India-Mexico PTA Talks Begin to Avert 50% Export Tariffs

• India is pursuing a Preferential Trade Agreement (PTA) with Mexico to counter Mexico's planned tariff hike on Indian exports.
• Mexico plans to increase import tariffs from 5% to 50% on 1,455 products from non-FTA countries, including India, starting January 1, 2026.
• The tariff hike could impact approximately $2 billion in Indian exports, particularly in the auto, textiles, iron/steel, plastics, and leather/footwear sectors.
• A PTA is a limited, faster trade agreement offering immediate relief from high tariffs, unlike a full Free Trade Agreement (FTA) or Bilateral Trade Agreement (BTA).
• Discussions between India and Mexico have commenced, with technical-level talks underway since December 12, 2025, following India's official objection.

Why It Matters: India-Mexico PTA is vital to shield Indian exports from Mexico's impending 50% tariffs.