India and Mexico Launch PTA Negotiations
India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA) through the signing of Terms of Reference on October 28, 2026. The agreement establishes the framework, scope, modalities, and roadmap for negotiations aimed at creating new economic opportunities for both countries. The PTA seeks to expand bilateral trade, create business opportunities, enhance investment flows, and contribute to resilient and diversified supply chains.
The initiative follows the understanding reached between Prime Minister Narendra Modi and President Dr. Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025. During the visit of Commerce Secretary Shri Rajesh Agrawal, discussions were held with Mexico's Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano, who participated on behalf of Secretary of Economy Marcelo Ebrard Casaubon.
Key Negotiation Areas and Sectoral Focus
The Terms of Reference cover key negotiating areas including 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 agreement seeks to leverage complementarities between the two economies, with Mexico's strong linkages to global value chains making it an important market for Indian exporters and investors.
Sectors with significant potential for cooperation include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices, and advanced manufacturing. Both delegations discussed various aspects of the bilateral economic agenda, identifying opportunities to deepen trade and investment relations.
Future Engagement Plans
Both sides discussed the possibility of organizing a Mexican business mission to India during the first quarter of 2027. The proposed mission would facilitate business-to-business meetings, help identify commercial opportunities, and strengthen commercial ties between the productive sectors of the two countries.