New Delhi: India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA), signing the Terms of Reference (ToR) that define the scope, framework and roadmap for discussions aimed at expanding bilateral trade and investment.
The agreement to begin negotiations marks a step towards strengthening economic ties between the two countries. The proposed PTA aims to create new business opportunities, increase investment flows and support more resilient and diversified supply chains.
The development 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. The two leaders had agreed to deepen the India-Mexico partnership.
India-Mexico PTA Negotiations to Cover Key Trade Areas
The Terms of Reference establish the principal areas that the two countries will negotiate as they work towards a mutually beneficial and balanced trade agreement.
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The discussions will cover:
- Market access for goods: Exploring terms for improving access to each other’s markets.
- Rules of origin: Establishing criteria to determine where traded goods originate.
- Customs procedures and trade facilitation: Exploring measures to streamline customs processes and facilitate cross-border trade.
- Dispute settlement: Developing mechanisms to address disagreements arising under the proposed agreement.
- Sanitary and phytosanitary measures: Addressing standards related to food safety and animal and plant health.
- Technical barriers to trade: Discussing technical regulations, standards and conformity assessment procedures.
- Trade remedies: Addressing measures used to respond to specified trade-related circumstances, subject to the applicable rules.
The negotiations will determine the eventual terms of the agreement. The signing of the ToR launches the process but does not mean that the PTA has been concluded or that tariff concessions have already taken effect.
Pharmaceuticals, Automobiles and Electronics Among Potential Growth Sectors
India and Mexico intend to use the complementary strengths of their economies to identify opportunities for greater trade and investment.
Mexico’s links with global value chains make it a significant market for Indian exporters and investors. The proposed PTA could provide a framework for discussions on expanding commercial engagement across several industries.
Sectors identified as having potential for cooperation include:
- Automobiles and advanced manufacturing
- Chemicals and electronics
- Pharmaceuticals and medical devices
- Agriculture and agri-food products
- Energy and critical minerals
The final scope of market access and the benefits available to businesses will depend on the outcome of negotiations.
Commerce Secretary Rajesh Agrawal Holds Talks With Mexican Officials
The development followed discussions between India’s Commerce Secretary Rajesh Agrawal (IAS: 1994: MN) and Mexican officials during his visit.
The Mexican delegation included Luis Rosendo Gutiérrez Romano, Undersecretary of Foreign Trade, who participated on behalf of Marcelo Ebrard Casaubon, Mexico’s Secretary of Economy.
The discussions covered bilateral economic relations and opportunities to expand trade and investment. Both sides also examined ways to strengthen cooperation and build closer links between businesses and productive sectors in the two countries.
The signing of the Terms of Reference provides a formal basis for the next stage of negotiations.
Mexican Business Mission to India Proposed for Early 2027
India and Mexico also discussed the possibility of organising a Mexican business mission to India during the first quarter of 2027.
If organised, the proposed mission would aim to:
- Facilitate business-to-business meetings.
- Identify commercial and investment opportunities.
- Strengthen connections between businesses in both countries.
- Encourage closer engagement between their productive sectors.
The mission remains a proposal discussed by the two sides, rather than a confirmed event.
PTA Talks Aim to Deepen Bilateral Economic Relations
The launch of negotiations builds on the political understanding reached by the two countries’ leaders in June 2025 and reflects their stated interest in expanding economic cooperation.
For India, Mexico offers opportunities to engage with a major market linked to global manufacturing and supply chains. For Mexico, the proposed agreement could provide a framework for exploring greater access to Indian markets and strengthening commercial ties.
The next phase will focus on negotiating the terms of the proposed Preferential Trade Agreement, including market access and the trade rules that would govern bilateral commerce. The agreement’s eventual impact will depend on the terms negotiated and their implementation.
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