Saudi Arabia expels Canadian ambassador, recalls envoy
Riyadh, Aug 6 : Saudi Arabia announced that it was expelling the Ambassador of Canada and froze new trade deals with the country after Ottawas criticism of human-rights violations in the Islamic Kingdom.
The Ministry of Foreign Affairs announced on Sunday that it it was recalling its ambassador in Canada for consultation and simultaneously declared the Canadian Ambassador Dennis Horak persona non-grata, giving him 24 hours to leave, reports the Saudi Gazette.
The move comes after Canadian Foreign Affairs Minister Chrystia Freeland last week called on Saudi Arabia to release arrested civil-rights activists and signalled concern at a new crackdown in the Middle Eastern country
Saudi Arabia took this firm stance following Canada's statement about "civil society activists" that was negative and baseless, according to the Ministry.
It deemed Freeland's remarks as false allegations.
The ministry considers the Canadian statements as a "blatant interference in the Kingdom's internal affairs that violates simple international norms" that governs relations between countries.
A spokeswoman for Freeland said late Sunday night that the Canadian government was trying to make contact with Saudi Arabia, reports Canadian daily The Globe and Mail.
"We are seriously concerned by these media reports and are seeking greater clarity on the recent statement from the Kingdom of Saudi Arabia," the spokeswoman said.
"Canada will always stand up for the protection of human rights, including women's rights, and freedom of expression around the world. Our government will never hesitate to promote these values and believes that this dialogue is critical to international diplomacy."
The detained activists include Samar Badawi, sister of writer Raif Badawi who is already imprisoned in Saudi Arabia and sentenced to 1,000 lashes for insulting Islam.
Saudi Arabia is one of Canada's biggest export markets in the Gulf region and more than 15,000 Saudi students attend Canadian schools and universities.
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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.
