India and Mexico may sign terms this week to open talks on preferential trade, as Mexico’s duties on imports from countries without trade agreements shape the negotiations’ economic stakes.
Hindustan Times and The National Bulletin reported that unnamed officials said the terms of reference are finalized and expected to be signed this week. The signing would formally begin negotiations for a preferential trade agreement. Neither government has publicly confirmed the timetable.
Hindustan Times also reported that Indian Commerce Secretary Rajesh Agrawal was visiting Mexico on a weeklong trade mission that included Brussels.
India’s Department of Commerce recorded $5.73 billion in merchandise exports to Mexico and $2.11 billion in imports during fiscal 2025-26, which ran from April 2025 through March 2026. Hindustan Times, citing government trade data, reported that automobiles were India’s largest export segment to Mexico, valued at $1.92 billion.
Mexico’s Economy Ministry said a change in import duties took effect Jan. 1, 2026, covering 1,463 tariff classifications in sectors including automobiles, textiles, apparel, steel, plastics and appliances. Some duties reach 50%, with the rate varying by product.
The ministry said coverage depends on whether a trading partner has a trade agreement with Mexico, and described the policy as not targeting any specific country. Mexico says the duties aim to safeguard about 350,000 jobs in strategic industries.
Under Plan México, the government’s 2030 goals include increasing domestic content in global value chains by 15% and adding 1.5 million jobs in specialized manufacturing and strategic sectors. Mexican importers of covered goods may face added costs as a possible effect of the duties; any effect on Indian exporters is unverified.
The terms of reference and any proposed product preferences have not been made public, and the signing timetable remains unconfirmed.
