Mexico's Bold Tariff Reform: Aiming to Rebalance Trade

Mexico plans to propose a bill to reform its tariff system, aiming to address trade imbalances and increase revenue by 70 billion pesos. The initiative will primarily target sectors like automotives and manufacturing and apply to countries without existing trade agreements with Mexico.

Mexico is poised to introduce a comprehensive reform of its tariff system, intending to rectify existing trade imbalances and augment government revenue by an estimated 70 billion pesos, equivalent to $3.76 billion.

At a recent press briefing, Deputy Minister for Revenues Carlos Lerma revealed that the economy ministry plans to submit a bill targeting imbalances in sectors like automotives and manufacturing. Although specifics on tariff adjustments remain undisclosed, the reform will align with international treaty frameworks.

Finance Minister Edgar Amador explained that the new measures would target nations lacking trade pacts with Mexico. While Mexico's trade is predominantly conducted with the U.S. under a free trade agreement, the country imposes tariffs on various Chinese goods, amidst pressure from the U.S. to contain China's regional influence.

(With inputs from agencies.)