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22 September 2025

The Government of Mexico proposes to increase tariffs for trading partners without a preferential trade agreement in place

By Tobias Dolle, Stella Nalwoga, and Paolo R. Vergano

On 9 September 2025, the Government of Mexico presented to the Parliament of Mexico the 2026 Economic Package, which includes a draft Decree proposing amendments to Mexico’s General Import and Export Tariffs Law (i.e., Ley de los Impuestos Generales de Importación y de Exportación, hereinafter, Tariffs Law). If approved, the proposed amendments would significantly increase tariffs on a wide range of imports into Mexico originating from countries with which Mexico has not concluded a preferential trade agreement (hereinafter, PTA).

This article provides an overview of Mexico’s proposed tariff increases in the context of Mexico’s obligations as a Member of the World Trade Organization (hereinafter, WTO), the implications for its trading partners, as well as the related reactions.

Higher tariffs for non-preferential trading partners

In 2022, Mexico adopted the Tariffs Law, which establishes the “tariff rates applicable to the import and export of goods” into and from Mexico. Since its enactment, Mexico’s Tariffs Law has been updated annually. However, compared to the most recent modification adopted in 2024, which foresaw tariff increases on 500 product classifications of the Harmonized System (HS), the proposed amendments for 2025 would be much more significant. The proposed tariff increases would concern 1,371 product classifications and increase the respective tariff rates to new rates ranging from 10% to 50%. 

According to the explanatory notes to the proposed amendments, for years Mexico’s economy had been “integrated into global value chains under schemes that favoured the importation of inputs, which caused the loss of essential productive branches and a growing vulnerability to external shocks”, adding that “trade liberalisation, while it expanded markets, did not always translate into greater technological capacity or in an increase in the national content” in Mexico’s exports. Therefore, by increasing tariffs, the Government of Mexico hopes that its domestic industries would “be strengthened”. The Government of Mexico further explains that, “due to the international policies existing worldwide”, it was “necessary to implement concrete actions that allow for balanced market interaction to avoid economic distortions that could affect the relocation of the productive sectors considered strategic for the country, as well as the attraction of new companies and high value-added industries”.

More specifically, the Government of Mexico proposes to “establish tariffs on the importation of various goods from the automotive, textile, clothing, and plastic industries, steel, household appliances, aluminium, toys, furniture, footwear, leather goods, paper and cardboard, motorcycles, trailers, glass, contained in the Chapters 33, 34, 39, 40, 42, 48, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 69, 70, 72, 73, 76, 83, 84, 85, 87, 90, 94, 95 and 96” of the HS product classifications laid down in Mexico’s Tariffs Law.

Notably, the majority of goods covered under the product classifications set out in the proposed Decree would be subject to a new tariff rate of 35%, while a few product categories would be subject to a tariff rate of 10%, such as certain plastics, aluminium, and parts and accessories of motor vehicles classified under Chapters 39, 76 and 87, respectively. Around 20 product categories are foreseen to be subject to a new tariff rate of 50%, including certain textile products, namely yarn, fabric, and apparel of wool classified under Chapters 51, and 62, products of iron and steel classified under Chapter 73, as well as “Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars” and “Motor vehicles for the transport of goods” classified under Chapter 87.

The proposed amendments to the Tariffs Law must still be adopted by Mexico’s Parliament. As stated in the draft Decree, the amendments would then come into effect “30 days after its approval and publication in the official gazette of the Federation and will end on 31 December 2026”.

WTO consistent, but with severe trade implications

The WTO legal framework provides several avenues to implement tariff increases on trade in goods, but these actions must be consistent with the WTO rules and, most notably, the commitments under the General Agreement on Tariffs and Trade (hereinafter, GATT). 

All WTO Members have established, on the basis of Article II of the GATT, a Schedule of Concessions, which is the result of tariff negotiations with the other WTO Members and reflects the tariff concessions that a WTO Member has committed to apply as a maximum ceiling (i.e., the ‘bound rates’). Section I of each of these Schedules sets out the most favoured-nation (hereinafter, MFN) concessions of the respective WTO Member, referring to the commitment not to raise the ordinary Customs duties above the limits set therein for each tariff line and Customs code. The Customs duties in these Schedules, once agreed upon, become “bound”, which means that the WTO Member that has committed to them may not apply ordinary Customs duties in excess of the bound rates. Importantly though, WTO Members may apply tariff rates below the bound rates (i.e., ‘applied rates’), for instance to encourage imports of products not available on the domestic market or needed for further processing and value addition.

The tariff increases in Mexico’s proposed amendment to the Tariffs Law fall within Mexico’s bound tariff rates, as set out in Mexico’s WTO Schedule of Concessions on goods. Therefore, the proposed amendments appear to be consistent with Mexico’s WTO commitments. However, if passed, such tariff increases could nonetheless have significant impacts on Mexico’s trading partners that trade under MFN conditions. Despite tariff increases in past years, WTO statistics indicate that the average MFN rate applied by Mexico in 2024 only amounted to 7.4%.

The tariffs increases will only apply to the MFN tariffs, which means that they will not apply to goods traded under preferential trade agreements between Mexico and third countries (or regions). Article XXIV of the GATT allows WTO Members, within the context of a trade agreement, to grant preferential terms of market access to each other and not have to extend such conditions to all other WTO Members. In order to qualify for preferential treatment, importers from such countries must prove the origin of goods in accordance with the rules of origin set out in the respective PTA. 

Mexico’s proposed tariff increases highlight the strategic importance and economic value of entering into preferential trade agreements, which allow trading partners to secure more favourable trading conditions in today’s increasingly volatile and unpredictable geopolitical landscape. EU-based businesses already benefit from preferential market access to Mexico under the EU-Mexico Global Agreement, which came into force in 2000. However, high tariffs remained on agri-food products considered sensitive. Earlier this year, the EU and Mexico concluded negotiations on the modernisation of the EU-Mexico Global Agreement, which, according to the European Commission, would “remove the remaining prohibitive tariffs on EU agri-food products” exported to Mexico. On 3 September 2025, the European Commission adopted proposals for decisions of the Council of the EU on the signature and conclusion of the EU-Mexico Modernised Global Agreement and of the related interim Trade Agreement, with the latter expected to come into force in the coming months.

Critical reactions by trading partners

China strongly reacted to Mexico’s proposed tariff increases. A spokesperson for China’s Ministry of Foreign Affairs stated that, “Once implemented, these measures will not only harm the interests of relevant trading partners, including China, but will also seriously undermine the certainty of Mexico’s business environment and reduce corporate confidence in investing in Mexico”, urging Mexico “to exercise extreme caution and think twice before acting”. China signalled potential retaliation by concluding that it would “take necessary measures based on actual circumstances to resolutely safeguard its legitimate rights and interests”. Given that Mexico and China do not have a preferential trade agreement in place, the proposed tariffs would apply to goods imported into Mexico from China. 

Legislative urgency and strategic engagement

The proposed Decree amending Mexico’s Tariffs Law has been referred to the Finance and Public Credit Committee of Mexico’s House of Representatives for review. The House of Representatives will then vote on the proposal and forward it to the Senate for consideration. There is political pressure to adopt the amendments before 15 December 2025, when the Parliament’s current legislative session ends and for the changes to apply from January 2026. 

Businesses exporting to Mexico or those relying on affected imports into Mexico should closely follow the developments and may want to consult experts in Customs and trade law in order to provide well-founded inputs to the discussions leading to the adoption of the proposed tariff increases. While entirely legal, the proposed tariff increases risk having important implications for trade and for the resilience of supply chains involving Mexico.  

For any additional information or legal advice on this matter, please contact Paolo R. Vergano 

Thailand introduces new restrictions on the sale and advertising of alcoholic beverages aimed at reducing consumption and promoting public health

By Alya Mahira, Pattranit Chantaplaboon, and Paolo R. Vergano

On 9 September 2025, the Royal Decree on the Alcoholic Beverage Control Act No. 2 of B.E. 2568 (2025) (hereinafter, Alcoholic Beverage Control Act No. 2) was published in the Thai Royal Gazette. The Act, set to take effect on 8 November 2025, amends the existing Royal Decree on the Alcoholic Beverage Control Act No. 1 of B.E. 2551 (2008)(hereinafter, Alcoholic Beverage Control Act No. 1), which had remained unchanged for more than 17 years. The Alcoholic Beverage Control Act No. 2 tightens the requirements regarding the advertising of alcoholic beverages, and increases the penalties for violations of the Act. Separately, the Government of Thailand introduced new sales restrictions on the basis of the Announcement of the Office of the Prime Minister on the Prescription of Prohibited Times for the Sale of Alcoholic Beverages, B.E. 2568 (2025).

This article reviews Thailand’s recently adopted restrictions on advertising and sales of alcoholic beverages, and discusses their commercial implications, as well as their consistency with international trade rules. 

Modernising Thailand’s regulatory framework regarding alcoholic beverages

Thailand’s Alcoholic Beverage Control Act No. 1 introduces certain advertising and sales restrictions statedly aimed at reducing alcohol-related harm and at curbing consumption. While the Act prohibits direct advertising, its narrow definition of “marketing” still allows indirect marketing practices, such as stealth marketing or product placements. The Alcoholic Beverage Control Act No. 2 contains a new Chapter 4/1, comprising five key provisions (i.e., Sections 32/1 to 32/5) governing alcohol-related advertising and marketing practices.

Most notably, the Alcoholic Beverage Control Act No. 2 introduces entirely new provisions under Chapter 4/1 that prohibit a wide range of activities and communications that could influence behaviour regarding alcohol consumption. Section 32/1 prohibits the advertising of alcoholic beverages, except when it involves the inclusion of factual information or educational content in accordance with the criteria, methods, and conditions announced by the Prime Minister. Section 32/2 prohibits individuals, mainly public figures, from using their personal reputation to advertise or promote alcoholic beverages. Section 32/3 prohibits the advertising of other products using alcoholic beverage names or symbols in a way that implies alcohol promotion. Section 32/4 prohibits individuals or organisations from sponsoring or supporting social or public benefit activities in ways that promote alcohol consumption, while Section 32/5 prohibits the publication and promotion of activities prohibited under Section 32/4. 

The Alcoholic Beverage Control Act No. 2 also imposes significantly stricter penalties compared to the previous Act. More specifically, Sections 32/1 and 32/3 introduce criminal liability for violations related to advertising and brand promotion, with penalties of up to one year’s imprisonment, fines of up to 100,000 THB (around EUR 2,670), or both. Section 32/5 penalises the promotion of social or public activities that encourage alcohol consumption with a maximum sentence of six months’ imprisonment and a maximum fine of 500,000 THB (around EUR 13,370). These increased penalties appear to reflect Thailand’s more assertive regulatory stance to deter non-compliance. 

Separately, on the basis of an Announcement of the Office of the Prime Minister issued in June 2025, Thailand imposes specific time restrictions for the sale of alcoholic beverages in shops and restaurants. More specifically, the sale of alcoholic beverages is only authorised from 11 am to 2 pm and from 5 pm to 12 am, with an exception for tourist-attracting venues, namely licensed hotels, airports, and entertainment locations. As noted by Thailand’s National Alcohol Policy Committee, this exception was introduced to align with Thailand’s “economic and social landscape”, specifically in support of the tourism sector. Although there was a speculation that the Alcoholic Beverage Control Act No. 2 would lift or relax these restrictions, the Act leaves the existing legal framework unchanged. Consequently, the current alcohol sales restrictions under the Announcement of the Office of the Prime Minister remain in effect. 

Developments in ASEAN and the EU 

Many countries have adopted restrictions on the advertising and sale of alcoholic beverages to reduce alcohol-related harm and safeguard public health. In December 2022, the Association of Southeast Asian Nations (hereinafter, ASEAN) had published the ASEAN Framework for Action on Alcohol Control, which outlines six priority strategies to address alcohol-related issues in the region. The Framework recognises the importance of prohibitions and comprehensive restrictions on alcohol advertising to achieve this objective. In addition to Thailand, other ASEAN Member States also introduced related measures. For instance, Indonesia prohibits any commercial advertising of alcoholic beverages under Article 46(3)(b) of Law No. 32 of 2002 on Broadcasting, whereas Brunei Darussalam prohibits the advertising of alcoholic beverages on every broadcasting platform on the basis of the Broadcasting (Code of Practice) Notification. 

Unlike ASEAN, where no single overarching framework governs alcohol advertising, the EU has established harmonised rules. The EU does not prohibit alcohol advertising, but enforces certain restrictions. The EU’s Audiovisual Media Services Directive specifies, in relevant part, that alcohol advertising must not be aimed at minors and must not encourage immoderate consumption. Complementing harmonised rules at the EU-level, several EU Member States have enacted additional restrictions. For example, since 10 January 2025, Ireland prohibits the advertising of alcoholic beverages on television between 3 am and 9 pm, and on radio on weekdays between 12 am and 10 am and between 3 pm and 12 am. Since 2022, Poland prohibits the advertising and promotion of beer on television and radio between 6 am and 8 pm. Earlier this month, EU Member States Austria, Belgium, France, Latvia, Slovenia, and Spain reportedly urgedthe European Commission to introduce measures to curb alcohol consumption, such as advertising restrictions, as part of the European Commission’s upcoming EU Cardiovascular Health Plan.

Consistency with international trade rules?

While applying equally to both domestic and imported alcoholic beverages, Thailand’s new advertising restrictions might disproportionately affect imported products, which typically rely more on advertising and marketing practices to establish brand recognition and drive sales in foreign markets. The new rules could unintentionally create an uneven playing field that favours domestic alcoholic beverages, effectively resulting in de facto discrimination against imported ‘like’ products. In this context, the advertising restrictions could potentially violate certain of Thailand’s obligations under relevant Agreements of the World Trade Organization (hereinafter, WTO).

More specifically, the national treatment obligation under Article III:4 of the General Agreement on Tariffs and Trade 1994(hereinafter, GATT 1994) prohibits WTO Members from treating imported products less favourably than “like” domestic products. If considered as non-compliant, Thailand could seek to justify its rules under Article XX(b) of the GATT 1994, which allows WTO Members to depart from the Agreement’s obligations for measures aimed at protecting public health. However, such measures must meet certain conditions, including that they must not constitute “arbitrary or unjustifiable discrimination” or a “disguised restriction” on international trade.

Implementation of the new rules

The new Alcoholic Beverage Control Act No. 2 and the new sales restrictions will certainly impact how alcoholic beverages are promoted and marketed in Thailand. Stakeholders, notably importers and traders, should exercise additional caution when advertising or promoting alcoholic beverages in Thailand to ensure compliance and closely follow the upcoming announcement in relation to Section 32/1 of the Alcoholic Beverage Control Act No. 2.

For any additional information or legal advice on this matter, please contact Paolo R. Vergano 

Benefits for bowel function: The EU approves a health claim for green kiwifruit of the Actinidia deliciosa ‘Hayward’ variety

By Amanda Carlota, Ignacio Carreño García, and Tobias Dolle

On 30 July 2025, the European Commission (hereinafter, Commission) authorised a health claim for green kiwifruit, recognising digestive health benefits. More specifically, Commission Implementing Regulation (EU) 2025/1560 of 30 July 2025 authorising a health claim made on foods, other than those referring to the reduction of disease risk and to children’s development and health, and amending Regulation (EU) No 432/2012, which entered into force on 20 August 2025, authorises producers of green kiwifruit of the Actinidia deliciosa ‘Hayward’ variety to include in their labelling, presentation, and advertising the health claim that the “Consumption of green kiwifruit contributes to normal bowel function by increasing stool frequency”.

This article discusses the authorisation of the claim, who may use it, and the importance for producers.

A lengthy authorisation procedure

Regulation (EC) 1924/2006 on nutrition and health claims made on foods provides that health claims made on foods are prohibited unless they are expressly authorised by the Commission in accordance with that Regulation and included in the list of permitted health claims. Pursuant to Article 13(3) of Regulation (EC) 1924/2006, Commission Regulation (EU) 432/2012 establishes a list of permitted health claims made on foods, other than those referring to the reduction of disease risk and to children’s development and health. This list has only be updated three times in the last eight years and, other than the claim for kiwifruit, does not include a health claim for a whole fresh fruit.

Regulation (EC) 1924/2006 provides that applications for authorisations of health claims may be submitted by food business operators to the national competent authority of an EU Member State. The national competent authority is to forward valid applications to the European Food Safety Authority (hereinafter, EFSA) for a scientific assessment, as well as to the Commission and the other EU Member States for information. The Commission is to decide on the authorisation of health claims, taking into account the opinion delivered by the EFSA. In order to stimulate innovation, health claims that are based on newly developed scientific evidence, and/or which include a request for the protection of proprietary data, undergo an accelerated type of authorisation.

Following an application in 2018 from Zespri International Limited (the applicant), submitted pursuant to Article 13(5) of Regulation (EC) 1924/2006, the EFSA was required to deliver an opinion on the scientific substantiation of a health claim related to green kiwifruit, namely the variety Actinidia deliciosa ‘Hayward’ and the claimed effect of “maintenance of normal defecation”. According to Zespri, the claimed effect is related to the presence of fibre and the enzyme actinidin. The claim initially proposed by the applicant was worded as follows: ‘Regular consumption of green kiwifruit contributes to gastrointestinal comfort’ or ‘regular consumption of green kiwifruit reduces gastrointestinal discomfort’. Taking into account the proposed health relationship, and in agreement with the applicant, the EFSA changed the wording of the assessed claim to: ‘Regular consumption of green kiwifruit maintains normal defecation’. 

On 11 June 2021, the EFSA had published its scientific opinion on that claim, which concluded that, on the basis of the data presented, a cause-and-effect relationship had been established between the consumption of green kiwifruit and the maintenance of normal defecation. The EFSA notes that, “in order to obtain the claimed effect, two large green kiwifruits (i.e. around 200 g of kiwi flesh) should be consumed”. Accordingly, a health claim reflecting this conclusion is considered as complying with the requirements of Regulation (EC) 1924/2006 and should be included in the EU list of permitted health claims, established by Regulation (EU) 432/2012. Following Zespri’s request to the Commission for a more consumer-friendly wording, the EFSA confirmed that the wording ‘Consumption of green kiwifruit contributes to normal bowel function by increasing stool frequency’ reflects the scientific evidence.

Regulation (EU) 2025/1560 inserts the following entry into the Annex to Regulation (EU) No 432/2012:

Nutrient, substance, food or food categoryClaimConditions of use of the claim
Green kiwifruit (Actinidia deliciosa “Hayward”)Consumption of green kiwifruit contributes to normal bowel function by increasing stool frequencyThe claim may be used only for:(i)fresh green kiwifruits sold as such, or(ii)fresh green kiwifruits which have only been peeled and/or cutproviding a minimum of 200 g of kiwi flesh.Information shall be given to the consumer that the beneficial effect is obtained with a daily intake of 200 g of fresh green kiwi flesh.

Generic use of the claim

Authorised health claims may be used by any food business operator. Article 17(5) of Regulation (EC) 1924/2006provides that “Health claims included in the lists provided for in Articles 13 and 14 may be used, in conformity with the conditions applying to them, by any food business operator, if they are not restricted for use in accordance with the provisions of Article 21”.

Article 21 of Regulation (EC) 1924/2006 provides for the exclusive use of data for 5 years, but only if: 1) Proprietary data were submitted in the application; 2) Those data were essential for the authorisation; and 3) The applicant requested protection. In such a case, only the applicant may use the claim for five years.

Zespri as the applicant did not obtain data protection under Article 21 of Regulation (EC) 1924/2006. The EFSA’s scientific opinion on the kiwi claim clearly states that the evidence used included published human intervention studies, and that “the application does not contain data claimed as confidential and data claimed as proprietary”. That makes the claim eligible for generic authorisation, which is confirmed by the fact hat Regulation (EU) 2025/1560 does not refer to Article 21 restrictions. 

In a statement, Zespri notes that the approved claim is “based on over 15 years of Zespri-led research and a daily intake of two green kiwifruit” and that “this groundbreaking approval for a fresh fruit involved a rigorous, long-term evaluation process by the EFSA” that marks a significant milestone not only for “Zespri but for the entire fresh produce industry”. Zespri announced that it would “begin integrating the health claim into its European communications”.

Commercial aspects

The European Commission has notified the World Trade Organization’s Committee on Technical Barriers to Trade about the approval of the health claim.

Green kiwi is the first whole fresh fruit ever to receive this kind of authorised health claim in the EU. More commonly, an isolated nutrient or substance has been linked to an authorised health claim under the very restrictive EU framework on health claims, which is designed to safeguard consumers and ensure that claims are scientifically substantiated.

Any food business operator marketing green kiwifruit of the Actinidia deliciosa ‘Hayward’ variety in the EU may now use the claim, provided that  information is given to consumers that the beneficial effect is obtained with a daily intake of 200g of fresh green kiwi flesh. Other varieties of green kiwifruit, as well as golden or red kiwifruit, are not covered by the authorisation.

In view of this precedent, other producers of fruit containing essential nutrients including fibre, like prunes, may be encouraged to file a similar request for the authorisation of a health claim.

For any additional information or legal advice on this matter, please contact Ignacio Carreño Garcia

Recently adopted EU legislation

Trade Remedies

Customs Law

Food Law

Imelda Jo Anastasya, Amanda Carlota, Pattranit Chantaplaboon, Ignacio Carreño García, Joanna Christy, Tobias Dolle, Alya Mahira, Stella Nalwoga, and Paolo R. Vergano contributed to this issue.

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