India-Mexico

The proposed agreement will cover market access, rules of origin, customs procedures and trade remedies as India looks to deepen its trade footprint in Latin America

Proposed pact will cover a limited set of areas, including trade in goods, market access and rules of origin, as India seeks to expand its footprint in Latin America

India has proposed a preferential trade agreement (PTA) with Mexico to help domestic exporters deal with the steep tariffs announced by the South American country, a top government official said on Monday. Mexico has decided to impose steep import tariffs - ranging from about 5 per cent to as high as 50 per cent on a wide range of goods (about 1,463 tariff lines) from countries that do not have free trade agreements with Mexico, including India, China, South Korea, Thailand and Indonesia. Commerce Secretary Rajesh Agrawal said that India has engaged with the country on the issue. "Technical level talks are on...The only fast way forward is to try to get a preferential trade agreement (PTA) because an FTA (free trade agreement) will take a lot of time. So we are trying to see what can be a good way forward," he told reporters here. While in an FTA two trading partners either significantly reduce or eliminate import duties on maximum number of goods traded between them, in a PTA, dut

Last week, Mexico approved a bill to raise tariffs on more than 1,400 imported goods from Asian countries, effective 1 January 2026

Domestic auto component manufacturers will face enhanced cost pressures with Mexico hiking duties on Indian imports, according to industry body ACMA. Auto parts exports to Mexico in FY25 stood at USD 834 million, and in the first half of the current fiscal, the shipments stood at USD 370 million. "Mexico's revised import duties on non-FTA partners, including India, could add cost pressures for our exporters," the Automotive Component Manufacturers Association of India (ACMA) Director General Vinnie Mehta told PTI. ACMA remains hopeful that ongoing bilateral dialogue between the two governments will ensure stability and continuity in the growing automotive trade, he added. India's auto component exports to Mexico largely comprise powertrain and driveline parts, precision forgings, chassis and brake systems, and key electrical and aftermarket products. There is a strong demand, especially for forgings and precision-machined components. Mexico's Senate approved the new tariff measure

The import duty on cars will rise to 50 per cent from 20 per cent, dealing a significant blow to India's largest vehicle exporters to Mexico including Volkswagen, Hyundai, Nissan and Maruti Suzuki

The tariff hikes will apply to imports from countries that do not have trade agreements with Mexico, such as China, India, South Korea, Thailand and Indonesia

During the meet, Finance minister commended the strong performance of the Mexican economy in the last six years following prudent fiscal policies

A total of 33 migrants were travelling in the truck at which two Mexican soldiers opened fire. Besides Indians, migrants from Egypt, Nepal, Cuba and Pakistan were also onboard

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External Affairs Minister S Jaishankar on Wednesday held "productive" discussions with his Mexican counterpart Marcelo Ebrard Casaubon with a focus on bilateral cooperation in areas of trade, investment and health. Casaubon is on a three-day visit to India. "Warm and productive discussions with Mexican FM @m_ebrard today evening. Discussed our growing trade and investment, health, science & technology and space sector cooperation," Jaishankar tweeted. Currently, Mexico is India's second-largest trade partner in Latin America and it is a member of the UN Security Council alongside India for the period 2021-22. The visit by the Mexican foreign minister to India follows Jaishankar's visit to Mexico City in September last year.

The Mexican government on Tuesday expressed gratitude towards India for the delivery of 870,000 Covid-19 vaccines to fight against the pandemic

Deputy Foreign Minister of Mexico Julian Ventura Valero is currently on a visit to India

Mexico has also extended support to India's International Solar Alliance initiative, which was launched at the Paris climate talks last year