Proposed agreement seeks to leverage complementarities between two economies
Mexico and India have taken an important step towards strengthening their economic and trade relations with the signing of the Terms of Reference for negotiations on a Preferential Trade Agreement (PTA), which establish the framework, scope, modalities and roadmap for negotiations aimed at creating new economic opportunities for both countries, the Ministry of Commerce and Industry said on 28 Oct.
The signing formally launches negotiations for a mutually beneficial and balanced PTA, with the potential to expand bilateral trade, create business opportunities, enhance investment flows and contribute to resilient and diversified supply chains, it said.
The initiative follows the understanding reached between Prime Minister Narendra Modi and President Dr Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025, when the two leaders agreed to further strengthen and deepen the India-Mexico partnership.
During the visit of Commerce Secretary, Rajesh Agrawal, both delegations discussed bilateral relations and opportunities to expand trade and investment flows. The discussions were held with Mexico’s Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano, who participated on behalf of Secretary of Economy Marcelo Ebrard Casaubon.
The Terms of Reference cover key negotiating areas, including market access for goods, rules of origin, customs procedures and trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade and trade remedies.
The proposed agreement seeks to leverage the complementarities between the two economies and expand opportunities for Mexican products and businesses in the Indian market. With its strong linkages to global value chains, Mexico is an important market for Indian exporters and investors. Sectors with significant potential for cooperation include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing, among others.
The delegations also discussed various aspects of the bilateral economic agenda, identifying opportunities to deepen trade and investment relations, strengthen cooperation and foster closer ties between the productive sectors of both countries.
Both sides further discussed the possibility of organising a Mexican business mission to India during the first quarter of 2027. The proposed mission would facilitate business-to-business meetings, help identify commercial opportunities and strengthen commercial ties between the productive sectors of the two countries, the Ministry said. fiinews.com
