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India, Mexico inks ToR to launch negotiations on Preferential Trade Agreement
Oct-28-2026

With an aim of deepening India-Mexico economic and trade relations, both countries have signed Terms of Reference (ToR) for negotiations on a Preferential Trade Agreement (PTA). The ToR establishes the framework, scope, modalities and roadmap for negotiations aimed at creating new economic opportunities for both countries. The signing formally launches negotiations for a mutually beneficial and balanced PTA, with the potential to expand bilateral trade, create business opportunities, enhance investment flows and contribute to resilient and diversified supply chains. Further, Commerce Secretary, Shri Rajesh Agrawal held discussions with Mexican delegations on bilateral relations and opportunities to expand trade and investment flows, during his Mexico visit.

The ToR 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 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.

Besides, both delegations 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. They also discussed the possibility of organising 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. India is Mexico’s ninth largest trading partner with a bilateral trade of $11.09 billion in 2025, with Indian exports of $9.13 billion to Mexico and imports of $1.97 billion from Mexico.

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