India–Mexico FTA talks begin amid looming tariff hikes
This development comes after Mexico announced that it would impose duties of up to 50% on imports from non-preferential trading partners, including India, from January 1 next year. “India has already agreed to a trade agreement with Mexico. The terms of reference may be finalized soon,” said an official who requested anonymity. According to the official, Mexico has reached out to India for an agreement to strengthen bilateral trade relations and initial talks have been held. The Terms of Reference determine the framework and scope of FTA negotiations.
Mutually Beneficial Solutions
India’s exports of goods to Mexico amounted to $5.75 billion in FY25, while imports amounted to $2.9 billion. Officials said the two sides were trying to find mutually beneficial solutions after Mexico called for unilateral increases in tariffs on many products.
Mexico had first submitted the proposal in September to support domestic production and reduce trade imbalances but later postponed it to August 2026 after concerns were raised by non-FTA partners including India and Mexican industry groups. However, the resubmission of the proposal on December 3 accelerated the legislative process.
In September, India sought special concessions to protect its exports from new tariffs, people familiar with the matter said. “The two sides are exploring mutually beneficial solutions in line with global trade rules,” the official said, adding that India reserves the right to take appropriate measures to protect the interests of its exporters. According to the official, Commerce Secretary Rajesh Agrawal held a meeting with Mexican Deputy Economy Minister Luis Rosendo on the issue and technical meetings are expected to be held soon.
“The detailed list of items covered has not yet been officially notified, but unilateral increases in MFN (most favored nation) tariffs without prior consultation are not in line with the spirit of our cooperative economic participation,” another official said. Exporters said the industry has been pushing for a trade agreement with Mexico for some time to take advantage of the United States-Mexico-Canada Agreement (USMCA).
