India and Mexico formally launch preferential trade negotiations.
India and Mexico have officially kicked off their preferential trade negotiations by signing the Terms of Reference (ToR). The move formally launches a push to lower trade barriers on specific goods, expand market access, and diversify supply chains while deepening economic ties.
Commerce Secretary Rajesh Agrawal signed the ToR during a visit to Mexico City, setting the stage for what comes next.
Electronics are a big part of this story. It’s one of several sectors identified as having real potential for expanded trade, joining the likes of automobiles, chemicals, pharmaceuticals, and advanced manufacturing. Since Mexico is already plugged into North American manufacturing, that integration could open up wider doors for Indian exporters. The proposed agreement aims to cover everything from rules of origin and customs procedures to dispute settlement and technical trade barriers.
Rules of origin and customs procedures are particularly important for electronics manufacturers that are operating across international supply chains. Technical trade barriers will also have a significant impact on moving electronics products between the two markets. Actual benefits will depend on the negotiated provisions and the products covered by the agreement.
Commerce minister Piyush Goyal said Mexico is interested in an early harvest arrangement. An early harvest agreement is an interim arrangement that allows both countries to reduce or eliminate duties on selected goods before concluding a comprehensive trade agreement. This could accelerate tariff reductions on products where neither country has significant sensitivities. It would allow selected trade benefits to be implemented without waiting for the complete PTA.
