Terms Signed as India-Mexico PTA Talks Take Off

India and Mexico have signed the Terms of Reference (ToR) for a Preferential Trade Agreement (PTA), formally opening the next phase of negotiations between the two countries. The move is seen as an important step toward giving fresh momentum to their economic relationship.

Commerce Secretary Rajesh Agrawal and Mexico's Deputy Minister for Foreign Trade, Luis Rosendo Gutierrez Romano, jointly launched the process. The Department of Commerce noted that the partnership aims to expand trade, attract investment, strengthen supply chains and create new business opportunities in both nations.

Government officials said India and Mexico will work to turn their largely untapped economic potential into real commercial activity and growth. The proposed agreement is intended to be balanced, forward-looking and beneficial for both sides.

The PTA could be especially advantageous for Indian exporters in sectors such as automobiles, textiles, footwear, plastics, steel, chemicals and toys. Currently, Mexico's revised tariff framework applies duties of up to 50 per cent on these products. Lower or eliminated tariffs under the agreement could offer Indian companies a substantial competitive edge.

According to official figures, India's goods exports to Mexico totalled 5.73 billion dollars in the financial year 2025-26. Automobiles led the way with 1.92 billion dollars in exports, pointing to the expanding scope of bilateral commerce.

Agrawal, who is on a two-day official visit to Mexico City, also met Fernando Gonzalez Saiffe, Director General for Asia-Pacific Affairs in Mexico's Ministry of Foreign Affairs. The discussions covered deeper cooperation, closer economic engagement and opportunities for mutual learning.

Agrawal observed that the two economies complement each other in several ways. He cited India's healthy economic expansion of around 7 per cent and said there is still immense potential in trade, investment and business partnerships. He added that the PTA would open new channels for cooperation, strengthen commercial relations and support shared prosperity in the Pacific region.

During the visit, the Commerce Secretary met representatives of Indian and Mexican industry. The meeting examined trade and investment prospects, challenges and future collaboration.