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Corporate Update

India And Mexico Begin Trade Talks To Shield Exports From Steep Tariffs

• By  Textile Excellence
• October 31, 2026

India and Mexico are getting down to business on a trade pact and Indian exporters have plenty at stake. The two countries have signed the Terms of Reference (ToR) to launch negotiations for a Preferential Trade Agreement (PTA), following Mexico's imposition of import duties of 5–50% on more than 1,400 product categories from countries without preferential trade arrangements.

Effective January 1, 2026, the tariffs threaten Indian exports ranging from automobiles and textiles to footwear, plastics, steel, chemicals and toys.

Commerce Secretary Rajesh Agrawal and Mexico's Undersecretary of Foreign Trade Luis Rosendo Gutiérrez Romano formalised the negotiations during Agrawal's visit to Mexico City.

India's merchandise exports to Mexico reached US$ 5.73 billion in FY26, with automobiles accounting for US$ 1.92 billion.

The proposed PTA will cover market access for goods, rules of origin, customs procedures, trade facilitation, technical barriers, trade remedies and dispute settlement. Both sides want to expand trade, attract investment and build stronger, more diversified supply chains.

The next step could be a Mexican business mission to India in the first quarter of 2027, opening doors for business-to-business meetings and fresh commercial opportunities.

The proposed PTA will cover market access for goods, rules of origin, customs procedures, trade facilitation, technical barriers, trade remedies and dispute settlement. Both sides want to expand trade, attract investment and build stronger, more diversified supply chains. The next step could be a Mexican business mission to India in the first quarter of 2027, opening doors for business-to-business meetings and fresh commercial opportunities.