India and Mexico are set to formally launch negotiations for a bilateral preferential trade agreement (PTA) this week, The Hindu BusinessLine reported. Commerce Secretary Rajesh Agrawal is in Mexico City for a two-day visit to sign the Terms of Reference, which will formally set the framework for the negotiations.

Source: The Hindu BusinessLine

The talks seek to mitigate the impact of Mexico's higher import tariffs, of up to 50 per cent, imposed from January 1, 2026 on more than 1,400 products from countries without trade agreements, including India, BusinessLine reported. The increases cover 1,463 tariff classifications, with duties ranging from 5 per cent to 50 per cent.

The affected Indian sectors include automobiles and auto components, textiles and apparel, footwear, plastics, steel, chemicals, household appliances, aluminium, toys and engineering goods, with passenger vehicle duties rising to up to 50 per cent, BusinessLine reported.

India's merchandise exports to Mexico stood at $5.73 billion in 2025-26 — yaani 573 crore dollars — with automobiles accounting for about $1.92 billion, yaani 192 crore dollars. Total bilateral merchandise trade was around $7.83 billion, yaani 783 crore dollars, during the year, according to official trade data cited by BusinessLine.

Addressing Indian and Mexican business leaders ahead of the signing, Agrawal highlighted the complementarities between the two economies, India's robust growth of around 7 per cent and the untapped potential for trade and investment, IANS reported. He said the proposed PTA offered an opportunity to unlock new avenues of economic cooperation and build bridges across the Pacific.

Source: IANS

The proposed agreement is expected to cover a limited range of goods and help Indian exporters secure preferential market access to Mexico, BusinessLine reported. The Terms of Reference launch the negotiations; a final agreement has not yet been signed.