India and Mexico are preparing to formally begin negotiations for a Preferential Trade Agreement (PTA) aimed at improving trade relations and reducing import duties on selected products. The discussions are expected to move forward during Commerce Secretary Rajesh Agrawal’s two-day visit to Mexico City, which began on October 26, 2026.
Commerce and Industry Minister Piyush Goyal said Mexico is interested in reaching an early agreement that would allow both countries to lower trade barriers on certain goods without waiting for a wider trade deal.
The proposed agreement is expected to strengthen economic cooperation, improve market access and create new opportunities for businesses in both countries.
India and Mexico Move Towards New Trade Agreement
India and Mexico are taking steps to expand their bilateral trade relationship through a proposed Preferential Trade Agreement.
The two countries plan to establish a formal framework for negotiations by signing the Terms of Reference (ToR).
The document will outline the structure, objectives and areas of discussion for the upcoming trade negotiations.
The agreement will focus on identifying products for which India and Mexico can offer reduced or eliminated import duties.
This approach is intended to make selected goods more competitive and encourage trade between the two markets.
Mexico Seeks Early Agreement on Selected Goods
Commerce and Industry Minister Piyush Goyal said Mexico is interested in an early-harvest trade arrangement with India.
An early-harvest agreement allows countries to introduce tariff reductions on selected products before completing a broader trade agreement.
Such arrangements generally focus on goods where both countries are comfortable offering trade concessions.
This could allow Indian and Mexican businesses to benefit from lower import duties sooner rather than waiting for lengthy negotiations covering a wider range of products.
However, the specific goods that may receive tariff concessions have not yet been announced.
Commerce Secretary Rajesh Agrawal Visits Mexico City
Commerce Secretary Rajesh Agrawal arrived in Mexico City on October 26 for a two-day official visit aimed at strengthening trade and investment relations.
During the visit, he is scheduled to meet Mexican government representatives and members of the business community.
The discussions are expected to focus on improving bilateral economic cooperation and identifying opportunities for expanding trade.
The proposed signing of the Terms of Reference will provide the foundation for formal PTA negotiations.
The visit also reflects India’s efforts to strengthen commercial relationships with major economies in Latin America.
India and Chile Trade Agreement Nears Completion
Alongside the proposed Mexico agreement, India is also making progress in trade negotiations with Chile.
Piyush Goyal indicated that discussions with Chile have reached an advanced stage and that an agreement could be concluded soon.
The proposed arrangement is part of India’s wider efforts to strengthen trade partnerships with Latin American countries.
An agreement with Chile could create additional opportunities for Indian exporters and businesses seeking access to the region.
However, the government has not announced a final signing date.
India and Canada Trade Talks Make Progress
India is also continuing negotiations with Canada for a Comprehensive Economic Partnership Agreement (CEPA).
According to Goyal, the discussions have been progressing positively.
The sixth round of negotiations is expected to take place in early November 2026.
Both countries are aiming to complete the negotiations by the end of the year.
A comprehensive trade agreement could cover a broader range of economic activities, including trade in goods, services and investment-related cooperation, depending on the final terms.
India Explores Trade Opportunities With African Countries
India has also started trade discussions with the Southern African Customs Union (SACU).
The negotiations are at an early stage and may require more time before significant progress is achieved.
The Southern African Customs Union includes Botswana, Eswatini, Lesotho, Namibia and South Africa.
A potential agreement could help India expand its trade presence in southern Africa and strengthen commercial relationships with the region.
However, detailed negotiation timelines and proposed tariff concessions have not yet been announced.
India Looks to Expand Mercosur Trade Agreement
India is also considering ways to expand its existing preferential trade arrangement with Mercosur, the South American trading bloc.
Commerce Minister Piyush Goyal indicated that discussions could gain momentum through renewed engagement with Brazil under President Luiz Inácio Lula da Silva.
Mercosur is an important regional trading group, and expanding the agreement could provide additional market access for Indian exporters.
The discussions would focus on increasing trade opportunities by widening the scope of existing tariff preferences.
India Strengthens Global Trade Partnerships
India’s proposed trade negotiations with Mexico form part of a broader strategy to expand international trade relationships and improve access to overseas markets.
The government is pursuing discussions with several countries and regional trading groups, including Mexico, Chile, Canada, SACU and Mercosur.
These negotiations aim to reduce trade barriers, encourage investment and create new opportunities for exporters.
The proposed India-Mexico Preferential Trade Agreement could become an important step in strengthening economic relations between the two countries.
If both sides agree on an early-harvest arrangement, selected products could receive tariff benefits before a broader agreement is completed.
For now, the focus remains on establishing the negotiation framework and identifying areas where India and Mexico can offer mutually acceptable trade concessions.
