New Delhi, 28 October (H.S.): India and Mexico on Wednesday formally launched negotiations for a Preferential Trade Agreement (PTA) aimed at expanding bilateral trade and promoting investment between the two countries. Representatives of both nations signed the Terms of Reference (ToR), establishing the framework for the proposed agreement.

The negotiations were jointly launched by India's Commerce Secretary Rajesh Agrawal and Mexico's Deputy Minister for Foreign Trade, Luis Rosendo Gutiérrez Romano. The Terms of Reference outline the broad framework for the proposed pact, covering key areas such as market access for goods, customs procedures and trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade, and trade remedies.

The framework also establishes the scope, modalities and roadmap for the negotiations, providing a structured basis for discussions aimed at creating new economic opportunities for both countries.

The ministry said the signing of the Terms of Reference had formally initiated negotiations for a mutually beneficial and balanced preferential trade agreement.

Mexico’s integration into global value chains makes it an important market for Indian exporters and investors, the ministry said. The two countries have considerable scope to expand cooperation in sectors such as automobiles, chemicals, electronics, pharmaceuticals, agriculture and food products, energy, critical minerals, medical devices and advanced manufacturing.

The two delegations also discussed the possibility of organising a Mexican business delegation’s visit to India in the first quarter of 2027. The proposed visit is expected to facilitate business-to-business meetings, identify commercial opportunities and strengthen ties between businesses in both countries.

Bilateral trade between India and Mexico declined by 9.11 per cent to USD 7.83 billion in the financial year 2025-26, compared with USD 8.61 billion in 2024-25.

During 2025-26, India’s exports to Mexico stood at USD 5.72 billion, while imports from the country amounted to USD 2.1 billion. India recorded a trade surplus of USD 3.62 billion during the year, up from USD 2.9 billion in the preceding financial year.

---------------

Hindusthan Samachar / Jun Sarkar