India-Mexico Launch Preferential Trade Agreement Talks, Eye Stronger Investment And Market Access

India and Mexico have commenced discussions aimed at establishing a Preferential Trade Agreement (PTA), as confirmed by the signing of the Terms of Reference during Commerce Secretary Rajesh Agrawal's visit to Mexico. This development signals a strategic move to bolster bilateral trade and investment between the two nations.

Under the proposed agreement, key areas of focus include market access for goods, rules of origin, customs procedures, and trade facilitation. Both countries are also keen on addressing sanitary and phytosanitary measures, technical trade obstacles, and the implementation of trade remedies. These discussions are part of a broader effort to establish a balanced agreement that promotes increased trade flows, encourages investment, and fosters the development of more resilient supply chains.

The initiative comes following high-level talks between Prime Minister Narendra Modi and President Claudia Sheinbaum at the G7 Summit in Canada in June 2025, where both leaders expressed a commitment to enhancing bilateral economic cooperation. During the PTA talks, Mexican Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano, representing Mexico's Secretary of Economy Marcelo Ebrard Casaubon, engaged in negotiations with Agrawal's delegation.

Bilateral trade between India and Mexico reached $8.74 billion in 2024, with India exporting goods worth $5.73 billion and importing goods valued at $3.01 billion, resulting in a trade surplus of $2.72 billion. Key sectors driving this trade include automobiles, chemicals, electronics, pharmaceuticals, agricultural products, energy, critical minerals, medical devices, and advanced manufacturing.

The Indian Directorate General of Commercial Intelligence and Statistics (DGCI&S) highlights these sectors as priority areas for further collaboration.

Mexico is viewed as a crucial hub for manufacturing and market access for Indian companies, offering significant opportunities in these priority sectors. A proposed step is the organization of a Mexican business delegation to India in the first quarter of 2027, aimed at facilitating business meetings and identifying potential investment opportunities in India.