India-Mexico Trade Pact: Talks Begin After Terms Signed

India and Mexico signed the terms of reference for a preferential trade agreement (PTA) on 28 October, formally starting negotiations. Commerce Secretary Rajesh Agrawal signed for India and Luis Rosendo Gutiérrez Romano, Mexico’s Undersecretary of Foreign Trade, signed for Mexico, the Ministry of Commerce and Industry said. The aim is to protect Indian exporters from Mexico’s new tariffs, which reach up to 50% on goods from countries without a trade pact with it.

Cars, Textiles and Steel Face the Tariff

Indian goods that officials say are hit by the higher Mexican duties include automobiles, textiles, footwear, plastics, steel, chemicals and toys, according to IANS. The terms of reference set out the framework, scope and roadmap for talks on market access for goods, rules of origin, customs procedures, dispute settlement, food-safety and technical standards, and trade remedies, ANI reported. Priority sectors named include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals and medical devices.

Two-Way Trade Fell 9% Last Year

Bilateral trade was $7.83 billion in 2025-26, down 9.11% from $8.62 billion the year before. India’s exports to Mexico were $5.73 billion, almost flat, while imports from Mexico dropped 26.59% to $2.11 billion. Cars were the largest export line at $1.92 billion. Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum had agreed to deepen ties when they met at the G7 summit in Canada in June 2025. India began pressing for a PTA in December 2025, when Commerce Secretary Agrawal said it was the fastest route because a full free trade agreement would take much longer.

Mexican Business Mission Pencilled In for 2027

Agrawal was in Mexico City for a two-day visit and met Fernando Gonzalez Saiffe of Mexico’s foreign ministry and business leaders. The two sides discussed a Mexican business mission to India in the first quarter of 2027. No schedule of negotiating rounds or deadline for concluding the PTA has been announced. For other recent deals, see the India-New Zealand trade deal that took effect on 20 October and our explainer on the India-US trade deal, or browse Economy.

Source: PIB release, Ministry of Commerce and Industry. Also based on reporting by The Tribune (ANI) and Telangana Today (IANS).

Image: Telangana Today / IANS.