India explores targeted PTAs to boost exports while protecting firms
India is exploring targeted preferential trade agreements (PTAs) with trading partners including Mercosur, Mexico, Kenya, and the Southern African Customs Union.
Instead of free trade agreements that typically cover a large share of goods traded, these PTAs zero in on specific products, helping India boost exports while still protecting local businesses from a flood of cheap imports.
Mexico hikes 1,455 tariff lines
India is updating its old PTA with the Mercosur bloc (think Brazil, Argentina, and friends), aiming to cover more products than before.
At the same time, India's facing new challenges with Mexico after it hiked tariffs on 1,455 tariff lines, a move that could hit $2 billion worth of Indian exports.
To tackle this, both sides started technical talks last year to soften the blow for key sectors like vehicles and textiles.
This shift toward PTAs shows India wants smart trade growth without risking homegrown industries.