India, Mexico launch negotiations for preferential trade agreement

Oil prices rose on Wednesday after Yemen’s Houthis reportedly targeted a major Saudi refinery, reviving concerns over Middle East supply disruptions. Brent crude climbed to $115.43 a barrel as diplomatic talks continued and OPEC+ prepared to review December output targets.

New Delhi: The government on Wednesday said India and Mexico have taken a decisive step towards a stronger economic partnership with the signing of the Terms of Reference (ToR) for a Preferential Trade Agreement (PTA) between the two nations.

Commerce Secretary Rajesh Agrawal and Luis Rosendo Gutierrez Romano, Mexico’s Undersecretary of Foreign Trade, formally launched the trade negotiations.

---

“Our shared ambition: expand trade, unlock investment, strengthen supply chains and create new opportunities for businesses in both countries,” the Department of Commerce said in a statement on X.

India and Mexico are ready to turn untapped potential into tangible prosperity through balanced, ambitious and mutually beneficial negotiations, the statement added.

The proposed India-Mexico trade agreement is expected to cover key Indian exports, including automobiles, textiles, footwear, plastics, steel, chemicals and toys, which face tariffs of up to 50 per cent under Mexico’s new tariff regime.

According to official trade data, India’s merchandise exports to Mexico stood at $5.73 billion in 2025-26, with automobiles accounting for the largest share at $1.92 billion.

The Commerce Secretary arrived in Mexico City for a two-day official visit to advance trade and economic ties. He held a fruitful discussion with Fernando Gonzalez Saiffe, Director General for Asia-Pacific, Secretaria de Relaciones Exteriores (SRE), on India-Mexico relations and opportunities to learn from each other through mutual cooperation, leveraging our respective strengths and advancements.

He appreciated Mexico’s keen interest in strengthening political exchanges and reaffirmed India’s shared commitment to mutual growth and prosperity.

Agrawal highlighted the strong complementarities between the two economies, India’s robust growth of around 7 per cent, and the vast untapped potential for trade, investment and business partnerships. The PTA offers an opportunity to unlock new avenues of economic cooperation, strengthen business linkages, and build bridges across the Pacific towards shared prosperity, he observed.

The Commerce Secretary also engaged with Indian and Mexican business leaders to explore opportunities, address challenges and deepen trade and investment ties.