the treasurer of the Karnataka Pradesh Congress Committee (KPCC) for decades and was the president of the All India Veerashaiva Mahasabha, the apex body of the influential Veerashaiva-Lingayat community.
