India, Mexico finalise terms of reference for trade pact, may sign soon
This story was originally published at 17:44 IST on 20 August 2026
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NEW DELHI - India and Mexico have finalised the terms of reference for a preferential trade agreement, and the two sides are likely to sign it very soon, a senior commerce ministry official said. The terms have been finalised and the two nations are trying to align the timeline to sign it, the official said on Thursday. "Once the timelines align, we will sign it in either of the countries," the official added.
Since it is a preferential agreement, the two countries will cover only limited chapters under the deal such as goods trade, market access, rules of origin, customs procedures and trade facilitation and remedies. The terms of reference for a trade deal is a formal roadmap that sets the boundaries, goals, scope and rules for economies before they start official trade agreement negotiations.
The two sides have been engaged for a trade agreement, especially after Mexico implemented steep import tariffs ranging from 5% to 50% on more than 1,400 products from non-free trade nations, including India, Brazil, China, South Korea, Russia, Indonesia and Thailand. These tariffs took effect on Jan. 1.
India's total trade with Mexico was to the tune of $7.83 billion in 2025-26 (Apr-Mar), with exports worth $5.73 billion and imports worth $2.11 billion. The proposed preferential trade agreement will shield Indian exports from Mexico's tariffs, a market New Delhi is keen to expand into. End
US$1 = INR 95.71
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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