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India and Mexico sign Terms of Reference to begin Preferential Trade Agreement talks
খবরে কেন?
India-Mexico PTA talks begin: the tariff-list difference from an FTA that Prelims statements test
India and Mexico formally launch PTA negotiations after signing Terms of Reference.
Why it matters: general awareness
What you need to know
2 মিনিট
India and Mexico signed the Terms of Reference for negotiations on a Preferential Trade Agreement in Mexico City on 26 October 2026, formally launching the talks.
Commerce Secretary Rajesh Agrawal visited Mexico for the signing.
In a Preferential Trade Agreement, partners cut tariffs on an agreed list of products, which is a narrower arrangement than a free trade agreement.
সূত্র: Topper IAS editorial (PIB / The Hindu / Indian Express)
মূল তথ্য
Remember these
- India and Mexico signed the Terms of Reference for Preferential Trade Agreement (PTA) negotiations in Mexico City on 26 October 2026.
- Commerce Secretary Rajesh Agrawal visited Mexico for the signing.
- In a PTA, partners cut tariffs on an agreed list of products only.
- A free trade agreement is wider: it removes tariffs on substantially all trade between the partners.
- India already has PTAs such as the India-MERCOSUR PTA, which covers a limited list of products.
প্রিলিমস · মেইনস
How the exam will ask it
প্রিলিমস
- A Preferential Trade Agreement lowers or removes tariffs on a negotiated list of products, not on all goods.
- A PTA is a narrower arrangement than a free trade agreement, which covers substantially all trade between partners.
- Terms of Reference set the scope and framework of negotiations; signing them formally launches the talks but is not the trade agreement itself.
মেইনস
GS2 (international relations) and GS3 (external trade): India is diversifying export markets beyond traditional partners, and a PTA with Mexico is a low-commitment first step into Latin America. A limited tariff-cut list lets India protect sensitive sectors while gaining access for selected exports, but the gains depend on which product lines are covered. The way forward is to sequence the PTA towards deeper liberalisation while safeguarding domestic producers.
Quick recall
Answer before you reveal
With reference to trade agreements, consider the following statements:
- Under a Preferential Trade Agreement, partner countries reduce or remove tariffs on an agreed list of products.
- A Preferential Trade Agreement necessarily eliminates tariffs on substantially all trade between the partners.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
উত্তর দেখুন
উত্তর: A — The correct answer is 1 only. Statement 1 is right as a PTA covers a negotiated list of products, while statement 2 describes a free trade agreement.
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