Indian Exporters Urge Centre To Launch FTA Talks With Mexico, Had Flagged Tariff Hikes In Nov

Indian exporters have urged the commerce ministry to open trade negotiations with Mexico after the Latin American nation approved steep tariff hikes on imports from countries without a free trade agreement.

The increases, reportedly rising to as high as 50% from 2026, threaten to make Indian goods significantly less competitive in one of their fastest-growing markets.

Sources told NDTV Profit that exporters had preemptively written to the commerce ministry on Nov. 2, weeks before Mexico’s formal approval of the tariff plans, flagging the potential disruption. They had warned that the move would hit sectors ranging from automobiles and auto components to machinery, electricals, electronics, organic chemicals, pharmaceuticals, textiles and plastics.

Mexico is a particularly important market for engineering goods, where Indian exporters have built strong positions in recent years. The proposed tariff wall, exporters say, could erode that foothold, raise costs, and trigger supply-chain dislocation. "Our competitiveness will be severely impacted if Mexico goes ahead without an FTA or preferential arrangement," one industry representative said.

Exporters across sectors are now urging the government to immediately begin discussions for a trade agreement or a limited preferential pact to prevent the industry from being priced out of the market. With Mexico aggressively restructuring its tariff regime to encourage near-shoring and favour FTA partners, Indian companies fear that waiting until 2026 would leave too little time to protect existing business.