India & Mexico Ink Trade Deal Talks

India and Mexico have officially launched negotiations for a Preferential Trade Agreement (PTA), marking a significant step towards strengthening their economic and trade relations. The agreement aims to create new economic opportunities by expanding bilateral commerce and boosting investment flows between the two nations.

The terms of reference for the PTA negotiations have been signed, outlining the framework and scope of discussions. These include market access for goods, rules of origin, customs procedures, and trade facilitation. Both countries see potential for cooperation in sectors such as automotive, pharmaceuticals, and advanced manufacturing.

Further enhancing commercial ties, a Mexican business mission is planned for the first quarter of 2027. This mission will facilitate business-to-business meetings and identify new opportunities. The PTA is crucial as Mexico has recently increased import tariffs on goods from countries without free trade agreements, including India.

Bilateral trade between India and Mexico was USD 7.83 billion in 2025-26, with India maintaining a trade surplus. India is a significant investor in Mexico, particularly in IT and pharmaceuticals, while Mexican companies like Cinepolis have a strong presence in India. The PTA is expected to help Indian exporters retain competitiveness and diversify trade amidst global uncertainties.