NEW DELHI: India and Mexico have begun negotiations for a Preferential Trade Agreement (PTA), as both countries signing the Terms of Reference to set the scope and roadmap for discussions. The proposed agreement aims to expand bilateral trade, encourage investment, create business opportunities and develop a more diversified supply chain.The negotiations follow an agreement between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum to deepen the bilateral partnership during the G-7 Summit in Canada in June 2025.The Terms of Reference establish the framework, scope and modalities for the negotiations. The discussions will cover market access for goods, rules of origin, customs procedures and trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade and trade remedies.The proposed PTA is intended to be mutually beneficial and balanced, with the aim of creating new economic opportunities for both countries.
Automotive, pharmaceuticals and electronics among potential sectors
The agreement seeks to build on the complementary strengths of the Indian and Mexican economies and expand opportunities for Mexican products and businesses in the Indian market.Mexico is an important market for Indian exporters and investors and has strong links to global value chains. The sectors identified as having broad potential for cooperation include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.
Commerce secretary leads discussions with Mexican delegation
During commerce secretary Rajesh Aggarwal’s visit, the Indian and Mexican delegations discussed bilateral relations and ways to increase trade and investment flows.Mexico’s deputy minister of foreign trade, Luis Rosendo Gutierrez Romano, participated in the discussions on behalf of Minister of Economic Affairs Marcelo Ebrard Casaubon.The two sides also reviewed the broader bilateral economic agenda, identifying opportunities to strengthen cooperation, deepen trade and investment ties, and build stronger connections between the productive sectors of both countries.India and Mexico also discussed the possibility of a Mexican business delegation visiting India during the first quarter of 2027.The proposed mission is intended to facilitate business-to-business (B2B) meetings, help identify business opportunities and strengthen trade ties between the productive sectors of the two countries.
