On October 28, 2026, India and Mexico initiate negotiations for a Preferential Trade Agreement (PTA) to strengthen economic relations, expand bilateral trade, create business opportunities, and contribute to resilient supply chains.
The governments of India and Mexico have taken an important step towards strengthening their economic and trade relations by signing the Terms of Reference for negotiations on a Preferential Trade Agreement (PTA) on October 28, 2026. This decision follows the understanding reached between Prime Minister Shri Narendra Modi and President Dr. Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025. During a recent visit, Commerce Secretary, Shri Rajesh Agrawal, discussed bilateral relations and opportunities to expand trade and investment flows with Mexico’s Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano.
The signing of the Terms of Reference establishes the framework, scope, modalities, and roadmap for negotiations aimed at creating new economic opportunities for both countries. Key negotiating areas covered by the Terms of Reference include 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 agreement seeks to leverage the complementarities between the two economies and expand opportunities for Mexican products and businesses in the Indian market. With its strong linkages to global value chains, Mexico is 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, among others.
The delegations also discussed various aspects of the bilateral economic agenda, identifying opportunities to deepen trade and investment relations, strengthen cooperation, and foster closer ties between the productive sectors of both countries. Both sides further discussed the possibility of organizing a Mexican business mission to India during the first quarter of 2027.
Source:
Press Information Bureau
