India and Mexico Begin Preferential Trade Agreement Talks

India's trade engagement with Latin America moved a step ahead on 28 October 2026, when the two governments put their names to the Terms of Reference that formally open negotiations on a Preferential Trade Agreement (PTA) with Mexico. The signed document settles the framework, the coverage, the working methods and the roadmap that negotiators on both sides will follow.

What a preferential pact means

Under such an arrangement, two partners lower duties for each other on an agreed list of products instead of throwing their whole markets open at once. The Ministry of Commerce and Industry expects the proposed pact to raise two-way trade, open fresh business openings, pull in larger investment flows and make the supply chains that link the two economies steadier and more varied.

Where the decision came from

The initiative follows an understanding between Prime Minister Narendra Modi and Mexican President Dr Claudia Sheinbaum, reached when the two leaders met on the sidelines of the G7 Summit in Canada in June 2025 and agreed to deepen the partnership between their countries.

Who sat across the table

Commerce Secretary Rajesh Agrawal led the Indian delegation on the visit. The Mexican side was led by Luis Rosendo Gutierrez Romano, Undersecretary of Foreign Trade, who took part on behalf of Secretary of Economy Marcelo Ebrard Casaubon. The two delegations reviewed bilateral ties and listed the openings available for enlarging trade and investment between them.

Subjects the negotiations will cover

• Market access for goods, and rules of origin
• Customs procedures and trade facilitation
• Dispute settlement mechanisms
• Sanitary and phytosanitary measures
• Technical barriers to trade, and trade remedies

Sectors picked out as holding the greatest promise include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing. Because Mexico sits firmly inside global value chains, Indian exporters and investors treat it as an important market. The two sides also weighed the idea of a Mexican business mission travelling to India during the first quarter of 2027, which would arrange business-to-business meetings and help firms on both sides spot commercial openings.