India to seal FTAs with Latin American nations to counter US
India is moving quickly to negotiate and finalize free trade agreements (FTAs) with Peru, Chile, and Mexico after the US hit Indian goods with a steep 50% tariff in August 2024.
The goal? To open up new export markets in Latin America and rely less on the US for trade.
Shifting trade focus
Last year, India sent $86.5 billion worth of goods to the US—about a fifth of its total exports.
Now, by teaming up with Latin American countries, India hopes to potentially shift around $17.3 billion of that trade away from the US if FTAs are concluded.
Negotiations are picking up: talks with Peru focus on minerals, Chile is discussing a broad partnership as of April 2025, and Mexico—India's top trading partner in the region—is in the early stages of discussions for a trade agreement.
These moves are especially important for Indian textiles and engineering goods, major export sectors affected by US tariffs, helping make India's export game more resilient and future-ready.