India and Mexico Begin Trade Pact Talks to Boost Ties

India and Mexico launch negotiations for a Preferential Trade Agreement to boost bilateral trade, attract investment and strengthen supply chains, with cooperation spanning automobiles, pharmaceuticals, electronics, energy and advanced manufacturing.

India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA) to expand bilateral trade, encourage investment and strengthen supply chains. The initiative aims to deepen economic cooperation between the two countries and create new opportunities for businesses across key industries.

The negotiations begin with the signing of the Terms of Reference (ToR) by India's Commerce Secretary Rajesh Agrawal and Mexico's Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano. The agreement establishes the scope, framework and roadmap for discussions, with both sides seeking balanced and mutually beneficial trade arrangements.

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The move 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. Both leaders agreed to strengthen bilateral relations and explore opportunities for closer economic engagement.

The proposed trade pact will cover several areas, including market access for goods, rules of origin, customs procedures, trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade and trade remedies. These negotiations aim to establish clearer trade arrangements and facilitate business activities between the two economies.

According to the Ministry of Commerce and Industry, potential areas of cooperation include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing. Mexico's integration into global value chains also offers opportunities for Indian exporters and investors, while the agreement could improve access for Mexican products in the Indian market.

Both delegations have also discussed ways to strengthen investment ties and encourage greater collaboration between businesses. The two countries are exploring the possibility of organising a Mexican business mission to India in the first quarter of 2027. The proposed visit would facilitate business-to-business meetings, help identify commercial opportunities and build stronger connections between companies in both markets.

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India-Mexico bilateral trade stood at $7.83 billion in the 2025-26 financial year, declining 9.11% from $8.62 billion in 2024-25. India's exports to Mexico fell marginally by 0.38% to $5.73 billion, while imports declined 26.59% to $2.11 billion.

The negotiations establish a framework for both countries to pursue preferential trade arrangements and identify opportunities to expand commerce, diversify supply chains and strengthen long-term economic cooperation.