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Business
India, Mexico Finalise ToR for Preferential Trade Pact, Signing Soon
✍️ Business Standard
🗓 21 Aug 2026, 05:49 AM
👁 1
India and Mexico have agreed on the Terms of Reference for a new preferential trade agreement, with a signing ceremony slated for the near future.
New Delhi – The governments of India and Mexico have concluded the Terms of Reference (ToR) that will guide a forthcoming preferential trade agreement between the two nations. The ToR outlines the scope of negotiations, including tariff reductions, rules of origin and the sectors that will be covered, such as automotive parts, pharmaceuticals and agricultural products. Both ministries said the document provides a clear roadmap for the next phase of talks and will be presented to senior officials for final approval. A formal signing ceremony is expected to take place within the next few weeks, signalling a boost to bilateral trade that already exceeds $10 billion annually. Officials anticipate that the pact will deepen market access, create new export opportunities and support the broader strategic partnership between India and Mexico.
Mexico City – Trade officials from both countries have been working on the agreement for over a year, and the finalisation of the ToR marks a significant milestone in the process. While specific tariff schedules have not yet been disclosed, the ToR indicates that both sides aim to lower duties on a wide range of goods, thereby making imports cheaper for businesses and consumers. The agreement is also expected to include provisions on customs facilitation and dispute resolution, aligning with World Trade Organization standards. Analysts view the deal as part of India’s strategy to diversify its trade links beyond traditional partners.
The upcoming signing is likely to be attended by senior representatives from the Ministry of Commerce and Industry and Mexico’s Secretariat of Economy, underscoring the political commitment to deepen economic ties. The pact could serve as a template for future agreements with other Latin American economies, further integrating India into the region’s supply chains.
Mexico City – Trade officials from both countries have been working on the agreement for over a year, and the finalisation of the ToR marks a significant milestone in the process. While specific tariff schedules have not yet been disclosed, the ToR indicates that both sides aim to lower duties on a wide range of goods, thereby making imports cheaper for businesses and consumers. The agreement is also expected to include provisions on customs facilitation and dispute resolution, aligning with World Trade Organization standards. Analysts view the deal as part of India’s strategy to diversify its trade links beyond traditional partners.
The upcoming signing is likely to be attended by senior representatives from the Ministry of Commerce and Industry and Mexico’s Secretariat of Economy, underscoring the political commitment to deepen economic ties. The pact could serve as a template for future agreements with other Latin American economies, further integrating India into the region’s supply chains.