Business · Trade · 3 hrs ago
India and Mexico launch negotiations for a preferential trade agreement
India and Mexico have formally launched talks on a preferential trade agreement after signing a document setting out how negotiations will proceed.
The agreement is not yet a trade deal: its specific products, tariff benefits and completion date have not been announced.
Negotiators will discuss market access, customs rules and trade barriers, among other issues that shape how goods can be sold across borders.
The talks follow a 2025 understanding between Indian Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum to deepen ties.
In 2025, Mexico imported far more from India than it exported, with a trade deficit of $7.16 billion, according to Mexico’s central bank figures.
Both governments see potential in areas including vehicles, chemicals, electronics, pharmaceuticals, food, energy and critical minerals.
The delegations also discussed a possible Mexican business mission to India in early 2027; the next step is to negotiate concrete terms for access to each market.
India and Mexico signed Terms of Reference to formally launch negotiations for a preferential trade agreement.
The document sets out the scope, topics and roadmap for negotiations, but the agreement’s specific coverage and benefits remain undecided.
Negotiators will address market access for goods, rules of origin, customs procedures and other trade matters.
The countries identified potential cooperation in sectors including automotive, electronics, pharmaceuticals, energy and critical minerals.
The delegations also discussed the possibility of a Mexican business mission to India in the first quarter of 2027.
- Who
- The governments of India and Mexico.
- What
- They signed Terms of Reference to launch negotiations for a preferential trade agreement.
- When
- Wednesday, October 28, 2026.
- Where
- Not stated.
- Why
- To establish a framework for negotiations and expand trade, investment and business opportunities between the countries.
This story does not have two clearly opposing sides.
Prime Minister Narendra Modi and President Claudia Sheinbaum agreed to deepen the India-Mexico partnership during a meeting on the sidelines of the G7 Summit in Canada.
India and Mexico signed the Terms of Reference, formally launching negotiations for a preferential trade agreement.
The delegations discussed the possibility of a Mexican business mission to India.
- Negotiating document
- Terms of Reference
- Negotiating topics
- Market access for goods, rules of origin, customs procedures and trade facilitation
- Potential cooperation sectors
- Automotive, chemicals, electronics, pharmaceuticals, agri-food, energy and critical minerals
- Possible business mission
- Mexico to India, first quarter of 2027
- 2025 bilateral trade
- $11,099.1 million according to Banco de México figures cited by Expansión MX