New Delhi [India], October 28 (ANI): India and Mexico have formally launched negotiations for a Preferential Trade Agreement (PTA), setting a framework to expand bilateral trade, attract investment and strengthen supply chains, as the two countries seek to deepen economic cooperation across key sectors.

The negotiations began with the signing of the Terms of Reference (ToR) by Commerce Secretary Rajesh Agrawal and Mexico's Undersecretary of Foreign Trade Luis Rosendo Gutierrez Romano, according to the Ministry of Commerce and Industry.

The ToR lays down the framework, scope, modalities and roadmap for negotiations. The proposed agreement aims to create new business opportunities and promote investment flows through balanced and mutually beneficial terms.

India and Mexico agreed to deepen their partnership following a meeting between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum on the sidelines of the G7 Summit in Canada in June 2025.

The negotiating framework covers 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 ministry said the proposed agreement would seek to use complementarities between the two economies and expand opportunities for Mexican products and businesses in the Indian market. Mexico's links with global value chains also make it an important market for Indian exporters and investors, it added.

Sectors identified for potential cooperation include automobiles, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices and advanced manufacturing.

The Indian and Mexican delegations also discussed opportunities to strengthen trade and investment ties and promote closer cooperation between businesses in both countries.

In a post on X, the Indian Embassy in Mexico said the signing marked "a decisive step towards a stronger economic partnership".

"Our shared ambition: expand trade, unlock investment, strengthen supply chains and create new opportunities for businesses in both countries," the embassy said.

The embassy added that both countries were ready to turn untapped potential into tangible economic benefits through "balanced, ambitious and mutually beneficial negotiations".

The two sides also discussed the possibility of organising a Mexican business mission to India in the first quarter of 2027. The proposed mission would facilitate business-to-business meetings, identify commercial opportunities and strengthen commercial ties between businesses in both countries.

The negotiations will now provide a framework for the two sides to work towards a preferential trade agreement and identify areas where closer economic engagement can translate into concrete business opportunities.

Bilateral trade data showed that India-Mexico trade stood at USD 7.83 billion in 2025-26, down 9.11 per cent from USD 8.62 billion in 2024-25. India's exports to Mexico declined marginally by 0.38 per cent to USD 5.73 billion, while imports fell 26.59 per cent to USD 2.11 billion. (ANI)