Government Says Mexico Tariff Hike to Have Limited Impact on Exports

The South Korean government said the impact on exports would be "limited" after Mexico decided to impose tariffs of up to 50 percent on countries without free trade agreements.

The Ministry of Trade, Industry and Energy (MOTIE) held a public-private joint inspection meeting on Mexico's import tariff hike at Lotte Hotel Seoul in Jung-gu, Seoul, on Wednesday, chaired by Deputy Minister for Trade Park Jung-sung.

Mexico passed legislation to impose tariffs on countries without FTAs, including South Korea and China, starting January 1 next year. The tariffs of 5 to 50 percent will apply to 1,463 items across 17 strategic sectors including auto parts, steel and aluminum, plastics, home appliances, and textiles.

"As a result of the government's continuous efforts to convey concerns to Mexico, the bill passed by the Mexican Congress was relaxed compared to the initial proposal prepared in early September," MOTIE said. "In particular, Mexico's tariff reduction programs for imported intermediate goods, such as PROSEC and IMMEX, will be maintained separately from this tariff increase, so the impact on our exports is expected to be limited."