India and Mexico Sign Terms of Reference to Launch Preferential Trade Agreement Negotiations

Official Agreement Signed in Mexico

India and Mexico have officially signed the Terms of Reference (ToR) to initiate formal negotiations for a Preferential Trade Agreement (PTA). The formal signing took place in Mexico, following an earlier understanding reached between Indian Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum during their meeting on the sidelines of the G7 Summit in Canada in June 2025.

According to an official government release, the newly signed ToR establishes the essential framework, scope, modalities, and roadmap for the upcoming trade discussions. Both nations intend for the framework to foster new economic and commercial opportunities.

Scope and Key Negotiating Areas

The negotiations will cover several critical areas of bilateral trade. These include market access for goods, rules of origin, customs procedures, trade facilitation, dispute settlement, sanitary and phytosanitary measures, technical barriers to trade, and trade remedies.

Government statements highlight Mexico's strong linkages to global value chains, positioning the country as an important market for Indian exporters and investors. Potential sectors identified for enhanced cooperation include automotive, chemicals, electronics, pharmaceuticals, agri-food, energy, critical minerals, medical devices, and advanced manufacturing.

Delegation Talks and Future Proposals

During the signing event, the Indian delegation was represented by Commerce Secretary Rajesh Agrawal. He held discussions with Mexico’s Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez Romano, who participated on behalf of Secretary of Economy Marcelo Ebrard Casaubon.

In addition to outlining the trade talks, the officials discussed the possibility of organizing a Mexican business mission to visit India during the first quarter of 2027. This proposed mission is intended to facilitate business-to-business meetings, assist in identifying commercial opportunities, and strengthen ties between the productive sectors of both countries.

Practical Implications and Reader Verification

What Is Confirmed:

• India and Mexico have signed the Terms of Reference to begin PTA negotiations.
• The ToR framework covers market access, rules of origin, customs procedures, dispute settlement, and other regulatory domains.
• High-level representatives, including Commerce Secretary Rajesh Agrawal and Undersecretary Luis Rosendo Gutiérrez Romano, met to conduct the signing and discuss future commercial cooperation.
• A business mission from Mexico to India is under discussion for the first quarter of 2027.

What Remains Unknown:

• Specific tariff reductions, final product exclusion lists, and exact timelines for the conclusion of the PTA negotiations have not yet been determined.
• Formal implementation dates depend on the progression of the newly launched talks.

How to Verify: Readers can review the official context and announcements regarding Indian trade policy and bilateral agreements through official government press releases or by consulting the Ministry of Commerce and Industry portal. The original report can be read directly at [The Hindu](https://www.thehindu.com/business/Economy/india-and-mexico-sign-terms-of-reference-for-preferential-trade-agreement-negotiations-to-begin/article71635915.ece).