NEW DELHI: India and Mexico have signed the terms of reference marking the formal commencement of negotiations for a preferential trade agreement.“The negotiations will focus on identifying mutually beneficial opportunities to expand trade, facilitate investment and strengthen supply chain linkages. Leveraging the complementarities between the two economies will be important in deepening commercial ties and fostering greater cooperation across key sectors,” commerce secretary Rajesh Agrawal said in a social media post.The initiative follows the understanding reached between PM Shri Narendra Modi and President Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025, an official statement said.Having the agreement is critical for Indian exporters as Mexico increased import duty from about 5% to as high as 50% on over 1,400 products from countries that do not have free trade agreements, including India, China, South Korea, Thailand and Indonesia. India’s exports to the Mexico added up to $5.7 billion during the last financial year with automobiles and auto parts adding up to close to $1.5 billion.
