The government said on Wednesday that India and Mexico had taken a decisive step towards strengthening their economic partnership by signing the Terms of Reference (ToR) for a Preferential Trade Agreement (PTA).

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

“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.

The department added that India and Mexico aimed to turn their untapped potential into tangible prosperity through balanced, ambitious and mutually beneficial negotiations.

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

Official trade data show that India’s merchandise exports to Mexico reached $5.73 billion in 2025-26, with automobiles accounting for the largest share at $1.92 billion.

Commerce Secretary Agrawal arrived in Mexico City for a two-day official visit to strengthen trade and economic ties between the two countries. During his visit, he held discussions with Fernando Gonzalez Saiffe, Director General for Asia-Pacific at Mexico’s Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, or SRE), on bilateral relations and opportunities for mutual learning and cooperation by leveraging their respective strengths and advancements.

Agrawal welcomed Mexico’s keen interest in expanding political exchanges and reaffirmed India’s commitment to mutual growth and prosperity.

He 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. He noted that the proposed PTA could open new avenues for economic cooperation, strengthen business ties and build stronger connections across the Pacific to promote shared prosperity.

The Commerce Secretary also met Indian and Mexican business leaders to explore new opportunities, address challenges and deepen trade and investment ties between the two countries.