New Delhi: India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA). Both countries have signed the ‘Terms of Reference’ (ToR), marking a step towards advancing bilateral trade, investment and economic cooperation.
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, where both leaders agreed to strengthen bilateral cooperation and deepen economic ties between the two countries.
The negotiating framework for this agreement includes market access for goods, rules of origin, customs procedures, trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade, and trade measures.
During his visit to Mexico, Commerce Secretary Rajesh Agrawal discussed enhancing trade and investment opportunities with Luis Rosendo Gutiérrez Romano, Mexico’s Deputy Secretary for Foreign Trade. Luis Rosendo Gutiérrez Romano represented Secretary of Economy Marcelo Ebrard Casaubón at the meeting.
The proposed PTA is expected to create opportunities across various sectors, including automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices, and advanced manufacturing.
Both countries also discussed the possibility of organising a Mexican business delegation to India in the first quarter of 2027 to facilitate business-to-business meetings and identify commercial opportunities.
The objective of these negotiations is to create a balanced and mutually beneficial trade framework that can expand bilateral trade, strengthen investment flows, and support more resilient and diversified supply chains.
(PIB)
