New Delhi: India and Mexico have taken a step towards strengthening their economic ties with the signing of the Terms of Reference (ToR) for negotiations on a Preferential Trade Agreement (PTA).
The agreement sets out the framework, scope and roadmap for negotiations, formally launching discussions on a mutually beneficial trade pact. The proposed PTA is expected to create opportunities for businesses, expand bilateral trade and support more resilient and diversified 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. The two leaders had agreed to deepen the India-Mexico partnership.
Negotiations Cover Key Trade Areas
During Commerce Secretary Rajesh Agrawal’s visit, the Indian delegation held discussions with Mexico’s Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano, representing Secretary of Economy Marcelo Ebrard Casaubon.
The Terms of Reference cover market access for goods, rules of origin, customs procedures, trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade and trade remedies.
Both sides also discussed ways to expand trade and investment flows and strengthen cooperation between businesses in the two countries.
Key Sectors Identified for Cooperation
The proposed agreement aims to build on the two economies' complementarities and improve opportunities for Mexican products and businesses in India.
Mexico’s links with global value chains also make it an important market for Indian exporters and investors. Potential areas of cooperation include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
The delegations also discussed the possibility of organising a Mexican business mission to India in the first quarter of 2027. The proposed visit would facilitate business-to-business meetings, identify commercial opportunities and strengthen ties between the two countries’ industries.
The launch of PTA negotiations marks a new phase in India-Mexico economic engagement, with both sides looking to broaden trade and investment opportunities through a structured framework.
