India-Mexico launch trade pact negotiations

New Delhi India and Mexico can unlock new avenues for economic growth, strengthen supply chains and contribute to a more dynamic global trading order, Commerce Secretary Rajesh Agrawal said on Tuesday as the two countries prepared to launch negotiations for a Preferential Trade Agreement (PTA). Agrawal arrived in Mexico City for a two-day official visit aimed at advancing bilateral trade and economic cooperation. The visit includes the signing of the Terms of Reference (ToR), formally launching negotiations for the proposed agreement. During the visit, Agrawal held discussions with Fernando Gonzalez Saiffe, Director General for Asia-Pacific at Mexico's Ministry of Foreign Affairs, on bilateral relations and opportunities for cooperation. He appreciated Mexico's interest in strengthening political exchanges and reiterated India's commitment to mutual growth and prosperity. The Embassy of India in Mexico, in partnership with the Indmex Council, also brought together Indian and Mexican businesses ahead of the launch of negotiations. Addressing business representatives, Agrawal highlighted the complementary strengths of the two economies, India's economic growth of around 7 per cent and the significant untapped potential for trade, investment and commercial partnerships. The proposed agreement comes as Indian exporters face tariffs of up to 50 per cent on several products under Mexico's recently introduced tariff regime. Officials said the negotiations aim to address trade concerns and protect Indian exports in the Mexican market. Key Indian export sectors expected to be covered include automobiles, textiles, footwear, plastics, steel, chemicals and toys. Official trade data showed that India's merchandise exports to Mexico stood at $5.73 billion in 2025-26. Automobiles accounted for the largest share, valued at $1.92 billion.