India and Mexico Launch Negotiations for Preferential Trade Agreement
- IBEF
- October 29, 2026
India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA) following the signing of the Terms of Reference, marking a step towards strengthening bilateral trade and investment ties. According to the Ministry of Commerce and Industry, the Terms of Reference establish the framework, scope, modalities and roadmap for negotiations aimed at expanding bilateral trade, creating business opportunities, boosting investment flows and building resilient and diversified supply chains. The initiative follows an understanding reached between Prime Minister Mr. Narendra Modi and Mexican President Dr. Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025 to deepen bilateral cooperation. During the visit of Commerce Secretary Mr. Rajesh Agrawal, the two delegations discussed bilateral relations and opportunities to expand trade and investment. Mexico was represented by Undersecretary of Foreign Trade Mr. Luis Rosendo Gutiérrez Romano on behalf of Secretary of Economy Mr. Marcelo Ebrard Casaubon.
The proposed agreement will cover key 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 negotiations aim to leverage complementarities between the two economies and create greater opportunities for businesses and exporters. Sectors identified as having significant potential for cooperation include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing. Both sides also discussed ways to strengthen cooperation between their productive sectors and deepen economic engagement. Additionally, they explored the possibility of organising a Mexican business mission to India in the first quarter of 2027 to facilitate business-to-business meetings, identify commercial opportunities and strengthen trade ties.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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