Commerce Secretary Rajesh Agrawal is visiting Mexico City for two days to sign the Terms of Reference (ToR), establishing the framework for negotiations. His visit is part of a week-long trade mission that also includes Brussels. The proposed agreement is expected to focus on selected goods and provide preferential market access to Indian exporters, particularly in sectors affected by the higher duties.
India and Mexico will launch PTA negotiations this week to secure preferential market access for Indian exporters facing Mexican tariffs of up to 50 per cent on 1,463 product categories.
Bilateral trade reached $7.83 billion in FY26.
The proposed pact will focus on selected goods, while India advances trade talks with other partners, including Chile, Canada, the US and Mercosur.
“Arrived in Mexico City for a two-day visit to advance India-Mexico trade and economic ties,” Agrawal said in a post on X, adding that the visit would include the launch of PTA negotiations and discussions with the Mexican government and business community to deepen bilateral co-operation.
The tariff increases cover a broad range of products, including textiles and apparel, chemicals, footwear, automobiles and auto components, plastics, steel, household appliances, aluminium, toys, furniture, leather goods, paper and cardboard, motorcycles, trailers, glass and engineering goods, according to media reports.
India’s merchandise exports to Mexico reached $5.73 billion in fiscal year 2025-26 (FY26), while imports stood at approximately $2.1 billion, taking bilateral merchandise trade to around $7.83 billion.
Mexico’s tariff increases are linked to the Mexico Plan, launched in January 2025, which aims to increase domestic content in production chains by 15 per cent by 2030, revive local industries, create 1.5 million jobs and position the country among the world’s 10 largest economies by 2030.
Ahead of the negotiations, the Embassy of India in Mexico and the Indmex Council brought Indian and Mexican businesses together to discuss opportunities for trade, investment and commercial partnerships. Agrawal highlighted complementarities between the two economies, India’s growth of around 7 per cent and the potential to expand bilateral business ties.
Separately, Commerce and Industry Minister Piyush Goyal said Mexico was keen on an early harvest trade agreement. Speaking during a visit to the Netherlands, Goyal said India’s trade negotiations with Chile were nearing conclusion and discussions with Canada were making good progress. Talks with the South Africa-led Southern African Customs Union (SACU) had also begun after the two sides signed ToR in August. SACU comprises Botswana, Eswatini, Lesotho, Namibia and South Africa.
The proposed India-Mexico PTA is expected to establish a framework for improving market access for selected products and strengthening economic co-operation. Its eventual impact will depend on the products covered, the tariff concessions secured and the implementation of the agreement.
Fibre2Fashion News Desk (CG)
