India and Mexico to start negotiations for preferential trade agreement
What's the story
India and Mexico have signed the terms of reference for a preferential trade agreement (PTA) today. The move marks the formal start of negotiations for a mutually beneficial PTA, aimed at boosting bilateral trade, creating business opportunities, enhancing investment flows and contributing to resilient supply chains. The agreement will cover key areas such as market access for goods, customs procedures and trade facilitation measures.
Market expansion
Proposed PTA to tap into complementarities of both economies
The proposed PTA aims to tap into the complementarities of both economies and create more opportunities for Mexican products and businesses in India.
The Commerce Ministry has said that Mexico is a key market for Indian exporters and investors due to its strong linkages with global value chains.
Key sectors with potential for cooperation include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices, and advanced manufacturing.
Business exchange
Mexican business mission to India proposed for early 2027
The Mexican delegation also discussed various aspects of the bilateral economic agenda with their Indian counterparts.
They identified opportunities to deepen trade and investment relations, strengthen cooperation, and foster closer ties between the productive sectors of both countries.
A Mexican business mission to India has been proposed for early 2027, which would facilitate business-to-business meetings, identify commercial opportunities and strengthen commercial ties between the two nations' productive sectors.
Diplomatic discussions
Trade pact negotiations follow understanding reached by Modi, Sheinbaum
The start of trade pact negotiations follows an understanding reached between Prime Minister Narendra Modi and President Dr. Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025.
The two leaders had agreed to further strengthen and deepen the India-Mexico partnership.
Commerce Secretary Rajesh Agrawal also held talks with Mexican Undersecretary of Foreign Trade Luis Rosendo Gutierrez Romano during his visit to Mexico, focusing on strengthening bilateral economic relations and expanding trade and investment opportunities.
Trade specifics
Proposed PTA negotiations will cover key trade areas
The PTA negotiations will cover key trade areas such as market access for goods, rules of origin, customs procedures, and dispute settlement. Sanitary and phytosanitary measures, technical barriers to commerce, and their remedies will also be included.