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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Govt employees mandated to complete competency-linked courses: Centre in Rajya Sabha
New Delhi (PTI): All central government employees have been mandated to complete competency-linked courses relevant to their role or level on a dedicated online platform annually, which will reflect in their annual performance appraisal reports, the Rajya Sabha was informed on Thursday.
The government has adopted a competency-based capacity building approach, focusing on role-based learning, continuous skill development, and alignment of training with role requirements, Union Minister of State for Personnel Jitendra Singh said in a written reply.
"The Department of Personnel and Training (DoPT) has mandated all central government employees and officers of the all-India services to complete competency-linked courses mapped to their role/level and comprehensive assessments prescribed by their ministries/ departments/organisations (MDOs) or cadre controlling authorities (CCAs) on iGOT (integrated government online training) portal annually, which is to be also reflected in their annual performance appraisal reports (APARs)," he said.
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The minister was responding to a query about the government's plans to incorporate competency-based scores for promotion and appraisal processes of its employees.
A framework of roles, activities and competencies (FRAC) aims to align all positions in government with clearly defined roles, activities, and required competencies (behavioural, functional, and domain), Singh added.
In a separate reply, the minister said that details of the engagement of consultants are maintained by respective ministries and departments.
The General Financial Rules (GFR), 2017, administered by the Department of Expenditure, Ministry of Finance, provides for the fundamental principles applicable to all ministries or departments concerning the engagement of consultants and external professionals or consultancy firms for specific jobs, he said.
"As informed by the Department of Expenditure, data regarding engagement of consultants is maintained by respective ministries and departments," Singh said.
The minister was asked the year-wise number of consultants engaged by all the central ministries and departments during the last five years.
