India and Mexico Launch Preferential Trade Agreement Negotiations to Boost Economic Ties.
Terms of Reference signed to establish framework for trade talks; both countries explore opportunities in automotive, pharmaceuticals, electronics, agriculture and other key sectors.
New Delhi:
India and Mexico have taken a significant step towards strengthening their economic and trade relations by signing the Terms of Reference (ToR) for negotiations on a Preferential Trade Agreement (PTA). The agreement establishes the framework, scope, modalities and roadmap for negotiations aimed at expanding bilateral trade, encouraging investment and creating new business opportunities in both countries.
The signing formally marks the launch of negotiations for a mutually beneficial and balanced trade agreement. The proposed PTA is expected to facilitate greater market access, enhance investment flows, strengthen economic cooperation and contribute to the development of resilient and diversified global supply chains.
The initiative follows an understanding reached between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025. During the meeting, the two leaders agreed to further strengthen and deepen the partnership between India and Mexico.
During the visit of Commerce Secretary Rajesh Agrawal, the Indian and Mexican delegations held discussions on bilateral relations and explored opportunities to expand trade and investment between the two countries.
The discussions were held with Luis Rosendo Gutiérrez Romano, Mexico’s Undersecretary of Foreign Trade, who represented Marcelo Ebrard Casaubon, Secretary of Economy of Mexico. Both sides reviewed various aspects of their economic relationship and discussed measures to strengthen commercial cooperation.
PTA to Cover Key Areas of Trade
The Terms of Reference outline several important areas that will form part of the negotiations. These include market access for goods, rules of origin, customs procedures and trade facilitation, dispute settlement mechanisms, sanitary and phytosanitary measures, technical barriers to trade and trade remedies.
These areas are intended to provide a structured basis for negotiations and address key aspects of cross-border commerce. The proposed agreement aims to improve trading conditions, facilitate the movement of goods and create a more predictable environment for businesses operating in both markets.
The negotiations are also expected to identify opportunities arising from the complementary strengths of the Indian and Mexican economies. The agreement seeks to expand opportunities for Mexican products and businesses in the Indian market while creating greater scope for Indian exporters and investors to strengthen their presence in Mexico.
Key Sectors Offer Significant Potential
Mexico, with its strong connections to global value chains, is considered an important market for Indian exporters and investors. Several sectors have been identified as having considerable potential for expanded cooperation between the two countries.
These include automotive and automobile components, chemicals, electronics, pharmaceuticals, agri-food products, energy, critical minerals, medical devices and advanced manufacturing.
Improved trade access and closer economic cooperation in these sectors could help businesses explore new markets, diversify sourcing options and strengthen industrial partnerships. The proposed PTA is also expected to provide a platform for identifying new commercial opportunities and encouraging closer engagement between companies in both countries.
The two delegations discussed various aspects of the bilateral economic agenda, focusing on ways to deepen trade and investment relations, strengthen cooperation and foster closer links between their respective productive sectors.
Mexican Business Mission to India Proposed for 2027
As part of efforts to strengthen commercial engagement, India and Mexico also discussed the possibility of organising a Mexican business mission to India during the first quarter of 2027.
The proposed mission would provide a platform for business-to-business meetings, help companies identify potential commercial opportunities and encourage partnerships between businesses from the two countries.
Such an initiative could facilitate direct engagement between industry representatives, enable businesses to explore investment prospects and support the development of stronger commercial networks.
The launch of PTA negotiations marks an important step in India’s efforts to expand economic partnerships with key international markets. As negotiations progress, both countries will seek to develop a balanced framework that supports trade expansion, investment cooperation and stronger links between their industries.
The proposed agreement is expected to provide fresh momentum to India-Mexico economic relations by opening avenues for businesses, strengthening supply chains and promoting mutually beneficial cooperation across a range of sectors.
