India and Mexico Launch Preferential Trade Agreement Negotiations to Boost Bilateral Trade
By Suman Munshi | IBG NEWS
NEW DELHI, October 28, 2026: India and Mexico have taken a significant step towards expanding their economic partnership by signing the Terms of Reference (ToR) for negotiations on a proposed Preferential Trade Agreement (PTA). The initiative aims to strengthen bilateral trade, encourage investment and create fresh business opportunities for companies in both countries.
The agreement on the negotiating framework establishes the scope, procedures and roadmap for discussions. The proposed PTA is intended to support balanced economic cooperation, diversify supply chains and improve commercial engagement between the two economies.
India and Mexico Seek Deeper Economic Cooperation
The initiative 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 had agreed to strengthen and deepen the India-Mexico partnership.
During the latest engagement, India’s Commerce Secretary Rajesh Agrawal held discussions with Mexico’s Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano, who represented the Mexican side on behalf of Economy Secretary Marcelo Ebrard Casaubon.
The discussions covered bilateral economic relations and opportunities to increase trade and investment flows. The signing of the Terms of Reference formally sets the negotiating process in motion.
Key Areas Covered Under the Proposed Trade Agreement
The negotiating framework identifies several important areas for discussion, including:
- Market access: Improving opportunities for goods from both countries to enter each other’s markets.
- Rules of origin: Establishing criteria to determine the national origin of traded products.
- Customs and trade facilitation: Exploring measures to make cross-border trade more efficient.
- Dispute settlement: Developing procedures for addressing trade-related disagreements.
- Sanitary and phytosanitary measures: Addressing relevant standards concerning food safety and animal and plant health.
- Technical barriers to trade: Discussing technical regulations and product standards.
- Trade remedies: Considering measures relating to trade practices and market protection.
The negotiations will determine the eventual terms and commitments of the proposed agreement.
Multiple Sectors Offer Opportunities for Growth
India and Mexico see considerable potential to expand commercial cooperation by building on the complementary strengths of their economies.
Potential areas for collaboration include automotive manufacturing, chemicals, electronics, pharmaceuticals, agri-food products, energy, critical minerals, medical devices and advanced manufacturing.
Mexico’s connections with international production networks make it an important market for Indian exporters and investors. A preferential trade arrangement could create additional opportunities for businesses seeking to expand their international operations, subject to the final terms agreed by both governments.
The proposed agreement could also encourage closer cooperation between businesses, support investment flows and contribute to more diversified supply chains.
Mexican Business Mission to India Proposed for 2027
During the discussions, both delegations considered the possibility of organising a Mexican business mission to India in the first quarter of 2027.
The proposed visit would provide a platform for business-to-business meetings, help companies identify potential commercial partners and explore new investment opportunities. It could also strengthen connections between the productive sectors of the two countries.
Further progress will depend on the negotiations and the arrangements agreed upon by the participating governments.
A New Phase in India-Mexico Trade Relations
The launch of PTA negotiations marks an important development in India’s efforts to broaden its international economic partnerships.
For India and Mexico, the proposed agreement offers an opportunity to explore improved market access, strengthen business engagement and deepen cooperation across several industrial and commercial sectors.
As negotiations proceed, businesses in both countries will be watching for developments that could shape future trade and investment opportunities.
Source: Press Information Bureau (PIB), Government of India.
This report has been independently rewritten for IBG NEWS based on the supplied official press release. The proposed PTA remains under negotiation; its final provisions and benefits will depend on the outcome of discussions between the two countries.
