India and Mexico Sign Terms of Reference to Begin Trade Deal Talks

India and Mexico have signed the Terms of Reference to start negotiations on a Preferential Trade Agreement aimed at creating new economic opportunities for both nations.

Key Details

The signing follows an earlier understanding reached between Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum during their meeting at the G7 Summit in Canada in June 2025. Commerce Secretary Rajesh Agrawal represented India during the signing, while Mexico's Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano participated on behalf of Secretary of Economy Marcelo Ebrard Casaubon.

Scope of Talks

The agreement sets the framework, scope, modalities, and roadmap for the upcoming talks. The negotiating areas cover market access for goods, rules of origin, customs procedures, trade facilitation, dispute settlement, sanitary measures, technical barriers to trade, and trade remedies. Both sides also discussed organizing a Mexican business mission to visit India in the first quarter of 2027 to boost business-to-business meetings and commercial ties.

Context

Trade agreements like Preferential Trade Agreements help countries reduce import duties and simplify customs rules to boost cross-border commerce and investment. Mexico serves as an important market for Indian exporters due to its strong connections to global supply chains and manufacturing sectors.